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Canadian Dollar Crashes To 12-Year Low After Collapse In Consumer Prices
Not since December 2013 have Canadian Consumer Prices dropped by such a large amount. November CPI dropped 0.3% MoM, dramatically worse than expected to the largest drop since Dec 2013. The largest YoY drop in Canadian CPI, amid a surge in inventories relative to a collapsee in wholesale sales sent the loonie crashing above 1.4000 for the first time since August 2003.
Candian CPI tumbles and Wholesale Sales plunges...
Which send USDCAD to 12 year lows...
Charts: Bloomberg
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I am collapsing. AGAIN! ;-)
Looney
It's starting to get ugly up there. Good luck folks! Oil ain't coming back anytime soon. And that housing market is beyond hot - time for NIRP guys!
All I am reading today is "crash" "collapse" "alarming" and general "doom" but what I am HEARING is BTFD. That's how it works, right? Right???
40% off good canadian beer and hookers is all i got out of this eh.
I'm surprised you even pay for beer with knockers like those.
Collapse in consumer prices? Hah! Come up to our grocery stores where all produce is being imported.
+1
Prices for things we want may be falling, but a lower looney hides this. The things we need, on the other hand, are skyrocketing.
Everything in Canada is being imported (except jobs.)
We export our commodities at falling prices, and import things made from those raw materials with 'value added.'
Yay NAFTA et al.
Yeah thats for sure everything is either in smaller packages for the same price or more for the same size.
+1
Lots of tricks are being used to hide inflation.
Bubbles galore. The Canadian real estate market was in a huge bubble.
Still is - wait until it really pops!
Help - I've fallen - and I can't get up!
It's aboot time!
I wish there were more than 1 thing that i want to buy from Canada.
How about some silver and gold Maples? .9999 Pure
Strange - a Silver Maple did not lose any value or get any cheaper. Must be something peculiar about silver.
This is true the spot price is down a little but the premiums went up a little.
Gold @ $1482, silver just under $20. Yes, they have held value.
Yet gas is still $4.50 a gallon while oil has dropped 75%. Why?
taxes
Oligarcs...
That is the power of silver, especially considering that one side of it is marred with a image of an old and ugly inbread cunt.
buy precious metals to hedge against paper currencies....
Sold my house in the Canadian oilpatch last summer, bought gold with the money and am currently hiding in Nicaragua until April when I go back gold mining!
Cdn$1.oo Cerveza anyone!? Cdn$645.oo/month room rental anyone?! Come down and hang out with me!
I'm trying to scrape together money to build a small hotel with a cigar lounge/cafe/bar...keeps me off the streets.
How did you get your gold into Nicaragua without losing it to the corruption? Which city / town has CAD645 / month? Want cheaper? Just wait until the USA free-credit society implodes again and you will see prices drop in Central America as the Yanks vanish.
In the US it's debt to the max. Until it all blows.
I know a guy who quit the US and went down to Tamarindo Costa Rica and opened a bbq joint and a backpacker/hostel. It's called Longboards. He'd be happy to give you some tips I'm sure. Ask for Jeff. You're not too far.
BS, if you sold your house LAST SUMMER, you could have BOUGHT a small hotel and had money left over.
Canada is my refuge when it all goes south. My compound is Hyperborea.
Bring guns. Many from down south have the same idea.
Perhaps the cold weather will serve as a nice barrier to those who cant plan and execute beyond picking a banana/coconut off the nearest tree (in between chucking spears at each other).
Don't zombies freeze in the winter?
No, but their phones do.
What cold weather? Here in Qc, rainy, 50 degrees and the forecast (HAARP much) for Xmas eve is 60 degrees...Merry chemtrails...
Merry chemtrails... and a haarpy new year to you, too.
If I do go back under a TSHTF scenario, I'll bring my G&A.
Won't be going back to ON or QC though. Too damp & cold, too taxing, too PC. Damn femi-nazi-zio-libtard-commies!
Oh, and 'The Precious' is already up there, in one of those lakes.
