The people pulling the string belong to a very small club. Balance sheets continue to fatten, gas prices have not budged, electricity hikes are coming, industrial orders are climbing, food's getting more expensive and Canadians are getting cheaper credit. Our last round of easy mortgages acts like a savings account. Unlike the USA it's very hard to get under water on a house in Canada. Some of the blue chips in financials like insurance are wobbly but they have depth. Take Great West Life for example. While not being a company I'd insure through, they are making a profit while interest rates are not worth much. So they weather the storm for 2 more years then rocket up.
Telus is increasing it's dividend y/y and will soon over take BCE. It's worth noting that Telus is more aggressive than BCE but BCE should still be in your portfolio for a while yet. Brookfield Infastructure is another one rapidly gaining ground. The Brookfield group seems to be doing just fine in this recession. Inter Pipeline and that peer groups are showing solid earnings and the port stocks are growing. I could give 25 more solid dividend stocks to put forth my case that this recession is fake. Fake or not they can do serious damage with it.
We have to look under its skin to see what's really going on and that's where people put on their tinfoil hats. But the truth is obvious. The Arabs started gold dispensing ATM's a while ago. All the banks started buying gold. The list of signs goes on. The fiat system has run it's course and become meaningless. And so, it requires "retooling" This has been done dozens of times and each time someone gets burned. This time around it's the PIIGS and a few others. Enslaved via taxation. The main capitalist countries only get a little deeper in the enslavement because the small group controlling all the media and orchastrating this know that we will only take so much then we will fight back. Our road to the shakles is slower but just as assured. Remember that before Tredeau we had nothing for debt. Cheering Canadians (portayed by the media) watched as he sold us down the road. We have one of the richest countries out there and yet we are 127th on the world balance sheets. Now Flahrity says capital is begining to flow into us. Are we one of the lst bastions of safety? Yup.
This may fix the price of copper for a while at an artificially low price with respect to the rest of the worlds needs. Lindsay was right when he cited that supply will fail demand and so they need 400k tons more production. The Chinese have stated they want hedges against what they see their own demand doing to the price. They also said they don't want the EU to fail.
I can see corners of the world sinking or pulling a Newzealand but not the damage that is currently stated. Yes, it will be really ugly for some but for others it should just be a period of stagnation while the new money kicks in and the new trading partners get sorted out.
