Canada records its first trade deficit since 1976

[LargoWinch]

You guys need to buy more Blackberrys and maple syrup:

HEATHER SCOFFIELD
Globe and Mail Update, with files from the Canadian Press
February 11, 2009 at 10:06 AM EST


Canada has recorded its first trade deficit in more than 30 years, with drops in both exports and imports driving the trade balance to negative $458-million in December.

It's the first trade deficit since March, 1976, as the stagnation in global trade meant exports fell at a faster pace than imports in the month.

Continued here:
http://business.theglobeandmail.com/.../Business/home

[Mega]

Re: Canada records its first trade deficit since 1976

This IS Bad, on one of the UK BB 5 YES 5 guys i know have lost their jobs this month.
Mike

[mr_fibuli]

Re: Canada records its first trade deficit since 1976

This is indeed an interesting development and one I haven't seen much discussion on - what happens to countries that are satellites of the larger economies like Canada, Australia, New Zealand etc.

For Canada we could choose to move closer to Europe (some rumblings on this already) or Asia, stay close to the USA or some combination - one thing for sure, we need export markets to realise our potential unless we want to stick to oil, lumber and maple syrup.

I'd be interested to hear some ideas - what's the best way forward for those of us on the periphery?

[petertribo]

Re: Canada records its first trade deficit since 1976

Here is a good Canadian story that passed under the radar. This certainly will have a profound affect on CDN Energy interests, let alone other national interests. Looks to me like Bush put this out on his way out to set up Obama for a ripoff of Canadian interests:

"Bush asserts U.S. sea power over Arctic straits

OTTAWA — In his final days in power, President George W. Bush asserted U.S. military "sea power" over the oil-rich Arctic on Monday, in another forceful rebuttal of Canada's claims of sovereignty over the Northwest Passage.

The White House formally released the text of a sweeping new directive on the Arctic, two years in the making, just eight days before Barack Obama is to be sworn in as the 44th U.S. president.

Key elements of Bush's policy challenge the ambitious Arctic sovereignty agenda put forth by Prime Minister Stephen Harper that includes bolstering Canada's military presence and fostering economic and social development. The Bush directive reiterates that the Northwest Passage is an international waterway — a rebuttal of Canada's claim of sovereignty over what is emerging as a major global shipping route because of the shrinking polar ice cap — and it highlights the boundary dispute in the resource-rich Beaufort Sea.

"I think Canada has gotten a real wake-up call with this," said University of Calgary political scientist Rob Huebert, one the country's leading experts on Arctic issues.[Hey, prof, Canadians still seem to be asleep.]

He said he couldn't recall the U.S. ever articulating its disagreements with Canada "in such black and white terms. There was no effort here to sugar-coat anything.""

http://www.theprovince.com/news/story.html?id=1169665

While its own sovereignty is threatened the Canadian Government has its troops dying in Afghanistan for American interests. Looks like easy pickins to the North for the US Empire. Last time Canadians played hardball with the US was way back when the Expos played the Mets.

[GRG55]

Re: Canada records its first trade deficit since 1976

This is indeed an interesting development and one I haven't seen much discussion on - what happens to countries that are satellites of the larger economies like Canada, Australia, New Zealand etc.

For Canada we could choose to move closer to Europe (some rumblings on this already) or Asia, stay close to the USA or some combination - one thing for sure, we need export markets to realise our potential unless we want to stick to oil, lumber and maple syrup.

I'd be interested to hear some ideas - what's the best way forward for those of us on the periphery?

I completely agree that we need to fight harder for our export markets. Much harder. Even for markets for oil, lumber and maple syrup [and beaver pelts?] .

However, in the case of Canada we could start by dispassionately recognizing the reality of our geography. I listened to all manner of useless pontificating during the late Trudeau years about distancing ourselves from the USA and embracing Europe to our bosom. What are we going to do? Pack up the provinces on barges and move them somewhere else on the globe?

Our useless politicians need to get serious. Politics is one thing, but economically we are wedded to the USA markets whether we like it or not. To the west the Continental Divide, Selkirks, Monashee and other mountain ranges present a formidably expensive cost barrier exporting to Asia Pacific. To the east, low-cost waterborne transportation from Thunder Bay through the Saint Lawrence Seaway mitigates some of negative influences of a wide, east-west country. But we are still more competitive shipping product across the 49th parallel or the Great Lakes to the south than to Europe. Our logical and most competitive trade routes from the majority of provinces, including the interior of B.C., will remain north-south. Thankfully the US consumer will likely still create more per capita demand than the average Chinese or European in the next decade, just like they have in past decades...credit card or no credit card.

Here is a good Canadian story that passed under the radar. This certainly will have a profound affect on CDN Energy interests, let alone other national interests. Looks to me like Bush put this out on his way out to set up Obama for a ripoff of Canadian interests:

http://www.theprovince.com/news/story.html?id=1169665

While its own sovereignty is threatened the Canadian Government has its troops dying in Afghanistan for American interests. Looks like easy pickins to the North for the US Empire. Last time Canadians played hardball with the US was way back when the Expos played the Mets.

