Canada to avoid recession in 2025; economist predicts ‘firehose of monetary and fiscal policy support’ https://t.co/0j2aZsF08X
“After a steep decline, we’re coming back a little bit,” Desjardins told Yahoo Finance Canada in an interview. “We’re in this period of slow growth, just treading water.”…
“While not an economic rebound to write home about, it does suggest that a 2025 recession in Canada isn’t a foregone conclusion,” he wrote in a report earlier this month. “The Canadian economy isn’t out of the woods yet.”
The federal government is due to release its fall budget in November. Prime Minister Mark Carney has said it will feature “the biggest investment in this country’s future in a generation.”
“A leak from a senior official [suggests] that the Government of Canada’s deficit could reach $100 billion this year when the long‑overdue federal budget is released on November 4,” Bartlett wrote.
Maybe it’s tent sales that will bring Canada out of this recession?
Speaking of energy cost … which FUELS everyone’s economies … I just paid $3.89/gal. ($1.03/litre US … $0.72/litre CAN) for reg. unleaded gasoline my local (little Mexico neighborhood) COSTCO. That’s the lowest I’ve paid in a LONG time. Thank you President Trump!!
How’s that Net Zero thing coming along Canada?
$1.03/litre US is actually $1.43/litre CAN
Oops. Went the wrong way with my conversion. No big deal, because my AI program says that Canadians are only paying $1.71/litre CAN. Carry on. Enjoy your inexpensive gasoline.
I paid $1.14 /L yesterday at Costco in Lethbrdge – and that is the cheapest it has been here in a long time.
Is that an Imperial or Metric litre? 🙂
Gas is 1.22 per liter here east of Edmonton down from 1.30 a week ago. This is a non costco price.
You’re close, for the Island/Lower Rainland cost.
$1.599 at Costco Victoria.
High test is 1.839 for the TwinTurbo Road Rocket
I paid $1.139 in Beaumont, AB yesterday and received $6.00 back on my PC Mastercard.
Government “investment” is a lie. To make the “investment”, the government sells financial instruments on the open market to raise cash. To keep the country looking solvent, the Bank of Canada (after a period of time) buys back the bonds and hides the purchases on their balance sheet. IT IS ILLEGAL TO AUDIT THE BANK OF CANADA. Let that sink in. We, as the people ultimately responsible for the machinations of the central bank, are not allowed to know how bad it really is.
The influx of money is not supported by an increase in GDP – it is creating currency “ex nihilo” – literally, out of nothing. The increase in the amount of currency available decreases the value of each financial asset. More dollars chasing the same number of goods leads to price inflation because each dollar has less buying power. It also downgrades the value of existing financial assets like your retirement fund.
So to Mark Carney, I would say the following, (and he, being a former central banking weasel already knows all of this and plans to do it anyway): STOP GOVERNMENT SPENDING NOW UNTIL YOU CAN ACCOUNT FOR EVERY PENNY SPENT, WHAT WE AS TAXPAYERS GOT FOR THE MONEY SPENT AND WHO RECEIVED IT.
Otherwise, this is just an exercise in wealth transfer from the taxpayers’ pockets into the hands of corporations like Brookfield Asset Management with a kickback to politicians.
Re “It also downgrades the value of existing financial assets like your retirement fund.”
That’s correct but not if you are invested in Bitcoin. The more governments print money and devalue it the higher Bitcoin climbs. Bitcoin has no top because Fiat money has no bottom. The Canadian dollar has lost 34% of it’s purchasing power since 2005. So if you bought a house in 2005 for $350,000 CAN and the current market shows it to be worth $800,000 it is actually worth only $528,000 if you adjust the current price to 2005 dollars. Plus, the CAN dollar was worth almost .83 to the US dollar at the end of 2005 so it’s another almost 14% less. So subtract another $112,000. That brings your house value down to $416,000 in 2005 dollars. Now add up your property taxes, insurance and house repairs since 2005 and subtract that total from the $416,000. You are definitely NOT richer than you think.
Why on earth do people continue to invest with Fiat dollars that lose value every year?
Invest in a Bitcoin ETF and hold it in your TFSA.
I need to correct myself. I should not have counted the difference in value of the CAN dollar to the US dollar. That is double counting the drop in purchasing power.
Sage advise….until the government declares Bitcoin illegal.
Considering Bitcoin has been around now for 17 years and many countries and major corporations now have Bitcoin reserves I can’t see it being declared illegal. When you look at the massive debt load that both Canada and the U.S. carry and you realize there is no way it can ever be paid off I much prefer my money to be invested in Bitcoin. BTW, although it is a big plus to have a Bitcoin ETF in your TFSA there are a couple of downsides to be aware of. One is that you cannot day trade any investments you have in your TFSA. If you do the CRA will come knocking and they will probably fine you or cancel your account because they consider day trading to be running a business. Because Bitcoin is so volatile there are people making money day trading it. A lot of them lose their shirts trying to time it. The second downside is that you cannot borrow money against an investment that you hold in your TFSA. There is a common adage for people that just hold Bitcoin and don’t trade it….Never sell your Bitcoin. For people who have a Bitcoin investment NOT held in a TFSA there is a method to borrow money against it without selling it. So obviously when you have a Bitcoin investment in your TFSA it’s trapped in there until you do eventually sell it to reap your profits. But then what do you invest those profits in? You certainly don’t want to get back into FIAT currencies again. If I was young this wouldn’t be an issue. I would just keep holding it long term. But I’m 67 years old so my gamble is that it will climb enough in the next 5 to 10 years that I can do well with it and make out ok. Time will tell.
