Another BoC rate hike would be beyond nutty given an economy heading into a deep freeze
The Canadian dollar has broken sharply lower to below 74 cents U.S., back to where it was in late May. But in late May, oil prices were US$68 per barrel; today they are near US$80 per barrel. The CRB index was 540 then, and 550 now. So here we have seen the loonie go back to the same level it was three months ago when commodity prices were lower than they are currently.
From a big picture standpoint, the Canadian economy is mired in weak fundamentals. The budgetary situation is out of control and there is no serious attempt in Ottawa to promote fiscal stability. There is a false glow attached to a +1.9% YoY real GDP growth rate at a time when the population pace is now running at a 2.4% annual rate, courtesy of the immigration boom. The economy in real per capita terms is contracting by -0.5% on an annualized basis.
Get this: there has been zero growth in the productive private sector capital stock over the past decade. That is shocking. It is the product of a government that has lacked the will to use the tax and regulatory system to promote capital investment — it instead focuses on redistributing national income. As such, productivity in Canada is down 1.4% year-over-year and has contracted outright sequentially for four consecutive quarters and in ten of the past eleven.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
David Rosenberg: The Great China slowdown has wider implications than meets the eyeChina\u0027s economic slump is more complex and has wide\u002Dranging implications than meets the eye. Read more from David Rosenberg
Lire la suite »
Five things to watch for in the Canadian business world in the coming weekTORONTO — Five things to watch for in the Canadian business world in the coming week: Cabinet retreat Prime Minister Justin Trudeau will hold a cabinet retreat in Charlottetown starting on Monday. The retreat comes after a large shuffle at the table last month and is expected to focus on the economy and affordability issues. Members of Parliament are scheduled to return to the House of Commons on Sept. 18 after the summer break. Environment conference Canada will play host to the Global Environm
Lire la suite »
Five things to watch for in the Canadian business world in the coming weekTORONTO — Five things to watch for in the Canadian business world in the coming week: Cabinet retreat Prime Minister Justin Trudeau will hold a cabinet retreat in Charlottetown starting on Monday.
Lire la suite »
Unbeaten Canadian rugby teams closer to qualifying for Paris OlympicsCanada's women sevens rugby squad moved into Sunday's semifinal, and the men set a path to get there, as both teams won all their games Saturday at the Rugby Americas North (RAN) Olympic qualifying tournament.
Lire la suite »
Unbeaten Canadian rugby teams closer to qualifying for Paris OlympicsCanada's women sevens rugby squad moved into Sunday's semifinal, and the men set a path to get there, as both teams won all their games Saturday at the Rugby Americas North (RAN) Olympic qualifying tournament.
Lire la suite »
Five things to watch for in the Canadian business world in the coming weekFive things to watch for in the Canadian business world in the coming week.
Lire la suite »