{"id":15233,"date":"2015-12-13T18:03:58","date_gmt":"2015-12-13T23:03:58","guid":{"rendered":"http:\/\/olduvai.ca\/?p=15233"},"modified":"2015-12-13T18:03:58","modified_gmt":"2015-12-13T23:03:58","slug":"the-next-domino-canada","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=15233","title":{"rendered":"The Next Domino: CANADA"},"content":{"rendered":"

The Next Domino: CANADA<\/a><\/h3>\n
\n

\"Bank<\/a><\/p>\n

The Federal Reserve has kept its zero interest rate policy (\u2018ZIRP\u2019) for several years (and much longer than originally anticipated) whilst the European Central Bank seems to be getting serious about doing \u2018better\u2019 and has now\u00a0reduced the deposit rate<\/a>\u00a0at the ECB to -0.30%. It\u2019s already remarkable a central bank doesn\u2019t seem to have any problem to reduce interest rates into the\u00a0negative territory<\/a>, but now Canada is considering making the same step as well.<\/p>\n

\"Canada<\/a><\/p>\n

Source: tradingeconomics.com<\/p>\n

Even though Canada\u2019s benchmark interest rate is still relatively \u2018high\u2019 at 0.5%, the governor of the Central Bank of Canada has now hinted at a negative interest rate as well. That\u2019s interesting, but not really surprising when you look at the current situation of the mining sector and the oil and gas sector, which have been important backbones of the Canadian economy for quite a while.<\/p>\n

The gold and copper price aren\u2019t really giving mining companies a lot of hope and not only have the corporate tax payments from the sector been reduced, several mines have announced layoffs, reducing the employment rate in Canada. That\u2019s tough luck, but the oil and gas sector might be in an even worse shape, and especially the province of Alberta will be in for a lot of pain in 2016 (and we would honestly be extremely surprised if the\u00a0GDP in Alberta would increase<\/a>\u00a0). Unfortunately this will create a ripple-effect throughout the entire Canadian economy and the Toronto Stock Exchange has lost 17.5% since April of this year which is more than three times as much as the loss of the Dow Jones Index in the same time frame.<\/p>\n

\"Canada<\/a><\/p>\n

Source: stockcharts.com<\/p>\n

Just have a look at the oil and gas price, and it shouldn\u2019t surprise you the majority of the oil and gas producers is \u2018underwater\u2019 and won\u2019t generate a profit this year.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Next Domino: CANADA The Federal Reserve has kept its zero interest rate policy (\u2018ZIRP\u2019) for several years (and much longer than originally anticipated) whilst the European Central Bank seems to be getting serious about doing \u2018better\u2019 and has now\u00a0reduced the deposit rate\u00a0at the ECB to -0.30%. It\u2019s already remarkable a central bank doesn\u2019t seem […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[942,103,1861,1996,233,282,303,305,1389,1729,1775,824,1939],"class_list":["post-15233","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bank-of-canada","tag-canada","tag-canadian-dollar","tag-capital-expenditures","tag-ecb","tag-european-central-bank","tag-fed","tag-federal-reserve","tag-nirp","tag-oil-and-gas-industry","tag-oil-price-collapse","tag-unemployment","tag-zirp"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15233","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15233"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15233\/revisions"}],"predecessor-version":[{"id":15234,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15233\/revisions\/15234"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15233"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15233"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15233"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}