"Like many key features of Canadian identity, Canadian exceptionalism takes as its vital oxygen a sort of oppositional energy to what is generally understood as American exceptionalism. American exceptionalism is conceived of as a continuation of manifest destiny, a ceaseless, visionary determination to occupy all continents literal and figurative, be they purely geographical or financial, cultural, political, psychological, metaphorical. Canadian exceptionalism takes its cue from American exceptionalism but overtly rejects the imperialistic expansionism inherent in this deeply-ingrained stereotype of the Yankee character. That rejection, in the national cultural imagination, is what makes Canada exceptional. Canada, it is understood, wishes not to conquer but to coexist, desires not conflict but cooperation, pursues collective order and polite equilibrium rather than engaging in some potentially destabilizing individual pursuit of happiness."
Standard Disclaimer: https://www.youtube.com/watch?v=jO75Wrf-Phg
Excellent comment but I think that was more true in the 1970's. we are no longer peace keepers and go tag along on all Nato adventures. We need slightly more justification than the americans but like the british - we actively seek of fabricate it.
Canadian voters keep voting in socialists to run their country/provinces/cities. No surprise why investors are dumping the CDN.
I guess Canadians like economic suicide (high taxes, big government, lots of rules). What a naive happy bunch. Ignorance is bliss.
Trudeau isn't a socialist, he's a globalist. The socialist stuff was just to sell the election.
"(high taxes, big government, lots of rules)"
This is not how I would describe Canada. Too much gov't intervention, sure. Otherwise, it ain't that bad.
Canada is always in the top 15 countries in the world (on all lists) and almost always outranks the US.
As I often like to remind people, Trudeau Sr. was a confirmed Bilderberger, globalist, marshall law loving, satanist. Ever hear of the October Crisis? We were treated to armed soldiers and tanks in the streets and a suspension of our rights at the behest of Justin's dad...the rotten apple doesn't fall far from the tree...Just like ya'll in the US voted for Hope and Change and got Obozo, we got suckered into the same game...and we will pay for it dearly...
(some self-referencing links here)
Trudeau Sr. privatized money creation in Canada.
"He ushered in the era of private central banking and huge national debt. The Canadian national debt when he took office (April 20, 1968) was $14B. When he left office (June 30, 1984,) it had reached $130B. That’s a factor of nine within sixteen years. At that rate, the debt would have been over $11T by 2016."
Justin is a globalist who wants to play with the big boys.
"Another point to note is that Justin Trudeau has been involved in making the job of PM obsolete. Elizabeth May (Green Party leader) as well as former PMs John Turner and Paul Martin (who once famously said that if you pay taxes in Canada, you need to get a new accountant) are also part of the same United Nations group which wants to do away with national sovereignty here in Canada, as well as in the rest of the world. This group is the United Nations Parliamentary Assembly (UNPA.)"
"martial" law .... don't want to give the Marshall families a bad name now
Trudeau's father was head of the Communist party in Canada ... and Justin is quoted as saying how impressed he was with China's communist run country in 2012
The October Crisis? You mean the one in response to the genuine FLQ terorists? I guess it's better than the 2001 to 2016 Crisis (and counting).
He did instantly sign on to the TPP right away
Rural Canada is still populated by the ancestors of Scottish, Welsh, English, Irish, German, Scandanavian, Dutch and Slavic immigrants who came here and cut trees, built roads, dug up rocks, drained the bogs, started farms and families...its like a different country in the urban and surburban areas.
That's where I'm at. But we still dig up rocks on the farmland, keep up roads, drain bogs...... It's a completely different country, but I'd separate the prairies from BC and Ontario, Quebec, as far as they take our money.
Transfer payments are a dubious way to run a country agreeed, Canadian provinces are big enough to be their own countries anyway. i wonder how well BC would fare on it's own? We have historicallly terrible leadership.
Quebec can't separate, North American Union wouldn't allow it because of the St.Lawrence Seaway. Alberta and BC, on the other hand, could and probably should separate. They would make the best and one of the richest countries in the world. I'm frankly amazed it hasn't happened yet.
Close but you really need to differentiate between urban and rural areas in those provinces as well.
