Stockwell Dah “Hopes” U.S./China’s Stimulus Work for Canada?
Financial Post: Canada’s 32-year run of trade surpluses came to an unexpected end in December after weak demand and a decline in commodity prices, once the saviour of the economy, caused the trade account to plummet to its worst monthly deficit on record.
With global demand for energy and other manufactured goods retreating amid the onset of the deepest global recession in 60 years, it appears Canada is set to wallow in trade deficits until demand, particularly in the United States, recovers.
“We do know that if the United States continues to stay in the doldrums and if China’s economy continues to move downwards, that means there’s going to be less demand for Canadian products. It’s as simple as that,” Stockwell Day, the federal Trade Minister, said Wednesday. “That’s why we really hope the U.S. stimulus package works for them, and we hope that China’s stimulus package also works because if their economies come back on stream, the demand for good Canadian products and services will go up.”
For anyone who thought your government had a handle on the current economic clusterf**k you can pretty much see that they like most other government do not have a fiddlers’ clue on how to even begin to fix this mess beyond throwing BILLION$ of dollars from your public treasuries in the “hope” that things get better! Oh did I mention that Canada’s trade surplus is falling faster than Harper’s reelection hopes? Yeah it’s doing the Titanic!