Economy 52,861 Posted July 5, 2015 Author Share Posted July 5, 2015 It's called the Dutch Disease. You lose competitiveness because of natural resources.yeah some argue we have that due to its effects on the currency everytime theres a comodity boom Now that energy prices are down our currency has fallen but it rises everytime resources prices go up. That affects the parts of the Country that are manufacturing based (like my Province) there was once a suggestion Canada should have 2 Currencies... 1 for the Western half, and 1 for the Eastern half so that resource booms in Western Canada didnt hurt our manufacturing in Central and Eastern Canada Probably would work, but they opted not to do it cause would be hard to control money flow, monetary policy and would creat a hassle for iternal trade Link to post Share on other sites More sharing options...
Computer 10,980 Posted July 5, 2015 Share Posted July 5, 2015 I hope this is a short lived phenomenon. I wonder if this will trigger any change in housing... if this lasts too long it could be concerning, right? 💚💛💕❣⭕💢💢 | ⓜⓔⓡⓡⓨ ©ⓗⓡⓘⓢⓣⓜⓐⓢ Link to post Share on other sites More sharing options...
Woolfsmck 2,763 Posted July 5, 2015 Share Posted July 5, 2015 I hope this is a short lived phenomenon. I wonder if this will trigger any change in housing... if this lasts too long it could be concerning, right?both Mexico and Canada were benefiting from hi oil prices... Without that revenue, they need to adjust their economies... Canadians are pretty smart, so they will probablely make adjustments... Mexico will too. like a cat in a sil, I observe life, moving and still. My words give a clue,look inside to see whats true Link to post Share on other sites More sharing options...
Rome 176 Posted July 5, 2015 Share Posted July 5, 2015 Welcome to the club Canada! Link to post Share on other sites More sharing options...
Economy 52,861 Posted July 5, 2015 Author Share Posted July 5, 2015 I hope this is a short lived phenomenon. I wonder if this will trigger any change in housing... if this lasts too long it could be concerning, right?the biggest impact on jobs is on industries that service the oil sands since investment is down... In terms of GDP its because were getting less money per barrel of oil... however thats a technicality because they havent trimmed that many jobs directly neither are they going bankrupt... but it shows up in GDP numbers This could be what they call a "technical recession". The economy could contract for a second quarter in a row as the data suggests and and officially Canada would enter recession but its because of the impact oil is having on numbers for now... We havent been actually loosing jobs and the economy and unemployment remain stable However if this lasts a long time it could have other spill over effects especially in Western Canada For Central and Eastern Canada the lower currency will help the non-energy export manufacturing... Unfortunately in Canada half the Country will do well and not the other half. The West and their resouirce and energy based economy often comes into conflict with the economy from the Eastern half and the transitions from when conditions change arent pretty... The positives from a weaker currency on manufacturing and the increased spending from consumers by what they save on gas will take longer to materialize than the negatives that come from low oil prices on energy investment... As such were not seeing the benefits from the shift yet that will benefit Eastern Canada but the pain from the downsides in Western Canada is felt right away Link to post Share on other sites More sharing options...
Economy 52,861 Posted July 5, 2015 Author Share Posted July 5, 2015 Welcome to the club Canada!where u from? Link to post Share on other sites More sharing options...
Rome 176 Posted July 6, 2015 Share Posted July 6, 2015 where u from?Spain Link to post Share on other sites More sharing options...
Woolfsmck 2,763 Posted July 6, 2015 Share Posted July 6, 2015 http://www.thestreet.com/story/13208641/1/stocks-off-lows-as-greece-appoints-new-finance-minister.html?puc=yahoo&cm_ven=YAHOODoesn't seem to be related, but Greece's debt issues are causing oil prices to drop, which will lessen the Canadian export revenue...making recession recovery more difficult. like a cat in a sil, I observe life, moving and still. My words give a clue,look inside to see whats true Link to post Share on other sites More sharing options...
Economy 52,861 Posted July 6, 2015 Author Share Posted July 6, 2015 Spain ah ok lol no offence but our challanges dont come even close to your level Link to post Share on other sites More sharing options...
Rome 176 Posted July 7, 2015 Share Posted July 7, 2015 ah ok lol no offence but our challanges dont come even close to your level I now Link to post Share on other sites More sharing options...
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