Not your average recession . . . .

[ajl]

canuckistan has been in recession for many years already. Ever increasing levels of gubmint spending has kept the GDP print from going negative but the shrinking loon is a sign that interest rates are too low. Gubmint has to borrow ever increasing amounts to keep the illusion that we are not in recession. Grain prices are alarmingly low given the worthless loon these days.

[Sodbuster]

Just in . . . Canada’s 3rd quarter GDP came in @ 1% vs 1.6% expected. This compares to 2nd quarter of 2%.

MORE BOC RATES CUTS MAY BE ON-THE-TABLE. LOONIE PRESSURE.

And with pressure on the loonie inflation starts cycling again. Me, I think BOC should leave rates where they are now.

[shtferbrains]

If inflation goes up and pushes interest rates will the $250 freebie help pay the mortgage in the GTA?

[biglentil]

Well Gold is up 40% on the year in CAD, Bitcoin up 110% on the year. The "Cash is King" narrative once again a sucker's bet. We are in stagflation just as I called if you look back at my posts from years ago. Now what's to come? More of the same only on steroids. We don't just have WW3 brewing, many are saying it has begun. Its an inflationary superstorm. The BRICS nations(members making up over half the worlds pop) are engaged in dedollarization at the fastest rate in history. Every dip in gold is being bought by the East. Printing presses are going brrrrrr all around the world. Along with war spending and destruction of infrastructure demand for strategic resources and hard methods of settlement will only increase.

Rates are going to have to rise in a futile attempt to try and maintain the purchasing power of the dollar. However this drives up the cost on debt in a heavily indebted nation like ours. We are beyond the rubicon, every new dollar of debt has less of a marginal benefit to gdp than it once did. More and more debt is needed to service the interest payments on existing debt and keep the bubble economy afloat. Central banksters backs are against the wall. This problem didn’t just manifest it's 50 plus years in the making since the elimination of the sound monetary system of Bretton Woods. There are no easy solutions, things could get real very quick, prepare accordingly.

[Old Cowzilla]

There maybe no easy solution but on my farm the first thing I do to get things back in order is to stop writing checks for things you can do without. Government could try that first and see how that works. As for the $250 and other goodies it reminds me of a seen in Kevin Costner's waterworld where the ship's leader (Dennis Hopper) throws out smoke's to the poor souls stranded on the Exxon Valdez (Canada ) to try to calm them down. If the currant government doesn't make it to spring would those checks still be good anyway

[biglentil]

The weaponization of the dollar is what has fostered the alternative system of trade that the Brics have implemented. Doubling down on that weaponization is not the way forward imo. The problem with picking fights is sometimes you lose.

[wrongway]

Well Gold is up 40% on the year in CAD, Bitcoin up 110% on the year. The "Cash is King" narrative once again a sucker's bet. We are in stagflation just as I called if you look back at my posts from years ago. Now what's to come? More of the same only on steroids. We don't just have WW3 brewing, many are saying it has begun. Its an inflationary superstorm. The BRICS nations(members making up over half the worlds pop) are engaged in dedollarization at the fastest rate in history. Every dip in gold is being bought by the East. Printing presses are going brrrrrr all around the world. Along with war spending and destruction of infrastructure demand for strategic resources and hard methods of settlement will only increase.

Rates are going to have to rise in a futile attempt to try and maintain the purchasing power of the dollar. However this drives up the cost on debt in a heavily indebted nation like ours. We are beyond the rubicon, every new dollar of debt has less of a marginal benefit to gdp than it once did. More and more debt is needed to service the interest payments on existing debt and keep the bubble economy afloat. Central banksters backs are against the wall. This problem didn’t just manifest it's 50 plus years in the making since the elimination of the sound monetary system of Bretton Woods. There are no easy solutions, things could get real very quick, prepare accordingly.

mostly agree but a couple points
1. on bitcoin MSTR is and other entities are buying it as fast as they can...soon will only be able to trade it amongst them selves...so IMHO a big bubble about to burst.
2. Brics can try a new currency but is chinas fleet of aircraft carriers sufficient to police the seas which is the primary reason for being a reserve currency. Britain lost it when they lost control of the seas to the US.
3. Not sure that cash is king being a suckers bet. compare having it to not having it.
4. We can turn it around...Argentina did and it happened in less than a year.
again just my opinion...user name checks out

[biglentil]

mostly agree but a couple points
1. on bitcoin MSTR is and other entities are buying it as fast as they can...soon will only be able to trade it amongst them selves...so IMHO a big bubble about to burst.
2. Brics can try a new currency but is chinas fleet of aircraft carriers sufficient to police the seas which is the primary reason for being a reserve currency. Britain lost it when they lost control of the seas to the US.
3. Not sure that cash is king being a suckers bet. compare having it to not having it.
4. We can turn it around...Argentina did and it happened in less than a year.
again just my opinion...user name checks out

1. I agree Bitcoin looks toppy, sentiment indicators sky high.
2. I'm not sure if the US can afford to be the worlds policeman much longer racking up debt without foreign purchasers but the Fed itself. Monetization to fuel consumption never ends well.
3. Gold is also classified as a tier one asset and there is a reason Central banks all over the world have gone from net sellers to net buyers at the fastest rate ever. The difference is gold is the only financial asset to have ZERO counterparty risk.
4. We are in uncharted waters.

[errolanderson]

When this U.S. equity bubble blows, those with cash will be smiling. This debt crisis has yet to even get started.

Some North American banks are hanging on by-a-shoestring. The U.S. Federal Reserve is now running an unheard-of massive, massive deficit. It’s not a free ride on manipulation forever.

Vegas hotels on the Strip were discounting rooms on Thanksgiving. Unheard of . . . .

December may be a very interesting month for markets.

[biglentil]

Since the 08 great financial crisis both US and Canada have put legislation into effect preventing a 08 style bailout instead codifying mechanisms for a bail in. Those with cash in chequing and savings accounts would likely see massive haircuts directly off their balances. Unless the cash is under your matress, it's not effectively yours. And even if it's under your matress it's not without it's counterparty risk as all dollars come into existance as debt if the debtors default what value does the currency that came into creation from that debt have?

A debt crisis however would give governments the opportunity they need to rollout CBDC's, digital ID'S and a Chinese style social credit system. All existing cash would need to be redeemed at a significant discount.