Trudeau Economy: Strategist Says Canada Could Plunge Into Recession Even As The U.S. Economy Grows

I’ve been saying it for some time, and now more people are realizing the danger facing our economy.

Considering how closely tied Canada’s economy is the United States, it’s almost impossible for Canada to fall into a recession when the U.S. is growing.

It would take a staggering level of economic illiteracy and incompetence for that to happen.

But under Justin Trudeau, it looks like that’s exactly what could happen.

Jim Mylonas – a global macro strategist for BCA Research in Montreal – is warning that Canada could face a recession, even as the U.S. economy is growing:

“I think we’re just on the precipice of embarking on a serious recession,” Mylonas said in an interview from Bloomberg’s Toronto office. “It’s not a matter of if, but when.”

Mylonas says the key factors are Canada’s excessive household debt, and rising interest rates. Canada’s household debt ratio is currently 174.6%, while the rate in the U.S. is 99.4%.

To get a sense of how closely tied our economy is to the U.S, consider the fact that the last time we fell into a recession while the U.S. was growing was 1951.

And while Mylonas didn’t talk about federal policy, the reality is that Canada’s household debt woes are being made far worse by the policies of the Trudeau government.

Excessive regulations, tax hikes, and carbon taxes all take more money out of people’s pockets and make life more expensive. As a result, for the many Canadians facing severe debt problems, those higher expenses can push people over the edge. And with so many people pushed into financial disaster, the economy will soon fall.

For a long while, myself, and many Canadians have been warning about the economic damage being caused by Trudeau’s policies, and now it seems more people are waking up to the danger.

Spencer Fernando

Photo – Twitter

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Major Tom
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Methinks that Justin would be willing to see Canada fail financially just so he could blame it on America!

Steve
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Steve

No he will blame it on Harper….

Del
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Del

And the brain dead so called “economists” claim that the Trudeau Carbon Tax will hardly be noticeable compared to the GDP. It will also hardly be noticeable compared to the number of waves in the ocean as well. Put an economist alone in an empty room and we will get two opinions. Put a Liberal politician alone in a room and lock the door.

$100 billion intentionally chased out of Canada and these jerks think there will be no effects?

Brian Dougan
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Trudeau’s game is to seriously weaken Canada–in every respect. As Jesus said; “Can a bad tree bring forth good fruit? By their fruit shall you know them.” Nothing this UN/Soros sycophant has done benefits Canada; always the opposite. Bad fruit. Rotten to the core. What will it take to wake people up to this blatantly obvious fact??

NancyW
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NancyW

We have a huge huge debt and a foreign run government totally out of control except for filling their own pockets, our laws stopped being followed or enforced, lied to constantly, taxed carelessly, etc., how could we not go into recession? It’s all OK for these so called “Laurentian elites”, that are just taking and taking, giving us away to serve just themselves and fools still want to vote for them.

Gonzo the Magnificent
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Gonzo the Magnificent

I am a trader – swing and position. The only industries I would trade or invest in Canada is cannabis and maybe precious metals. This is a stark statement about the perception people with capital have about this country.

Ron Shaw
Guest

Come on folks , what are you expecting with a drama instructors certification ? It not his fault , it’s Harpers fault for Kokanee Grouper boys misunderstood financial recession signaling , overspending , and just plain ignorance of Canadian and world finances . Besides what education does it really take to run a country ? Harpers university degrees in finance and commerce plus years of running a Canadian government then handing it over debt free , to an imbecile is just the Canadian Liberals way of saying don’t bogart that joint , pass it around , don’t worry folks it’s… Read more »

Joe
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Joe

No one ever adds in the inflation created with our economy pegged to the US dollar and they being reserve currency…
As we bankrupt, the US can still print their way out and keep inflate greater debt.
Being nailed with tariff due to cheap Cina steel and good going through Canada.

eddy
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eddy

“The budget will balance itsself.”

Right…..

Clive
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Clive

It’s a Liberal plot! Jean Chretien’s “second mortgage” companies and Canadian Revenue Agency will make a killing, literally, as Canadians slide into bankruptcy.