Canada's GDP Stalls

[errolanderson]

Canada's GDP released this morning missed even the lowest economist forecast. 1st quarter GDP pegged at just 1.3%. Household spending is now the weakest in three (3) years with slowing business investment.

Auto sales have stalled and investment in housing has dropped the most in nine (9) years.

The Bank of Canada stated yesterday that Canada's economy was robust and expect a rate hike in July.
Go figure . . . .

[ajl]

Duh. The Canuckistanian economy is as dead as a stone. One never hears about any investment that is non government related. B of C governor Poloz is a total idiot. He has the choice between not raising and promoting stagflation which is the current choice or allowing rate rises due to market pressure which will guarantee default. No way rates should be this low with debt levels this high. Sooner or later we will face the music with market rates which will not be pretty given that the economy is totally dependent on stimulus all the time.

[Rareearth]

AJI what?

“No way rates should be this low with debt levels this high.”

You must be Liberal and cousin to JT. Raise interest rates and business will disappear, move to other jurisdictions or become uncompetitive and go away. No economy can survive that ( higher interest rates) it isn’t working for Argentina no is it.

We now live in one world, you think we are on a island? Even the island share the global economic woes.

[AlbertaFarmer5]

Ajl, All those things are true for virtually every country in the world right now. Doesn't make it right, but makes it a lot more sustainable then if we were doing it alone.

[blackpowder]

[westernvicki]

http://business.financialpost.com/opinion/jack-mintz-all-ontario-parties-are-in-denial-about-the-scariest-problem-debt Jack Mintz article raises some concerns that directly applies to the Ontario election, but indeed the article speaks easily can expand to Canada as a whole: Canada recorded in March the largest negative balance of trade ever recorded:
http://www.international.gc.ca/economist-economiste/performance/monthly-mensuel.aspx?lang=eng Amazingly, this was largely ignored by mainstream media, but the reality is very simply this is the new global reality.

Canada is entering into a new paradigm of global trade heavily weighed down. And entitled voters of all ages will determine who guides us into this course.

[ajl]

AJI what?

“No way rates should be this low with debt levels this high.”

You must be Liberal and cousin to JT. Raise interest rates and business will disappear, move to other jurisdictions or become uncompetitive and go away. No economy can survive that ( higher interest rates) it isn’t working for Argentina no is it.

We now live in one world, you think we are on a island? Even the island share the global economic woes.

Have never voted liberal and certainly no cousin to JT. Your are the one that understand nothing of economics. In a free market environment, central banks do not exist. Supply and demand for credit determine rate. Demand for credit being very high for credit does not result in falling rates unless the central bank is printing the cash. That is how it works. Rates rise and fall with credit demand. Anything else short circuits free market based economics. Argentina borrowed too much and that is driving up rates. Worse yet they borrowed in a currency they do not control. Make your bed and lie in it. All economies of the world have to get off this artificial stimulus regime but they can't. The US is making the most progress but they may not be able to make it either. All other economies are basket cases.

[GDR]

So what is the impact on farmers going forward?

Lower dollar so better prices?

Higher int rates?

Higher input costs?

Material shortages?

Cheaper available labour?

Higher tax burden?

More rural crime?

Change in land prices up or down?

Higher machinery prices?

I think as a rule we are somewhat more insulated from any economic downturn than the regular working man (peoplekind for those that are offended)

All levels of governments gotta get their spending under control, I cant believe that deficits every year and mounting debt. Lots of professional, experienced people in charge that should know better. As long as we stay a democracy I can't imagine the majority would vote for anyone that ran on a platform of tightening the belt and making cuts but I'd sure like to see someone try.

[errolanderson]

So what is the impact on farmers going forward?

Lower dollar so better prices?

Higher int rates?

Higher input costs?

Material shortages?

Cheaper available labour?

Higher tax burden?

More rural crime?

Change in land prices up or down?

Higher machinery prices?

I think as a rule we are somewhat more insulated from any economic downturn than the regular working man (peoplekind for those that are offended)

All levels of governments gotta get their spending under control, I cant believe that deficits every year and mounting debt. Lots of professional, experienced people in charge that should know better. As long as we stay a democracy I can't imagine the majority would vote for anyone that ran on a platform of tightening the belt and making cuts but I'd sure like to see someone try.

GDR, an opinion, but we are at the end of 80-year business cycle that has already been overtextended by a decade by central bank manipulation. Central bankers telling the over-taxed, over-indebted consumer that rates are going nowhere but up are badly mistaken. Yet, gov’t continues spending with an open cheque book.

Central bankers are like deer in the headlights. Keynesian spending should kick-start the economy. Well, it’s not. But like the BOC stated yesterday that Canada’s economy was robust and Cdn rates will rise shows a failure and an insulation from reality by our decision makers.

The Fed states that they will hike rates 4X in 2018 and 4X in 2019. Not a hope in hell . . . . President Trump announcing a trade war today could push global economies into a depression.

Central bank policy can no longer kick-the-can or turn back the financial clock. Market conditions to me are now well past midnight . . . .

[helmsdale]

As long as we stay a democracy I can't imagine the majority would vote for anyone that ran on a platform of tightening the belt and making cuts but I'd sure like to see someone try.[/QUOTE]

GDR must stand for God damned right. I'd sure as hell like to see someone try. Hard truths are still truths none the less.

[biglentil]

When currency is not backed by tangible hard assets it is not money. Ever since 1971 that is the case and the populace has been hoodwinked. Fiat currency always returns to its intrinsic value, which is even worse than asswipe.

[Rareearth]

ajl
I apologize, my comments were unfair and I do value the diversity of opinions

[macdon02]

Lentil did the bug bite you? The problem with gold is it's only owned by individuals and not institutions. Big money doesn't participate in physical. Then there's the metal detectors at airports and is just impossible to move it across borders. Add in Roosevelt declaring it illegal to own and the precedent that set.... won't argue cash keeps devaluing in buying power, every govt in the world functions on the theory debt will be cheaper to payback in future so why worry about paying it off? Sidenote non farm payrolls at 223000 and the tax cuts are having an effect ...

[biglentil]

Lentil did the bug bite you? The problem with gold is it's only owned by individuals and not institutions. Big money doesn't participate in physical. Then there's the metal detectors at airports and is just impossible to move it across borders. Add in Roosevelt declaring it illegal to own and the precedent that set.... won't argue cash keeps devaluing in buying power, every govt in the world functions on the theory debt will be cheaper to payback in future so why worry about paying it off? Sidenote non farm payrolls at 223000 and the tax cuts are having an effect ...

Central banks around the world have been accumulating and repatriating the phyical metal at the fastest pace in history. They are big money.

[AlbertaFarmer5]

Central banks around the world have been accumulating and repatriating the phyical metal at the fastest pace in history. They are big money.

And how is their track record for timing the market.