Canada's trade deficit grows to largest level ever

[Machjo]

Canada's trade deficit grows to largest level ever - Business - CBC News

Bearing in mind that it's not clear if this "largest level ever" deficit takes real dollar value into account, while an extreme deficit might be risky, a moderate one might help to bring the value of the dollar down in the long run, which could be a good thing.

As long as we keep inflation under control, of course.

 

[jariax]

So, under Harper, we have the largest trade deficit and the largest budget deficits in our history.

I guess this is the part where the spin doctors tell us we should be grateful to have such savvy financial managers in charge of our economy, or it would have been much worse.

 

[lone wolf]

Money people are delighted....

 

[Machjo]

So, under Harper, we have the largest trade deficit and the largest budget deficits in our history.

I guess this is the part where the spin doctors tell us we should be grateful to have such savvy financial managers in charge of our economy, or it would have been much worse.

To be fair to the government, it has only so much control over trade deficits, and often these trade deficits are as a result of rebalancing (for instance, Japan suffered severely in the 90's if I remember correctly owing to decades of trade surplusses, which resulted in a sudden rise in the value of the yen so as to rebalance it).

As for budget deficits though, that's a separate matter. The government has full control over its budget deficit and there is no excuse to not be able to balance the budget in peace time.

 

[IdRatherBeSkiing]

To be fair to the government, it has only so much control over trade deficits, and often these trade deficits are as a result of rebalancing (for instance, Japan suffered severely in the 90's if I remember correctly owing to decades of trade surplusses, which resulted in a sudden rise in the value of the yen so as to rebalance it).

I suspect the high dollar also will affect the deficit. Cheaper to buy imported goods.

 

[EagleSmack]

I suspect the high dollar also will affect the deficit. Cheaper to buy imported goods.

Where have I seen this before?

 

[coldstream]

Trade needs oversite and management in the national interest. The Canadian government has lost control of the industrial integrity of the nation through Free Trade and the currency of that Trade through monetarism (free trade in money and credit). The combined effect is devastating.. producing an economy increasingly unproductive and dependent on foreign product.. and a currency that has been hijacked by speculators and hedge funds in a global currency casino.. operating completely independently of the national interest.

 

[petros]

Thre words....infrastructure, infrastructure and infrastructure.

 

[Machjo]

Trade needs oversite and management in the national interest. The Canadian government has lost control of the industrial integrity of the nation through Free Trade and the currency of that Trade through monetarism (free trade in money and credit). The combined effect is devastating.. producing an economy increasingly unproductive and dependent on foreign product.. and a currency that has been hijacked by speculators and hedge funds in a global currency casino.. operating completely independently of the national interest.

Isn't the Christian Faith supposed to be universal and not national?

Thre words....infrastructure, infrastructure and infrastructure.

Quality education for all could help too.

I suspect the high dollar also will affect the deficit. Cheaper to buy imported goods.

And the trade deficit will eventually bring the dollar down. Back full circle.

 

[coldstream]

Isn't the Christian Faith supposed to be universal and not national?



..

Only Calvinism would support Free Market economics and ideological Libertarianism at the expense of national and social responsibility. But Calvinism also deems wealth from any source to be a sign of Divine grace. Take a look at the moral quality of Wall Street bankers and hedge fund managers and you see what at logical swamp that puts you in.

Catholicism through several Encyclicals... starting with Rerum Novarum by Leo XIII in the late 19th Century supports dirigist government management of the economy on a moral basis and an equitable sharing of wealth at the national level. If anything, Catholic social theology supports constructive and ethical nationalism.. you have to look to Socialism to find the death of the nation state.

 

[dumpthemonarchy]

The USA economy is slow, so our economy will slow. All those immigrants, 300,000 per year since 1990, have not created new markets in Asia and Africa to create jobs here. They are coming for jobs that are harder to get. If economics has anything to do with immigration, it might need to be lessened to about 100,000 a year.

Meanwhile the Vancouver housing market is slowing down. Prices are still up, but unit sales are stagnant. Less trading here, which is good news as real estate agents will leave the market as owning a house will no longer be like owning a stock, flip as fast as you can for a fast buck. Soon, prices will sag.

 

[Machjo]

Only Calvinism would support Free Market economics and ideological Libertarianism at the expense of national and social responsibility. But Calvinism also deems wealth from any source to be a sign of Divine grace. Take a look at the moral quality of Wall Street bankers and hedge fund managers and you see what at logical swamp that puts you in.

Catholicism through several Encyclicals... starting with Rerum Novarum by Leo XIII in the late 19th Century supports dirigist government management of the economy on a moral basis and an equitable sharing of wealth at the national level. If anything, Catholic social theology supports constructive and ethical nationalism.. you have to look to Socialism to find the death of the nation state.

Sweden has a very developped social safety net in spite of the fact that it also has open markets. You seem to be saying the two are incompatible. And, did God give the earth's resources for the benefit of some nations, or of all?

 

[wulfie68]

What does this translate to in terms of % of GDP? If its just a number in today's dollars, then of course our trade deficit could very well be "the highest ever" because of inflation alone. This needs more substance before people want to legitimately start trying to crucify Harper and Co (again)...

 

[coldstream]

Sweden has a very developped social safety net in spite of the fact that it also has open markets. You seem to be saying the two are incompatible. And, did God give the earth's resources for the benefit of some nations, or of all?

Depends what you mean by 'open markets'. Free markets in the sense that we've seen in the last 4 decades throughout the West... free trade, monetarism, de-regulation (especially of financial markets), privatization (especially of natural monopolies and critical economic institutions related to currency regulation), regressive taxation... have all led a disastrous and a completely unsustainable economy throughout the West.

Its very evident in Europe now, but is certainly not limited to that. We will see shock after shock in this environment. It is like a bouncing ball on a downward staircase.. every recovery fails to the regain the previous elevation, and the ball loses energy everytime it hits a new low.

I'm not sure Sweden is an example of final effects of open markets. Sweden has very high taxation to sustain its social infrastructure... but like the rest of the West is finding it increasingly difficult to maintain an integrated industrial economy and full employment. Ultimately that will mean its social safety net will become unaffordable. It's long term prospects might be no better than Spain or Greece in this respect.

 

[petros]

So, under Harper, we have the largest trade deficit and the largest budget deficits in our history.

That happens when trade shift from Europe to Asia and you have massive infrastructure bottlenecking of exportable goods.

You people have no patience or long rage vision.

 

[darkbeaver]

Canada has the best banking in the world none of this economic crisis stuff can possibly effect Canada.