Could the U.S. drag Canada into a double-dip recession?

Could the U.S. drag Canada into a double-dip recession?

ca.finance.yahoo.com

With all the drama surrounding the U.S. debt ceiling debate, Statistics Canada's latest report on the Canadian economy largely went ignored.

And it wasn't pretty, with the country's gross domestic product falling by 0.3 per cent in May after a flat performance in April and only a 0.3 per cent increase in March.

(visit the link for the full news article)

I kept on telling people this that Canada would be affected by the Debt Crisis and now the US' credit rating being downgraded could affect things. Canada's economy is tied so much to the American economy as we are their largest trading partner and whatever goods are manufactured in Canada are almost certainly sent to the US.

ca.finance.yahoo.com
(visit the link for the full news article)

YES ABSOLUTELY. not as bad at the start a lot of canadians can get stuff for half the price at the US but it will get worse and worse

ETA: SnF

You guys might as well join up with us now. At least you can get your gun rights back.

Originally posted by sonofliberty1776
You guys might as well join up with us now. At least you can get your gun rights back.

Actually i was thinking its time for canada to take over the us

Yea I admit I do cross border shop/visit friends and go to the odd sci fi convention because it is more a chance to get out of the house etc, but Canada really is shooting themselves in the foot the housing market here is one thing to note, houses are for sale literally everywhere.

I was trying to find Canada's rating....and then I tried to find out if Canada even had a rating at S&P. Did a bit of research but really nothing came up. Anyone could tell me?

ps : I want an answer so that I can provide an appropriate reply to the thread.

Canada's credit rating is AAA we are one of the few countries that still has the Triple A rating alongside Australia, England, France Germany, Norway and one or two other countries which are quite small.

Originally posted by spaceshrimp
I was trying to find Canada's rating....and then I tried to find out if Canada even had a rating at S&P. Did a bit of research but really nothing came up. Anyone could tell me?

ps : I want an answer so that I can provide an appropriate reply to the thread.

Canada Has a AAA
link

You might want to be more worried about the two big bank bail outs that are coming.
France Societe Generale -commonly known as SocGen thats thier second largest bank.
SocGen owns 88 per cent of the Greek bank Geniki.
Italy, UniCredit Banca thats thier largest bank.

How would that affect Canada in a sense of the bailouts of the banks in the Euro Zone? I mean Canada does have the most sound banking system in the world and are run on very tight regulations, but we wouldn't see TD Bank do anything like that, in fact they been swallowing up a lot of the smaller American banks.

Can the USA drag Canada down?... Hmm...

Great question!

My answer.

What happens to you when you tie yourself to a boat anchor and drop it in the ocean?

-Lightrule

Originally posted by sonofliberty1776
You guys might as well join up with us now. At least you can get your gun rights back.

We don't ask permission to bare arms. It wouldn't matter if the laws were changed.

The US worries about new gun laws prohibiting ownership while Canadians just lock n' load without paying attention to what a few leaders try to pass.

We're just not very good at listening.

Originally posted by EvilBat

Originally posted by spaceshrimp
I was trying to find Canada's rating....and then I tried to find out if Canada even had a rating at S&P. Did a bit of research but really nothing came up. Anyone could tell me?

ps : I want an answer so that I can provide an appropriate reply to the thread.

Canada Has a AAA
link

Thank you and hypr2011 for the find. Now my reply;

As others said, yes Canada's economy is tied at more than 50% with the U.S (materials, food etc), and therefore we will be directly affected in some way.

But I think we have to consider how the Canadian government will handle this whole story. I'm not expecting to see that it will be completely avoided, but I'm sure that there are actions that can be taken to help reduce the effects.

Canada could turn to some new trading partners may be.

This is to hoping that instead of failure, a new idea will be introduced to help fix those economic issues.

reply to post by hypr2011

www.cbc.ca...

A Greek default would rattle global markets. Some analysts suggest that a panic would cause the Fed to intervene as it did during the 2008 financial crisis, when it lent billions to banks.

"The European debt crisis has the potential to have as big an impact as the subprime mortgage crisis did in the United States," said Sung Won Sohn, an economics professor at California State University.

"If it spreads to Spain and Italy, then the global economy could be facing huge problems."

Italy's debt problems gained a more dominant profile on Friday, as ratings agency Moody's Investors Service said it was reviewing the country’s credit rating for a possible downgrade.

Seems thier fear of spreading to Itlay happened plus it has spread to France. And there comparing it to the subprime mortgage crisis in the US. That is scary.

The move came as Canada's finance minister, Jim Flaherty, warned there is still "a real danger" of contagion from the ongoing debt crises in Europe, including the possibility of some damage to the country's banking system.

"Canada is not an island — no country, any more, is an island — our economies are clearly interrelated," Flaherty said at a breakfast appearance in Toronto following weekend discussions with other G7 countries about the risks associated with Europe's debt crisis and the best way to contain it.

reply to post by sonofliberty1776


Actually, our long-gun registration laws are seemingly being scrapped, and short of military-grade weapons/ automatic rifles I assure you my friend there's more than enough boomstick to go around where I live. Not an issue imo.

On topic: Our banking system is pretty stellar, in comparison. I think Canada will be okay so long as it isn't a planned domino effect to cripple our quality of life further, this IS ATS after all lol. Just look at a picture of our PM and tell me he isn't evil with that fake smile and those hollow glassy eyes

We provide primary resources to the US. Are your needs to your primary resources going to decline?

Yes, we'll probably have a small bounce. Not as much as you think.

Of course we will be affected. Even asking the question is retarded.

Half of our GDP is exports. 90% of our exports are to the US.

The US goes kaput, we go kaput. Simple as that.

reply to post by Aeons


Beef, wheat, oil, electricity, wood, aluminum, coal, iron to name a few.

reply to post by Vitchilo


Whoa, woah... Careful there, while initially Canadian exporters will be hurt it won't take us long to turn those products inward for our own consumption. In best case conditions we should enter into a boom economy as we reconfigure our SOP's in regards to business and import/export.

Simply put Canada has more land mass and natural resources than the USA, we also get access to all this land while having 1/10th the population to support.

The scary thing is to think, I am NO FOREIGN AFFAIRS EXPERT, as a matter of fact I'm pretty much talking out my butt right now, but its what I believe, my perspective. The scary thing is because I am no expert there is no way I'm the only one thinking Canada will be "ripe for the picking" after the SHTF. What we should be worried about when it comes to the USA and its house of cards coming down is... Invasion, a SOFT INVASION.

-Lightrule