Panic in Ottawa after one drastic change in Canadian monetary policy
- Thread starter mentalfloss
- Start date
Canada’s slumping GDP reveals troubles in just about every sector
Friday’s GDP report made crystal clear how grimly Canada’s economy — one that contracted 0.2% in November – had been quietly tanking, which contributed to the Bank of Canada’s surprise move last week when it cut its prime setting rate.
While the bleak oil picture was fully developing, the thinking was that Canadians shouldn’t worry about the economy, manufacturing would carry the standard. However, manufacturing output, which accounts for 10.5% of GDP, fell even further than the energy sector, declining 1.9%, even though the Canadian dollar had already begun sliding, according to Statistics Canada.
The oil, gas and mining activity fell 1.5% while a barrel of crude was trading as high as US$76.51, a price that is more than one and a half times as the current figure, US$47.86, according to StatsCan.
Concurrently, wholesale trade slumped 0.6% in November, a second consecutive decline following a decrease of 0.2% in October, coupled with a surprising drop in output of 0.4% in the finance and insurance sector, which had previously risen for five consecutive months.
“You should be seeing the manufacturing sector step up, and it’s really disconcerting that it isn’t happening,” Kevin Hebner, an FX strategist at JP Morgan, said in a telephone interview. “What will pick up the slack if Alberta goes into a recession and the energy sector isn’t adding any oomph to the economy?”
Making matters worse, GDP will likely fall short of the Bank of Canada’s forecasts in the months to come, according to industry experts.
“The Bank of Canada is currently forecasting fourth-quarter growth at 2.5%, which is so far looking like it will be difficult to attain, even with a strong December figure,” Scotiabank economists wrote in a report.
Meanwhile, the International Monetary Fund added its voice to the dire warnings about Canada’s overheated housing market on Friday in a report that stated the country’s national housing sector is overvalued by as much as 20% (but cautioned could be as little as 7%, accounting for the range of housing markets cross Canada). Earlier in the week, Fitch Ratings published similar data, and both predicted a soft landing.
Still, Canadians have yet to feel the full brunt of the collapse in crude prices, as it will take time for the ramifications to trickle down to the broader economy.
“There will be blood,” Mr. Hebner warned in a research note to clients. “We have so far only witnessed the tip of the iceberg in terms of direct damage” of low oil prices to the hardest-hit producers. “It remains too early to have hard data regarding the indirect damage” to supporting industries.
Finn Poschmann, vice-president, policy analysis at the C.D. Howe Institute in Toronto, said that although the decline in manufacturing is surprising, he does not expect the slide to continue, primarily because of the falling Canadian currency, which closed at 78 cents U.S. Friday.
Canada’s slumping GDP reveals troubles in just about every sector | Financial Post
Friday’s GDP report made crystal clear how grimly Canada’s economy — one that contracted 0.2% in November – had been quietly tanking, which contributed to the Bank of Canada’s surprise move last week when it cut its prime setting rate.
While the bleak oil picture was fully developing, the thinking was that Canadians shouldn’t worry about the economy, manufacturing would carry the standard. However, manufacturing output, which accounts for 10.5% of GDP, fell even further than the energy sector, declining 1.9%, even though the Canadian dollar had already begun sliding, according to Statistics Canada.
The oil, gas and mining activity fell 1.5% while a barrel of crude was trading as high as US$76.51, a price that is more than one and a half times as the current figure, US$47.86, according to StatsCan.
Concurrently, wholesale trade slumped 0.6% in November, a second consecutive decline following a decrease of 0.2% in October, coupled with a surprising drop in output of 0.4% in the finance and insurance sector, which had previously risen for five consecutive months.
“You should be seeing the manufacturing sector step up, and it’s really disconcerting that it isn’t happening,” Kevin Hebner, an FX strategist at JP Morgan, said in a telephone interview. “What will pick up the slack if Alberta goes into a recession and the energy sector isn’t adding any oomph to the economy?”
Making matters worse, GDP will likely fall short of the Bank of Canada’s forecasts in the months to come, according to industry experts.
“The Bank of Canada is currently forecasting fourth-quarter growth at 2.5%, which is so far looking like it will be difficult to attain, even with a strong December figure,” Scotiabank economists wrote in a report.
Meanwhile, the International Monetary Fund added its voice to the dire warnings about Canada’s overheated housing market on Friday in a report that stated the country’s national housing sector is overvalued by as much as 20% (but cautioned could be as little as 7%, accounting for the range of housing markets cross Canada). Earlier in the week, Fitch Ratings published similar data, and both predicted a soft landing.
Still, Canadians have yet to feel the full brunt of the collapse in crude prices, as it will take time for the ramifications to trickle down to the broader economy.
