Saturday, August 22, 2009

Crisis Affecting neighboring countries or allies

Ferfal, sorry if this is off topic, I was wondering what you think will happen to Canada when the American economy finally collapses? Canada has little national debt, but America is our biggest trading partner. I believe your observation of decline may provide some insight. Thank you.

You may also find Gerald Celente's trend forecasts of value. He has a great track record, and mainstream media are now asking him for his opinion.
Especially for those who live in the USA.


When countries are that close, both physical an financially speaking, and have such a bond, its pretty much unavoidable to go down with the big brother, maybe better or worse but a crisis in USA will be contagious for the close partner.
That we saw ourselves as well in with the 2001 crisis, when our banking problem spread to our close neighbor Uruguay, with whom we have a relationship that could parallel the one between USA and Canada. In the end, it caused a crisis of their own.
The Uruguay Banking Crisis
"The Uruguay Banking Crisis was a major banking crisis that hit Uruguay in July 2002. In this, a massive run on banks by depositors caused the government to freeze banking operations. The crisis was caused by a considerable contraction in Uruguay's economy and by over-dependence on neighboring Argentina, which experienced an economic meltdown itself in 2001. In total, approximately 33% of the country's deposits were taken out of financial system and five financial institutions were left insolvent."



Blackeagle said...

Sundeep is mistaken if he thinks that Canada has little national debt. Canada's national debt as a proportion of it's GDP is higher than the United States' (62.3% for Canada, 60.8% for the USA).

Anonymous said...

Actually, according to this document:
the US national debt in 2008 was 70.2% of the US GDP and for 2009 it is estimated to raise to 90.4% of the GDP.

Anonymous said...

Thank you very much Ferfal. I greatly appreciate your blog. And thanks to both commentators as well.


J Brown said...

So...mexico is pretty screwed then? What happens when the collapse hits near their border? The cartels are already better funded than the angencies going after them....