I’ve been saying it for some time, and now more people are realizing the danger facing our economy.
Considering how closely tied Canada’s economy is the United States, it’s almost impossible for Canada to fall into a recession when the U.S. is growing.
It would take a staggering level of economic illiteracy and incompetence for that to happen.
But under Justin Trudeau, it looks like that’s exactly what could happen.
Jim Mylonas – a global macro strategist for BCA Research in Montreal – is warning that Canada could face a recession, even as the U.S. economy is growing:
“I think we’re just on the precipice of embarking on a serious recession,” Mylonas said in an interview from Bloomberg’s Toronto office. “It’s not a matter of if, but when.”
Mylonas says the key factors are Canada’s excessive household debt, and rising interest rates. Canada’s household debt ratio is currently 174.6%, while the rate in the U.S. is 99.4%.
To get a sense of how closely tied our economy is to the U.S, consider the fact that the last time we fell into a recession while the U.S. was growing was 1951.
And while Mylonas didn’t talk about federal policy, the reality is that Canada’s household debt woes are being made far worse by the policies of the Trudeau government.
Excessive regulations, tax hikes, and carbon taxes all take more money out of people’s pockets and make life more expensive. As a result, for the many Canadians facing severe debt problems, those higher expenses can push people over the edge. And with so many people pushed into financial disaster, the economy will soon fall.
For a long while, myself, and many Canadians have been warning about the economic damage being caused by Trudeau’s policies, and now it seems more people are waking up to the danger.
Spencer Fernando
Photo – Twitter
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