A Major Indicator Suggests Canada’s Economy Is Heading To Recession – September 4, 2018,

According to a few key indicators, it appears that the Canadian economy is heading into a recession. According to an article on the Huffington Post which can be found by clicking the link below:

A Major Recession Indicator Suggests Canada’s Economy Risks Hitting ‘Brick Wall’

Is Canada heading for a recession in 2 years? I can’t argue with the data, I personally think the timeline makes sense based on my research but the wild card, in my opinion, isn’t necessarily a rise in interest rates, what may lead to a recession is NAFTA negotiations.

A recession at this point, in my opinion, would be the best case scenario what I think is going to happen is an economic collapse, that Canadians might be one of the first to experience. The Venezuelan economy has crashed, the Argentina economy has crashed and the Brazilian economy has crashed, one of the reasons why the Canadian and Mexican economies haven’t crashed is because of NAFTA. Canada has become extremely reliant on NAFTA and the problem with this is something that an article written on The Canadian Press pointed out which can be found by clicking the link below

Trudeau draws lines as NAFTA talks resume

which states the following:

Trudeau said Canadians will not sign onto a deal that does not include a dispute resolution mechanism and exemptions for cultural industries — two positions that were among the pillars of the original 1988 Canada-U.S. free trade deal.

In Ontario, we have 2 telecommunications companies called Rogers and Bell that if it weren’t for cultural industries exemptions would have died out or been forced to change or evolve years ago. It’s common knowledge in Canada that when given the opportunity American companies completely dominate their Canadian competitors. Why this happens is obvious to those of us who are fans of the free market, however, a large segment of the Canadian populace has been brainwashed into believing that protectionism is necessary for Canadian sovereignty.

So, for the most part, Canada is a corporatists nation, it should be pretty obvious by now and this is not just something the Liberals are guilty of propagating the Conservatives are just as bad also. In Canada, we accept this, as long as everything remains nice and bland Canadians have learned to accept corporatism, the problem, however, is that when a lot of these laws and rules were passed, nobody ever imagined that interest rates would remain near zero percent for over 8+ years.

In Canada debt has skyrocketed which under a Harper controlled government would have been okay. But and I keep having to remind my readers of this, Trudeau is running a deficit, Trudeau’s cabinet has increased the size of government. If you look at the job growth numbers a lot of that job growth is public sector job growth. Meanwhile, the private sector is shrinking and most of the private sector jobs being created are actually part-time jobs. Adding to this coming collapse are NAFTA renegotiations, possible tariffs, potential boycotts on Canadian goods and the very real reality that the economy as we know it today may in fact shift.

Canadians are in record levels of debt, one of the major problems with higher real estate prices is that the cost to start a brick and mortar business will go up, adding to this problem is that Trudeau has raised taxes to pay for public sector workers and also has attempted to change the tax code. That said Trump doesn’t appear to be backing down and the Canadian media seems to believe that Canada can win this trade war, which might happen? But Tariffs are a tool leftists love to use and there’s a very real possibility that the Democrats in the U.S will start to use tariffs in their platform. They might not even make it a central theme, they might simply include them to get those U.S farmers back into the Democratic party.

What this could equate to is an acceleration of a recession in Canada, which in my opinion could very well lead to a crash. One other thing I have to point out in all of this China. Trump’s tariffs on China will cause China to be more inclusive which could equate to less investment in Canada by China. we all know Hong Kong and the Chinese are heavily invested in Canada’s real estate market. There’s a lot of uncertainty headed Canada’s that will test our protectionist behavior. Buckle up Canada it’s going to be a bumpy ride.

Interesting times ahead.