Up to their eyeballs in personal debt, they only see the ads for the good life on their brand new big-screen TV.
“Push that button right there,” they say. “The TV will make you a good cup of coffee.”
Maybe because I’m a rubber-necker, or overly curious or something, I think about the financial picture for people like that. Personal debt is at an all-time high, so a bigger, better TV doesn’t impress me much. Besides, I can make my own coffee.
Also, as I stated earlier, I’m a rubber-necker too. My head is already out the bus window looking for the accident scene that’s about to appear around the next bend.
When some people talk about Canada’s fine economic performance (e.g., “Compared to most industrialized countries Canada's economy is performing well... of all the G8 countries, Canada has come closest to returning to pre-recession levels...”) I think about other members on the world stage who are tangled up in their own ropes and how Canada and the USA are like two horses sharing one stall as far as the economy is concerned.
["I'm in trouble, Dubbin." "That means I'm up the creek too!"]
I would hope that Canadians do not forget the following:
“But our neighbour to the south, which buys 75% of our exports, is drowning in debt. This is hampering the recovery of both of our economies.”
“... the U.S. has lost a staggering one-third of its manufacturing jobs since 2000. It is becoming the first "post-industrial" nation in the world, with an economy that is 70% dependent on consumer spending, much of it credit-fuelled.”
“...the U.S., in order to avoid financial collapse, has had to pump billions in borrowed money into bailing out its failing banks, insurance companies, and auto manufacturers.”(Feb. 12, US debt threatens our future, London Free Press)
In other words, our stall mate may be nearing stalemate and we share the same paddle on Shite Creek. (You know the creek I mean?)
At least it’s not as bad as living next to Greece or Ireland or England or Spain or Portugal, right?
Not according to some investment experts.
“Some predict that within the next five years the U.S. will suffer a European-style sovereign debt crisis.”
“Given that the U.S. makes up one quarter of the world economy, its financial collapse would have draconian implications for our standard of living and that of the rest of the globe.” (same article)
["What's this world coming to?"]
No wonder I’m a rubber-necker, eh? A US crash would be the mother of all crashes. So nice we’ll have a window seat, eh?
Though the writer of the article (to which I have referred several times) suggests “we cannot influence the future course of the American economy, (but) we can do much more to broaden our export markets, and reduce our trade dependency on the U.S.” I think we’ll end up doing - as is often the case - too little too late.
We’ll lose our comfortable lifestyle quickly.
We’ll adapt poorly.
We’ll holler loudly.
We’ll blame others.
We’ll say we need more time to prepare for the consequences of our own and US debt.
Me? I’ll be gawping out the bus window, hoping my son will take me in.
***
Please click here to read The Simple Life PT 3: What is this world coming to?
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