It’s not like it’s Justin Trudeau’s Personal Money: Trudeau announces CERB will be extended by 8 weeks – June 16, 2020,
When you’re in business, eventually you learn that it’s good to be in an asset position of strength. The only thing the private sector fears in a free market society is nationalization. In Venezuela, the real reason the country went to hell, was because of their government nationalizing industries during a period of economic hardship.
One of the reasons in case you wondering why the uber-rich like to lend to bankrupt western nations is that there’s a potential to get asset from a country during a down economy. I think a lot of Canadians forget that Petro Canada used to be a crown corporation, it was sold off because not only was it inefficiently run, but the country was in financial hardships.
Knowing the difference between an asset and liability is extremely important, especially right now, because based on the actions of Trudeau’s cabinet the Canadian dollar domestically is going to have some serious problems.
Being that the U.S elections are coming soon and it seems like Joe Biden will be competitive, the U.S dollar might begin to slide, which will be bad for Canada for a whole bunch of reasons as the Canadian government spends and Canadian companies who import to the United States start to see their margins dwindle, if the Amerian economy begins seizing up all of sudden the cost to run the Canadian government just got higher, meaning domestic inflation in certain areas are going to start to really show themselves.
CERB has to be paid back, but the way I see it, it’s going to be paid back with devalued Canadian dollars an this is going to be painful when consumers who only have Canadian fiat dollar cash positions find that their Canadian Pesos buy less!
Interesting times ahead!