U.S economic crisis? Canadian numbers look worse, BoC pumps $7 Billion, expands bond buy-backs – March 13, 2020
So yeah, just a quick notice to anyone who genuinely believes America is in worst shape than almost every single Western Nation on earth, I’m sorry, it’s simply not true if you believe the American economy is in worse shape than the Canadian economy, it’s probably because you don’t have the time to read Canadian news. If it weren’t for America, the Canadian government as an example would have no excuses for their incompetence, thank God Trump has a loud mouth and draws a lot of attention to himself, otherwise countries like Canada and I’m sure many other Western countries would clearly be shown to be on the downward swing, not only is the Canadian dollar dropping, but the Bank of Canada is already OPENLY pumping money into bond buybacks.
Bank of Canada pumps $7B, expands bond buy-backs to ease economic concerns | NationalPost.com
Now, as soon as the Bank of Canada does this, well, well, well, look what we have here, in the morning of March 13, 2020, Canada’s main stock index goes up 400 points?
Canada’s main stock index was up more than 400 points in early trading, but off its highs of the day, as investors shook off the fear that sent stocks down Thursday. | FinancialPost.com
Stocks open sharply higher on Wall Street a day after market’s worst fall since 1987; Dow surges 1,200 points, or 5.8%
Now, it’s the morning of March 13, 2020, when I’m writing this so I’m not sure if the week will end on a positive note, but clearly, most of the people getting into the market may have gotten a little push to do so. The public sectors in the western world are too large, what makes the United States different from countries like Canada is their presence all over the globe.
I’m not the biggest fan of the U.S military all over the world, but if you’re wondering why the U.S dollar is safe haven, that could be a reason why and this is one of the reasons, why under reasonable terms, the American public sector continues to get bailed out. If your countries military presence is a no show or a non-factor on the Global stage, there is absolutely no reason for angel investors to bail you out.
Now, the American, political machine has just started and if there is any indication that Joe Biden or Bernie Sanders will win the 2020 Presidency, that will be the straw that breaks the camels back. Obviously, the markets don’t want to ee Bernie Sanders President but don’t sleep on Jimmy Carter, sorry I mean don’t sleep on Joe Biden, who might be worse than Sanders could ever be.
Because at the very least if Bernie Sanders wins, he’s an idiot everybody can see coming, Joe Biden on the other hand, people actually trust him to do the right thing, the hope of the market, of course, will be that Joe Biden lies to all of his ignorant voters, but I’m sure he’ll do something moronic. With that said, a Donald Trump 2020 win is being priced into the U.S Stock market and the truth of the matter is nobody around the world is ready or prepared to dump the U.S dollar.
Switzerland, the U.K and the Eurozone can not hold this world together, so if you’re a country like Canada, Australia or even Iceland, you’d be wise to reconsider growing the size of your government in the coming years, because there’s a huge bubble that will need to be renegotiated and this debt renegotiation, will revolve around the restructuring of the public sectors all over the world.
The problem is the cost of living when debt is restructured, the cost of borrowing will go up, public sectors all over the world be warned, it’s coming, if you don’t believe it’s coming you’d be wise to buy Gold and I don’t mean buy Gold Stocks because if you believe there will be a new global Gold Standard, you’d be an idiot to think the economies of the world aren’t going nationalize gold mining companies if this world decides to bring back a gold standard.
Even if you know what’s happening, try and comprehend that most people don’t, most people don’t care at all how money is valued, they just want access to it, and this is why it should be obvious that a debt restructuring is in the works as we speak. Debt restructuring again means interest rates go up to combat rising deflating currencies and rising asset prices. Now, rising asset prices don’t mean companies or individuals in debt will see their assets rise, no it’s the opposite, the savers who were losing, the people flush with cash SHOULD be the beneficiaries of the purchasing power.
If a country as an example has a huge public sector that needs to be fed, those countries are going to experience, some serious financial hardships. In my personal opinion based on the metrics, I’ve tested, Canada is in way worse shape than the United States, there’s a possibility the Canadian dollar can rebound, but I don’t see it, I actually didn’t see the need for the Bank of Canada to step in, because when it comes to responsible Canadian companies all they have to do is ride this thing out.
In Canadian dollar terms, if you can simply ride this period out, there is actually little the Canadian government can do to stop your stock prices from rising. The problem isn’t Canada’s private sector, the problem is the Canadian government, I’ve never thought Stephen Poloz a smart man, but lucky for him Justin Trudeau’s cabinet is a lot dumber. I’m sure when things start to get really bad in Canada, the Trudeau cabinet will try to point blame at Donald Trump, but it really won’t matter, judgment day is coming and this time as far as Canada goes, it will be abundantly clear that the Canadian government caused it.
If you’re an investor in the Canadian economy, there are many opportunities for you, just make sure you familiarize yourself with the financial statements, avoid retail industries which the Canadian government might try to demonize during an economic downturn. As per usual the Government will try to shift blame, I’m sure when Trudeau’s cabinet points blame at Trump, his followers will believe him, but it really doesn’t matter, they’re not going to matter, the coming economic challenges for the Canadian economy will economic, not social, social unrest in Canada will come from the tapped out Canadian consumer, who may have spent their last overleveraged, debt penny during this coronavirus pandemic! Yes, my dear reader, it’s really that bad!
Coronavirus:Morneau urges Canadians to keep investing as TSX posts worst day ever | GlobalNews.ca
Interesting times ahead!