Cashflow Problems for the Canadian: Fitch expects Canada’s total government debt will rise to 115.1% of GDP in 2020 from 88.3% in 2019 – July 6, 2020,
Even the Leftist newspapers see the problem ahead for the Canadian economy and as I’ve written in previous posts, Canada isn’t alone on this debt time bomb waiting to explode, I actually think COVID-19 might be the beginning of the end of the Chinese Communist Party.
France with nearly 67 million people also has some huge challenges ahead, France reminds me a lot of Argentina, however, France has better infrastructure, Canada does remind me a bit like France, except that we have a serious real estate bubble and that’s what separates us in my opinion, because if let’s say the Bank of Canada goes negative interest rates, this will probably create things like 100-year amortization and will push up real estate prices even more.
Since the Chinese Communist Party basically annex Hong Kong, the Hong Kong economy ill probably be in free fall and a lot of Hong Kongers will probably move to Canada and push our real estate prices even higher, so the Canadian economy is going to look very weird, in easier to understand terminology the Canadian economy will, for the most part, benefit the rich.
It always amazes me that the poor vote in Liberals and the Liberals make them poorer. In America, Billionaire become normal after Barack Obama and the Federal Reserve bailed out Wall Street. To this day American Democrat voters talk about the Barack Obama years as if the lives of the poor got better, no actually the lives of the poor got worse, because Barack Obama didn’t allow the economy to deflate and similar to Justin Trudeau, Barack Obama’s response to economic turmoil was to spend money and burden the U.S economy with regulations.
Corporate Canada’s debt (both loans and debt securities) currently totals $2.7 trillion — or the equivalent of 118 per cent of the entire GDP, up from 85 per cent in 2008. This debt-to-GDP ratio is the third highest among G20 countries — behind only China and France — and the 11th highest in the world. By comparison, corporate debt in the U.S. is at $15.5 trillion (U.S.), amounting to 74 per cent of GDP.
How a growing corporate debt bomb is threatening Canada’s recovery from COVID-19 | thestar.com
Now, in Canada, it’s not so much of Justin Trudeau sending out checks, the problem as the article below points out are Trudeau’s economic policies, it doesn’t take a genius to figure out that domestic inflation is guaranteed and the barrier to entry to become a job created which will expand the income tax base of the country has been raised under Trudeau and this spells money printing and increased deficits.
Canada is known as a commodity-rich nation may also experience appreciation in our currency in the Forex markets, well, that’s not a good thing if we’re trading with America, it’s an even worse thing if Joe Biden is the next President of the United States.
Under Barack Obama, the Canadian dollar reached parity with the Greenback, and when this happened, Harper and the Bank of Canada had to do everything in their power to make the Canadian economy look like it was in a disaster, this is when I personally knew it was the beginning of the end for Stephen Harper.
Everyone in Canada knows economics is not Justin Trudeau’s strong point, I personally see Trudeau as a political puppet, because I personally believe he’s beyond ignorant about how the Canadian economy functions and therefore when his advisors advise him, he doesn’t question what they say, when Trudeau’s advisors tell him something, Trudeau goes out and makes a speech using the charm he mastered as a Drama teacher.
This doesn’t bode well, for Canada, whose GDP is worse than Americas, really think about that for a second, maybe after all the destruction ANTIFA caused to the U.S economy, things will change, but think about all what’s happened in America in recent months and Canada has a worse GDP in 2020 than America currently has. That should scare you! Nobody in Canada, for the most part, has burned down anything, our protests here have been peaceful in comparison to the United States, yet we found a way to be in more debt
Lastly, the point I really want to drive home is Trudeau’s economic policies, try not to focus on the covid-19 response, focus on the Canadian economy, when COVID-19 becomes known as an extreme case of the common flu. That Canadian economy should scare you because austerity measures are the only way to fix that and based on what I know about Canadians, austerity measures are unlikely.
What’s likely is domestic price inflation and if the forex value of the Canadian dollar rises Canadian businesses reliant on selling to America now have a serious made in America threat on their hands, Harper at the very least had wiggle room to lower interest rates, interest rates are now at 0.25%, where do we go 0% or negative? and will Trudeau risk reelection by removing the carbon tax? Unlikely!
Canada should focus on boosting the economy even as debt climbs: analysts | reuters.com
Interesting times ahead!