Investors are skeptical of government

Canada’s currency has plunged seven per cent against the Greenback since Trudeau took over

Well, it is almost two months since Justin Trudeau became our prime minister.  While it is obviously too early for political commentators to base observations on that short a period, it is interesting to note that another group of experts, namely the investment community, have clearly been displaying votes of non-confidence in the new government’s policies and performance.

On the last day prior to the election, the Canadian Dollar traded at US$0.7740. As this is written on Dec. 17, Canada’s currency has plunged to US$0.7175 – a drop of 5.65 cents – or a stunning  seven per cent against the Greenback since Trudeau took over. In currency trading, that is a massive move within a short time frame of just two months.

On the last day prior to the election, the Toronto Stock Exchange Index closed at 13,838. As of Dec. 17, the TSX Index is hovering very near 13,000 — a drop of more than 800 index points or about six per cent, again a stunning decline.

I believe there is a sound reason for this demonstrable scepticism among the investment community. One of the major sources for the Canadian government’s tax revenues has been the petroleum complex — and that immensely important industry is contracting at a frightening rate, at least in terms of tax revenues for the government. And yet, despite this sharp decline in revenues, the Trudeau-led Liberals have been announcing one dramatic spending splurge after another.

Where do they think the money is going to come from unless the government plans to market horrendous levels of new debt to finance the now-certain onrush of deficit spending?

The investment community is clearly ruminating about the same question.

Leonard Melman

Nanoose Bay

Just Posted

Group raising money to stop Parksville supportive housing project

GoFundMe page has $15.2 K for lawyer fees raised since July 8

Hot stretch leaving Parksville Qualicum Beach homeless in need

Manna looks for water, sunscreen donations

District 69 athletes to compete at BC Summer Games

Opening ceremony aims to inspire, delight and entertain

Cycle of Life Tour seeks donations for hospice society

Riders will cycle 200 km to help keep hospice care in motion

Regional trails closed due to fire hazard

The Regional District of Nanaimo is closing trails within its jurisdictions effective… Continue reading

BC Games: Opening Ceremony from Laketown Ranch

Hundreds of athletes and thousands of volunteers, coaches, parents and officials

World’s translators push back on forcing Trump interpreter to testify

Democrats had asked translator to testify about Trump’s lengthy conversation with Putin in Helsinki

No decision on B.C. school stabbing suspect’s mental fitness for trial

The BC Review Board could not determine whether Gabriel Klein, 21, is fit to stand trial

Canadian government threatens to retaliate if Trump imposes auto tariffs

U.S president had suggested that auto imports pose a national security risk to the U.S.

Wildfire evacuation order forces bride to search for new wedding venue

Fitzpatrick Family Vineyards is under an order due to the Mount Eneas wildfire south of Peachland

Recent online kitten abuse video raises serious social media questions

UBC and UFV profs weigh in on the subject of online sharing, shaming, and our digital landscape

UPDATED: ICBC fights back against claims that it’s ‘ripping off’ B.C. RV drivers

Canadian Taxpayers Federation is urging the provincial government to open up ICBC to competition

Summerland issues State of Local Emergency in response to wildfire

Two homes under evacuation order; evacuation alert remains in place as result of wildfire

Most Read