Canada's economy is based largely on commodity exports. A recession in Europe will bring demand for commodities down, with filter-through effects for the entire Canadian economy. But if China crashes, that will affect Canada drastically.simonvee said:What does everybody's opinion about the possible Europian recession, and if it does occur, it's impact on North America (U.S and Canada)?
It is not a question of "if", it is happening now.simonvee said:What does everybody's opinion about the possible Europian recession, and if it does occur, it's impact on North America (U.S and Canada)?
I think that you will find, that little place to the south of us (USA) has quite an impact on our economy.newtone said:European recession will not effect Canada's economy, people will just buy more property in Canada with low interest rates, the Canadian economy is rock solid.
The only way Canada's economy will be affected is if China's economy collapses and I dont see the Chinese going out of business anytime soon
The two economies are deeply intertwined, clearly, there is no easy possibility of economic "decoupling" from the United States in Canada.USA is in deep trouble because US and Canadian economies are miles apart, although we share a border but there are lots of differences between the two countries.
Don't underestimate the buying power of the Chinese and Indians! These are the one of most populous nations of the world. Many can afford to buy a $300,000 or more house in Canada. Nowadays, there are more people coming from Asia than the West. Japan is part of Asia, but how do you explain that its credit rating was lowered by Moody recently?newtone said:I understand the strength could be in Asia, but if Asia is producing, Americans/Canadians/European are the buyers (one cannot exist without the other),
woow, interesting factsnewtone said:USA is in deep trouble because US and Canadian economies are miles apart, although we share a border but there are lots of differences between the two countries.
Firstly Americans are risk takers, Canadians are not
Unlike Canadian banks, US banks werent as tightly regulated which is why they fell into this mess in the first place
US is a capitalist economy, the the dollar is mighter than God, Canada is more socialist.
US is more money hungry than Canada look at some of the large corporations, and also they are buying up quite a few Canadian companies.
USA cant afford to be in big trouble, its still a powerful country and shapes the future of many countries. Besides large corporations are still in business in USA, which is why its an excellent time to buy stocks of these companies for long term investment. US is run by 1% of the population that controls 99% of the people and as long as that 1% exists America will prosper.
People thought the same thing about US during the great depression, US survived that and it will survive this too. Canada as usual will ride along with its friendly neighbour, strong and free!!
newtone said:USA is in deep trouble because US and Canadian economies are miles apart, although we share a border but there are lots of differences between the two countries.
You listen to newtone at your peril. He is dead wrong. Fully 75% of Canadian exports go to the USA. http://www.state.gov/r/pa/ei/bgn/2089.htm Canada's economy is more tied to the US than nearly any other developed economy is tied to any other in the entire world.
Firstly Americans are risk takers, Canadians are not
This is also nonsense. Canadians are taking significant risk with regard to debt levels (which are in fact HIGHER than in the US), and the percentage of income spent on housing in particular.
Unlike Canadian banks, US banks werent as tightly regulated which is why they fell into this mess in the first place
US is a capitalist economy, the the dollar is mighter than God, Canada is more socialist.
US is more money hungry than Canada look at some of the large corporations, and also they are buying up quite a few Canadian companies.
USA cant afford to be in big trouble, its still a powerful country and shapes the future of many countries. Besides large corporations are still in business in USA, which is why its an excellent time to buy stocks of these companies for long term investment. US is run by 1% of the population that controls 99% of the people and as long as that 1% exists America will prosper.
This paragraph is so silly it hardly bears comment. The 1% is a huge problem, not an opportunity, as Occupiers the world around and most others realize.
People thought the same thing about US during the great depression, US survived that and it will survive this too. Canada as usual will ride along with its friendly neighbour, strong and free!!
Two important things ended the Great Depression. 1) Vast fiscal spending on programs to get people working and revive the economy. The US is currently doing the exact opposite, cutting back everywhere. 2) A huge spending program called World War 2. I'm assuming we don't want a World War 3, its economic benefits notwithstanding.
newtone said:We are still far better than US when is comes to the economy:
http://moneymorning.com/2010/07/21/canadas-economy/
http://www.cba.ca/en/media-room/50-backgrounders-on-banking-issues/469-canadas-strong-banking-system-benefiting-canadians
There is no question Canada is far better off than the US economically. This was not your point. Your point was that Canada has nothing to worry about from the global/US recession, which is ridiculous.
This is also nonsense. Canadians are taking significant risk with regard to debt levels (which are in fact HIGHER than in the US), and the percentage of income spent on housing in particular. I should state this risk is on corporate level not household level, IBM, GE, Microsoft, Apple, Ford, American Express. All
are American companies and these are Multinational corporations who invest highly in Marketing and R&D
I don't see many Canadian Multinational corporations other than RIM
No. This is consumer sector debt. These companies have nothing whatsoever to do with Canadian consumer debt levels.
This paragraph is so silly it hardly bears comment. The 1% is a huge problem, not an opportunity,
as Occupiers the world around and most others realize. ----> I guess Iraq and Afghanistan were never occupied,
I'll go back to sleep. America is clearly signalling its presence in the Pacific rim, those people in MSNBC just love to cook
up stories
http://www.msnbc.msn.com/id/45318987/ns/politics-white_house/t/obama-us-boost-asia-pacific-military-presence/
Iraq and Afganistan have nothing to do with anything. You said: "US is run by 1% of the population that controls 99% of the people and as long as that 1% exists America will prosper." I pointed out that this is a problem, not a benefit.
Two important things ended the Great Depression. 1) Vast fiscal spending on programs to get people working and
revive the economy. The US is currently doing the exact opposite, cutting back everywhere.
2) A huge spending program called World War 2. I'm assuming we don't want a World War 3,
its economic benefits notwithstanding.-----> Lets wait an find out, we can argue in this forum until the cows come
home but thats not going to change reality.
True. I just want new immigrants listening to someone who has no idea what he's talking about claiming "European recession will not effect Canada's economy, people will just buy more property in Canada with low interest rates, the Canadian economy is rock solid. The only way Canada's economy will be affected is if China's economy collapses and I dont see the Chinese going out of business anytime soon" to know that this is complete nonsense and not make big moves based on such malarkey. People come from a long way and through a lot of hardship to immigrate. They should know the truth before deciding what they want to do.