Turn the GTA, greater Montreal, Ottawa, and Vancouver into their own provinces/territorries. The electoral map will show huge swaths of blue, with tiny pockets of red.
Unfortunately, the red areas will have so much population (that's about 40% just in the four cities) that they will still control the gov't.
Maybe the world should go back to the city-state model and de-centralize everything.
You are correct in putting us in the "socialism" box, but it applies to all Canadians. As opposed to nations where socialism is for the top tier of population and industry.
It's not perfect, but it has served as well. The tired. unfounded criticisms still make us laugh. Thank You and a Merry Christmas to you.
How does this affect Bank of Canada's Govenor Stephen Poloz's policy stating Canada's youth should work for free to support corporate profits?
He was refering to recent university grads, not youth per se. There are jobs up here, but wages are not high enough, suppose it's the same problem everywhere. I got out of the trades, too unsteady.
As a Canadian PM Dealer (www.atlanticgoldsilver.com), we've been selling Silver Maples for between $22-$24 each for at around 2 years. All the fluctuations in PM Prices are inversely correlated to the USDCAD Rate, because the price is mostly a function of USD Strength. Having said that the CDN Central Bank was insane to cut rates 6 months ago. Late to the party & too slow, just when the US Fed was about to change direction !
However, with the collapse in commodity prices (Oil) and a deliberately weakening currency, we will soon be the next Brazil. High unemployment, 10% inflation, collapsing economy. Get ready guys. Buy durable goods, pay off debt (ready for higher rates) protect your wealth & prepare for some difficult times.
I've always bought from silvergoldbull but I'll check you out, shipping to Sask equal or less than $20?
Thank you for the link - your website looks good!
The true hit from OIL prices on tax revenue is not even close to happening yet, wait till the forward price hedges come off in 2016
Their currency is appropriately named. I think I will petition for the U.S. Dollar to be renamed to be the "fucking-looney-tune"
I might be the Sarah Palin of New York state, as I can almost see Canada from my back door (Lake Ontario).
Being a close southern neighbor to Canada, we in upstate NY have been feeling deflationary effects for some time. Housing here is rather cheap, about to get rather cheaper, then downright collapsing. Upstate cities (Syracuse, Buffalo and Rochester) are all underwater. Rochester is the third poorest city in the US in cities ranging between 100,000 and one million.
Think about that for a long moment. Monroe County (in which Rochester sits) was one of the richest counties in the country in the late 60s, early 70s, then Kodak fell, and the rest is history. All upstate manufacturing that mattered has been outsourced. We're a basket case kept alive by federal and state funds.
It's all about to hit the fan, because what happens in Canada, happens in upstate New York next, and, I assume, most other border states.
I live in Montreal...what a fucking joke...
Crappy jobs, minimum wage, 1000's of applicants for hte same dishwasher and other menial labour ads (been told that by more than a couple of employers), H1B work visas being handed out like candy on halloween, rents are skyhigh (historically and compared to earnings), prices for fresh produce skyrocketing from one week to the next (ie; iceburg lettuce $4 average)...and yet, more fucking new highrise projects starts or completions than I've EVER seen ( and I've lived through the 80's boon years)...so ya, we might not be "exceptional" but we are totally in the fucking dark about what's heading our way here in the great white north...that's why I follow ZH religiously, because, even if the topics are centered on the US, when ya'll catch a cold, we're the ones coughing up blood.
SE Sask has been the same way. First at the start of the oil boom we didn't have enough housing. Then housing tripled, there weren't enough apartments, so we started building, and we are STILL building. My cousin lives in a set of condos, which 2 are rented out of 25. And they're building more. The city doesn't have a clue we're in a recession right now. But then again, neither does the central banks, banks, wall street.........
@Bopper...have you ever heard of the "skyscraper index" ...if I understand it correctly, it's the idea that says that the worse the economy, the more buildings get built, as a means to commouflage the fact that the economy is tanking...I think that's what you and I are describing...
No, it didn't.
ummm. yeah it fucking did. full cent yesterday.
I would call 30% in two years a crash.
Canadian snowbirds, tourism and cross border shopping to the US will die this winter.
Or, did the USD just get stronger?
