Canada May face a Recession the USA Not!

[AlbertaFarmer5]

Comparing US debt to Canadian debt is like the old joke about the farmer and the bank, if I owe the bank $1,000,000 and I can't pay, I have a problem, If my neighbor owes the bank $10,000,000, and can't pay, the bank has a problem( Or add appropriate zeroes to make it relevant). The US can sustain what appears to be impossible debt levels far longer than anyone else.

1. 1 They have the worlds reserve currency, with no other contenders remotely close
2. 2 The US consumer is still the only market in the world, three times bigger than the next(China), every manufacturing or exporting country needs the US consumer far more than they need them.
3. 3 They have the only Military in the world capable of enforcing the peace (or enforcing whatever else they may desire to use it for)
4. 4 As per my example above, just the size of the debt, If the US decides to default on debt to China(for example), China has a problem, not the US.

Until every other economy in the world goes down in flames, the US can sustain these unsustainable debt and spending levels.

[jazz]

Most of Canadian consumer debts are mortgages. Whether you buy too big a house, or too much expensive land and/or machinery, when interest rates rise and you cant make your payments guess what happens?

Man explaining capitalism to a socialist is like pulling your own teeth. What productive capacity does a home have? Answer none, its a liability. Now what does a piece of machinery or land do or fertilizer, right it produces something. The factors of production are NOT equivalent debt to mortgages, govt debt or consumer purchases.

Land equipment inputs are investments, not frivolous purchases. Hence they favorable taxation. You can argue that an investment doesn't work out for whatever reason but don't compare growing a crop to buying a boat or something.

[Integrity_Farmer]

Canada may enter a recession, while the US flourishes. Canada’s economy may soon endure something it hasn’t faced in 68 years: A recession without the US in the same boat. That’s the view of Jim Mylonas, global macro strategist at BCA Research Inc. in Montreal, a firm that’s been making calls on markets and economies since 1949. Mylonas says the surge in household debt combined with rising interest rates will push the Canadian economy into recession, even while the US economy continues to grow.

Well I said that all along the Trudeau plan is a disaster and will destroy Canada. Then the fool will leave for a UN job and us canadians will have to repay his idiotic ways.

God bless America it’s got its shit together.

What are you talking about? With the US 1.2 trillion US debt for 2018 and a 21 trillion total debt and the Trump tax cut to the billionaires and giant corporations.

God bless America. You have got that right. You must be calling for divine intervention and that is what it will take. Well someone has to help them out

Yes the Trump cut taxes to the billionaires and giant corporations. What happened to Trumps promised tax cuts to the middle class that never happened. It is funny how that works. Trump is putting the middle class into poverty

To pay for his tax cuts Trump attempted to end Obamacare and John McCain cast the deciding vote to stop that nonsense.

It is recently reported that teachers in the US have to live on food stamps. As you say "god bless America".

look at the debt clock
http://www.usdebtclock.org/

[dmlfarmer]

For **** sakes ,,,,Trudeau single handedly basically stopped exports from Canada....Oil, Pulses, Wheat etc...

On what basis are you making the claim that Trudeau has stopped exports? Here are the actual export numbers for the products you say he has stopped exports of.
Canadian oil exports over time

Nor has he stopped oil production Canada oil production over time

And you have to go back to 1991 for a year with higher wheat exports than last year. Trudeau does not set world price and farmers in Canada are continuing to grow and export at ever higher levels in spite of prices.
Sorry can not post chart for wheat, but this link shows it https://www.indexmundi.com/agriculture/?country=ca&commodity=wheat&graph=exports https://www.indexmundi.com/agriculture/?country=ca&commodity=wheat&graph=exports
As far as pulses go, India increased pulse tariffs before Trudeaus debacle trip. Second, the tariffs India set apply to all countries and not just Canada. Third, the tariffs were not set to punish global producer of pulses but to increase domestic prices in India. So to blame Trudeau for India domestic policy is wrong.

I am not a fan of Trudeau and do not think he is a good prime minister, but I am an even bigger critic of alternative facts and propaganda. So unless you can back up your claims with some facts I call BS.

[chuckChuck]

Yeah chuck maybe somebody should explain the difference in capital spending vs consumer spending. There is a huge difference. $100b farm debt is not equal to $100b consumer debt or even govt debt or even mortgage debt. You must be an NDP disciple.

Most of Canadian consumer debts are mortgages. Whether you buy too big a house, or too much expensive land and/or machinery, when interest rates rise and you cant make your payments guess what happens?

Farmers are overspending on inputs, machinery and land and then wondering why they can't make a profit? It is always someone else's fault. Start with blaming the politicians! LOL

[jazz]

Yeah chuck maybe somebody should explain the difference in capital spending vs consumer spending. There is a huge difference. $100b farm debt is not equal to $100b consumer debt or even govt debt or even mortgage debt. You must be an NDP disciple.

[Hamloc]

Hahahahah. IN the USA

The federal deficit soared last year to $779 billion and is projected to approach $1 trillion in 2019.

Interest on U.S. debt is projected to total $7 trillion over the next decade and, by 2026, will become the third largest category of the federal budget, according to the Peter G. Peterson Foundation, a nonpartisan organization dedicated to addressing the country’s long-term fiscal challenges.

