[Newsbot]

Title: Canada posts 1st monthly trade deficit since 1976
Category: Business
Posted By: tritium
Date: 2009-02-11 06:19:51
Canadian

[Streaker]

Yet another example of our government's expert stewardship of the economy.

[Scape]

How so?

[Streaker]

I'll venture that the GST cuts haven't been helpful.

[Scape]

The trade deficit would be stoked by demand, most notably US demand. A GST cut would only help not hinder that.

[Axeman]

There's nothing necessarly wrong with a trade deficit. A trade deficit says two very POSITIVE things about our economy: 1. Our domestic consumers have the confidence and disposable income to affort imported luxuries; 2. We're "getting" more in return than we're giving up for our natural resources. So, let's be careful to understand that trade-balance is just a stat and there's nothing inherently bad in being in a trade deficit position. The USA has had the world's strongest export economy over the past 50 years and they ALWAYS have a deficit.

[Streaker]

Scape Scape:

The trade deficit would be stoked by demand, most notably US demand. A GST cut would only help not hinder that.

That same cut would encourage consumers to buy foreign-made goods, though. It's no coincidence that Harper made the announcement in some electronics store in front of a row of LCD TVs.

[Scape]

For domestic demand but like I stated Streaker our biggest buyer is the US. I understand your reasons vs the GST cut as far as out own deficit is concerned and I share those sediments but as far as a trade deficit I think you are comparing apples and oranges here.

[PluggyRug]

Scape Scape:

For domestic demand but like I stated Streaker our biggest buyer is the US. I understand your reasons vs the GST cut as far as out own deficit is concerned and I share those sediments but as far as a trade deficit I think you are comparing apples and oranges here.

Whilst I would agree..your post has a humorous note.

[stokes]

Streaker...ok...we get it...you hate Stephen Harper....but stop breath and then pull your head out.

Canada is a huge exporter of resources, since this economic crisis as hit (not of our doing by the way) the demand for resources has fallen drastically along with the prices of those resources, so yes we have a trade deficit but it is nothing to get crazy about, a little bit of knowledge will help you see the reality and ignore your hatred

[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.

[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.

[mtbr]

stokes stokes:

Streaker...ok...we get it...you hate Stephen Harper....but stop breath and then pull your head out.

Canada is a huge exporter of resources, since this economic crisis as hit (not of our doing by the way) the demand for resources has fallen drastically along with the prices of those resources, so yes we have a trade deficit but it is nothing to get crazy about, a little bit of knowledge will help you see the reality and ignore your hatred

don't confuse the buffoon with something so obvious. But, we should expect someone from Quebec to have any idea as to what drives the Canadian economy.

[martin14]

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.

As usual, the truth will be somewhere in the middle.
Both of you make valid points, its probably a combination of the two.

I would also throw in the simple fact that we simply don't produce enough
at home. We have prospered by just exporting raw materials, rather
than sending out finished goods.

For whoever mentioned the US trade deficit, just looking at the US
right now doesnt convince me it was good policy to have such
a big trade imbalance.

[ShepherdsDog]

A Canadian dollar that was valued around $0.70 - $0.80 US, and oil that was priced at +60 $US a barrel also helped to fuel our economy. Oh well, with oil at a lower price it'll be easier to heat homes when a global cool down results from lowered industrial activity around the planet.