{"id":17878,"date":"2016-02-17T11:48:27","date_gmt":"2016-02-17T16:48:27","guid":{"rendered":"http:\/\/olduvai.ca\/?p=17878"},"modified":"2016-02-17T11:48:27","modified_gmt":"2016-02-17T16:48:27","slug":"50-of-canadians-say-they-are-within-200month-of-being-unable-to-pay-their-bills","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=17878","title":{"rendered":"50% Of Canadians Say They Are Within $200\/Month Of Being Unable To Pay Their Bills"},"content":{"rendered":"

50% Of Canadians Say They Are Within $200\/Month Of Being Unable To Pay Their Bills<\/a><\/h3>\n
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It was just last month when\u00a0we profiled<\/a>\u00a0Canada\u2019s \u201cother problem\u201d: record high household debt.<\/p>\n

Canada is struggling to cope with falling crude prices which have put enormous amounts of pressure on some parts of the country, most notably Alberta, where suicide rates are on the rise, as is property crime and foodbank usage.<\/p>\n

Amid the malaise, households are also being pressured by persistent CAD weakness – which is of course a symptom of falling crude. The currency\u2019s decline has\u00a0driven up prices<\/a>\u00a0for things like fresh fruits and vegetables, 75% of which Canada imports. That puts an extra burden on households that are already laboring under record debt.<\/p>\n

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As we showed three weeks ago,\u00a0household debt relative to disposable income is sitting at 171%<\/strong>\u00a0in Canada meaning that for every $100 in disposable income, households have debt obligations of $171. That\u2019s\u00a0the highest figure for any G7 country<\/strong>.<\/p>\n

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That\u2019s disconcerting for any number of reasons. As we wrote, \u201cthis would be bad enough in a favorable economic environment with a benign outlook for rates, but it’s a veritable nightmare when the economy is sliding headlong into recession and central planners are hell bent on trying to normalize policy some time in the next five or so years.\u201d<\/p>\n

In other words, the outlook for Canada\u2019s economy isn\u2019t good, and that means joblessness is likely to rise going forward…<\/p>\n

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But interest rates have virtually nowhere to go but up – at least in the medium to long-term. Sure Stephen Poloz may cut rates one or two more times to try and help the oil patch avert certain insolvency, but at 50 bps, there’s only so much lower Canada can go unless the BoC intends to experiment with NIRP.<\/p>\n

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

50% Of Canadians Say They Are Within $200\/Month Of Being Unable To Pay Their Bills It was just last month when\u00a0we profiled\u00a0Canada\u2019s \u201cother problem\u201d: record high household debt. Canada is struggling to cope with falling crude prices which have put enormous amounts of pressure on some parts of the country, most notably Alberta, where suicide […]<\/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":[103,1861,4333,303,305,534,1389,1775,1264,4318],"class_list":["post-17878","post","type-post","status-publish","format-standard","hentry","category-economics","tag-canada","tag-canadian-dollar","tag-crude","tag-fed","tag-federal-reserve","tag-monetary-policy","tag-nirp","tag-oil-price-collapse","tag-recession","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17878","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=17878"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17878\/revisions"}],"predecessor-version":[{"id":17879,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17878\/revisions\/17879"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17878"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17878"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17878"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}