Stock markets soared on the results of the U.S. election.  This upswing has placed stock valuations  further into the stratosphere.  Earnings were falling prior to Covid and will continue to decline for the next couple of years.  This has happened while governments have been giving out so called free money to help keep businesses and individuals afloat. 

At first individuals used the money to save or lower debt.  But, it did not take long before they went back to their old ways. Today, home and car sales are strong. Credit card debt is soaring again, and total loans secured by real-estate is quickly approaching their September highs. Today’s zero interest rates are destroying the world economy by allowing debt to balloon.  People are willing to pay higher prices for homes thereby wiping out any benefit from low mortgage rates.  These buyers will pay a heavy price when interest rates begin to climb.

With little to no savings and the government eventually stopping their handouts, people will stop spending as businesses close and people lose their jobs.  Sadly,  the majority of job growth is on Parliament Hill.  Justin is increasing the civil servants and giving out pay raises on the backs of Canadians who will be paying higher taxes for decades to come.  Meanwhile, for the rest of us he will do nothing.  He refuses to move the country forward.  Britain and Taiwan will do lots of trading with us, yet there is no effort from Ottawa to encourage it.  Plus, China has told all governments, including Canada, to not sell any military equipment to Taiwan or they will feel the consequences.  Even though it would be good for our defence industry, Justin will follow their orders.  Not only that, he has allowed training of the Chinese military on our soil. 

Canada should be opening the energy sector, but Justin will continue to try and close it down and destroy hundreds of thousands of direct and indirect jobs in the process.   After five years in power Justin has continually told foreign investor go elsewhere.  Business has listened and have moved over $200b of investment monies from Canada.  In the U.S., the Americans will tell the world it is still open for business.

As a note of interest, between the 2015 US election and November 3rd, the S&P index gained 55%.  Under Justin, the TSX was up only 9% during the same period due to his do-nothing government.  All Canadians have paid a big price.  Nothing will change as long as Justin is Prime Minister.

If Mr Biden follows through on cancelling the Keystone Pipeline it will be a costly mistake for America.  It opens the U.S. to being sued for the billions that Trans Canada has already spent.  It would tell foreign businesspeople Washington cannot be trusted, so their money will move elsewhere.  Most of the US fracking at today’s oil prices is not profitable.  Plus, these wells have a short life, maybe up to 3 years. As a result, the U.S. will need Canadian oil for decades to come – if our politicians allow it. 

If Washington does cancel the project, it will show how useless Ottawa is.  They want no new development eventhough we could sell all the oil we can produce to the Far East.  We also need the Wild West Rose oil off Newfoundland to be developed.  Every drop could be sold to Europe, yet Ottawa is doing everything to close it down.

The truth is Canada is going nowhere under Justin.  Hopefully soon we can throw out his ‘do nothings’ in Ottawa.  The U.S. under Mr. Biden will continue to grow while we in Canada sit and watch.