Can Canada avoid a recession? As l.ong as StatsCan exists.
“If you torture the data long enough, it will confess to anything.”
Ronald Coase
Since government borrowing adds to GDP, if the government borrows enough, they can just define a recession out of existence. Keynesian economics is the gift that just keeps on giving.
When that irresponsible friend / family member / neighbor is already severely in debt, how do things work out when they start getting cash advances from multiple credit cards? Better or worse?
Dollar is at $0 .71, they say we as a country do better when the dollar is low..
That being said, after dropping the bank of canada rate, bank stocks are doing very well, royal bank is $205/share and other like cibc are up as well, Dollarama is $184/share and RBC precious metals are $171/share..
Not sure how we still have an economy, just buying and selling houses, groceries and government work?!
Raise on share prices is inflationary. Actual value is less than before.
Investments?
Monorail,Monorail..Monorail!.
To quote the Simpsons.
Little Lord Carney and his Fartsniffers will finish this Kleptocracy off.
Holding down and smothering all productive activity while professing “their help”.
WEXIT is our only sane answer.
The easiest solution would be to re-enact mid 1990’s and freeze all government wages (until the budget is balanced). Include all agencies, crown corps – anyone working on the taxpayer dime. Also, no risk pay, performance pay or any other bonus pay. Don’t like it, go ahead and depart the government ‘service’ because other employees are willing to replace you for your current rate of pay.
Add in sunset clauses and zero based budgeting!
“Prime Minister Mark Carney has said it will feature “the biggest investment in this country’s future in a generation.”
———————-
The Liberals always call government spending “investment”. But investments are when you spend money with the intention and expectation of a return – the idea being, you get more money coming back to you.
Money spent on government “investments” is always money gone. Sounds like what he means is this will be the biggest government waste of money in the history of Canada.
What this means is that the Liberals will be looting the treasury over the coming months to fund projects they believe can be used for positive press – and a great many things that they count on the public never finding out about.
Over the past decade, “investment” has come to mean funding private companies that are either friendly to the Liberals, or in which they have investments – usually under the guise of responding to a crisis. These projects quite often are launched without a public tender process, and with no oversight or debate in parliament, and are usually simply announced by the PMO.
Trillions of dollars have simply vanished into the void with little or nothing to show for it. In this way, we have funded battery plants that never open, the installation of thousands of ineffective heat pumps, the construction of thousands of tiny homes that no one lives in, vaccines that were never consumed, (thank God), insect farms to produce disgusting food no one wanted to eat, educational programs for foreign students and temporary foreign workers that no Canadian citizen can qualify for, stupid AI companies that never produced a working product, public housing projects that were never completed, green energy projects that never materialize, and carbon capture facilities that never operate and would a danger to the public if they did. It’s rarely ever something tangible, and they are almost all failures.
One battery plant immolated nearly thirty million dollars to produce a gravel parking lot and 4 construction trailers, before being abandoned.
The public will never learn what the majority of these “investments” were, or who got the money.
Murphy’s law – updated: the experts quoted by public media are always wrong.
Heh.. “avoid recession”. With the magic trick of juiced GDP numbers paid for with inflationary deficit spending. A central bankers wet dream.
There would be a hellava boost if we built a million barrel pipeline to Prince Rupert and another one to Missisauga, Montreal, Quebec City, ending in Saint John, NB. We could export another million barrels and quit importing another million barrels. Oil exploration could go nuts on the prairies in they had new markets. A pipeline from Tuktoyaktuk to Alberta could renew Arctic Exploration. Build it to transport both oil and gas. Then go back ten years and approve every major project the dickhead Trudeau turned down. Under Harper Canadian incomes were higher than the US. Today they are approaching shithole world.
Alberta should be building pipelines at the same rate China is building coal-fired powerplants.
Carney is asshoe.
Just wait until “elbows up” kicks in! We’ll see another increase in the GDP equal to a rounding error. Then you’ll witness the glee on everyone’s faces as they proudly wave their made in China Canada flags, singing, “We’re in the money”. There might even be cries to have the Queen’s image on our currency replaced with that of circus Carney.
So, with governments now not caring whatsoever about borrowing and debts, it waists a critical question.
Why are we paying taxes, of any kind? Because if debts don’t matter, then why not borrow more, more, more, and forget about taxes.
Just following THEIR logic………
If printing money would end poverty, printing diplomas would end stupidity.
~Javier Milei