Regarding the Canadian Dollar’s recent decline;
The province of Ontario has an economic situation not dissimilar to California’s and accounts for 38.5% of Canada’s population.
We have a major shortage of doctors nationwide as we are happy to heavily subsidize the education of doctors and then let them leave to work in lucrative private systems elsewhere without any compensation to us for our “investment”.
We have a major shortage of skilled labor in the trades coming right around the bend as baby boomers retire from plumbing, carpentry, welding, mechanics, etc. And our governments have made certain that there aren’t enough places in schools, which means the following: The skilled workers will be imported, paid little, little in taxes will be collected from them, little money will circulate in our economy from their low wages as they send what they have to by law to their home countries and what they can to their loved ones back home. Thus as planned via plausible incompetency and short-sightedness, unions will be broken resulting in lower wages and worse labor conditions in non-union jobs across the country as well.
Our publicly owned and managed infrastructure has been sabotaged and piratized just as in so many other nations, with the fallout falling on the peons.
Our provinces are hiding and lying about debts. In Alberta the popular red-neck government failed to spend billions on needed infrastructure while claiming to pay down our debt while giving away our non-renewable resources. We collected less than a dollar a barrel in royalties on tar sands oil in 2007. (It’s very difficult to dig up that number but it is buried within the annual reports of the companies themselves)
We’ve got a huge housing bubble, especially in light of likely future earnings against the mortgages on those homes. The related banking risks should be viewed in terms of their limited ability to participate in the criminal activities that rake in “profits” for the likes of Goldman Sachs.
Oil, despite the reality of peak oil and opposing opinions here, is going to tank in price, changes in currency values notwithstanding. If China’s industry couldn’t afford to pay more than $90 a barrel as the world’s cheap labor-driven manufacturing engine, necessitating subsidy from their government, then who is supposed to pay higher prices for oil in the future? There is little capacity to store more oil globally and it is expensive to do so, so using it like gold it not going to play a big role either. Demand will fall as economic activity slows globally, and this will outpace declines in production. As the price tanks, so will our Dollar.
We’ve got little to no resiliency built into our metropolitan economies. They are all over-run with stock market listed cookie cutter franchises and politicians who consistently endorse junk economic policies, gut them of healthy public places, etc.
We’ve got a third of our population that can’t decide whether or not they want to be in our nation (Quebec), another portion that is plagued by alcoholism, depression, unemployment and racial discrimination (natives) and a big ignorant portion of anti-immigrant racists whose pride in ignorance amongst their thought-sheltered peer group has prevented them from learning that immigrants largely drive our economy with their highly skilled labor and investments.
Our media is almost completely captured.
Oh, and Canadian public health care is largely a myth. People bankrupt themselves for care here just as they do elsewhere. It depends on who you know, where you live, what you need, and luck. Much of the care that IS received is very delayed and of poor quality.
– written by Dennis S on maxkeiser.com May 21, 2010 at 11:42 pm