Re: The dark side of layoffs and bad economy
 

So much of our necessities is also imported and this hurts everyonewith food, gas, clothing etc. Food especially has been going up at a quick rate.

Re: The dark side of layoffs and bad economy
 

I was simply talking about the Loonie.

Re: The dark side of layoffs and bad economy
 

They need to do that.

For every dollar earned a Canadian owes $1.64.

Place is screwed.

Re: The dark side of layoffs and bad economy
 

Currency doesn't exist in a vacuum, it is the grease that makes the economy work. Paradoxically if you jack up interest rates, which economics 101 tells us should increase the value of a currency, you may just damage industry by increasing the costs of debt finance, and because you have made the country a less desirable place to do business, capital will leave the country and the value of the currency will fall.

Re: The dark side of layoffs and bad economy
 

Ask yourselves why enterprises go out of business. They run out of money. When this happens they can't pay wages, they can't buy raw materials and they can't pay their bills.
So imagine what enterprises who are just getting by think of the idea of raising interest rates. Those caring banks won't give a damn, if they don't foreclose on their loans then they'll probably be at the top of the list when the assets are sold.
Governments all over the world know this. They understand that it's tough out there and to a man they have reduced interest rates. They realise that it's bad politics to see too many businesses go to the wall and so they try to minimise the political fallout.
The loonie has become dependent on those barrels of black stuff that serve as collateral that backs it up and these days it's like riding a bucking bronco. Raising interest rates would do little once confidence has gone. Remember Lawson and his purile efforts to stem the run on the pound by raising interest rates, well it didn't work then and I doubt it would work now.

Re: The dark side of layoffs and bad economy
 

They can't.

Re: The dark side of layoffs and bad economy
 

The price of oil won't be back anytime soon.

They have run out of places to stock pile the excess amounts they have:

http://www.zerohedge.com/news/2015-1...oast-galveston

Low interest rates and printing money like the Zimbabweans. High inflation due to the rise of imports because of the weak dollar.

I expect a Loonie at 2.4 to the pound in another year. That'll be time to finally move my pounds or head back.

Re: The dark side of layoffs and bad economy
 

Economics 100 actaully ;) I didn't say it was advisable.

Of course they can. The BoC can raise their policy interest rate but as most monetary policies these days have hard on about inflation plus their codependency on US Fed policy they won't anytime soon.

Re: The dark side of layoffs and bad economy
 

Well, that's the crux isn't it. Raising them will screw all those people at their limits with debts / mortgages and turn the economy to shit. They had a chance 10 years ago, but we are stuck with it now and for another decade or two probably.

Re: The dark side of layoffs and bad economy
 

**** em. Although Oil creep might screw many folks at their limits anyway.

Why protect stupid when those more careful folks get a finger up the jacksie.

If the FED raises on Wednesday, things may get much more interesting :fingerscrossed:

Re: The dark side of layoffs and bad economy
 

Sooner rather than later the Fed and the BOE will start raising.

That is why the CDN$ will tank much further.

Dump your Canadian focused mutual funds and get them in something that focuses on FTSE or NYSE.

Next time a Canadian gives you the "We've got the most powerful banks" in the world line. Punch him in the face. In fact do it twice.

Re: The dark side of layoffs and bad economy
 

Well, they did it once already. I don't see them doing anything different this time.

Re: The dark side of layoffs and bad economy
 

And if somebody tells you they invest in Mutual Funds, punch them again.

Re: The dark side of layoffs and bad economy
 

Ouch.

Felt that!

Re: The dark side of layoffs and bad economy
 

Don't worry. There's no way the current political and economic system can last that long.

If it doesn't collapse, technological change will make it irrelevant.