Wednesday, June 4, 2014

The "Stealth" Implosion of Globalization Continues...

This entire shit show is lurching towards collapse while clueless policy-makers do everything they can to ignore it - now discussing "Bowe Bergdahl" 24x7 - because we know that the future of 320 million people hangs on one hill billy. 

It's not even possible for collapse to come as any other way than total surprise... 

The Canadian dollar has lost a staggering 15% of its value relative to the U.S. dollar since 2011 despite the fact that Canada's economy is stronger and U.S. monetary policy is far more accommodative.

The Canary in the Globalization Coal Mine
Canada's economy is far more correlated to globalized trade, which is now imploding

According to OECD data, Canada's economy is as strong or stronger than the U.S. across all three dimensions of GDP growth, unemployment and fiscal deficits:

Canada has a higher credit rating (AAA), but also higher interest rates which should support the C$

The U.S. stock market has far outperformed the Canadian stock market since 2009

"Houston, we found the problem"
Canada's current account balance (balance of trade) has deteriorated by a massive 6% of GDP in the past 8 years - now firmly negative, while the U.S. balance of trade has actually improved by 4% of GDP, albeit still negative:

The "stealth" implosion of Globalization, in broad daylight, continues into Season 12 of the Kardashians...