Wednesday, August 10, 2011

Is Canada Immune To Economic Collapse In U.S?

MARK DUNN


Canadians are rightfully asking themselves whether the Canadian economy is headed for a cliff if the United States falls to recession so soon after the last one. Do we hit the rocks together, or is our safety net still holding?........
China has overtaken the Americans as the largest buyer of Canadian lumber, but if the housing market overseas flattens or tumbles, as it has done in the U.S., more jobs would be on the line. With 6% inflation in China, observers are watching the situation closely and the potential impact here if Chinese demand for Canadian lumber, potash and other natural resources declines......

3 comments:

  1. This will be a global depression with some countries faring worse then others. But Canada is not the U.S. They have a small population, an enormous amount of natural resources, A huge trading partner right next door and an educated population with a good work ethic. Canada should get through this with less problems then the U.S. or most of Europe.

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  2. What a bloody absurd posted above. Most of the resources are owned by foreigners. Central Bank of Canada f$cked up 650 tonnes of gold and has now in its reserves US dollar, Euro and Japanese Yen, all of which are being devaluated by printing press. Canadians have more per capita debt and, just like the States, no productive capacity to support it. On top of it, there is a growing inflation. Anyone, who occasionally goes to the States, knows that even organic products in the States are half the price of what you can get them for in Canada. And this is with Canadian dollar trading at par with the US counterpart. All first time mortgages are insured by CMHC – that is government. It means when the banksters will crash Canada, they are going to get insurance payment from the government for all failed mortgages. Those corporations that do exploit Canadian resources don’t usually pay anything anyways. Income tax was designed to screw us, not the corporations or banksters. In addition, they have probably shorted bond market and other securities.

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  3. I definately agree with the 2nd posting. 2000-02 & '08 were nothing. Tech bubble was nothing like we will see. Incomes increased about 230% last 30 years - housing 1400%!. Was about 350% income to purchase new Starter home - paid in 15 years! Interest rates double digit! Now it's 14 times your income and 30 years (lowered to 25 max, recently again). When your house is worth 50% or less (around 2013) & you owe 150%of its value.... CMHC, then who eats it? Protect what you have left NOW!

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