The Problem with Canada’s Debt Levels during the COVID-19 outbreak – March 25, 2020,

I’ll do my absolute best not to make this post sound 100% doom and gloom, however, via Justin Trudeau, Canada has reached the breaking break and this is was the main reason why I’ve stated time and time again that the problem with an economic downturn in Canada is that in order to reverse it we’ll need austerity measures. Canada doesn’t have the luxury of the United States, which is a consumer-led economy.

Canada has a protectionist economy, although I’m not against Tariffs to protect jobs, I am against tariffs if consumers and business people are also being bombarded with a host of other regressive taxes. Domestically all over Canada, we have a price control called the Rent Control, I’ve said over and very again this municipal law combined with the Crown Corporation known as the CMHC is a disaster waiting to happen.

Well, although Landlords may be starting to panic and possibly requiring a bailout, this will put a lot of pressure on the Canadian dollar as well as future rental prices in Canada.

‘Starting to panic’: Landlords fear they won’t be helped if tenants don’t pay rent amid COVID-19 | CBC

You can’t pay you bills without a job, now the reason why I’m against a minimum wage is that this high barrier to entry into Canada’s job market, is extremely problematic when there’s an economic downturn and more companies start laying off people. In Greece and in Italy the Minimum wage law has had a devastating effect on their economy, even migrant workers who usually come to a developed country to do workloads don’t want to do can’t find any work, because the minimum wage laws in those countries outlawed labor that doesn’t adhere to the government enforced wage control law.

Being that Canada not only has a big government but also has regulated certain manufacturing jobs out of existence, things may become problematic in months ahead a Canadians struggle to find work.

44% of Canadian households report lost work amid COVID-19 pandemic: poll | GlobalNews.ca

Small business is the backbone of any developed nation, however in Canada, Canadian small business that isn’t family-run, which are often forced to adhere to minimum wage laws, these companies have very slim margins and worst is that many were in debt, prior to COVID-19. Even many of the franchise owned small businesses in Canada are in deep levels of debt and pumping money into these small businesses, won’t necessarily fix the problem as energy cost is on the rise via the Carbon tax.

Small business confidence falls to record low amid COVID-19 pandemic, CFIB says | TheStar.com

Lastly, a lot of commission-based jobs are reliant on wage employees who are willing to go into debt to make purchases they probably should use cash to pay for. If commission-based employees have no sales, they can’t pay their bills either. I also advise the reader to comprehend that rising energy prices all across Canada have a negative effect on Canadian retail.

Leon’s Furniture cutting half of its staff, closing 72 corporate stores | ctvnews.ca

All of these events are happening at once and the Canadian consumer was for the most part already in debt, during Canada’s supposed economic boom time. The current Prime Minister spent Canada’s wealth during the good times and no what Canada has left is a larger deficit and a Printing Press. I’m certain the Bank of Canada will be printing a lot of money and Justin Trudeau will increase deficit spending, however, there’s a problem with the modern Canadian economy that didn’t exist before and that problem is Canada’s ever-increasing reliance on imports, while at the same time the Canadian dollar is falling.

The one good thing about preserving Canadian manufacturing jobs would have been during times like this you could have even instilled price controls. Obviously I’m against price controls but when you manufacture things you can have price controls, as Venezuela learned, you can’t have price controls when you’re reliant on imports!

If I have to purchase something in foreign currency as a private business person in order pay all of Justin Trudeau’s taxes and Provincial and Municipal taxes and make a profit to at least restock my store I have to pass those costs onto the end consumer.

Now, although the Canadian government is stimulating the economy with money it took for taxpayers, there’s a limit to the powers of printing and borrowing money, eventually, the cost to borrow exceeds the ability to pay back the money lent and I remind the reader that the Bank of Canada’s interest rates is near zero!

I’ll try to end this post with some optimism, that I suspect a global financial reset, however, a global reset also equates to higher interest rates which means a potential housing crash. Also, a global reset also relates to austerity measures Paul Martin style austerity measures, the problem is Paul Martins austerity measures in this era of snowflakes is going to be a tough pill to swallow and I remind people of how smart, corrupt and cunning those 1990’s Liberals were.

Jean Cretien is currently a lobbyist for the Chinese Communist Party, which tells me he clearly wasn’t the rains behind the 1990s Liberals, I’d argue that Justin Trudeau is Canada’s first puppet Prime Minister, but I’d also say that Jean Chretien was merely the face of the fiscally responsible Liberals of the 1990s!

Most of the modern-day, old school Liberals know Justin Trudeau and his entire cabinet are a bunch of morons, so I don’t know what to say, Paul Martin basically cleaned up the disasters created by Pierre Trudeau, Paul Martin understood what a market economy was, of course, he was corrupt, but he understood the importance of a market economy. Justin Trudeau, in my opinion, assumes printing money solves all problems. If I were the Conservative Party of Canada, I would not call an election I’d let this play out and stay out of the way!

I’ve been saying for years now that Justin Trudeau will kill the Trudeau brand! Anyway, although I don’t trust Justin Trudeau, maybe you should! Anyway, let’s all hope for the best!

Interesting times ahead!