As if Canadians needed more proof that the country’s real estate is in a bubble, and that this misallocation has spread to other sectors of the economy, the Bank of International Settlements released its latest quarterly confirming what any critical observer can see: binging on debt is rarely a good idea.
Canada’s debt-to-GDP gap is widening and even the central bank of central banks is concerned.
The BIS uses its credit-to-GDP analysis as an indicator and predictor of troubling economic waters. They claim successes in predicting financial crises in the United States, England and a few other economies. Generally speaking, according to the BIS, when a country’s credit-to-GDP gap is higher than 10% for more than a few years, a banking crisis emerges which is followed by a recession.
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WNU Editor: Being one who lives in Canada .... the amount of debt that everyone I know is living under just makes my jaw drop. And heaven help everyone when interest rates start to rise. I also see the signs of an incoming recession everywhere (at least in the province of Quebec). And while official government statistics and the media are talking about low unemployment and positive economic news .... the businesses and people that I know are saying anything but. What also does not help is our incredibly high tax burden (I am at the personal 53% rate in Quebec). Why work when the government takes more than half of your salary .... where is the motivation? And for those who run a business .... the extra burden of having commercial taxes to pay before you can even take your salary .... like I said .... where is the motivation? This is not going to end well. My prediction .... 2018 - 2019 is not going to be a good year in this country .... and as I tell my Liberal friends who are in power .... that is when the next Federal election comes around.
2 comments:
But according to douchebag jay everything is GREAT in Canada....
Canada just needs more illegals.
Aak D-Jay
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