Another long running soap opera. My earliest recollection of an Arctic sovereignty controversy dates from the aftermath of the 1969 Manhattan oil tanker voyage.

I love the way articles keep describing that territory as "oil rich". How do they know? Have they had a look at the less than stellar historical drill results from the Beaufort and Chukchi Sea? Yes the Arctic is a big area with a lot of mineral potential. But what if the northern hemisphere countries start a war over it and then the victor finds...nothing commercial?

[Nicolasd]

Re: Canada records its first trade deficit since 1976

LW, we also sell aircrafts, fligth simulators, jet engines, pharmaceutical (VIOXX is our brain child) , Japanese cars, US cars ,lumber, helicopters, oil, electricity,Celine Dion, Cirque du Soleil, etc....

There is now way out of this north-south trade lane as described by GRG55.We just have to make our offering more competitive.Perhaps devaluating the CAD back to .70-.72 will help put us back on track :rolleyes:?

[LargoWinch]

Re: Canada records its first trade deficit since 1976

LW, we also sell aircrafts, fligth simulators, jet engines, pharmaceutical (VIOXX is our brain child) , Japanese cars, US cars ,lumber, helicopters, oil, electricity,Celine Dion, Cirque du Soleil, etc....

There is now way out of this north-south trade lane as described by GRG55.We just have to make our offering more competitive.Perhaps devaluating the CAD back to .70-.72 will help put us back on track :rolleyes:?

I almost agree except for Celine: she is American...no...wait could she be back? (one day your own Winch will post his pic - remove himself - with Celine in Vegas; but this is for another time).

On a more serious note, so the idea is devaluation? How brilliant! If Canada does it, can you imagine how many other countries are going to do it? Forget crude oil, I am now bullish on lumber!

[LargoWinch]

Re: Canada records its first trade deficit since 1976

GRG55, how could you possibly simply be an "iTulip Select Premium Member"?

Would you mind me starting a poll?

I suggest (so far):

Bunkerman

Goo Xpert

...

[DToM67]

Re: Canada records its first trade deficit since 1976

...While its own sovereignty is threatened the Canadian Government has its troops dying in Afghanistan for American interests. Looks like easy pickins to the North for the US Empire. Last time Canadians played hardball with the US was way back when the Expos played the Mets.

Sovereignty?

Avro Arrow - You don't need no stinking interceptors... Its all about ICBMs:rolleyes:
War on drugs - Pot laws repealed, Extradition of Prince of Pot negotiated
NAFTA - (Mulroney & his ilk - an Uncle Tom by any other name)
SPP - Temporary Visas - Apparently Canada needs cheap Mexican labor too
Afghanistan
Critical infrastructure - sold to foreign interests (eg hwy 407 in ON - to Spain)
Maher Arar, et al - Citizens handed over willingly for extraordinary-rendition

I might be alone on this... But when I think about your baseball metaphor I think of Hugo Chavez. Love/hate, agree/disagree with him/his legitimacy... HE plays hardball! Chavez appears to understand his oil reserves wield great influence & ability to negotiate for his country.

Why does Canada, with all of its resources (appear to) bend over and silently take it, while a guy like Chavez militarizes his country, strengthening alliances with Russia and Cuba? Venezuela has oil operations in the US and even supplies the Sequoia voting machines, used in the most recent Presidential election.

Hey Canada! Who's your buddy? And who's negotiating on your behalf?:confused:

[GRG55]

Re: Canada records its first trade deficit since 1976

Sovereignty?

Avro Arrow - You don't need no stinking interceptors... Its all about ICBMs:rolleyes:
War on drugs - Pot laws repealed, Extradition of Prince of Pot negotiated
NAFTA - (Mulroney & his ilk - an Uncle Tom by any other name)
SPP - Temporary Visas - Apparently Canada needs cheap Mexican labor too
Afghanistan
Critical infrastructure - sold to foreign interests (eg hwy 407 in ON - to Spain)
Maher Arar, et al - Citizens handed over willingly for extraordinary-rendition

I might be alone on this... But when I think about your baseball metaphor I think of Hugo Chavez. Love/hate, agree/disagree with him/his legitimacy... HE plays hardball! Chavez appears to understand his oil reserves wield great influence & ability to negotiate for his country.

Why does Canada, with all of its resources (appear to) bend over and silently take it, while a guy like Chavez militarizes his country, strengthening alliances with Russia and Cuba? Venezuela has oil operations in the US and even supplies the Sequoia voting machines, used in the most recent Presidential election.

Hey Canada! Who's your buddy? And who's negotiating on your behalf?:confused:

The day that some dumbshzt Canadian politician with real power starts to emulate Chavez is the day I get out. It's all downhill once that happens.

[DToM67]

Re: Canada records its first trade deficit since 1976

The day that some dumbshzt Canadian politician with real power starts to emulate Chavez is the day I get out. It's all downhill once that happens.

I prefer socialists who admit they are what they are...
Not Republicans who claim to be conservative, Democrats who are anything but democratic.

...And then there are Torries who claim that coalition governments are anti-democratic (while attempting to steal funding from competing parties), and who eventually enter into a De facto coalition with Grits.

