Major Miss: Cdn Retail Sales

[macdon02]

It's almost like this is an economic crash..... yet not a market crash......

[errolanderson]

Governments use monetary policy which includes interest rate adjustments to control inflation. Another tool would be shrinking the money supply by various means. What do you prefer Errol?

To me, inflation is not a problem central banks need to battle. Disinflation or flat-out deflation is their risk. Central bankers have no tools to fight deflation. Even Janet Yellen recently stated that it is a mystery that there is no inflation. To me, that is a scary comment from the Fed chair. That means the power of central power manipulation in equity markets is now in-decline and central bank policy is failing. Global commodity markets continue to battle deflation, which is highlighted by gold's inability to maintain any strength beyond temporary geopolitical investor fear.

In my opinion, run-away gov't spending and record consumer debt is why there is no inflation. Central bankers need not increase rates to control this fantom issue. Toronto and Vancouver real estate has been driven by outside money (IMO). These are not Cdn made property gains in Canada's two largest cities. These markets are now in gradual decline.

Canada's impressive 3rd quarter 4.5% GDP has been driven by excessive gov't deficit spending, not by real recovery across western Canada. To me, Canada's economy is now weakening into the 4th quarter and will continue to struggle into 2018.

Today's negative retail sales data shows how just a small rate hikes cut into consumer disposable income. Two Bank of Canada rate hikes totalling just 1/2% effectively decreases consumer spending by nearly 6%.

[Rareearth]

Interest rate hikes all in a effort to cool housing in Toronto and Vancouver.

Result, kill consumer confidence and jobs.

Brilliant, just brilliant

[tweety]

bucket, loonie fallout is good news for canola and cattle prices, etc . . . .

But the shits for going to Arizona, or Hawaii, or Vegas, or...

[farmaholic]

But the shits for going to Arizona, or Hawaii, or Vegas, or...

The seasoned travelers have their cash converted ....

[shtferbrains]

I'm betting if you add in the xtra cash payed at retail for tax hikes consumer spending is actually up significantly.

Consumers are spending more but Governments need a bigger cut to pay for spending deficits.

PST, Carbon tax,etc.

[tweety]

Hardly buy things at a store anymore, Errol, does this include online sales? Seems it is just stores, which less people are going to.

[URL="http://www.bnn.ca/loonie-slides-as-retail-sales-unexpectedly-fall-0-3-in-august-1.890697"]http://www.bnn.ca/loonie-slides-as-retail-sales-unexpectedly-fall-0-3-in-august-1.890697[/URL]

And, click the little globe, paste the address in. Why have others do it for you every time?

[SASKFARMER3]

We change Canadian to USA dollars every time the Canadian gets a little over 80cent mark.

Covered till 2019 for spending down their most that travel I believe do the same.

Funny always here prices for products can't come down.

Truck I just bought was cheaper than the last one four years ago in the boom.

I think we're not going to like what's coming