For those of you who may not have noticed, the Canadian Economy is hanging on the edge of a very big bust, with the price of Oil plummeting, there is a real chance that the Canadian economy is going to plotz. There are already ramifications with layoffs in Alberta, but the ripple effects will start being felt elsewhere very soon. It is going to be a very interesting “bust” in Canada, given the lower oil prices may kick the US Economy into hyperdrive, so we end up with neighbour economies going in opposite directions (at very high velocity). The interesting problems that may arise are on many levels
- A quickly weakening Canadian Dollar means many imports are going to get very expensive (very quickly). The other side of that sword is Canadian exports (that are not commodity based) suddenly get cheaper (to the rest of the world).
- American investments in your RRSPs will strengthen with the weakening dollar, but Canadian stocks may take a hit, due to the weakening economy.
- Interest rates? Could go either way really, given imports will increase in price, but gas prices continuing to drop may offset.
Buckle up folks this is going to be a very rough (economic) ride ahead.
In Ottawa we have been having our standard bitter cold (not bitter cold like in Alert, but still cold), which means the Rideau Canal skateway is open, and driving is quite exciting with all of the black ice. Too bad it’s going to cost more to vacation down south this winter (again with the weakening Canadian Dollar).
Repeat Site note: If you feel so inclined my site now has a cert, so you can now read https://www.canajunfinances.com if you so choose. I am still knocking the kinks out of things, but it should work just fine for you.
My Writings for Week EndingÂ January 16th
I turned 54 this week, life continues on, but I am 1 year closer to my retirement? Maybe (and more likely, maybe not):
- I still remember with great fondness my Mum canning and making preserves at home that was why I was so happy to hear that 2015 is the Year of the Mason Jar, yipee!
- There are less jobs but more full-time jobs, hence the thoughts on Jobs? In Canada? In December ?
- This past Saturday I tried out a new idea with Financial Tweets of the Week, seemed relatively well received, I may try it again this weekend, we shall see.
Read More »Canadian Economy on the Edge, Frigid Temps and #BestThisWeek