Canada: America’s Attic


“History does not repeat itself, but it rhymes.”

-Not Mark Twain (According to Garson O’Toole, A.K.A. the Quote Investigator)

It might not feel like it, but the North American markets have been casually going up for almost 10 years now. The only real interruption was the crash in oil prices beginning in  late 2015. It didn’t hurt Canada much contrarily to what a lot of people expected. As then Prime Minister Stephen Harper said at the time, “The oil industry isn’t remotely the entire Canadian economy”. Indeed, production of crude oil in Canada only represents about 3% of its entire GDP. So when the crude prices went south, all it took to keep the Canadian economy on track was a tiny interest rate cut and a bit of fiscal leniency from Ottawa et voilà! The land of maple syrup was marching forward again. Read More


The Debt Tetralemma

Recently I’ve been asking myself the same question over and over: “Why is everyone freaking out about low economic growth?”

I reasoned that for the developed countries an annual real growth rate of 1.5-2.0% wasn’t the end of the world. After all, such a pace of growth would mean a doubling of living standards every 35 years or so. This would be enough for every new generation to enjoy double what their parents had in real income.

So why all the fuss about sluggish growth and the urgent need for stimulus? Read More