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The Canadian economy is also collapsing

Francesca R

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Francesca R
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12:45 11Jan08 RTRS-UPDATE 2-Canada economy sheds jobs in December
OTTAWA, Jan 11 (Reuters) - Canada's economy unexpectedly shed jobs in December, beating even the most pessimistic forecast with the biggest job losses since May 2003 as the softening U.S. economy and strong currency took their toll on manufacturers.
Statistics Canada said on Friday that payrolls fell by 18,700 but the unemployment rate remained unchanged at 5.9 percent and annual wage inflation, closely watched by the Bank of Canada when setting monetary policy, sped up to 4.9 percent from 4.1 percent in November.
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13:37 10Jan08 -UPDATE 1-Canada November building permits tumble
OTTAWA, Jan 10 (Reuters) - The value of Canadian building permits fell more than expected in November, declining 9.9 percent from October, but the value of permits in the first 11 months of 2007 beat the previous annual record high, Statistics Canada said on Thursday.
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13:15 09Jan08 - Canada housing starts tumble 19.6 pct in December
TORONTO, Jan 9 (Reuters) - Canadian housing starts in 2007 reached their second highest level in nearly two decades but fell short of estimates for December, Canada Mortgage and
Housing Corp said on Wednesday.
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Time for the loonie to depreciate too.
 
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acuity said:
Where did the market get the idea it was worth more than greenback?
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Three basic reasons:

1) The rise in commodities prices. Canada happens to have a lot of the commodities that are in demand.

2) Interest rates that are somewhat higher than in the U.S.

3) A government which is fiscally sound and has posted many consecutive years of budgetary surpluses in the billions or tens of billions of dollars.
 
Tokenconservative said:
Doom.

Doom.

Doom.

Doom.

Doom.




DOOM!!!
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Interestingly, none of the stories said that; the stories only reported some basic economic statistics.

In fact, in regards to the story about the Canadian economy losing jobs in December, reports on the CBC about that included interviews with some economists and analysts who expect that the December number was an unsual blip and not indicative of a trend.

In regards to the story about a slowing in new housing starts, perhaps it's worth reviewing what that first sentence posted said with a different bolding:

Canadian housing starts in 2007 reached their second highest level in nearly two decades but fell short of estimates for December, Canada Mortgage and Housing Corp said on Wednesday.
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So once again Tokenconservative is saying the media said something it did not actually say. Colour me unsurprised. Does he complain when positive economic stories are printed?
 
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Corsair 115 said:
Interestingly, none of the stories said that; the stories only reported some basic economic statistics.

In fact, in regards to the story about the Canadian economy losing jobs in December, reports on the CBC about that included interviews with some economists and analysts who expect that the December number was an unsual blip and not indicative of a trend.

In regards to the story about a slowing in new housing starts, perhaps it's worth reviewing what that first sentence posted said with a different bolding:



So once again Tokenconservative is saying the media said something it did not actually say. Colour me unsurprised. Does he complain when positive economic stories are printed?
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Note that while this IS a positive economic story, it's paited as an indicator of doom...DOOOOM!

Even you believe it is because, after all, what you come away with is the "But....!!!"

I don't complain when positive economic stories are printed or reported.

Um...have you seen some of these in the US media of late?

Tokie
 
Tokenconservative said:
Note that while this IS a positive economic story, it's paited as an indicator of doom...DOOOOM!
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Now you just need to provide evidence of this claim.

Tokenconservative said:
Um...have you seen some of these in the US media of late?
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Perhaps you might explain the difference between a story recounting some negative economic statistics and one proclaiming "DOOM!"

We're all curious to know how you make such distinctions.

It's a shame you apparently still only wish to continue playing the role of über-conservative provocateur rather than someone interested in a genuine discussion.
 
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While I don't think that the Canadian economy is collapsing per se, I do think that the strength of the loonie will take a genuine bite out of the pace of growth in the Canadian economy. Canadian businesses generally thrive on a weak currency because of our export-heavy economy, particularly to our neighbours to the south. Already we are seeing job losses in manufacturing and service sectors. The film industries in Vancouver and Toronto are hurting. Tourism, particularly 'Mericans coming North is down, and cross-border shopping (Canadians shopping for their day to day consumables in the US) is up - WAY up. While our natural resource & commodity sectors are doing just fine, thank you very much, a dollar on par does mandate a significant restructuring of how Canadians do business.

I for one suspect that the dollar will return to a more traditional & sustainable valuation of 15 - 20 cents below the greenback - gradually over the next 18 - 24 months.
 
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Collapsing and softening are two seperate terms in this case. It's much more the latter, for Canada on the whole. As a country, it's time for Alberta and BC to pull the load until the manufacturing sector in Ontario revamps. $100 a barrel oil and the need for natural resources should carry Canada through this World wide "softening" at least until November when the Terror from Texas is replaced. That's Canada as I see it, today January 27th, 2008. Thank you and good night.
 
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