Gotta love ZERO RISK in the SP500 = $$$

[Nine_Ender]

I was referring specifically to (your central bank) the bank of Canada's balance sheet nearly doubling in size 2008-2015.

I have noticed your source is Zerohedge on this; I would suggest to you not to take very much you read from them at face value. Take a look at national debt to GDP numbers since 2008, and put them in historical context. None of those numbers suggest a financial system out of control.

I suppose one must define what "QE" really means to you, and depending on your definition it might not even be a bad thing to implement a QE program when needed. What I was saying is Canada never implemented a US style QE program after 2009. You can claim some sort of program is like QE in nature, but one would need to research exactly what occurred and how it impacts on the economy.

 

[povstanets]

I have noticed your source is Zerohedge on this; I would suggest to you not to take very much you read from them at face value. Take a look at national debt to GDP numbers since 2008, and put them in historical context. None of those numbers suggest a financial system out of control.

I suppose one must define what "QE" really means to you, and depending on your definition it might not even be a bad thing to implement a QE program when needed. What I was saying is Canada never implemented a US style QE program after 2009. You can claim some sort of program is like QE in nature, but one would need to research exactly what occurred and how it impacts on the economy.

Your central bank doubled its balance sheet, implemented stealth QE debasing your currency, the CAD lost half its value in relation to Gold - a tidy inverse. Since your currency was debased your debt to GDP would not increase, in fact debt was cancelled.

All of that said, the glue holding the Canadian economy together through the crisis was China's commodity boom which is now over as they realign. Canada is now suffering from the Dutch Disease, the party's over :eek:

 

[Nine_Ender]

Your central bank doubled its balance sheet, implemented stealth QE debasing your currency, the CAD lost half its value in relation to Gold - a tidy inverse. Since your currency was debased your debt to GDP would not increase, in fact debt was cancelled.

All of that said, the glue holding the Canadian economy together through the crisis was China's commodity boom which is now over as they realign. Canada is now suffering from the Dutch Disease, the party's over :eek:

You obviously know very little about Canada and have simply regurgitated a few themes you read on the internet. There is no common sense behind how you've tried to connect the dots here. I don't say this to argue the points or debate the topic, I'm rather shocked by the lack of understanding illustrated in your post. For example, $CDN and gold prices have no real relationship to each other and haven't had for decades.

Such is the internet I guess.

 

[povstanets]

Quit moving the goal posts and building up straw men to tear down, I never once claimed gold was historically trending with the CAD, my claim is that TODAY the exchange is likely an accurate value reflection; your own central bank admits 20% currency debasement over the last decade on their Website.

As to everything being roses for Canada in 2008 and your claim of no QE, perhaps listen to your own central banks words on the matter.

"In response to the global financial crisis and the recession, the Bank of Canada lowered the target interest rate rapidly over the course of 2008 and early 2009 to its lowest possible level, established an operating framework for the implementation of monetary policy at the effective lower bound for the overnight rate and provided exceptional guidance on the future path of rates through its conditional commitment. To help ensure that it continued to hit its inflation target, the Bank also outlined a framework for quantitative and credit easing measures to lower longer-term borrowing rates."

http://credit.bankofcanada.ca/facilities/about

To be clear I am not suggesting Canada is due for a financial crisis, I am simply saying that commodity booms move in cycles and the cycle has ended, China is realigning, the Oil bubble burst, the Canadian oil sands are no longer profitable, this will ripple throughout the economy and lead shortly to deficits.

 

[romik]

it has to get to year 2000 levels? It has to? who says?

Only 40pts to go

 

[Rickshaw Man]

Ready for the Sunday night ramp up into Monday morning....Looks like a higher open for Wall Street,,,,get you free money $$$$$$$$

 

[londonkid]

Ready for the Sunday night ramp up into Monday morning....Looks like a higher open for Wall Street,,,,get you free money $$$$$$$$

china looks higher to me. street money short. buy buy buy

 

[S2007S]

Plenty of free money from Asia tonight...


This is just amazing....I have no idea why this isn't being talked about day in and day out...I mean these markets are LITERALLY handing you free money...Asia is moving higher by .50% -2% a night. Over 3-5% a week....this is just an incredible story.....there is no stopping this...
....tbere are no boundaries..
. The are zero limitations ...absolutely no risk what so ever...


China stocks rise to multi-year highs; earnings in focus
This is just fucking incredible ...


*NIKKEI20027.27 7.23 +0.04%*

HSI28477.53 416.55 +1.48%*

CHINA4468.66 74.97 +1.71%*

S&P/ASX 2005971.80 38.51 +0.65%

 

[S2007S]

View attachment 151919

Only 40pts to go

Yep by tomorrow ....
And apple earnings should boost it to 5200+ by Friday close...

More free money

 

[Nine_Ender]

Quit moving the goal posts and building up straw men to tear down, I never once claimed gold was historically trending with the CAD, my claim is that TODAY the exchange is likely an accurate value reflection; your own central bank admits 20% currency debasement over the last decade on their Website.

As to everything being roses for Canada in 2008 and your claim of no QE, perhaps listen to your own central banks words on the matter.

"In response to the global financial crisis and the recession, the Bank of Canada lowered the target interest rate rapidly over the course of 2008 and early 2009 to its lowest possible level, established an operating framework for the implementation of monetary policy at the effective lower bound for the overnight rate and provided exceptional guidance on the future path of rates through its conditional commitment. To help ensure that it continued to hit its inflation target, the Bank also outlined a framework for quantitative and credit easing measures to lower longer-term borrowing rates."

http://credit.bankofcanada.ca/facilities/about

To be clear I am not suggesting Canada is due for a financial crisis, I am simply saying that commodity booms move in cycles and the cycle has ended, China is realigning, the Oil bubble burst, the Canadian oil sands are no longer profitable, this will ripple throughout the economy and lead shortly to deficits.

I stated that Canada had "QE" in 2009. We followed the US lead, even helped bail out GM.
The Canadian government reacted in 2009 to the uncertainty of the worldwide economy that year. It became apparent though by 2010 that we as a country weren't really in a US sized crisis, that our banks were strong ( we had no sub prime mortgage issue at all ). Whether it was late 2009, early 2010, or fall 2010 ( can't remember the exact timing ), we diverged from the US in terms of economic policy. For example, interest rates actually were hiked twice in fall 2010. The government at one point was fearful of our strong $CDN ( stated policy ) and took measures to harm the dollar. I doubt very much that any of those measures pumped money into the market or companies that compose it. Maybe in 2009 this was true, but conditions changed the next year.

One could argue about to what degree the two countries diverged on policy, but it hardly matters, it was a significant divergence. And what really matters to a citizen ( eg personal tax rate, employment rate, house values, mortgage interest rates ) is all pretty positive in Canada except employment rates. On that measure, Canada officially had a lower unemployment rate then the US through this crisis, but as in the US there is legitimate issues with how employment rates are calculated and employment is the one real, negative consequence issue in our country. The other I suppose is if the US economy totally collapses, and there are no signs that it will now.

On this site, is not uncommon for "traders" to present doomsday type theories on long term economic health of the US and other countries in a manner suggesting it is an inevitable end game now. The facts suggest otherwise, and some hints on why can be learned from studying countries outside of the US. I don't think "money printing" or government fiscal policy is anywhere near as dangerous as the potential negatives if the US doesn't have the political will to control the rich's accumulation of wealth on the backs of ordinary people.