Saturday, October 9, 2010

Obamanomics Dragging Down Canada

Canada unexpectedly lost jobs in the month of September, and the primary cause was a contraction of exports to the United States. Any slowdown of the world's most powerful economy has an immediate impact on Canadian production. I have not heard any complaints lately about the "buy American" policy that the Democrats inserted into their stimulus package, so it is difficult to say if any of those proposed trade barriers have actually been erected or enforced; and if they have contributed to the decline in our exports to America.

The Democrats have had two years with control of the Oval Office and both houses to introduce reforms to fix the problems that caused the 2008 meltdown. The issuing of mortgages and credit to people who would not be able to pay them back created a critical mass of toxic debt that crashed financial markets. Stimulus programs are like giving morphine to a patient in critical condition and long-term the patient won't recover unless you concurrently fix the problem that sent them to the emergency room. The Dems claim to have overhauled the financial system, so we will see if it works...but I wouldn't hold my breath...

A second recession in Canada would undoubtedly favour the Liberal Party, and a failure of Obama's economic policies would certainly cause a second recession. Ergo, the Canadian Liberal Party should be cheering for the failure of Obamanomics.


  1. Obamanomics will fail and when I look at the numbers what I see is a big drop in part time jobs. Full time jobs increased; ergo: students returning to school.

  2. One thing for sure, the msm will jump for joy that our country falls; because as we see they are not happy one bit.

    According to Layton who has the same mind set as Obama wants Canada to follow OBAMA. So you can imagine when and if the coalitions become leaders of this country during a recession. We will definetly 'go down.'

  3. Rising protectionism between provinces and countries is a problem. The US is trying to hit China-Mexico and we are getting caught in middle.

    Employment headlines are not accurate. Rate has shrunk from 8.1 to 8.0. Part-time jobs have been converted for F/T and students have returned to school.
    NFLD+QC lead the provinces in jobs recovery.

    What is the new normal rate that we should expect during this period? In 2008 we briefly hit 5.9%. Should 7% be realistic given double digit rates in Europe and the US?

    We are leading the developed economies (G8), our dollar/TSX is dealing with high commodities manipulation from Chinese Yuan.

    We need to keep building a pipeline for Asia (India+China+Japan) if the US economy craps out again. We are selling $ 100 million per day on Oil sands oil today. If we can ramp up production, keep growth of federal programs down our deficit should be eliminated.

    Unless an asteroid or eco-fascists find a better snake oil.