Canadian debt delinquencies to rise as ‘credit fatigue’ sets in: Equifax – June 29, 2018
Until Justin Trudeau, I honestly didn’t think the Canadian economy would crash. Until the inner socialist in Stephen Harper came out my assumption was that the Canadian economy would eventually come to a grinding halt. Unfortunately, Canadians hired Justin Trudeau who intentionally ran a deficit while Canadian consumers were in record levels of debt. A large number of Canadians that don’t qualify for a loan wish they could, so they could pay off their existing loans or to purchase something they can’t afford based on their current incomes.
For someone like me, it’s the type of thinking the average Canadian engages in is what concerns me. We’re an entitled group of people. If American was to the south of our borders, the entitlements we enjoy today would have to be altered. The truth is if America wasn’t our biggest trading partner we probably wouldn’t be as socialist as we are, because, for 1, we’d have to spend more on military spending, 2 although Trump plans to charge us tariffs chances are we’d probably be used to paying large tariffs by now, 3 the companies that are in Canada would be more focused on Canadian consumers and 4 our socialist tendencies would have an immediate impact on our economy.
I’ve been saying this for months if you look at the numbers, I recommend you do, the market is overvaluing the Canadian economy. The best thing Justin Trudeau did as Prime minister to date has spread the news the Marijuana is legal in Canada. Of course, those of us living in Canada know the regulations attached to this industry that will only benefit the very big companies, but admit it conservatives reading this post. Marijuana legal in Canada sounds good on the global market. So the market is anticipating a boom in the Canadian economy, which I expect too because Trudeau’s Tariffs are about to kick in which is going to raise the cost of living, furthermore, this will put added pressure on the BoC which puts pressure on the credit market which leads to – Canadian debt delinquencies to rise as ‘credit fatigue’ sets in: Equifax. Click the link below to go to the original article
https://www.huffingtonpost.ca/2018/06/28/debt-delinquencies-canada-equifax_a_23470391/ – Canadian debt delinquencies to rise as ‘credit fatigue’ sets in: Equifax
In my personal opinion, it would be far better for the Canadian economy to crash now before our manufacturing sector becomes extremely small. In the 1990’s when I was coming of age when NAFTA was signed Canadian companies wanted to go to Mexico, what stopped them from going, for the most part, were unskilled Mexican workers, the Mexican workers had never seen or operated a high tech factory, my fear for Canada is that when factories leave Canada, a large number of Canadians would have never been inside a factory and therefore would have lot their abilities to manufacture. This obviously doesn’t apply to all Canadians, but it could apply to a large segment of our population if manufacturing jobs continue to be replaced by service sector jobs.
The thinking that goes along with a service sector economy is something to be fearful of, this is what causes poverty. In Venezuela it’s not even so much the socialist policies it’s what happened to the thinking of the population. The people started to rely solely on the government, the people started to look down at the people doing the labour intensive jobs, the people came to expect the government to solve all problems, the people looked at big companies as the only entity to blame, the people assumed their way of thinking was the purest form of thinking, they people didn’t even know how to combat the problem and this inevitably led to the destruction of their nation.
Now in Canada it’s not that I think we’ll end up like Venezuela, but money, as I like to remind my readers, is nothing more than a form of barter. If people get used to getting something for nothing, they’ll forget how and why our nation is so rich. Lastly, what a lot of Canadians don’t understand about money is that once creditors don’t want to loan you money anymore the fractional reserve banking system we enjoy today falls, meaning any money you think you have in the bank might not really be there for you to take out when a crash occurs. Canada is the rare country that’s almost never experienced a Bank Holiday. A bank holiday sounds nice, but in the economic world, a Bank Holiday is a day where people can’t get their money out of a bank! the bank is closed until further notice. Sure Canadians have deposit insurance up to C$100,000 but what good is that C$100,000 if the Loonie is severely devalued by an economic crash?
Interesting times ahead.
