Canada’s Coming Domestic Inflation Problem: Gas prices increasing as price of oil remains below $50 a barrel – July 5, 2020,
A few things I personally expect to happen in Canada, which will probably hit most Canadians by surprise. The first is going to be a spike in Real estate prices in Canada, yes I said I a spike in real estate prices, why? Because what Justin Trudeau has actually done in my opinion is lowered the value of the Canadian dollar with not only the borrowing and the printing of money via the Bank of Canada, but also his regulations on Canadian businesses which aren’t friendly to the Private Sector.
I also like to point out that China has officially annexed Hong Kong and not every person in Hong Kong wants to stay and fight, some are leaving, some have already left and East Asians are known for their discipline to work hard and save money and for many of them, the Canadian housing market is cheap, affordable and worth it based on what they’d have to go through living under the rule of the Chinese Communist Party.
Sticking to the Carbon Tax talking point, an improving economy equates to a rising price in oil, oil is mostly priced in U.S dollars, it’s no secret that Canada’s oil patch is in trouble and Justin Trudeau has no plans to bail it out or create an environment that helps the oil patch to recover.
What this ultimately leads to is the potentiality of bankruptcies not only in Canada’s oil patch but small and midsized businesses reliant on the oil patch. Bankruptcies of course mean fewer tax dollars are collected and more of the public sector bills are paid for by printing money.
Markets can excuse the government paying bills with money created out of thin air for a little while, but productivity is productivity, if Canada as an example had a gold standard currency, we couldn’t hide the economic disasters created by Justin Trudeau, however, under a fiat money system, we can hide it and by hiding it I mean I expect there to be domestic inflation in prices.
Record debts come due for Canadian oil patch after five years of crisis | TheHill
I have to be honest when I say that I don’t know what the Canadian dollar will do on the forex markets, the Canadian dollar might go up, Canada isn’t the only county with economic problems, post COVID-19, the problem with Canada is our unfriendly business climate to businesses and our gigantic public sector which will get a whole lot bigger if more and more private companies start to go bankrupt.
It’s always important to remember that the Government usually goes bankrupt last and when a lot of people within a country believe in Socialism, austerity measures are usually out of the question. With all of established, Trudeau’s globalist promises to in financial terms create inflation via Government spending and tougher regulations, I’m not sure how much more the Canadian economy can take.
Making matters worse, President Joe Biden could be the reality by the end of the year, the best thing that could have ever happened to Justin Trudeau was Donald Trump. Trump brought back the U.S economy and if Biden is the next President of the United States, well chances are the U.S economy will stagnate, in fact, and this is why I tell Canadians don’t pay attention to the forex markets, President Joe Biden could push the value of the Canadian dollar higher and Joe Biden will definitely be a good thing for the price of Oil.
Donald Trump is the real reason the price of oil is so low now, the Canadian oil companies that can hold on, may benefit from Joe Biden who has made a lot of climate change promises to his voters. OPEC countries will get back to their old tricks under Joe Biden, and in my opinion, this means higher oil prices, the Canadian dollar is still a petrodollar, and until word spreads that the oil and gas sector in Canada is completely dead, money will come to Canada, as the price of oil appreciates.
Ok, with the above established, higher oil prices mean a higher cost of living, let’s not forget the carbon tax, which is one of the reasons why Oil prices are going up in Alberta right now. Jason Kenney has his limitations, Jason Kenney can only do so much and this is part of the reason I brought up Hong Kong is this article because all of these factors are going to create an interesting EXPENSIVE dynamic for the average Canadian, that only the savvy investors will understand and know how to navigate!
Gas prices increasing as price of oil remains below $50 a barrel | edmontonjournal.com
Interesting times ahead!