Why the Canadian economy seems divorced from traditional signals – May 31, 2019,

An article written by Don Pettis, details what he believes is the cause of the weird Canadian economy. My personal opinion is this, Crown Corporations, unnecessary Bank of Canada rate cuts and a growing public sector is the main culprit of the weird Canadian economy. Canadians wages were artificially ballooned in the 1990s and unfortunately for us Canadians unlike America where Income taxes are the usually the main targets of taxation, Canada didn’t only raise income taxes, Canada also increased regressive taxes, there’s even a carbon tax now.

Now, the reality is that our manipulation of currency, our lower loonie is the main reason why we’re able to pump a profit out of our economy, but unfortunately, we’re in a very bad situation, that luckily for our politicians will get exposed when the inevitable world recession or market crash hit us in our face. Canada’s worse fear at this time is a deflationary market correction because a lot of prices in Canada are artificially high because our currency is artificially low to pay for our ballooned public workforce.

It’s hard for a Government to go bankrupt or I should say it’s hard for a government to admit that it’s bankrupt and when there’s deflation in the economy, government workers don’t get fired nor do they get a pay cut, so again if there’s a decline in the Canadian economy or deflationary global pressures on the market, Canada is in a world of trouble. Just something the reader should think about

Why the Canadian economy seems divorced from traditional signals: Don Pittis – CBC

Interesting times ahead