Harper's effectively emasculated himself by cowing to Ignatief/Liberal agenda/budget.

Not a lot to crow about in the past 20 years... Mulroney was a sell out. Chretien wasn't great, but at least he had a pair. Martin & Harper showed themselves Bush ass-kissers.

Sad when Quebecois separatist and NDP MPs are the ones looking out for their constituents interests.

What's your take on the non-budget (we'll have a surplus) to we're in trouble... we're going to run a deficit... No one saw this coming yadda yadda?

Either they're liars or incompetent (more likely both). How could anyone perform such an about face and not have they're leadership questioned via a vote of confidence? ...And Harper is supposed to be an economist...

Chavez is more believable.

[D-Mack]

Re: Canada records its first trade deficit since 1976

Here is a good Canadian story that passed under the radar. This certainly will have a profound affect on CDN Energy interests, let alone other national interests. Looks to me like Bush put this out on his way out to set up Obama for a ripoff of Canadian interests:

http://www.theprovince.com/news/story.html?id=1169665

While its own sovereignty is threatened the Canadian Government has its troops dying in Afghanistan for American interests. Looks like easy pickins to the North for the US Empire. Last time Canadians played hardball with the US was way back when the Expos played the Mets.

He will have a chance to explain in detail for the Canadians

George W. Bush to give talk in Calgary

Updated Thu. Feb. 12 2009 7:38 PM ET

The Canadian Press

CALGARY -- A Calgary audience might be the first group to hear George W. Bush's take on the state of the world since he stepped down as U.S. president earlier this year.

Bush is to speak to an anticipated audience of 1,500 at a private event in the city on March 17, according to organizers Andy McCreath and Christian Darbyshire.

"It's our understanding it's one of the first -- if not the first -- times he'll speak since leaving office," said Geoff Pradella, vice-president of public and government affairs at the Calgary Chamber of Commerce, which is partnering in the event.

"I imagine it'll be a reflection on issues that arose during his time in office, and maybe drawing from that his perspectives on the way forward."

http://www.ctv.ca/servlet/ArticleNew...212?hub=Canada

[GRG55]

Re: Canada records its first trade deficit since 1976

I prefer socialists who admit they are what they are...
Not Republicans who claim to be conservative, Democrats who are anything but democratic.

...And then there are Torries who claim that coalition governments are anti-democratic (while attempting to steal funding from competing parties), and who eventually enter into a De facto coalition with Grits.

Harper's effectively emasculated himself by cowing to Ignatief/Liberal agenda/budget.

Not a lot to crow about in the past 20 years... Mulroney was a sell out. Chretien wasn't great, but at least he had a pair. Martin & Harper showed themselves Bush ass-kissers.

Sad when Quebecois separatist and NDP MPs are the ones looking out for their constituents interests.

What's your take on the non-budget (we'll have a surplus) to we're in trouble... we're going to run a deficit... No one saw this coming yadda yadda?

Either they're liars or incompetent (more likely both). How could anyone perform such an about face and not have they're leadership questioned via a vote of confidence? ...And Harper is supposed to be an economist...

Chavez is more believable.

The whole lot of them are worthless. Because the level of integrity in national politics is now zero, and has been heading there, without respite, for several decades.

But then why would we expect anything better given the populance thrives on the lies of a perpetual free lunch...indeed the greater the election gifts being showered upon us [at the cost of future tax increases] the more it induces the now familiar Pavlovian response in the voters.

And you are absolutely correct that Chavez is more believable. When he indicated that he would do everything, including running his own country completely into the ground, to stay in power...I believed him.

[Nicolasd]

Re: Canada records its first trade deficit since 1976

Saw Celine again last nigth at the Bell center.........she is back
No way she will return to Vegas in the future , her in and out timing there was superb.....


Yeah , everybody will devaluate , we only need to be faster than others vis-a-vis the USD :rolleyes:

[mr_fibuli]

Re: Canada records its first trade deficit since 1976

LW, we also sell aircrafts, fligth simulators, jet engines, pharmaceutical (VIOXX is our brain child) , Japanese cars, US cars ,lumber, helicopters, oil, electricity,Celine Dion, Cirque du Soleil, etc....

There is now way out of this north-south trade lane as described by GRG55.We just have to make our offering more competitive.Perhaps devaluating the CAD back to .70-.72 will help put us back on track :rolleyes:?

The exchange rate only helps until equilibrium is established once again. If the exchange rate is stable the costs in the US vs. Canada are pretty comparable. IMO one big competitive advantage for Canada is the reluctance of Americans to accept universal health care which burdens their industry with a big competitive disadvantage compared with the rest of the developed world.

I think a useful way of understanding Canadian -American relations/economic relationship is to remember that we are derived from the same British colony and have the same heritage, the big difference is that the polite and obedient colonists settled in Canada post war of independence and the belligerent ones stayed in the US! This I think goes some way toward explaining the characteristic Canadian conservatism vs the American tendency to take more entrepreneurial risks. The American war of Independence and the war of 1812 did a good job of sorting these tendencies early on and our behaviour is still somewhat determined by this.

We are tied together by geography and history so I hope we'll be able to continue to get along.