“There will be blood,” Mr. Hebner warned in a research note to clients. “We have so far only witnessed the tip of the iceberg in terms of direct damage” of low oil prices to the hardest-hit producers. “It remains too early to have hard data regarding the indirect damage” to supporting industries.
Finn Poschmann, vice-president, policy analysis at the C.D. Howe Institute in Toronto, said that although the decline in manufacturing is surprising, he does not expect the slide to continue, primarily because of the falling Canadian currency, which closed at 78 cents U.S. Friday.
Canada’s slumping GDP reveals troubles in just about every sector | Financial Post
It will, be. Just need all the Walmart stock of toilet paper to run out and then they will buy ours, If the price beats everyone else.
Bet they have 5 years worth in stock.
So the Liberal plan to sign a $100bbl deal with the OPEC devil and build up infrastructure and increase oil exports to overseas markets was a failure?
Check the timeline sunshine. You're blaming Con's for a bipartisan plan young man.
Asia-Pacific Gateway and Corridor Initiative
Remember who ran this for the Liberals? David Emerson. Who crossed the floor to the Con's to keep the flow? David Emerson.
Check the timeline sunshine. You're blaming Con's for a bipartisan plan young man.
Asia-Pacific Gateway and Corridor Initiative
Remember who ran this for the Liberals? David Emerson. Who crossed the floor to the Con's to keep the flow? David Emerson.
Your provinces good prospects is at odds with many other regions. Could you comment as to the reasons this is the case and how will SK create offshore markets if necessary.
Trade offices around the globe and recruiting tech and skilled labour through immigration sponsorship.
Apparently Chinese and Filipinos are tougher than non-Prairie Canadians and aren't afraid to work.
Your markets please. I already know Canadians are lasy slobs, I invented the method. Where are you selling all this production in a globally contracting economy?
Total News Blackout In Canada – People vs Central Bank -
Total News Blackout In Canada – People vs Central Bank -
Total News Blackout In Canada – People vs Central Bank
2725 Institution 5 days ago UpNorthOfThe49th 11
http://www.maxresistance.com/total-news-blackout-in-canada-people-v...
We do not have to explain that one of the GREATEST FRAUDS of all time is the central banking hoax.
We the people of Canada own the central Bank but it was stolen in 1974.
In a class action suit filed by Lawyer Rocco Galati on December 12, 2011 there has been a complete News Blackout regarding the proceedings of this lawsuit.
UPDATE: BREAKING NEWS – No one else will cover.
Breaking News, Update on the COMER VS. Bank of Canada law suit,
Jan 26 2015 Today COMER (Committee on Monetary and Economic Reform EST. 1986) and constitutional lawyer Rocco Galati won yet another round of appeals. Galati the most prominent constitutional lawyer in the country says he does not believe Canada is a democracy any longer and that the media is controlled by the government.
Click on the picture for more information on this class action lawsuit.
Correction to Mr. Galati: The Canadian News Media is not owned by the Government of Canada, it has however been snatched from the control of all Canadians in a massive purchase.
Just prior to “The Ottawa Shooting” incident The National Post or Post Media has agreed on a price and has purchased 175 newspapers nation wide in Canada, along with data and digital media. (although they say they wait approval by the media fair competitions regulatory body). We face one of the largest journalistic takeovers in Canada’s history for the price of a song and dance.
Read More: Massive Media Takeover In Canada: Corporate Monopoly
Total News Blackout In Canada – People vs Central Bank -
Total News Blackout In Canada – People vs Central Bank
2725 Institution 5 days ago UpNorthOfThe49th 11
http://www.maxresistance.com/total-news-blackout-in-canada-people-v...
We do not have to explain that one of the GREATEST FRAUDS of all time is the central banking hoax.
We the people of Canada own the central Bank but it was stolen in 1974.
In a class action suit filed by Lawyer Rocco Galati on December 12, 2011 there has been a complete News Blackout regarding the proceedings of this lawsuit.
UPDATE: BREAKING NEWS – No one else will cover.
Breaking News, Update on the COMER VS. Bank of Canada law suit,
Jan 26 2015 Today COMER (Committee on Monetary and Economic Reform EST. 1986) and constitutional lawyer Rocco Galati won yet another round of appeals. Galati the most prominent constitutional lawyer in the country says he does not believe Canada is a democracy any longer and that the media is controlled by the government.
Click on the picture for more information on this class action lawsuit.
Correction to Mr. Galati: The Canadian News Media is not owned by the Government of Canada, it has however been snatched from the control of all Canadians in a massive purchase.
Just prior to “The Ottawa Shooting” incident The National Post or Post Media has agreed on a price and has purchased 175 newspapers nation wide in Canada, along with data and digital media. (although they say they wait approval by the media fair competitions regulatory body). We face one of the largest journalistic takeovers in Canada’s history for the price of a song and dance.
