Canadian Household Debt, GDP, Foreign Direct Investment and Balance of Trade FDI NOTES BELOW and Mexican Peso & Canadian Dollar Google Search BELOW
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Statecrafted ZIRP & NIRP since the crash into 2009 has resulted in more consumption debt and less production investment in Canada.
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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.
Canada Households Debt To Disposable Income
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TRADING ECONOMICS FORECAST |
source: tradingeconomics.com
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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. The growing capital flight out of Canada is at the expense of labour employment. Employment Rate Chart |
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.
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
SNIPPIT: "On a regional basis, nearly three quarters of the 2018 increase in the stock of Canadian direct investment abroad was due to higher investment positions in the North America region, primarily the United States (up $70 billion to $595 billion).
Most of the remaining increase was in Europe, led by higher investment in the United Kingdom (up $12 billion to $109 billion) and Luxembourg (up $8 billion to $90 billion)."
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