It's less than that... We were at par 14-15 months ago.
Um, we need to reserve the word, "crash", for, say, a 5% move down in one day, as what happened to the Indian rupee, for example. The word, "crash", is a bit of a superlative. The title of the article may be interpreted as one day's event. Of course, a 40% fall from the highs is a crash. That time reference is not in the title.
Yeah, being a 'clever libertarian' and knowing better than the unwashed masses, I swapped my stocks and USD for PM and CAD several years ago.
Because of incessant rhetoric and ZH posts like... "The Market's too high, it's gonna crash, the USD is gonna crash!" Doom Porn. Looks like I listened to all the wrong libertarians and perma-bears, and lost a fortune. "Never again!"
p.s. And how much you wanna bet that the perennial year-end prediction in a week or so, will be "The World Will End Next Year. For sure this time." As it has for the last 7 years.
At this point, being an Empirical Evidence kind of guy, rather than a hoodwinked, latter-day Austrian-economics zealot, I'll believe it when it happens. Not before that. No matter how many doomsday porn charts I see posted. Because...
"This shitshow can last a LOT LONGER and the Fed stay in business a lot longer, than any of us can stay solvent." Or alive. That's why ALL my 401 money is going into effin STOCKS. If they "correct/crash" by 40%, at least they will be offset by my employer's contribution and tax writeoffs, whereas I do not get these benefits with PM. DIVERSIFY accordingly.
Kirk, meet Murphy.
Nevermind currency rates, y'all goyim are supposed to be queued up to watch the Star Wars movie. Now get to a theater, open your purses, empty its contents and OBEY.
i'm looking for a secondary site to ZH, any suggestions?
http://www.bubbleshooter.net/
Hahaha. Very droll. Canadian sense of humor (or lack thereof.)
humour
ebay - great values to be had and shipped right to you
Or you could get a fake
Canada winning the currency war.
God, this is what a 40% devaluation look like ! USDCAD for the win !
give it time. It will change, and rapidly.
By the way. Colder than a witch's tit here this morning - and fucking dark. So while we welcome our American friends to move up here and buy one of over priced homes with your superman currency, I'd advise bringing a winter coat and a vitamin D lamp. And this whole El Nino thing - what a bunch of bullshit. Ya know, the way I figure it, if the weatherman can't get it right - I don't know how we think the government can.
I'm looking forward to global warming, Hudson Bay goes beachfront!
Long CFCs.
Think of all them gold nuggets to be picked up as soon as all that pesty ice that covers the ground up there finally melts.
I love the smell of methane in the morning!
Just read the Old Farmers Almanac. Off by a week last year but tracking 80% accuracy in general and out here on the left coast it's bang on for forecasting the El Nino effects this year.
Er.. why is the headline talking about CPI plunging, but there's no chart to support it?
CPI didn't plunge, it went up 0.4% in November. In other words, ZH got the story WRONG. We have inflation, not deflation but we can't raise rates because we won't be competitive for the few measely scraps of business out there.
We'll apply to DC for foreign aid so we all can retire and head to the Carribean for the winters. You won't notice it as the CIA and the Fed's printing machines and digit producers are made in China and can print 3 times what they are printing now.
Our immigration plans are for maids, butlers and gardeners.
Most of us will sit back and contemplate life while we watch the world do what it does.
Canada needs helicopter money to go full retard!! I want some!
Win Win, if you are a Fishing Tourist... just be sure to pack every single thing you will need or eat Stateside
and don't forget the golden rule.. never cross the border with room in your gas tank.
Dragon Heart
I live in Cayman Islands ex pat Canadian enjoying this collapse immensely. I think with JR in power and spending like a mad man and the real hit from OIL prices next year on tax base Canada is going to have massive deficits and the dollar with the Bank of Canada already discussing NIRP the dollar should punch through 1.50 by spring
Far more importantly i can recommend an amazing place to fish for salmon/crab/halibut and feel like you have stepped back in time to what Canada used to be. A great coastal small town TOFINO
The biggest problem with Canadians is that they are always looking for ways not to do something, instead of saying 'we can do that' they always look for ways to say that's not my job, or we don't do that here. It's ridiculous... You would have to live in Canada to understand...
