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

Electoral reform ballot returns so far show higher Parksville-Qualicum engagement

Region among top four in percentage of ballots turned in

A cuddle and a coffee: Six Island towns named among Canada’s most cozy

Sidney, Campbell River, Courtenay, Parksville, Tofino and Ucluelet crack Expedia’s top 40

Thieves keep Oceanside RCMP busy

Thefts from vehicles, businesses, mailboxes revealed in latest crime report

Parksville Qualicum Beach students the catalyst for #TrustYourself campaign

Social media initiative urges survivors of sexual assault to seek medical care

Winter weather hits parts of Canada

As some parts of the country brace for cold, parts of B.C. remain warmer than 10 C

B.C. teacher’s Amazing Race takes students on Canada-wide adventure

Agassiz high school students say they had the experience of a life time

Don’t sign USMCA until LGBTQ language excised, U.S. lawmakers urge Trump

The trade agreement, forged after 13 months of tense negotiations between Canada and the U.S. is scheduled for Nov. 30

US official: US intel says prince ordered Khashoggi killing

Vice-President Mike Pence told reporters that ‘the murder of Jamal Khashoggi was an atrocity.’

Canada’s health system commendable overall but barriers to care remain: UN

The United Nations says Canada’s health care system is “commendable” overall but vulnerable groups still face barriers to quality care.

Road rescue near Sayward points to volunteer need

Fire department recruits can be tough for small, remote communities

Doctor’s note shouldn’t be required to prove you’re sick: poll

70% of Canadians oppose allowing employers to make you get a sick note

Unique technology gives children with special needs more independent play

UVic’s CanAssist refined seven prototypes aided by $1.5M government contribution

Most Read