Read More: Massive Media Takeover In Canada: Corporate Monopoly
"The recent economic downturn demonstrated the importance of the United States market for Saskatchewan exports. Emerging markets, such as China and India, quickly moved up the ranks and took their place as major export markets for Saskatchewan products. Beyond these two emerging giants, other emerging markets demonstrated their appetite for Saskatchewan products. Bangladesh, Pakistan and Sri Lanka, as well as the Common Wealth of Independent States (CIS) and Middle East & North Africa (MENA) regions are quickly becoming important markets for Saskatchewan. While exports to most markets around the world receded from the boom in activity in 2008 to more normal levels in 2009 and 2010, Bangladesh, Pakistan and Sri Lanka showed impressive"
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Petros 2008 was the provinces best year, that's behind in case you don't know. Notice how the authors (pitch hacks) stress the downturn into 2009 and 2010 as more normal. There is a nice PDF offered which indicates the last economic activity in Sask was 2011. It seems .sasktrade.com/ has bit the dust. Baltic Dry Plunges At Fastest Pace Since Lehman, Hits New 29 Year Low
Don't give up hope, I'm sure things will get better in a decade or so. It really is inspiring when people cheer for their province state country in the face of great
advercity.
United States, India, China, Japan and the United Kingdom were Sasks best customers in 2010. China and India are still solvent, the other three may not exist in two years.
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Petros 2008 was the provinces best year, that's behind in case you don't know. Notice how the authors (pitch hacks) stress the downturn into 2009 and 2010 as more normal. There is a nice PDF offered which indicates the last economic activity in Sask was 2011. It seems .sasktrade.com/ has bit the dust. Baltic Dry Plunges At Fastest Pace Since Lehman, Hits New 29 Year Low
United States, India, China, Japan and the United Kingdom were Sasks best customers in 2010. China and India are still solvent, the other three may not exist in two years.
Classy line, mind if I borrow it once in awhile? This is the strawman thread to make sure this never makes it out of the stall.
Total News Blackout In Canada – People vs Central Bank - 12160
Breaking News, Update on the COMER VS. Bank of Canada law suit,
Jan 26 2015 Today COMER (Committee on Monetary and Economic Reform EST. 1986) and constitutional lawyer Rocco Galati won yet another round of appeals. Galati the most prominent constitutional lawyer in the country says he does not believe Canada is a democracy any longer and that the media is controlled by the government.
http://www.comer.org/archives/2014/COMER_NovDec2014.pdf
Last edited:
Banking on serious reform
h/t sda: Successful court case to reverse Pierre Trudeau's 1974 Canadian financial legacy ordered not be reported by the Main Street Media.
watch and read:
SR 356 - Good News From Canada - YouTube
"I'm the bad guy," I overheard the government lawyer say jokingly, introducing himself to former minister of defence Paul Hellyer in the Federal Court of Appeal this week.
Why do Canadians allow private banks to profit off our public debt when the Bank of Canada is legislated to provide low- or no-interest loans for human capital and infrastructure spending? The Bank of Canada has not issued such loans since 1974, after it funded Canada out of the Great Depression, the Second World War, the infrastructure boom, universal health care, universities and colleges, CBC and more. Monday, three judges upheld the previous ruling of justiciability. The next step is to determine the statutes of the Bank of Canada Act and if they have been subverted by conspiracy.
The monopoly of private banks' exclusive privilege of lending money to governments will, for the second time in our history, soon be put on trial. The first time it was debated in the House of Commons, it led to the creation of the Bank of Canada. It's time to restore the Bank of Canada and jail the banksters.
We are in a perpetual-debt crisis because we've allowed foreign private interests to control the creation of money and, by extension, federal economic and social policy for their private interests. Banks are guaranteed billions in profits every year as families slide deeper into debt. Forget income splitting; imagine the tax relief once we escape debt bondage and compound-interest payments.
Arguing for the plaintiffs -- Ann Emmett, centenarian William Krehm and the Committee on Monetary and Economic Reform (comer.org) -- is perhaps Canada's most prominent constitutional lawyer, Rocco Galati. Galati, who consistently undermines and reverses government decisions and actions, is not shy in declaring Canada "a quiet dictatorship." The erosion of democracy is not complete without the erosion of justice and the independence of the judiciary, for which this government has received international condemnation. Galati has reason to believe there is a government-issued media blackout on this case. Sorry, Harper; I didn't get the memo.
