OTTAWA — Finance Minister Joe Oliver warned Wednesday the global economy “is fragile” and Canada needs to “stay the course” of lowering taxes.
“Economic and markets volatility in China as well as the debt crisis in Greece further demonstrate that now, more than ever, we must stay the course” for Canada’s economy, he said in a speech Wednesday in Toronto.
“Let me be clear, with greater global economic instability at our shores, Canada must continue with our plan to grow the economy through lower taxes.”
With Japan's public debt about to hit 240% of GDP, Fitch Downgrades Japan's Sovereign Rating
The ratings agency Fitch on Tuesday lowered its assessment of Japan’s sovereign credit to A+, an investment grade just above the likes of Spain and Italy, and criticized Tokyo for not doing more to pare down its burgeoning debt.
OTTAWA — Where’s the recession?
Like finding Waldo, a lot depends on who’s doing the looking and what they’re looking for. Some can see “red” across the board. For others, nothing seems to jump out and catch their eye — game over.
Since the start of 2015, Canada’s economy has been in a “now-you-see it, now-maybe-you-don’t” recession pattern, with seemingly contradictory data from one week to the next.
Six years ago, the financial crisis crippled the American banking industry, and the devastating affects ripple across the world. Businesses went down and people lost their jobs. But the memory of the key events of the financial crisis is slowly fading. Hearings, lawsuits, bailouts — it all gets muddled together.
Kenneth Rogoff has long warned of a potential financial crisis in China.
Rogoff, a professor of economics at Harvard University, accurately predicted the eurozone debt crisis and for years has been telling anyone who would listen that China posed the next big threat to the global economy. He is starting to look right, again.
Puerto Rico’s debt crisis escalated yesterday as the island stopped paying into a fund that pays its general-obligation bonds and one if its agencies defaulted for the first time. Without further financing, the government may run out of money in the months ahead, ratings company Standard and Poors said in a statement in Monday. Puerto Rico is due to propose a plan by September 1 for putting off payments on some if its debt.
Here’s what you need to know about Puerto Rico’s debt troubles:
Q: How does Puerto Rico compare to Greece?
Debt levels have been a subject of constant news in the years since the financial crisis — from the sub-prime housing crisis in the United States, to the eurozone sovereign debt crisis, to the dramatic increases in debt evident in emerging markets now. Graphs produced by analysts at Bank of America Merrill Lynch show an astonishing acceleration in global debt levels, and demonstrate just how little de-leveraging there's been since the 2008 financial crisis (none). They say its evidence that "the world is still in love with debt."
And some unanswered questions. From Jeffry Frieden, "A Classic Foreign Debt Crisis," The Political Economist 12 (2) (Fall 2010) [newsletter of the Political Economy section of APSA, not online]:
Much of the popular, and scholarly,
analysis of the crisis has focused
on its financial aspects: the breakdown
of financial markets, the malfunction
of financial innovations, the failure of
financial regulation. ...
... This attention is