Happy Canada Day: 🇨🇦 Canadian Dollar Ends June as Best-Performing Currency In The G-10 – Could The Debt Theory Be True? – July 1, 2023,
Household debt in Canada is now the highest of any G7 country, and one has to wonder if that’s leading to Canada becoming an investment hub. There are certain things that consumers have to buy, and if you’re a savvy investor, you’d put yourself in a position to profit off of this.
On the consumer end, you have to wonder if people are dipping into their savings or assets, which could be denominated in foreign currencies, to pay for their CANADIAN debts.
Canadian major banks are considered the best in the world and appear to be able to lend money even as interest rates continue to rise. My position regarding Canada has always been that I imagine the Canadian economy eventually coming to a screeching halt, which will differ from other nations because of how the Canadian economy is structured.
New Zealand at one point had to end its Supply Management ideals for market-friendly trade, because, unlike Canada, New Zealand does NOT border with the United States.
Canada’s number one trading partner allows Canada to get away with communist initiatives that most countries can’t get away with. Mexico, which also borders with the United States, has a long history of being anti-capitalist, which is why the Canadian DOLLAR does much better than the Mexican Peso.
a strong currency allows politicians to make promises that countries with weak currencies can not deliver on. The problem with these Big Government regulations on productivity is that, eventually, it they catch up to you.
Because PRICE CONTROLS are often built into pricing the people who trade on the forex markets often see trends that most people have a hard time interpreting.
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The trend that should be apparent about Canada is that consumer price inflation is here to stay, and unless austerity becomes a reality, the DOMESTIC purchasing power of the Canadian dollar is going to continue to decline, which is a GOOD thing for the foreign exchange markets, because it equates to the Canadian dollar has more purchasing power OUTSIDE of Canada, while at the same time having weaker purchasing inside of Canada.
So if let’s say you’re living in a country with a lower COST OF LIVING, you’d be able to purchase more using the Canadian dollar outside of Canada than you can inside, so you could see how savvy investors can play both sides of this trade.
Canadian banks are rather liquid in compassion to other banks, so again, you see the opportunity, now sure this race to the bottom has a recession and possibly depression for the Canadian economy written all over it, but if this is a gradual decline, why not make some PROFIT in the meantime?
The current Prime minister of Canada, who the Canadian people voted for, Justin Trudeau, has a tax and regulate agenda, which results in higher operating costs for the Canadian Federal Government.
Obviously, the Bank of Canada comprehends that Justin Trudeau’s agenda in the marketplace is a disaster which has led to it raising rates, to attract capital, and again being that Canada’s largest trading partner is the U.S. you can see why a savvy investor would see opportunity
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Interesting times ahead!