[Theorsell]

It would also imply that perhaps the Fed should overshoot on interest rate changes. Go to 4% inflation in bad times and 1% inflation in good times, instead of aiming for 2.5% all the time

[yatrahnualenu]

Originally posted by DanS
I don't know how Canada sets interest rates, but the Federal Reserve has a dual mandate of price stability and economic growth. I'm aware. And sometimes this leads to excessive looseness, IMO. See the late 90s and mid-00s

The BoC has an explicit inflation target of 2-3% (core inflation)

[WGfg4CCZ]

Originally posted by DanS


Your rebuttal fails.

1) Natural gas has fallen by 55% over the last 3 months. Copper 56%. Soybean 44%. Lumber 28%. Corn 52%.

2) Has no bearing on what you said.

3) No, you said that commodities "can't fall as far and as fast as was the case when the US dominated the world economy to a greater extent." Still patently ridiculous. It's falling just about as far and as fast as possible. You're being a bit dishonest. Even though the prices have fallen most commodities are still sitting pretty well.

[golozhopik]

The fed has been dropping rates since last summer07, and I don't think the BoC has as much.

[DoctorBeny]

Originally posted by Oerdin


Honestly it can afford to since they're budgets are balanced and their exports have been doing well (all that oil, lumber, metals, and what not are mostly being exported). Right, but if the difference is because of interest rates and the fed has been lowering them more than the BoC then why is the US in recession and Canada not?

[Hftqdxpm]

Notice how increased global trade has led to Canada being more and more decoupled with the US economy? It's because Canada now has more places to sell its goods besides just the US like normally occurred in the 1970's. When US demand slackens other costumers can now be found maybe not as many but it still helps to decouple the Canadian economy from the US economy.

Oh, and the higher interest rates in Canada do bring in foreign investment and one of the reasons Canada can charge higher interest rates is because the budget is balanced and exports are growing. Not to mention their banking system is in better shape so their not facing as bad a credit crunch so their economy is in better shape.

[phsyalcvqh]

Originally posted by Oerdin
Notice how increased global trade has led to Canada being more and more decoupled with the US economy? It's because Canada now has more places to sell its goods besides just the US like normally occurred in the 1970's. When US demand slackens other costumers can now be found maybe not as many but it still helps to decouple the Canadian economy from the US economy.

[themsrsdude]

Like I said Canadian exports to countries other then the US are growing. Sure, the US is still the biggest consumer but it sure helps a mine or factory when someone else can be found to buy even when the US isn't. We both know Canada continues to export to the US above all else but, yes, exports to other places are growing and that helps decoupling.

[radicalvolume]

It's obvious that one issue isn't doing it all by itself but rather a whole host of issues. 1) growing exports to countries besides the US 2) higher interest rates attracting foreign investment 3) healthier banks not squeezing access to credit 4) that mines and wells take a lot to develop & have long life spans so they're not as effected by short term economic fluctuations, etc...

[Trercakaressy]

Originally posted by KrazyHorse


tard

[kazinopartnerkae]

Kid, we've all seen what happens when you try to argue with me. For your sake I suggest you take a step back.

[Immampdah]

What the heck is up? 30% of the Canadian economy is trade with the US. That hasn't changed. Why the hell would we decouple? Are you playing stupid or something?

[cestsennY]

Originally posted by KrazyHorse


??? I think he's pointing to the decline from about 35% to about 25% of GDP of US exports since 2001.

So I suspect he's implying the answer to your question is that decoupling is occurring because exports to the US are being replaced by something else (hence their relative decline compared to GDP).

[Greapyjeory]

Originally posted by Colon™
The crazy thing is that he posted that graph himself. I'm a little drunk right now, and maybe I missed something, but right now KH is confirming my suspicion fizziisists just can't take things together. You really need to pay attention.

Exports have declined since hitting a high in 2001. The decoupling happened some time before 2001 because we didn't undergo the same type of contraction the US did around that time. We don't appear to be undergoing a contraction this time around either, despite the fact that our exports to the US (and total trade as well) as a share of GDP are still higher than they were in 1991, the last time we actually underwent a recession with the US.

You need to look at the time scale on graphs, not just their shape. The important **** happened some time between '91 and '01, while our trade with the US was still increasing.

[pumpineemob]

Better just stop KH.

[goldeneggs]

You are a ****tard, kid. Like, one of the stupidest people on Poly.

[beckercpa]

Originally posted by KrazyHorse
You are a ****tard, kid. Like, one of the stupidest people on Poly.

Definitely not in this thread, and this time other people can tell.