Canada loses AAA rating | General financial discussion | Discussion forum

Our debt just got more expensive to service.

Bud said
Can canada make it on its own on the current path.  

Who are you suggesting, for Canada to team up with instead of going alone?

Not much has affected me in Ontario.

My government payments keep coming.

My few investments keep coming. Some increased. Some decreased.

The monthly bills are setup for equal billing.

I will pay CRA what I owe them within a month.

Looking forward to restaurants having dine-in services soon.

My credit score is not perfect. A friend at bowling says NOBODY has a perfect score.

The lack of worldwide inflation is in part due to the movement of manufacturing to the third world. This has kept the prices of goods down in Canada. And the threat of more offshore manufacturing has moderated wage increases in Canada.

Non-union competition, with many service providers, has kept the price of services down (professional services being the exception).

This is not true for asset inflation. Real estate prices are out of control. And food prices have been moving up smartly.

In the future, I expect high levels of household debt and the propensity to save (rather than spend in times of uncertainty and fear) will curtail inflationary pressures.

The wild card is government spending. If they continue with massive deficits, bondholders may require higher interest rates to account for increased risk.

A significant drop in the value of the Canadian dollar may also force the central bank to increase interest rates. This is unlikely, but the government has been unfriendly to our largest export commodity. Who knows what the future might bring?

Wonderful.
How do you do it?
How many months of doing your method does it take to reach 900?
Does it move up gradually?

Kidd, I agree that liberal governments love creating gov't jobs, civil service overwhelmingly votes not conservative so it's a great electoral strategy for them. And conservative gov'ts tamper with unionized gov't jobs at their peril. Hence the growth in public vs private sector, and it's a major flaw not to distinguish between private vs public sector numbers.

Disagree with the shoes example though, agree with Rodster that due to offshoring clothing (for example) is way cheaper than it used to be. I remember coveting Levis jeans as a teen and now I can get pants for cheaper than I paid for Levis all those years ago, especially now that "cool" is something I purposely shun to keep the kids and grandkids embarrassed to be seen in public with me. Walmart clothes are really cheap, for example.

I called this. Happened a little more quickly than I was thinking, but I maintain my prediction that Canada will lose its AAA rating from all three ratings agencies in the next 12 months. Probably will happen in less than 6.

Cheers,
Doug