Surplus further pushes Canadian dollar
Canada has successfully lowered its debt, balanced its budget, kept its trade surplus up, kept interest rates up and looking to further raise them… Exactly what every other G-7 country has been unable to do. Meanwhile the Canadian economy is stably strolling along, and the Canadian loonie has been very strong.
The federal government today announced a larger-than-expected surplus in the Canadian economy. This announcement, along with a weak U.S. home sales report, resulted in a further push on the Canadian dollar. The loonie rose higher than the U.S. dollar earlier in the session, but closed at 99.86-cents (up from yesterday’s finish of 99.58-cents).
The surplus is estimated to have raised to $14-billion in the last fiscal year, versus the original $9.2-billion forecast. The Canadian dollar rose on expectations that the surplus would lead to further tax-cuts.
I actually sense some reason for concern now… With the Canadian dollar being so high, retailers are not acting fairly. Canadians are loosing their purchasing power. As for the surplus, the difference being so huge, shows either deliberate miscalculation or lack of transparency. I was reading some articles today on the federal government saying that the creation of 125,000 daycare spots (part of their previous election platform) ‘may not be realistic’. With such a huge surplus, I’ll find it surprising that such a promise remain unfulfilled.
It’s time the Canadians retain some value on their success over the past years. The country and its economy has definitely been successful, but there will come a point where Canadians will be fed up; Fed up of not enjoying the fruits of their labour. In order to continue, further develop, and distinguish the Canadian identity on the global marketplace… where do we start? The root is the average Canadian; And if he/she is not provided with adequate incentives or does not see the results of his/her increased productivity… Ultimately, how far will Canada advance? Probably not too far beyond its own borders.
Don’t get me wrong, I do believe the Canadian economy has been proven very strong in the recent past - BUT this is not where we ought to stop…
Related Articles