Liberal Party of Canada Sounding Like a Latin American Socialist Party, Canada’s fiscal future is “foggy.” new C.D. Howe report warns – October 20, 2020,
We’re near the U.S Presidential election and Canada’s mainstream media prefers Joe Biden. I actually think Joe Biden is worse for Canada than Donald Trump could ever be. I personally think Donald Trump saved Justin Trudeau, because of the economic boom that happened in America, Canadian exports to the United States have benefited greatly, this isn’t guaranteed to continue if Joe Biden wins in 2020.
It’s not so much that Joe Biden is planning on raising taxes, the problem will be Joe Biden and Harris adding more regulations. Joe Biden’s position on key economic issues is still unclear, although the Left likes to say Donald Trump lies, Trump doesn’t lie about the economy, Trump tends to lie about hat his opposition says and writes about him, Joe Biden on the other hand lies about the economy and that won’t be good for the markets or Canada if Joe Biden wins the 2020 election.
That aside a weak U.S economy exposes Justin Trudeau’s bad economic policies because if the U.S economy is stagnant and Canada’s public and private sectors are in record levels of debt, servicing that debt with tax dollars will be impossible, if Joe Biden becomes President of the United States, I would assume that negative interest rates in Canada are inevitable, because I know if Joe Biden wins, the U.S dollar will start retreating and the Canadian dollar will start rising.
When the U.S economy is weak or perceived to be overly regulated, people tend to prefer keeping their money in their local currency, similar to when Obama was in power, Canada like many other countries will have to find a way to devalue and debase their currencies, debasing the Canadian dollar at this point is inevitable, the problem is that Canada has so much debt that hopes of any inflation to the Canadian economy is unlikely if Joe Biden is the leader of the free world.
I suspect, Canada initially will do what it’s always done when the U.S economy is weak which is manipulate our currency, the problem is that, devaluing the Canadian dollar comes with a price this time around and prices in Canada will start to rise in a manner that the Canadian government can’t control because this time the inflation will be coming via debasement and the reality that Canada can’t pay its bills.
How the economy works in simple terms is that an overly regulated economy works until the private sector shrinks to a level that makes the government above 50% of economic output. Canada is far beyond that number right now, if you include Crown Corporations, the Canadian government is around 55% of the Canadian economy, now in America, their government is huge also bt the U.S military is exported globally thereby creating a demand for the U.S dollar.
In Canada, our wasteful spending isn’t exported it’s domestically centered and we’ve therefore entered into an era of forced austerity. Now, I highly doubt that Canadians are going to realize the disaster heading their way, these things kind of creep up on you, but when I listen to the Liberal Party of Canada defend itself from its overt corruption, it really reminds me of the corrupt socialist political partys in Latin America.
All the signs are there, Canada is in bad economic shape
Interesting times ahead!