The foreign exchange markets sure love the Canadian dollar, likely because they’re pricing in Justin Trudeau being removed as Canada’s Prime Minister in 2025.
With that said, that doesn’t happen until around this time in 2025, so what do we do in the meantime? Well, it looks like the Loonie is headed for a steady decline, which makes a lot of sense when you look at the Canadian economy, which is top-heavy.
By top heavy, Canada has a very LARGE, expensive, and INEFFICIENT Federal government. In Canada, there’s the Liberals, and there’s the NDP; most people in Canada associate the New Democratic Party(NDP) with financial ILLITERACY while imagining the Liberals and the “Conservative” Party of Canada, as Corporatists political party’s with their own economic philosophy.
Well, Justin Trudeau is and the modern Liberal Party all over Canada are being branded as Left Wing idiots that give the PRIVATE sector a glimpse into the financial IQ of the voting public in a particular province.
The voting OBSERVERS all over the world are getting a lot smarter, and this doesn’t bode well for you if you can’t comprehend Australian economics. It’s not to say you even have to believe or adhere to Austrian economics; however, if you don’t have a basic comprehension of it, you’re going to have a difficult time understanding the new emerging world.
For Justin Trudeau, the numbers show that his Federal government is CONSUMING a lot more than they’re producing; however, there is CASHFLOW coming from Ottawa that, on the surface, at times, might look like positive cashflow; however, the economic ACTIVITY in Canada, shows that the Canadian economy is slowing, making it harder for FOREIGNERS to turn a profit in Canadian dollars.
So from a commonsense perspective, if the Bank of Canada lowers interest rates, while the Canadian economy is slowing in hopes of stimulating only one sector(housing) while Justin Trudeau goes to war on Airbnb, for example, you see why a DOMESTIC-based housing “boom” won’t entice the more sophisticated investor.
If you ask me, I’d tell you there is no housing boom happening in Canada; what we’re witnessing with the Bank of Canada lowering interest rates is a PERMANENT debasement of the Loonie.
Remember, housing is a DOMESTIC problem; foreign exchange rates make IMPORTS into Canada more expensive during a DEFLATIONARY economic cycle. Only if you believe government statistics will you believe that inflation is cooling and oil prices are dropping because the global economy is slowing.
The U.S. economy is better than the Canadian economy. However, it’s still a disaster and is going through a DEFLATIONARY cycle. Both Kamala Harris and Donald Trump are embracing a WELFARE STATE economy; even if you like the Donald, he’s only going to be in office for four more years, and based on Kamala Harris’ low economic IQ, one has to imagine she’ll be in the back pockets of the various lobbyist groups.
But even then, I’d argue Canada’s national debt is a lot worse than the U.S. national debt; why? Because at least the U.S. is paying for a military that polices the world. Many countries, Canada included, don’t have to spend on their militaries, meaning, as a country, Canada is living in a fantasy world.
I’m shocked that it doesn’t cost Americans 65 cents to buy a loonie today because, in my opinion, that’s where the number should be.