[commanderkai]

Axeman Axeman:

bootlegga bootlegga:

I'd argue the biggest reason for the trade deficit is the fall in commodity demand. If no one wants our coal, nickel and steel, then it shouldn't come as a surprise that we have a trade deficit.

no, I don't think so Boot. The reason for our trade deficit is our increase in relative wealth, vis-a-vis the rest of the world, per capita, which has allowed Canadians the ability to afford imports. Our economony has been the strongest on the globe over the past few year. It shouldn't be a surprise or a concern that our consumers demand imported goods. Hell, I'd buy a Ferrari if I could afford
it.

Well yes, but I would probably think that the economic slowdown isn't making people spend more, best way to figure out this is through finding out consumer spending habits and statistics. However, I'd have to agree with boot, with the slowdown in the United States, the demand for our natural resources as well as car parts and other manufactured inputs (things that are manufactured, but not finished products for consumers, I'm sure there's a term but I'm exhausted.) probably lower the values of our exports.

[Axeman]

commanderkai commanderkai:

Well yes, but I would probably think that the economic slowdown isn't making people spend more, best way to figure out this is through finding out consumer spending habits and statistics. However, I'd have to agree with boot, with the slowdown in the United States, the demand for our natural resources as well as car parts and other manufactured inputs (things that are manufactured, but not finished products for consumers, I'm sure there's a term but I'm exhausted.) probably lower the values of our exports.

That's absolutely part of the equation, as is the $.80Cdn dollar, down over 20 percent since last spring. That has a big impact, negatively and positively, on export demand from Canada. My point was just a cautionary one: don't read the stat and instantly conclude that it's 'bad news'. A trade deficit isn't necessarily a red flag. Import demand can be a strong measure of domestic consumer confidence.