The Canadian Dollar could be on a long term decline, prepare yourself accordingly – February 24, 2020,

The Global economy appears to have caught the Coronavirus and what this means is that more money is going to go into Gold and U.S dollars. Gold is already reaching unaffordable prices in every currency except for the U.S dollar, however, higher Gold Prices are now starting to creep up on the U.S dollar, which equates to Canada having a host of problems as the global economy slows.

Canada’s heavily reliant on trade with the U.S and being that the Canadian energy sector is going to be going into free fall the Canadian dollar has the potentiality of being sold off as a currency to hoard your wealth. Sure Canada can goose its real estate market some more, but wages in Canada are stagnant and there’s only so much wage appreciation Canada’s private sector can handle before it really starts to push consumer prices up.

Adding to this impending doom is Trudeau’s carbon tax which will come into effect April 1st, this will make energy costs for businesses more expensive in Canada and being that pipelines aren’t being built, trains, trucks, property plant and equipment will see a government-enforced price uptick in the price for energy.

In the past, Canada could navigate through recessions via energy derived expansions, but that doesn’t appear to be the reality under the Trudeau regime. What this means ultimately is more than likely a decline of the Canadian dollar. Now, the stock market continues to show signs that it’s very sick and if this continues, the likely outcome will be a flight to U.S dollars.

This coronavirus outbreak has shown the world that China is not ready to have the world’s reserve currency, nor is China suited to have the world’s biggest economy, at least not in the near term. Furthermore, there is also the potentiality that Bernie Sanders could be the next President of the United States, whether you like Bernie or not, his economic policies are novel for the U.S economy and most likely investment will dry up, which again is bad for the Canadian economy. Bernie has a Green New Deal, Canada has Carbon taxes, Bernies Green new deal revolves around building green infrastructure, Canada’s carbon tax is based on forcing businesses to pay for polluting, with the money collected by the Canadian government redistributed to areas of the economy, I’m uncertain about.

This Justin Trudeau leadership can equate to a low loonie, so prepare yourselves accordingly!

Intersting times ahead!