To pay for years of deficits, the federal government must borrow money. Roughly half of the U.S. debt is held by foreign countries, such as China, Japan and Saudi Arabia. China alone holds more than $1 trillion in U.S. debt.

At the end of FY 2019 the total government debt in the United States, including federal, state, and local, is expected to be $25.86 trillion.

SF3 you missed the cause of a possible Canadian recession in your post:
"Mylonas says the surge in household debt combined with rising interest rates will push the Canadian economy into recession"

Many Canadians are living beyond their means. Farmers have over $100 billion dollars in debt. It was farmers and consumers who made their own decisions to over borrow when interest rates were low.

Let's be realistic Chuck in both countries the federal government's are running deficits at a time of low unemployment. The difference is two fold in my opinion, first in Canada Trudeau is adding regulation and taxes which slow business investment and Trump is doing the opposite. As well in Canada our personal debt to income ratio is much higher at something like 174% and the U.S. is closer to 100% I believe. I am certainly not a Trump fan but he is smart enough to see the threat China poses the rest of the world economically!

[bucket]

Hahahahah. IN the USA

The federal deficit soared last year to $779 billion and is projected to approach $1 trillion in 2019.

Interest on U.S. debt is projected to total $7 trillion over the next decade and, by 2026, will become the third largest category of the federal budget, according to the Peter G. Peterson Foundation, a nonpartisan organization dedicated to addressing the country’s long-term fiscal challenges.

To pay for years of deficits, the federal government must borrow money. Roughly half of the U.S. debt is held by foreign countries, such as China, Japan and Saudi Arabia. China alone holds more than $1 trillion in U.S. debt.

At the end of FY 2019 the total government debt in the United States, including federal, state, and local, is expected to be $25.86 trillion.

SF3 you missed the cause of a possible Canadian recession in your post:
"Mylonas says the surge in household debt combined with rising interest rates will push the Canadian economy into recession"

Many Canadians are living beyond their means. Farmers have over $100 billion dollars in debt. It was farmers and consumers who made their own decisions to over borrow when interest rates were low.

While I agree with what you have said eventually a guy either buys a different machine or repairs ....either way the prices are not set by farmers.....

Repair is at 150 an hour...a 150 hp MFWD is over 200,000 but even a good used one is expensive....the other option is to what , use horses...


Neither of my MWFD are over 4500 hours but are considered old and get about 125 hours a year....they are nickel and dimeing me now...

[chuckChuck]

Canada may enter a recession, while the US flourishes. Canada’s economy may soon endure something it hasn’t faced in 68 years: A recession without the US in the same boat. That’s the view of Jim Mylonas, global macro strategist at BCA Research Inc. in Montreal, a firm that’s been making calls on markets and economies since 1949. Mylonas says the surge in household debt combined with rising interest rates will push the Canadian economy into recession, even while the US economy continues to grow.

Well I said that all along the Trudeau plan is a disaster and will destroy Canada. Then the fool will leave for a UN job and us canadians will have to repay his idiotic ways.

God bless America it’s got its shit together.

Hahahahah. IN the USA

The federal deficit soared last year to $779 billion and is projected to approach $1 trillion in 2019.

Interest on U.S. debt is projected to total $7 trillion over the next decade and, by 2026, will become the third largest category of the federal budget, according to the Peter G. Peterson Foundation, a nonpartisan organization dedicated to addressing the country’s long-term fiscal challenges.

To pay for years of deficits, the federal government must borrow money. Roughly half of the U.S. debt is held by foreign countries, such as China, Japan and Saudi Arabia. China alone holds more than $1 trillion in U.S. debt.

At the end of FY 2019 the total government debt in the United States, including federal, state, and local, is expected to be $25.86 trillion.

SF3 you missed the cause of a possible Canadian recession in your post:
"Mylonas says the surge in household debt combined with rising interest rates will push the Canadian economy into recession"

Many Canadians are living beyond their means. Farmers have over $100 billion dollars in debt. It was farmers and consumers who made their own decisions to over borrow when interest rates were low.

[bucket]

Canada may enter a recession, while the US flourishes. Canada’s economy may soon endure something it hasn’t faced in 68 years: A recession without the US in the same boat. That’s the view of Jim Mylonas, global macro strategist at BCA Research Inc. in Montreal, a firm that’s been making calls on markets and economies since 1949. Mylonas says the surge in household debt combined with rising interest rates will push the Canadian economy into recession, even while the US economy continues to grow.

Well I said that all along the Trudeau plan is a disaster and will destroy Canada. Then the fool will leave for a UN job and us canadians will have to repay his idiotic ways.

God bless America it’s got its shit together.

For **** sakes ,,,,Trudeau single handedly basically stopped exports from Canada....Oil, Pulses, Wheat etc...


Meanwhile while Alberta adopts the OPEC style fix to its crisis....we are paying at the pumps like stupid...why because there is 30 cents a liter in taxes....and more coming....


Notley said in a press conference their were essentially giving their oil away and yet gas was at a 1.20 a liter.....Not one politician spoke up for the consumer....

Recession...we are already there.

Usually when things become useless they are worth less.....Trudeau is trying to make fuel useless and he is actually increasing the price...