Here in London, Ontario, unemployment nudged up to 8.3% recently.
The unemployment rate was up in several provinces as well.
Canada’s jobless rate rose to 8.1% overall, higher than desired.
Ontario’s industrial heartland is being hit by the most recent slowdown in the American economy.
Ontario’s economic growth is 80.8% reliant on US growth.
The US is in for a long, hard struggle.
A double recession could easily occur south of the Canadian border.
Despite some signs of recovery this spring, the US - with 9.5% unemployment - has made up few of the 8 million jobs it lost in the last recession.
Despite massive government spending to stimulate the economy, home foreclosures in the US are also again reaching record highs, jobless claims are rising and core retail sales are falling - factors some believe are harbingers of another recession.
The economies of the G7 industrialized nations (i.e., Canada, France, Germany, Italy, Japan, United Kingdom, and United States) are slowing faster than previously forecast.
The biggest threat to G7 nations may be the slowdown in private consumption.
The American national debt is about to surpass $13.5 trillion for the first time in the history of the universe.
$13.5 trillion is 91% of the US Gross Domestic Product, i.e., debt almost equals earnings.
Canada has a terrible record for paying down debt, i.e., only in 20% of the years since 1960.
The US record for paying down debt is far worse, i.e., 0% since 1960.
["Sorry. This ain't great news"]
Finally, the US national debt has doubled since 2002 and not just because of the recession.
Should Americans be overly concerned? Yes.
Should Canadians be concerned? Double yes. Our own economy will likely be unable to generate necessary revenues for the future and we’re tied to America’s hip - and it’s faltering.
In a NY Times article entitled ‘America’s Sea of Red Ink Was Years in the Making,’ I read that Pres. Obama “does not have a realistic plan for eliminating the deficit, despite what his advisers have suggested.”
Trillion dollar deficits will become the norm, adding more debt to America’s shoulders for years to come.
The projected result:
“This debt will constrain the country’s choices for years and could end up doing serious economic damage if foreign lenders become unwilling to finance it.”
The repercussions of any serious economic damage will give London’s city council, Ontario’s provincial government, Canada’s federal government, US state and US national governments much to talk and worry about for years to come.
On both sides of the border, choices (e.g., economic, environmental, social, health care, educational, recreational...) will become more limited.
One day ‘getting small before we get low’ may not be a voluntary choice.
What do I mean by that?
Please click here to read My New Economic Plan Pt 6.
***
While you’re waiting, read a very exciting article found in yesterday’s newspaper.
It's entitled 'Debt ratio puts us right behind Greece' and that's not where we want to be.
Such news may kinda inspire you to hurry up plans to ‘reduce spending, pay down debt and save money for tough times ahead.’
.
No comments:
Post a Comment