Will the slide of the Canadian dollar stop at 70 cents U.S.? Many SDA readers would consider this to be wishful thinking since the very problems that the article identifies are significantly worse for us than for our American cousins.
“Canada has roughly two times the reliance on real estate, has experienced a sharper correction, and has higher mortgages roll-over risks than the U.S.” said the economists.
TD estimates that by the end of the year, debt servicing costs for households will be 30 per cent higher than in the first quarter of 2021, with the average borrower spending an extra $2,500 a year just on debt.
It isn’t just your Loonie. Euros have slid all the way to 1:1 too.
People are fleeing their own currencies for the perceived safety of the US Dollar.
It is going to get ugly out there. Not just Canada, but world wide.
China has a huge Real Estate Bankruptcy issue, and President for Life Xi Jin Ping has consolidated power with his fellow Autocrat Cronies.
Brazil just elected a corrupt, convicted Communist. Expect that crime will become “Restorative Justice of the Oppressed.”
Russia is run by a wanna-be Tsar Vladimir, who is vainly trying to restore an empire of Russian-speaking people, even as over 700,000 have fled the country. The recently “mobilized” Russian civilians are complaining they have no uniforms, training, or even food, water, and shelter, as 80,000 were shipped off to war with no training, and too many have already been shipped back in coffins.
Europe is facing a winter with not enough natural gas, oil, and they are still shuttering their nuclear power plants in favor of windmills and solar panels. Freezing to death in the dark is an actual fear for this winter. How many businesses and industries are going to be shut down for months or forever this winter?
Africa and Asia are going to be missing a lot of their expected grain from Russia and Ukraine this year. That means prices are going to go up. Last time food prices went up for North Africa? They had an Arab Spring as governments fell. Libya is a war-torn hellhole of competing governments, militias, and desert bandits, but now with public slave auctions to boot.
In Asia, Sri Lanka went from a healthy agricultural economy to a bankrupted, broken, energy starved unemployed disaster in one short year. How? The President decided going Organic overnight was a good idea. Sri Lanka is the example of what happens when you decide that herbicides, pesticides, and even fertilizers are evil. Which is why the Netherlands, Canada, and others are going to try the same thing.
Hopefully the American People are going to reverse the trend by electing Republicans tomorrow.
As if electing republicans will do anything
The summary to end all summaries…
I’ve said it before … but my daughters wedding in Vancouver (her hubby is from the BC interior) was the BEST BARGAIN of my life. Near a 25% discount at the time. Thank You, Ministress of Finance! Hahahaha ha ha ha.
And thank you, God! For the most BEAUTIFUL weather in mid-Oct. absolutely picture postcard.
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Look for major defaults on real estate as folks who felt
they had to get into the market are squeezed beyond
their means. At that point, given the dropoff in the
value of real estate, people will have to decide to sell
and eat the losses, or simply walk away.
Of course, if we actually run out of diesel, then it’s
bunker up time and all bets are off.
*
Bunker down time; will you be devoid of Disney Plus like our esteemed betters or will you keep up your subscription (sarcasm)? It would be ‘funny’ if we were not being’ ‘led’ by such an inane bunch of twits.
But … but … your kids won’t be able to watch preteen girls twerking every morning?
NEO
I’m just glad that we locked in at 1.79%
have 2 yrs 2 mo. to go…
Just came out of retirement to ensure we reduce the remaining 100k down to at least 35-40k …here’s hoping.
Ft Mac here I come…
the banks never lose money long term. Us who have paid our own way will get caught in tax relief for others, including banks
The role of government is always to reward failure and to punish success.
“with the average borrower spending an extra $2,500 a year just on debt.”
In turn forcing stressed out families to ask themselves the age old question: Do I really need Disney Plus?
‘Avoid Bankruptcy And Feed Your Children With This One neat Trick!’
And an arguably more corrupt and incompetent global warming obsessed government and a far more corrupted media.
The US has more election fraud, Canada has far dumber voters.
Stan
Don’t kid yourself….our Elections are 100% rigged as well (Justin being such a good buddy of G. Sosro), right down to Municipal ones and bolstered with said Moronic voters along with those who don’t seem to to give a shit.
