Maybe Canada should consider Joining the BRICS gold-backed currency system – if only Canada had some gold.
Once a beacon of prosperity and stability, Canada now faces unprecedented challenges.
The nation’s standard of living is plummeting, economic policies are under intense scrutiny, and an increasing number of Canadians are considering leaving the country.
In This Article
- Canada vs. Japan in a Currency Race to the Bottom
- The Decline of Canada’s Standard of Living
- By the Numbers: Canada’s Current Economic Disaster
- Trudeau’s Economic Policies and Their Impact
- Future Prospects for Canada’s Economy
Of course the United States is also in serious decline. However, Canada does not have the luxury of having the world’s reserve currency.
Nor does Canada hold a single ton of gold in her sovereign monetary reserves.
This article details Canada’s troubling decline, offering a comprehensive look at the forces reshaping the Great White North.
Canada’s standard of living is on track for its worst decline in 40 years, according to a new study by Canada’s Fraser Institute.
The study compared the three worst periods of decline in Canada over the last 40 years – the 1989 recession, the 2008 global financial crisis, and the current post-pandemic era.
Unlike the previous recessions, Canada is not recovering this time. Something broke.
In fact, according to the Financial Post, since 2019, Canada has had the worst growth out of 50 developed economies. Inflation-adjusted Canadian wages have been flat since 2016.
Canada vs. Japan in a Currency Race to the Bottom
While both Japan and Canada are major global economies, neither country’s currency is faring very well against King Fiat Dollar this year.
The Canadian Dollar has lost 4.34%of its value year to date while the Japanese Yenb has depreciated 8.43% against the US dollar (see charts below).
ALSO READ: Today’s Japanese Yen Meltdown Sparks Financial Panic
While Japan’s 250% debt to GDP is a catastrophic problem with no way out, at least they have built up their sovereign gold reserves to 846 tons as of March of 2024.
Canada, on the other hand, has absolutely zero gold reserves. What are they thinking?
As I will explain below, holding no gold reserves is only the tip of the iceberg as the economic disaster unfolding in Canada paints a very dangerous future for my friends in the Great White North.
The Decline of Canada’s Standard of Living
Canada’s per-person real GDP is still falling, and with a looming US recession, Canada could crash again before it ever recovers.
The US accounts for 75% of Canada’s exports, making its economic health crucial to Canada’s prosperity. Canadian bankruptcy filings jumped 40% last year, while CIBC reports nearly half of Canadians have zero emergency savings.
Additionally, StatsCan reports that Canada’s violent crime rate is up 40% since 2014.
An Ipsos poll found that 7 in 10 Canadians agree that “Canada is broken,” rising to 8 in 10 for those between ages 18 and 34.
The Angus Reid Institute found that 42% of Canadians are considering moving to another country.
By the Numbers: Canada’s Growing Economic Disaster
- Canada’s standard of living is on track for its worst decline in 40 years.
- Since 2019, Canada has had the worst growth out of 50 developed economies.
- Inflation-adjusted Canadian wages have been flat since 2016.
- Canada’s per-person real GDP is still falling.
- The US accounts for 75% of Canada’s exports, impacting Canada’s economic health.
- Canadian bankruptcy filings jumped 40% last year.
- Nearly half of Canadians have zero emergency savings, according to CIBC.
- Government spending has nearly doubled to almost half of GDP.
- Government workers in Canada are growing almost four times faster than the private sector.
- One in three Canadians now work for the government, earning 30% more in salary and benefits than private-sector counterparts.
- Food inflation in Canada is up 25% since the pandemic.
- Energy costs in Canada have risen 30%, partly due to a carbon tax.
- Sales tax in most Canadian provinces is 13 to 15 percent on everything you buy.
Trudeau’s Economic Policies and Their Impact
Justin Trudeau’s administration has been marked by significant changes in economic policy.
Trudeau’s campaign aimed to convert Canada from a mixed economy like the US into a government-dominated economy similar to some European countries.
Under Trudeau, business investment has plunged by a third, while government spending nearly doubled to almost half of GDP.
Government workers in Canada are growing almost four times faster than the private sector, and one in three Canadians now work for the government, earning 30% more in salary and benefits than their private-sector counterparts.
This has made it challenging to win an election on a small-government platform, as 40% of voters are directly dependent on government-provided livelihoods.
Future Prospects for Canada’s Economy
In the near term, things will likely worsen because Canadians are stuck with Trudeau through the next election in 2025.
Conservative leader Pierre Poilievre is currently ahead in the polls, but government-funded media efforts to undermine him are narrowing his lead.
This suggests continued inflation, economic decline, mass migration, and rising crime.
The Bottom Line
Canada is facing a critical period of economic and architectural decline. With flat wages, rising living costs, and a struggling economy, Canadians are experiencing one of the worst periods of decline in recent history.
The future of Canada’s economy remains uncertain, but addressing these issues is essential for restoring prosperity and stability.
Contributing Sources:
- https://brownstone.org/articles/canadas-worst-decline-in-40-years/
- https://www.fraserinstitute.org/sites/default/files/changes-in-per-person-GDP-Income-1985-to-2023.pdf
- https://financialpost.com/news/canada-standard-of-living-faces-worst-decline-40-years#:~:text=A%20leader%20among%20the%20so,rate%20among%2050%20developed%20economies.
- https://thehub.ca/2024/07/23/theo-argitis-taking-stock-of-canadas-complicated-economy-before-tomorrows-bank-of-canada-decision/
