Canada is a Global Leader in Private and Public Debt, Let’s hope a Global Recession Never Happens – January 30, 2020,
So per person, Canada both on public and private scale is at record levels of debt, meanwhile in the United States, I don’t care what Fox News or CNN says, the reality that a Scoaislist could become President of the United States in 2020 or 2024 is starting to become a reality especially, now that Donald Trump, the deal maker has done for America that no one else ever could, which is basically making America’s economy competitive again.
Now, I like Donald Trump, however, he’s more financially savvy than the average human on this planet, what this means is that chances are his replacement, whether Republican or Democrat is going to have a difficult time interpreting, Trump’s style of politics into their economic agenda and this alone is going to spook the markets. On the political Left side of the American political system, there emerges a disheveled character that has the angry mannerisms of the traditional Marxist.
Do not over-look Bernie Sanders or who I thought would be the Democrat nominee Elizabeth Warren. These individuals symbolize a very real threat to the CANADIAN economy if elected. Now, the reality of the situation is that if Bernie Sanders is elected, chances are he’ll have a difficult time getting certain laws passed, but one of the laws, I’m almost certain Bernie Sanders will get passed is the raising of the Federal Minimum wage law.
Now, his moronic supporters don’t see the big deal with raising the FEDERAL minimum wages, but this one move will force all U.S businesses with employees to change or adjust how they pay their employees. Now, what’s hard for most people to understand is what else happens when the Government enacts a wage or Price control. Well, recently Trump passed the USMCA and in it Autoworkers I believe have to make at least $16 per hour or something silly like that. Well, if the Federal Minimum wage is $15 per hour, the average autoworker would want a pay raise also, furthermore because 16 per hour is a new MINIMUM Wage, all of the sudden Mexican labour looks a whole lot better at $16 per hour.
Furthermore, let’s say you’re a senior entry-level worker who prior to the $15 per hour minimum wage made $14.90, what happens when a newly hired 16-18-year-old employee makes the exact same amount of money as you do? You’re absolutely right the senior entry-level employee is going to have to make at least $15.50. But the recalculations of wages and prices is going to make the stock market at the very least retreat a bit. I’d argue a crash, but I’ll be a little bit optimistic.
Now, I get it, some people would assume that a Bernie Sanders Presidency would be good for Canada? Well, I don’t see how, because Canadas minimum wages in even the have-not provinces are in double digits and making matter worse is that Canada signed onto the carbon tax, plus the Canadian market is smaller and one of the unfortunate things about the USMCA is that Americans can now bring Canadian companies to court for unfair economic practices that we’ve been enjoying for years.
So, American companies would benefit very little by moving operations to Canada under President Bernie Sanders. What’s likely to happen if Bernie Sanders wins is an investor vacation, a pump, and dump stock market for the next 4 years just to torment the socialists. It’s important to understand that a President Sanders will be the following act to one of the most prosperous and entertaining Presidents for the U.S economy in U.S History.
Sure in the minds of the ignorant Bernie Sanders sounds refreshing, but to men like me, Bernie is spewing the same old socialist nonsense that’s spewed in France and all over Latin America, it’s boring, Bernie is boring, he lacks substance and with the exception of his Green New Deal which will be a welfare for Green Energy and Green Technologies he’s going to put the global economy in shambles.
Enough With The Bernie Sanders Rant, How does a downturn in the U.S Economy affect the Canadian economy?
What does a Bernie Sanders Precedency mean for the Canadian economy, possibly a crash or an economic collapse, because Canadian manufacturing is dwindling and at the very least the Green New Deal has an investment and infrastructure component to it that has a long term vision for America? Justin Trudeau’s Globalist Carbon tax scheme isn’t attracting anything, it’s not even benefiting the future engineers of Canada.
There is no infrastructure or planning to Trudeau’s Green Scheme, he’s essentially the Canadian Prime Minister that is saying we are phasing out Oil and we hope that somewhere down the line we will replace it with something else. Now, when I listen to Bernie Sanders and Alexandria Ocasio-Cortez there is a vision there.
Yes, their vision for the American future economy is stupid and doesn’t include the reality that in the United States Public Sector workers can unionize and drive prices up and even in Science as it stands today there exists no clean alternative to oil that would allow us to maintain our standard of living, but hey, at the very least Bernie Sanders has a vision. Bernie Sanders’s vision for the United States for their Green economy differs from Canada’s model which resembles the Carbon Pricing economic model that currently exists in France.
For the record, Macron is a socialist and even he sees that Austerity measures will be necessary in order to make his carbon strategy a reality. Now, in France I want it to be known that the use a lot of Nuclear energy, whether you agree with Nuclear energy or not, nuclear energy is clean. In Canada, where our climate I believe is colder than France, there’s this assumption that Solar and Wind will be enough power Canadian homes?
Now, in April it won’t be an April fools joke when Justin Trudeau’s price on carbon really starts to kick in and I want to remind the reader that the main reason the price of oil is so low revolves around Donald Trump’s toughness on the middle-east and also his policies remove regulations on U.S oil producers.
In the event, Bernie Sanders becomes President of the United States, the price of oil globally will skyrocket! This will hit Canada exceptionally hard and will confuse most Canadians as to why an oil-rich nation like Canada has skyrocketing gas prices, this will more than likely turn the 905 regions in Toronto against Trudeau, now, this will reach a boiling point for most Canadians probably in the year 2021 because it’s unlikely that Canadians will experience exceptionally high gas prices while Donald Trump is President, but all the disastrous policies of Trudeau will be exposed the moment Bernie Sanders becomes President and the financial sectors globally start to recalculate stock prices.
As valuations come down, lending starts to deflate. Valuations of things have a huge effect on lending, I remind readers interest rates are near zero and Canadians are at record levels of debt, as this relates to secure lending there’s not much that can be done to raise asset prices higher and as far as the unsecured lending goes, there’s limit on how much interest can be charged, plus when you’re talking about rising energy prices hitting the retail sector, consumers will lose their purchasing power which means fewer purchases to credit limits for consumers of credit cards and other financial products.
Again I have to remind the reader that it’s unlikely that Bernie will get to do everything he wants to do, but he will do somethings and the markets will be paying attention. You can assume there’s a boogie man out to get Bernie Sanders or Justin Trudeau if you want too, but the reality is fund managers have a fiduciary duty to people’s retirements to worry about, fund managers have the fiduciary duty to look out for the best interests of their clients and until Bernie Sanders is able to articulate his economic vision for the U.S economy, coherently, the stock market will be on edge.
Now, because Canada has so much debt, it’s important that we’re able to service that debt, in the event we can’t service the debt, because oh, I don’t know maybe retail prices for consumers all over the Canadian economy are skyrocketing because of carbon taxes, higher energy prices because of America’s new and first socialist president, then well, there could be some challenging times for the Canadian economy. I’d rather not sound all doom and gloom, so I’ll end by saying consider reading the articles below and hope for the best!
Interesting times ahead!