U.S Stocks soar, Canadian Dollar declines as the central banks of both countries cut Interest Rates – March 4, 2020,
Up until I’d say the year 2000, there was an excuse for English speakers not to comprehend how Capitalism makes the planet richer, but in 2020, if you’re genuinely a Marxist, I’d personally question if you’ve seriously reached adulthood yet. The moment I hear the words Marxism or Socialism come out of anyone’s mouth, I automatically assume that the individual is looking for a hero or a savior of some kind.
When I look at the people at Bernie Sanders rallies they really look pathetic, I feel sorry for the children which are usually front and center at Bernie Sanders rallies on stage with him, the kids often have look in their eyes like they’re being forced to go there when they really don’t want too. “We were told to support Bernie Sanders because if we don’t our planet will be destroyed!”
Is it just me or do the adults at Bernie Sanders rallies often look disheveled and expectant of getting something for participating? The energy at a Bernie Sanders rally, to me feels like a public school event that people go to in order to graduate. In the adult world, Bernie Sanders is bad for every market, imagining Bernie Sanders as a leader is terrifying for anyone who comprehends how bad of a leader Bernie Sanders is.
If you’re a Bernie Sanders supporter, try to understand that Bernie Sanders in the adult world is the kid in the schoolyard who is trying to buy everybody’s friendship!
A Patriot is a person who vigorously supports their country and is prepared to defend it against enemies or detractors. Bernie is nothing like that, Bernie wants America to be like another country!
Bernie Sanders is a dictator, sure he presents himself as a savior and I’m sure his followers think as much, but Bernie has called for revolution, who benefits from a revolution? The Socialists benefit from a revolution, Bernie hasn’t used the words Patriot to describe himself before and even if he did, nobody sees him as one.
Bernie is a political crook, promising everything to all of his supporters on the backs of the working classes, he claims his policies will help. No, Bernie’s policies are there to help Bernie become deified. He wants to turn the American economy into a giant Post Office and everybody knows it, except for Sanders supporters, or maybe Sanders adult supporters know it, but they don’t care. I’m not sure, but you’d have to be an idiot not say why the markets and everyone outside of Bernie supporters are happy to see Biden being competitive in the Democrat race.
It’s not over yet, Bernie can still win the nomination, but clearly, if Bernie or someone like Bernie Sanders ever becomes President of the United States, it’s clear what will happen to the stock market.
The Decline of the Canadian PetroDollar
If you live in Canada or if you’re hoarding Canadian dollars, you’d be wise to pay attention to Canada’s current prime minister who is currently enacting Bernie Sanders like economic policies without Green New Deal. At least with the Green New Deal, there’s some infrastructure spending involved, sure the Green New Deal is a Green New death to the U.S economy, but on the surface, people can get guaranteed government contracts to fulfill Bernies Green’s socialist agenda. In Canada, Canada’s fossil fuel industry is being replaced with a tax.
In Canada, there exists no leadership in energy, what exists in Canada is the hope that 4 years will pass without the Canadian economy plunging into recession. Canada’s energy sector is on life support and you’re beginning to see it reflected in the Canadian dollar, which most investors don’t want to dump but are being forced to dump because there are little to no investment opportunities. Canada has a great banking system and ballooned real estate market, Canada also has the potential to have a huge energy market, however, if things continue the way they are now, all of that could change and get really ugly really fast.
The U.S Federal Reserve lowered interest rates and so did Canada, however something happened when word spread that Canada was going to lower interest rates, the Canadian dollar began selling off, the manner in which the Canadian dollar is being sold off should be alarming because it’s a slow sell-off, almost like once it’s sold, it’s not rebounding as it used too.
Why this is a problem is because of Canada’s ever-growing reliance on imports, what Canadian politician don’t want is for real inflation to hit Canadian consumers every single month, sure it will make the Canadian economy looks like it’s growing, but what will really be happening is resentment will be growing as it costs more Canadian dollars to buy fewer consumer goods. I don’t think Canadians understand what a Carbon tax is, when your country is increasingly reliant on imports.
Based on my analysis the sophisticated investors are abandoning the Canadian dollar and in prior years, if the cost for a Canadian to buy a U.S dollar was about $1.50 Canadian, the Canadian consumer wouldn’t feel their purchasing power being squeezed, but the lower loonie was used as a stimulant, well now, a lower loonie is looking like it’s going to equate to pain for Canadian consumers and Justin Trudeau’s Liberals should be consciously aware of what’s happening. If the Canadian dollar loses its status as a Petrodollar, it could decline substantially and stay there until something is done to remedy it.
If you know anything about countries that have no natural resources, you’d know what gets allows those countries strong purchasing power is either favorable tax policies or Manufacturing, the fear of Bernie Sanders Presidency is that he might be another version of Prime Minister Justin Trudeau!
Interesting times ahead