I believe dominion has a head office in torontostan!
I’ll leave this here for everyone. For your computer’s overall health avoid the temptation to reach in and punch Liberal MP Yvan Baker’s face as he spars with Canadian Taxpayer Federation’s Franco Terrazano. tip o’ the hat to Jasrah Singh Hallan from Alberta allowing Terrazano to give Baker a parting bitch slap.
Canada is one sick puppy.
https://twitter.com/franco_nomics/status/1589376985624870912?cxt=HHwWgIDQpdL8zI4sAAAA
The comments, which do not prove the writer’s errors, are proof that Canadians need famine after famine.
Darwin’s will be done.
“GDP growth has averaged more than 3 per cent this year as higher commodity prices boosted corporate profits and government revenue, said TD. ”
Good thing inflation is only 7.6% y/y…
One might think that having GDP growth less than inflation would suggest a substantial problem with the economy but the expert class has told us that isn’t so.
This is false. GDP growth is “real GDP”. It’s after inflation. You’re thinking about nominal GDP which nobody uses.
No problem. Just cancel your Disney plus subscription and everything will be fine.
Correct… also, the budget will balance itself.
I admire Disney’s basic dictatorship? I think I misunderstood the assignment …
I suspect the good ole days where “The repo man” showed up to seize products that have not been paid for i.e. TVs, leased cars, phones will return? Liberals love to wallow in the past, especially their failed eras.
““The … surge in employment in October makes a mockery of claims that the economy is on the cusp of a recession,” Stephen Brown, a senior economist at Capital Economics, wrote in a client note after the data release.”
UNPRECEDENTED!.
Guess that expert is also from the era of teach children no history.
Dry Goods,essential hardware and munitions..Good neighbours.
All the things that got our parents and grand parents through the last collapse of confidence.
My Father( born 1904) used to tell of the days leading up to the Great Depression and those that followed.
It was the little things that stopped.
Like Credit and supplies.
He and a buddy roamed Western Canada and the USA looking for work,with very little success.
And the Bankers..He hated the Bankers with passion.
Prior to the collapse credit was not just easy,the Banks would come to the Farmers and shmooze them with talk of how they could create greater wealth with this “Risk Free” guaranteed credit..
At first the banks took possession with great glee,until they discovered no buyers were to be had..then they tried making deals with their original victims..
Watch.
For we are repeating these age old cycles once again.
Kipling :The Gods of the Copybook Headings..
We are unstoppable..
In our stupidity.
Public hangings from all over the world would be so much more entertaining then Disney Plus.
Age old cycles..
The Beheading will follow.
Back when the Hair Apparent was first elected, I predicted 40 cents US to the Canadian Peso..
I did not expect President Houseplant and the effect on the US dollar.
Failure of imagination once again..
For if Trump had succeeded, we would be at 30 cents or less.
just goes to show.
Maybe we should use the price of an ounce of gold to measure the shrinkage of each currency.
We’ll be back to Trudeau the First’s days of Wiemar-style inflation and unemployment by Christmas.
The ovine masses will, of course, expect a bail-out but from where? Who can say?
I can’t really comment on the actual value of the Canadian Dollar. I think an AB/Sask. dollar would be worth something.
What is going to kill the middle class in Canada is the rise again of interest rates. They haven’t risen enough to combat or defeat inflation, and it’s no matter anyways as the various governments in Canada still haven’t stopped spending money they don’t have. They’ll be squeezed by inflation on food, by carbon taxes set to escalate each year, and squeezed again by rising interest rates on mortgages and other debts they’re holding. Each 1% increase in mortgage rates is about $100 monthly per $100k of mortgage, and that may be the smallest hit the middle class takes over the next decade, after food and energy.
I expect interest rates to have to rise to at least the inflation rate before inflation is slowed. The various governments in Canada don’t appear to be willing to do this, (there’s “always” an election on the way…) and I expect high inflation to continue for the rest of this decade. This may sound pessimistic, but look who’s in charge in this shithole country.
and I have no idea where those additional 500k each year of new Canadians are going to live.
If the Turd. was caught on a hot microphone some day, saying how he hated Canada, what would he have done differently?