[p2p-research] FW: What Austerity Brings...

[Michael Gurstein]

The Canadian dollar is a petro-currency with commodity overtones... It
dropped 1 1/2 cents today on predictions of a falling demand for oil and a
mis-report of much lower Chinese growth...
 
Most of the personal debt is in mortgages and yes Canadian real estate is a
bit of a bubble... How that will all unwind isn't clear since the debt to
equity ratios have been reasonably good at current prices... If prices crash
I guess that all bets are off.
 
We do have the highest immigration rates in the world at the moment... 
 
As long as commodity prices stay high Canada will be okay (and give Harper
the opportunity to scold the rest of the world... Again if there is a global
recession/whatever and commodity prices crash Canada could be in trouble but
the debt in Canada is mostly denominated, I think, in Canadian dollars (its
mortgage debt afterall so things should be right...
 
M

-----Original Message-----
From: p2presearch-bounces at listcultures.org
[mailto:p2presearch-bounces at listcultures.org] On Behalf Of Ryan Lanham
Sent: Tuesday, June 29, 2010 12:08 PM
To: p2p research network
Subject: Re: [p2p-research] FW: What Austerity Brings...


Merkel is the leader here now.  Germany will be fine.  The rest of Europe is
going to be a basket case.  
 
Canada has the highest personal debt levels in the world.  Their housing
market seems to be in a severe bubble.  Hard to say how it comes out.  They
could import lots more people (wealthy educated ones...) and probably stave
off problems.  Trouble is, that changes the culture as Europe (and even the
US well know.)  Rotterdam has more South Asians than Dutch these
days...literally.   Personally, I like free movement and low barriers to
citizenship, but Canada is really pressed to decide on that one...they can't
simply devalue their currency and sell goods to the US to keep going as they
have in the past.  The world now wants a strong Canadian dollar...and that's
going to change Canada.
 


 
On Tue, Jun 29, 2010 at 10:43 AM, Michael Gurstein <gurstein at gmail.com>
wrote:


A la Harper and his G and B (S) cronies...
 
"Confidence building" is about giving the financial wolves assurance that
they will always have lunch (you or your kids or their kids...
 

M
 
Here's a story about Ireland...no surprise to a Keynesian...
 
http://voices.washingtonpost.com/ezra-klein/2010/06/the_luck_of_the_irish_vs
_the_e.html

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Ryan Lanham
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