Saturday prior to the hearing, there was a five-hour seminar in Toronto City Hall chambers on the subject of money, tax, poverty and public banking, with the keynote speech delivered by Toronto Coun. Kristyn Wong-Tam on the creation of the Toronto Public Bank. We heard from a renowned investigative accountant, Al Rosen, who described the existence of "hundreds of Nortels" that go un-investigated because of a lack of resources to address white-collar crime, tax evasion and more, as the Canada Revenue Agency has been co-opted for partisan purposes to attack charities and birdwatchers critical of the Harper government.
The report Banking: A Proven Diversification Strategy, commissioned by Canada Post, was killed by the Harper government a day before it eviscerated the public institution. After access-to-information requests, the report was released, with more than 701 of 811 pages redacted. The report detailed the win-win nature of postal banking, given Canada Post is the largest distribution network in the country, with branches in more than 6,300 communities, more than all banks combined, said Mike Palecek, the representative from the Canadian Union of Postal Workers. Even grocery stores have their own banks, from which they make hundreds of millions a year. With a few simple software upgrades and ATMs, Canadians from coast to coast to coast could have low-cost, accessible banking services, among 700 pages of other benefits the Harper government doesn't want you to know about.
Chew on that, Grandma, when you're trudging through snow to get your mail.
Banking on serious reform | Orillia Packet and Times
h/t sda: Successful court case to reverse Pierre Trudeau's 1974 Canadian financial legacy ordered not be reported by the Main Street Media.
watch and read:
SR 356 - Good News From Canada - YouTube
"I'm the bad guy," I overheard the government lawyer say jokingly, introducing himself to former minister of defence Paul Hellyer in the Federal Court of Appeal this week.
Why do Canadians allow private banks to profit off our public debt when the Bank of Canada is legislated to provide low- or no-interest loans for human capital and infrastructure spending? The Bank of Canada has not issued such loans since 1974, after it funded Canada out of the Great Depression, the Second World War, the infrastructure boom, universal health care, universities and colleges, CBC and more. Monday, three judges upheld the previous ruling of justiciability. The next step is to determine the statutes of the Bank of Canada Act and if they have been subverted by conspiracy.
The monopoly of private banks' exclusive privilege of lending money to governments will, for the second time in our history, soon be put on trial. The first time it was debated in the House of Commons, it led to the creation of the Bank of Canada. It's time to restore the Bank of Canada and jail the banksters.
We are in a perpetual-debt crisis because we've allowed foreign private interests to control the creation of money and, by extension, federal economic and social policy for their private interests. Banks are guaranteed billions in profits every year as families slide deeper into debt. Forget income splitting; imagine the tax relief once we escape debt bondage and compound-interest payments.
Arguing for the plaintiffs -- Ann Emmett, centenarian William Krehm and the Committee on Monetary and Economic Reform (comer.org) -- is perhaps Canada's most prominent constitutional lawyer, Rocco Galati. Galati, who consistently undermines and reverses government decisions and actions, is not shy in declaring Canada "a quiet dictatorship." The erosion of democracy is not complete without the erosion of justice and the independence of the judiciary, for which this government has received international condemnation. Galati has reason to believe there is a government-issued media blackout on this case. Sorry, Harper; I didn't get the memo.
Saturday prior to the hearing, there was a five-hour seminar in Toronto City Hall chambers on the subject of money, tax, poverty and public banking, with the keynote speech delivered by Toronto Coun. Kristyn Wong-Tam on the creation of the Toronto Public Bank. We heard from a renowned investigative accountant, Al Rosen, who described the existence of "hundreds of Nortels" that go un-investigated because of a lack of resources to address white-collar crime, tax evasion and more, as the Canada Revenue Agency has been co-opted for partisan purposes to attack charities and birdwatchers critical of the Harper government.
The report Banking: A Proven Diversification Strategy, commissioned by Canada Post, was killed by the Harper government a day before it eviscerated the public institution. After access-to-information requests, the report was released, with more than 701 of 811 pages redacted. The report detailed the win-win nature of postal banking, given Canada Post is the largest distribution network in the country, with branches in more than 6,300 communities, more than all banks combined, said Mike Palecek, the representative from the Canadian Union of Postal Workers. Even grocery stores have their own banks, from which they make hundreds of millions a year. With a few simple software upgrades and ATMs, Canadians from coast to coast to coast could have low-cost, accessible banking services, among 700 pages of other benefits the Harper government doesn't want you to know about.
Chew on that, Grandma, when you're trudging through snow to get your mail.
Banking on serious reform | Orillia Packet and Times
Re: Banking on serious reform
Here is the 20 page pdf to go along with the story.
http://www.comer.org/archives/2014/COMER_NovDec2014.pdf
Here is the 20 page pdf to go along with the story.
http://www.comer.org/archives/2014/COMER_NovDec2014.pdf