Quote:
Originally Posted by FWB
just think about where does canada export to.......if that economy fails where
will you be? is the consumer in canada able to support its gnp? how much is US dependent? is the amero going to be your new currency? will the mexicans find their way to canada?
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The Canadian and US economies are very closely linked. The TSX (Canada's Dow) has been hit much worse than the Dow has. Firstly, the US is Canada's number 1 trading partner and secondly, our economy is supported heavily by energy and natural resource stocks. The US financial crisis combined with the melt down in energy and resource prices have been a double wammy for us.
The Canadian economy is based very heavily on exports, especially of raw materials and natural resources. The drop in demand and/or prices will hurt us significantly.
Our Federal Government has been running a budgetary surplus for several years now based on increased tax revenue even though the Federal Goods and Services Tax rate has been decreased twice. Our banks have very limited exposure to the present financial situation in the US but I do not believe that anyone really understands what is going on in the financial markets and no one can predict what is going to happen next.
Our currencies have been trading more or less at par for the past year but the $CDN has dropped to about 91 cents US lately primarily due to the drop in
oil prices. A North American dollar has been discussed off and on for many years but right now I don't think that anyone considers it to be a possibility.
I am not sure exactly what you mean about Mexicans heading up here but I am sure that they would head back down south when the snow arrives.
Wayne