Commentary on: Bank of Canada Not Surprised by Weak Data



ReutersBy Leila Lemghalef | Reuters – 8 hours ago

MONTREAL (Reuters) – Recent weak economic data in Canada was expected and does not necessarily mean the central bank will change its view that eventual interest rate hikes are needed, Bank of Canada Governor Mark Carney said on Thursday.

Canada recovered more quickly from the global recession than the United States or Europe, prompting the central bank to hint that it may have to raise interest rates.

But the expansion appears to be slowing. The economy shrank in August for the first time in six months, housing starts slowed in September, the job market stalled in October and exports remain sluggish.

My comment to this is,

If Canada is continuing to outperform the US and the EU economically it is is because Canada is a resource based economy, while the US and Europe are not. This means that Canada has debt-free money coming into Canada which sustains our economic health, whereas the US and Europa have to borrow money from private banks, which bear interest payments, to keep their economies afloat. Debt-free money is always a positive buoy to the economy, but by its nature debt money will always have the negative of interest draining off.

If Canada’s economy is beginning to become sluggish it is because even China’s economy is slowing, therefore China’s purchases of Canadian resources are down, and the debt-free dollars therefore slow down also.

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About pushinback

Back in 1993, I attended an anti-Nafta rally in Ottawa along with over 110,000 others. But despite the overwhelming opposition to NAFTA, the steamroller rolled on. It was there that I came to understand the one vital thing that I have been preaching ever since. There are so many issues, and so many fighting each issue, we are all spinning our wheels, and wasting our time, talents and energy, because each election, we give the politicians our power and so the deck is stacked against us. I said it that day and I say it with more fervency today. We all have one issue that we share, and we should all stop fighting for our own issues and losing anyways, and we should fight to achieve that one thing that we all share. We Canadians all have to fight to finally get a say between elections. We need to fight to make politicians accountable to us, the people. If there is no accountability, and the people have no say between elections, we have no Democracy. My Blog is written to teach the reader the essential knowledge of freedom and Democracy. Please read, and learn. I am one person, but I leave you my witness that one person is not powerless, only first you must first learn and then act. Let the democratic revolution begin. Kindest regards, Rob McQueen
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One Response to Commentary on: Bank of Canada Not Surprised by Weak Data

  1. Pingback: Growth focus is mending US while austerity stalls Europe | Machholz's Blog

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