Surprise! Food prices are on their way up

Prices will go up by as much as five per cent this year, or almost $700 more for groceries for the year for an average Canadian family

Surprise! Food prices are on their way upWhat was purely an academic supposition a few months ago is now actually happening. Along with higher interest rates, inflation is likely to become one of this year’s biggest business stories. And food prices won’t be immune. Many agricultural commodity prices have skyrocketed over last year. Corn is up 84 per cent, soybeans are up…

What the Biden administration means for Canada

What the Biden administration means for CanadaAs Canadians watched this week’s presidential inauguration and the immediate aftereffects (which include a scuttled Keystone XL pipeline), many wonder what a Biden administration will mean for Canada. And for good reason. A dramatic change in governance in the United States will likely have significant implications for Canada so Canadian policymakers in both the private…

Federal finances remain vulnerable to fluctuating interest rates

Federal finances remain vulnerable to fluctuating interest ratesBy Alex Whalen and Milagros Palacios The Fraser Institute There’s been a lot of movement in Ottawa lately, including Bill Morneau’s resignation as federal Finance minister, with Chrystia Freeland taking his place. Unfortunately, the federal government’s recent fiscal snapshot only added to the uncertainty. Why? Because there’s no plan to restore sustainability in federal finances. This…

Canadian economy will stall in 2020

The next two years will probably bring feeble increases in GDP, in line with 2019’s uninspiring performance. Job creation is likely to decelerate

Canadian economy will stall in 2020As the clock winds down on 2019, it’s time to ponder what the coming year may have in store for the Canadian economy. To provide some context, 2019 hasn’t been a great year for the economy, with inflation-adjusted gross domestic product (GDP) expanding by around 1.6 per cent. This was less than growth in both…

Quit blaming workers for rising inflation

By raising interest rates, central bankers are moving away from one of their prime purposes: to maximize employment

Quit blaming workers for rising inflationFinancial markets were in a tizzy last week. The Dow Jones industrial average wobbled, falling over 1,500 points in near-panic selling over several days. And then, as if on cue, stock markets all over the world were soon 'correcting' with the Dow. What caused markets to fall? According to the experts, there were several root…

Imagining the worst, getting the best out of your business

The exchange rate could shift, interest rates could rise, NAFTA could be rewritten or buried. Do you have strategies to deal with such changes?

Imagining the worst, getting the best out of your businessOptimism in business is good, but business operators would do much better in the long run if they looked more closely at the down side and imagined the worst. Why would you go into business unless you were an optimist, really believing you’ll beat the odds and gain the freedom, flexibility and potential for great…

Aging population upending current interest rate policy

With the number of seniors living off retirement income rising, increasing interest rates no longer a precursor to a cooling economy

Aging population upending current interest rate policyCanadians are constantly reminded that we’ve let ourselves get too deeply into debt and if the cost of that debt – interest rates – increases, we’ll be in deep yogurt. To the extent that such debt is mortgage-based and the average price of homes has been rising, this debt should be manageable. I don’t expect…

The hard truth about soft economic policy

You don't have to be an economist to know that rising interest rates will hurt a lot of Canadians but especially young families

The hard truth about soft economic policyOver the past few months, the Bank of Canada has faced a terrible dilemma: keep interest rates low or raise them to combat potential inflation. It seems the decision has been made – on July 12, the bank raised interest rates for the first time since the 2008 financial crisis. If this is the start…

Lock down your mortgage interest rate – now

The economy starts going in the little guy’s direction and the Fed raises interest rates to slow it down to keep wages low

Lock down your mortgage interest rate – now“Charlie my boy, you’re a wisenheimer, tell me what’s going on here.” “What's the problem uncle, I thought you were floating on air these days.” “Well, I thought I was, too, until my financial adviser called … told me I should lock in my mortgage rate, and quick. Apparently the Americans are starting to raise interest…

Interest rate cut underscores Canada’s gloomy economic prospects

The Bank of Canada is acknowledging that the energy-related downturn is worse than expected

Interest rate cut underscores Canada’s gloomy economic prospectsWhat are we to make of the Bank of Canada’s recent decision to trim its short-term policy interest rate by another 25 basis points, taking it to a near record low level of 0.5 per cent? The Bank is frankly acknowledging that the energy-related downturn in capital spending and exports in Canada has been greater…