When the United States or Europe sneezes, does Canada catch a cold?
This is a new world in which we all live today and the familiar has now become the unfamiliar. Our alias, the United States has remained strong and powerful for centuries. That is until now.
With the US debt crisis and economy woes there is still an underlying weakness of the US economy’s pessimistic forecast.
Axel Merk, President & CIO of Merk Investments, LLC, is an expert on hard money, macro trends and international investing. He stated back in May, in an article called ‘Dollar is in graver danger then the Euro’, that “In the US, the day investors come to accept the reality that inflation, rather than fiscal discipline, is the path of least political resistance may be the day the bond market won’t be as forgiving. Unlike the Eurozone, where consumers stopped spending and started saving a decade ago, the highly indebted US consumer may not be able to stomach higher interest rates. The large US current account deficit also makes the dollar more vulnerable to a misbehaving bond market than the Eurozone.”
Now isn’t that calling the kettle black.
The Greek economy was one of the fastest growing in the Eurozone from 2000 to 2007, it grew at an annual rate of 4.2%. However today the country is now trillions of dollars in dept and rioting protesters are making waves amidst the latest rescue package provided by Germany.
Whereas the Canadian economy continues to nudge ahead, led by manufacturing and wholesale trade, pointing to a possible third-quarter bounce back after shrinking in the previous three-month period. Our dollar may have also hit a fresh 12-month low against the U.S. dollar, but Canada continues to push forward and remain steady.
The future can not be predicted for these countries, but today remember to wake up a proud Canadian. Amidst all the worry and concern our country has lead with their strongest foot and continues to be one of the most reliable countries.