Interest rates

[errolanderson]

I totally agree with riders2010. I have been saying it for a long time myself, and I have said it on here before too that if interest rates went up a 1/2 or 3/4 of a percent the bankruptcy would start immediately all over canada. We wouldn't recover for years and years. I don't know what the answer to the problem is but it will have to be a slow uptick in the rates over years to get them back to normal.

This is the same for the U.S. as well. A 1/2 or 3/4 percent in the states could throw them into deep recession, which is now likely inevitable as well Trump or no Trump.

[wmoebis]

I totally agree with riders2010. I have been saying it for a long time myself, and I have said it on here before too that if interest rates went up a 1/2 or 3/4 of a percent the bankruptcy would start immediately all over canada. We wouldn't recover for years and years. I don't know what the answer to the problem is but it will have to be a slow uptick in the rates over years to get them back to normal.

What will !/2-3/4% increase do to AG? How about 1/2-3/4 drop in value of produce like this year, when we have a low quality product.

I don't see much difference between interest increase and price drop in AG. Both will have big effect. Then throw in input and equip costs that have risen but won't follow yearly down trend.

[ajl]

Interest rates are going higher for borrowers and lower for savers. On the savings side rates will go negative in a last ditch attempt to keep good ship canuckistan from going down. On the borrowing side rates will go higher as good debt has to subsidize bad and credit quality is deteriorating,

[errolanderson]

$1 trillion bond value wiped out last week on Trump economic plans. Strap-in, this is going to get interesting.

http://www.wsj.com/articles/government-bond-sell-off-continues-on-trumps-economic-plans-1479114743

[Oliver88]

Two % increase would make real estate prices more realistic again.
Its pretty obvious rates are too low when a couple in there 20's think its normal to purchase a new "starter" house in Saskatoon for 500-600k.

Machinery dealers, all auto dealers (especially luxury vehicles) and real estate agents will lose out big time with an increase.

[errolanderson]

Rates should go up, but can't go up.

If the U.S. forces rates up purely on 'Make America Great Again' indebted infrastructure spending, this is a disaster in-the-making.

[riders2010]

Yes its not about what you think in a perfect world should be it s a question of
what is good for the situation we currently have.
The only reason our economies haven't fallen flat and output of every good including agriculture
products have not crashed is the interest rate.
The solution is to get people out of debt first, but the rich are pissed because they want to make more on
their money off people that cant afford it.
Trumps moves will cause interest rates to rise and all the rich will benefit big time, the middle class will be clobbered.

[errolanderson]

The spiking USD is now an economic trainwreck in-the-making. Gold, crude oil, loonie, grains all down as a result today.

U.S. exports/manufacturing now in crisis. Now raise interest rates to-boot . . . .

[sumdumguy]

Why are our economies going to fall flat? Why can't an economy so rich in resources sustain itself as it did in the past? Because we have out- sourced our jobs, factories have shut, production has fallen, jobs have disappeared.

[ajl]

Don't matter how rich in resources you are: you need to have customers that can afford to buy them. After this disaster harvest, we will be buying as little as possible.