With Trade Deficits and Inflation in Canada becoming unsustainable, Canadian mainstream media rebrands ‘debt levels’ – March 4, 2021,
So Canada has what I like to call a Joe Biden problem. Currently, because of Joe Bidens’ economic policies, the Canadian economy is looking like a nice juicy steak to dump your money into. Since the U.S mainstream media made it clear that former United States President Donald Trump was going to lose the U.S Federal election, the U.S dollar began to slide and the U.S economy began to contract.
Now, during normal times, this was also bad for the Canadian dollar, which would of course rise, because the Canadian dollar is linked to commodities and if this fiat monetary system ever crashes, the money will have to be tied back to commodities, something Canada has plenty of.
Canada known for its oil in a normal world would have a strong dollar, however, in order to finance the expansion of Canada’s welfare state, it’s known secret, that it’s best to debase the Canadian dollar to avoid Canadian dollar appreciation which would benefit Canada’s welfare state very little.
All that aside, if you read the article below, the funniest part of that article, in particular, was the following:
An Equifax report on Canadian debt levels reveals that with Canadians taking advantage of credit card deferrals over the past year, they have been able to pay down non-mortgage debt with a three per cent decrease year-over-year.
Equifax Canadian debt report reveals non-mortgage debt levels are declining | bnnbloomberg.ca
Did you miss that? If you did, consider reading the title of the article “Equifax Canadian debt report reveals non-mortgage debt levels are declining” and then read the section that says “Canadians taking advantage of credit card deferrals over the past year” most people would miss that, in case you’re not understanding what I’m alluding too, Credit deferrals mean that people aren’t paying down their credit card debt, furthermore, the debt most people are ignoring is auto loan bubble, lots of deferrals are happening there.
Now, as many of us know, some asset appreciation has been occurring, and Canadians should be paying down debt, if they’re not paying in some instances their rent, mortgage, or auto loans all of which in many instances are in deferrals.
But as we know, the main reason why GDP growth is occurring in Canada is that Canada not only has a rising Canadian dollar, the Canadian consumer is paying higher prices for things. The reason why Canadians aren’t complaining about higher gas prices and higher food and energy prices is that a lot of Canadians are being paid to stay home
I keep reading comments from Conservative minded people who know there’s an inflation problem coming, but I keep having to remind them that because Canadians aren’t working, they don’t care about higher prices, they may even welcome the higher prices, in many parts of Europe, people like their welfare state so much that they’re okay with inflationary prices.
I’m sorry to bring the facts, but the facts are what they are. The difference between Canada and Europe however is that Europeans are productive, whereas Canada has what I call a one-trick pony economy. In European countries, they pay for their welfare state with their LABOUR, in Canada, we cheat to pay for our welfare state.
The problem with having an artificially low loonie is that when the loonie appreciates while inflation is running red hot, low-wage-earning Canadians working for the private sector are going to have some serious challenges. I wrote yesterday about the growing homelessness problem in Canada.
The United States has a housing bubble right now, and per capita, Canadian real estate is higher than American real estate, now with these higher than expected GDP number, the Bank of Canada better be careful not to misinterpret what’s happening, because I’ve been saying for months now, that NEGATIVE INTEREST RATES are coming to Canada and I like to point out that the Canadian economy is not as diverse as the German and Japanese economies.
We have a one-trick pony economy and the current Prime Minister has been abusing our one-trick pony economy with all sorts of environmental regulations. Now, sure, a Greener economy is a nice thought, but we’re not there yet, these supposed high-paying Green jobs currently can not replace the high-paying fossil fuel jobs. so when you see that CERB is growing Canada’s GDP I hope you can see why Canada’s trade deficit is in a world of trouble.
But hey, not to worry, apparently, Non-mortgage debt levels are declining… except for those pesky Credit cards, which allow deferrals… #LateStageSocialism
‘Frankly stunning’ GDP growth puts Bank of Canada in the hot seat | bnnbloomberg.ca
Interesting times ahead!