ITEM: Financial Post JUL 22, 2019 - Since the start of 2010, Canada has been creating new firms at a quarter-over-quarter annual rate of only 0.8 per cent, on average, according to StatCan’s most recent data.
Canadian Household Debt, GDP, Foreign Direct Investment and Balance of Trade and a Google Search Mexican Peso & Canadian Dollar BELOW
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DEBT data are book value quarterly; GDP data are seasonally adjusted at annual rates; FDI FDO data are annual; NET TRADE data are seasonally adjusted monthly.
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NOTE ON #2 - Foreign Direct Investment The difference between Capital Investment leaving Canada to Capital Investment entering Canada has widened dramatically since 2014 by 29%. For every dollar coming into Canada in 2014, $1.14 left in 2015, $1.33 left in 2016, $1.27 left in 2017, $1.36 left in 2018, $1.47 left The 20 year widening super trend is accelerating. |
Canada Households Debt To Disposable Income
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Canada's household debt as a share of income, a measure closely watched by policymakers, fell to 173.0 percent in the first quarter of 2019 from 173.7 percent in the fourth quarter, but was still near record levels. Households Debt To Income in Canada averaged 126.33 percent from 1990 until 2019, reaching an all time high of 173.77 percent in the third quarter of 2017 and a record low of 83.56 percent in the first quarter of 1990. |
Household Debt to Income
Clearly the post 2008 credit crash period and our monetary policy coming out of it has led not only to a furious bid in real estate assets with all its consequences of draining disposable income, but the gap between mortgage debt and other household debt remains high and wide relative to pre-crash times.
Clearly the post 2008 credit crash period and our monetary policy coming out of it has led not only to a furious bid in real estate assets with all its consequences of draining disposable income, but the gap between mortgage debt and other household debt remains high and wide relative to pre-crash times.
source: tradingeconomics.com
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The other features of the chart show that in the decade before the crash as the commodity boom began to peak, our Foreign Direct Investment account flipped poles so that more Canadian capital was being invested offshore than offshore capital was being invested in Canada. Coming out of the March 2009 Pit of Gloom with monetary policy firmly presiding over state suppression of market interest rates, the shift in polarity in the FDI has little reason to flip back to the 1980's and '90's when more offshore investment capital came into Canada than capital leaving Canada.
With the 2018 FDI clocking in at another big "wide", the super trend is now very clear; the flight of Canadian capital towards offshore workers is still on and accelerating.
Cheap capital is in search of cheap productive Labour in an effort to realize a better return on investment from exploiting the price mismatch. Clearly this is working as our deeply negative Balance of Trade data suggest; we buy more than we sell, hence we supply net income to entities outside our "borders" financed and subsidized by our own cheap credit and our willingness to hock the future.
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ITEM: "Investment outflow from Canada aleady underway in 'real time' says RBC Head. Toronto City News, April 1, 2018 StatsCan NOTES on 2018 FDI-FDO CME 2019 Outlook: IS A RECESSION LURKING AROUND THE CORNER? CME 2012 Data: Canada is the fifth largest investor in Mexico. More than 3,000 companies in Mexico operate with Canadian capital. |
ITEM: CBC NEWS July 15, 2019 - "U.S. President Donald Trump signed an executive order Monday demanding that 75 per cent of the value of any components in "Made in America" products must to be sourced in the U.S. That's an increase from 50 per cent previously. And, in a fresh blow to Canada's steel industry, he has demanded that 95 per cent of steel and iron used in any public contract must be from the U.S."