In the USA where they want to make a sale, they will do anything to get the business, please the customer, in Canada it's like... that's not in my job description etc etc go somewhere else... even if they do offer the service, perhaps they are too lazy to respond.
Poor attitude. Look at Russia, same GDP as Canada, look at the stuff they have, even Finland and Sweden per size beats Canada.
Canadians need to change the way they approach things to be successful and stop riding on the coat tails of free trade and squandering their resources for a pittance.
Even if you go to Cuba you can see old cars outfitted with lada brakes parts and toyota engines to make them go 60 years onward. This kind of ingenutity would be rare to find in Canada.
You must live in the city.
Truer words never spoken.
Interesting, but I would have to defend the Canadians in this one instance. Russia and Canada have the same GDP but Russia has 5x the population. Advantage Canada, for certain.
Interesting example of the way rubbish can be counted in "GDP" metrics. Canada and Russia, both with large natural resources, have same "GDP" but Russia has the technological and industrial capacity to produce and deploy the world's leading military aircraft, most advanced defense equipment, deploy a large standing military, put men in space and sustain them there. And Canada. well it has a large group of real estate agents flogging assets to Chinese.
Now much of Canada's "GDP", like most of the west, is just toting the high salaries of nominal public servants whose net contribution to the real economy is negative, plus adding in the wealth transfers the finance sectors achieves from the broad public while again destroying value.
"GDP" is a numeric construct that attributes enormous value to the predatory actions of the governing class and its crony classes, of which there are plenty in Canada.
For example, virtually every penny spent on the AGW scam, from the money paid to an army of politicians and bureaucrats "working to save the planet", the money for their lovefests, the grants for the "scientists" fighting a losing battle to hide reality, the enormous subsidies to install wind turbines that are grossly ineffective while disrupting the grid, the compensatory power sources and infrastructure that have to be added.
The USSR had a lot of faux GDP, Russia not so much, but the west is emulating the USSR in more ways than just repression of their citizens.
Anyone know of a good kitchen cabinet maker in Canada?
I bought some back after the 2008 crash, nice quality, UPS shipped, but the manufacturer is nowhere to be seen these days.
Canada does have lots of wood, and good craftsmen.
At a 40% discount, I'll be happy.
If Russia and the US stop trading, Canada will be the only game in town for lumber. Time to re-negotiate some old trade agreements. If you think construction is down now...
Why 2016 is going to be a disaster for the Canadian economy, currency
1. The stock market is already in freefall and is a leading indicator
2. Oil & gas price depression, yes depression is not being felt yet by companies or govt taxes. All OIL & GAS companies forward hedge production to lock in prices, those hedges typically last a year or so....2016 NOT GOOD
3. NIRP policy statements by central bank already
4. A debt loving spending Drama teacher in charge with a majority
trip to hawaii - cancel
weekend in seattle shopping/drinking/eating - cancel
casual trips to portland (love portland) - cancel
palm springs in sept 2016 - cancel
vacation in quebec city - check
weekend in vancouver - check
casual trip to tofino - check
algonquin park in sept 2016 - check
I can't think of a group of people more deserving.
oh come on sure you can - your just not trying hard enough
Who will bail out all the Canadian home owners?
You don't have to buy US food. You can live without letuce.
Lettuce has no nutritional value anyway
The smart trade might be to load up on Canadian coinage and wait for trend reversal to occur. Could be a better return than some of the silver and gold scenarios.
Plus, in the meantime, you can trickle it out into the US economy a little at a time and buy your candy bars on the cheap.
Just the same, Canada is done. The fucking Sportsnet guy signed off with "Happy Star Wars".
Read this Mother of all Shorts article from Wolf Richter:
http://wolfstreet.com/2015/12/12/bank-of-canada-crushes-loonie-dollar-cr...
Trudeau needs to ditch Poloz. The guy is cratering the currency. Soon the average hedge fund will be able to buy Canada.
It's too bad I lost all that gold in the boating accident... Gold is Immune from the falling Looney.
By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose." - John Maynard Keynes