Anyone see the Macleans article on the Canadian Economy?

[buzz]

http://www2.macleans.ca/2011/03/16/the-canada-bubble/

They called Canada "Northern Tiger" but also say 11 years of commodity bull market has set us up for a bursting bubble.

Just wondering if you guys agree with this reporter?

[grrrr]

I'm going to use the line that has gotten so many into financial trouble, "This time it is different". I'm not sure there can be a total collapse in commodities. There is just too much demand. That doesn't mean there can't be a short term pullback, and that may seem major at the time. But a total collapse? I don't think so.

[cottonpicken]

I haven't looked at the pie graph in quite a while
but don't remember commodities making up the
biggest part of gdp.

We can and will(imo) have a major depression and
strong commodity prices.

A bad bout of inflation,collapsed manufacturing
base,depressed consumer spending,shrinking tax
base,housing bubble burst,unfunded
liabilities,government deficits and debt,consumer
debt,uncle sam on life support.........etc,etc.

[parsley]

A well stocked pantry that includes tea, coffee, cocoa, and sugar, dishwasher soap(lol), lightbulbs, vinegar, and rice and is a better way to save money than a term deposit.
ie Cocoa is already in short supply. Pars

[bucket]

Maybe hitachi moves some work to its plant in saskatoon. Not a bad thing.

Maybe the japanese re-evaluate having a manufacturing base over a fault line and move it to - I dunno - a stable country both politically and geographically - Canada.

People have to look for positive things to come out of disasters. Canada is a cherry of a country to move to.

[CeePen]

Umm, maybe stupid question but wouldn't a depression weaken demand and take out the legs of strong commodity prices? How do you have a slowdown in the economy and have commodity prices resist the pull?

[Hopperbin]

China, India. My concern is the amount of explorations happenning these days. Its like the whole world is getting explored for the any existable minable supplies of everything. Could give us a short term surprise oversupply, long term gold silver copper etc there is only so much of it.

[cottonpicken]

Good question actually,the answer is "currency event".

[CeePen]

So prices go up in nominal terms only?