Money is flooding out of Canada at the fastest pace in the developed world

mentalfloss

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Jun 28, 2010
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DEM DIPPEN DOT POLICIES BE DRIVIN GOOD JABS ADDA MAH COUNTRY


Money is flooding out of Canada at the fastest pace in the developed world

Canada’s basic balance — a measure of national accounts that spans everything from trade to financial-market flows — swung from a surplus of 4.2 per cent of gross domestic product to a deficit of 7.9 per cent in the 12 months ending in June, according to analysis from Kamal Sharma, a foreign-exchange strategist at Bank of America Merrill Lynch. That’s the fastest one-year deterioration among 10 major developed nations.

More recent data on where companies and mutual-fund investors are putting their money show the trend extended into the second half of the year, suggesting demand for the Canadian dollar and the country’s assets is still ebbing. The currency is already down 11 per cent this year, after touching an 11-year low against the U.S. dollar in September.

“This is Canadian investors that are pushing money abroad,” said Alvise Marino, a foreign-exchange strategist at Credit Suisse Group AG in New York. “The policy in Canada the last 10 years has greatly favored investments in energy. Now the drop in oil prices made all that investment unprofitable.”

Crude oil, among the nation’s biggest exports, has collapsed to about half its 2014 peak. The slump has derailed projects this year in Canada’s oil sands — one of the world’s most expensive crude-producing regions. Royal Dutch Shell Plc’s decision to put its Carmon Creek drilling project on ice last week lengthened that list to 18, according to ARC Financial Corp.

Foreign Lure

Canadian companies, meanwhile, have been looking abroad for acquisitions. Royal Bank of Canada is expected to close its US$5.4 billion purchase of Los Angeles-based City National Corp. Monday, its biggest-ever takeover. It’s part of a net outflow of $73 billion this year for mergers and acquisitions, both completed and announced, according to Credit Suisse data.

Nine of the 10 best-performing companies on the country’s benchmark stock index in the past two years have favored buying growth abroad rather than expanding at home.

Money is flooding out of Canada at the fastest pace in the developed world
 

DaSleeper

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May 27, 2007
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Flossy the optimist At it again
 

AnnaG

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Jul 5, 2009
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meh we will not buy foreign as long as the Canabuck is worth less than a dozen yuan. Actually, come to think of it, our money is probably better sitting in shares rather than floating around.
 

darkbeaver

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meh we will not buy foreign as long as the Canabuck is worth less than a dozen yuan. Actually, come to think of it, our money is probably better sitting in shares rather than floating around.

I have been looking into safe investment of cash, and cash is not safe, you have to convert it to tangable stuff sooner the better. That is to avoid the inevitable devaluations of western currencies, I guess. Gold and silver, firewood, turnips. The US dollar has lost 98% of its value since 1913.
 

B00Mer

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The Official money flooding out thread.

OMG you're a cry baby, I started a duplicate thread by accident and you're taking a hissy fit... Like I may get one up on you, running to mine asking for it to be closed.. What a child.

I said oops made a mistake pls merg.

I'm sure everyone will come flooding to your silly thread.
 

Cliffy

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I have been looking into safe investment of cash, and cash is not safe, you have to convert it to tangable stuff sooner the better. That is to avoid the inevitable devaluations of western currencies, I guess. Gold and silver, firewood, turnips. The US dollar has lost 98% of its value since 1913.
Invest in tools: solar systems, shovels, treadle sowing machines, meat grinders, hand operated washing machines, wood cook stoves, anything that doesn't require electricity. This phony currency bubble is going to bust.
 

captain morgan

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Mar 28, 2009
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I have been looking into safe investment of cash, and cash is not safe, you have to convert it to tangable stuff sooner the better. That is to avoid the inevitable devaluations of western currencies, I guess. Gold and silver, firewood, turnips. The US dollar has lost 98% of its value since 1913.

I know 2 guys that are buying bullion and diamonds as a hedge... Probably not a bad idea

It has nothing to do with the new government.

You should rethink that position.... This happens in every (Western) nation when a new gvt is formed. If the capital senses that business will be hampered by inc taxes, more regs, etc, the money will flee.
 

DaSleeper

Trolling Hypocrites
May 27, 2007
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Invest in tools: solar systems, shovels, treadle sowing machines, meat grinders, hand operated washing machines, wood cook stoves, anything that doesn't require electricity. This phony currency bubble is going to bust.
What is it they said to Henry Ford??? Oh yeah " this contraption will never replace the horse"