Canadian Economy Showing Warning Signs of Impending Financial Crisis

in Canada/Other News by

Canada has been notified by a global banking body regarding the vulnerabilities tied to the rising interest rates, property prices, and credit. The Bank for International Settlements also known as BIS published their quarterly review, and declared that Canada showed early warning signs for domestic banking risks and financial crisis. The report was completed by measuring housing prices and credit in relation to gross domestic product, and the ability to service debt in the face of increasing rising interest rates in the country.

The credit gap for Canada has risen from last year, and it currently has the highest credit-to-GDP ratio in developed nations. The report stated that this unusual elevated level would be a massive threat to the banking system of the country. The report also notes that around two-thirds of the banking crisis in the world was after credit-to-GDP gaps that were above the 10% threshold. Countries like Portugal, Japan, Greece, and Eastern Europe were placed in the same category, but the property price gaps in those countries weren’t rising due to price growth.

The report showed that the debt ratios were manageable for most companies, if there is no change in interest rates, but Canada, alongside Turkey and China were placed under ‘potential risks’, as they had been under more stressful conditions. This will mean that the debt service ratio for Canada will increased to around 8 from 3.6, which would only be behind China.

The Bank of Canada conducted a year-end-review and highlighted these vulnerabilities, which would imbalance the housing market, and increase household debt all over the country. However, the report also stated that these vulnerabilities will alleviate over time, and conditions will improve when the new housing finance rules will be introduced for Canada.  

Delilah is 31 years old from Toronto Canada and has a conservative view on politics, she lives on the road following big names in politics, she has come upon us with many years writing experience, in her early years she has been all over Europe back-packing and had the "adventure of a lifetime" before settling down to write news on Canadian and World politics.

1 Comment

  1. The really disturbing part of this trend is that the Government is using a Carbon Tax to bankrupt Canada. The Infrastructure Bank of Canada will lend money to the future impoverished provinces to “refinance” their growth development requirements. The catch is that no province will be able to pay back any debt.
    Followed by the nice piece of legislation giving the Federal Government the right to pull back all Canadian currency in privately held bank accounts as “it sees fit”.
    Followed by the forceful nature to push 100% of all energy generation onto solar and wind. Solar being 10-20% less useful now that chemical and heavy metal are being used (factually credited to Harvard and the CIA) to geo engineer the planet by reflecting sunlight back.
    Okay, Canada is being taken on a ride that makes Enron look good.
    Right, Maurice Strong and Enron advised Ontario on how to manage their finances and energy better. Which leads us to derailing coal, creating a carbon tax, and displacing everyone in Canada.
    This leads to system failure. The end of Canada.
    If this trend continues, Canada has 15-20 years left at best.
    The corrective measures: Government seizure and control over 100% of the natural resource development in all provinces. Every mine, well, and resource becomes a government asset to be further developed by the government. Every mining tool, every piece of equipment becomes siezed government asset.
    The logic is simple. If the government controls the mining and development, and hires Canadians to run it all as civil servants, the mines will have a complete life cycle conclusion from first inception, analysis, first dig, all the way through to closure, clean up, land reclamation.
    The process would literally put millions of people to work, reduce environmental damages, and ensure sustainability through the crown corporation running the division and keeping the raw material and money in Canada.
    Secondary, dropping of the carbon tax. If Canada reverses its position on Carbon tax it will survive.
    Third, kick starting the coal generators. Re activate any shut down, keep the coal burning.
    Fourth, taking 4 billion dollars and building thorium reactors.
    Fifth, create more train systems that allow people to commute between small villages.
    The work and labor live in different places.
    Sixth, lower income tax.
    Seventh, lower government reliance on taxation as a tool to balance the worksheet.
    Eighth, shoot and kill anyone dealing meth or opioids on sight.
    Ninth, make property ownership an enshrined right protected under the Charter.
    Tenth, drop NAFTA and rebuild protectionist policy to rebuild Canada and make it self sufficient as opposed to reliant on slave labor and foreign products and services.

    If Canada reversed the key areas we would all be happier and could take pride in Canadian innovation. Under Brian Mulroney, we saw an epic failure occur that continues to be an epic failure and will be an epic failure because it is designed to make us weak and complacent.
    Legalizing marijuana just makes it a sealed deal.
    A passive slave is a compliant slave.

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