Getting Around Free Trade

Lately I’ve been hearing whisperings by the financially literate that the Bank of Canada was getting set to put Canada’s main rate of interest closer to zero than it already is. Yesterday Canada’s finance minister amidst warnings since last week by USA bankers that Canada was already in recession and reports that Canada’s balance of payments deficit was again reaching for the sky like the USA’s astronomically high trade deficit, he too predicted that Canada’s central banker would continue pushing Canada’s central rate lower for banks thus keeping mortgage rates low and the average price of a detached house higher than the just over one million dollar average reported yesterday, and so that manufacturers might get our exports better balanced with imports from our trading partners in the USA and Asia. But still no one will name the manufacturers who are still manufacturing consumer goods that they are unable to sell outside of Canada. Currency will correct trade imbalances. USA’s currency remains the measure of the West’s currency values which many say is the cause of USA’s near record trade imbalance. So the only way to improve exports is to lower currency values by keeping interest rates low to keep a lid on wages and the cost of exports we won’t stop buying from China where they make just about everything that we and U.S consumers buy.

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