Not the best of ALL possible worlds - my area just got dumped on with a meter of snow, and it's currently -15 degrees celsius (I think ~ 15 degrees faranheit for the Yanks).
1) 39.25 inches....INCHES! 2) Celsius?....Huh?.....one point eight times celsius plus 32 equals Fahrenheit.
The main focus of the BOC is to keep inflation at ~2%. Lately there has been talk to expanding the mandate to include the reduction of systemic risk. This is directly in line with the rising debt levels of Canadians. Part of the reason the BOC is considering a rate hike is to reduce the temptation for Canadians to borrow money by making it more expensive to do just that. For what it's worth, I support a small increase in rates, however it is a fine line. If the USD/CAD drops too far, a rate hike could be seriously disadvantageous. Regarding balanced budgets within the government, Flaherty has repeatedly stated that the goal is to balance by 2015. I am optimistic that this is acheivable and see no reason to doubt the Finance Minister at this time. I think the risk of more debt definitely outweighs the benefit. I've made my views on inflation well known on these boards, and I don't think it is a problem now, nor will it be in the near future. While the inflation rate in Canada is higher than the USA, it is nowhere near hyperinflation, or what I would even call high inflation. The stimulus pump is complete and the BOC is not running 'round the clock presses like the USA. I think any inflation benefit to the indebted will be more than offset with future interest rate hikes.
1) Worst snow storm since the 1970's last week. 2) My mistake. It's fucking cold let's just leave it at that.
I for one am delighted that our government and central bank can have real open discussions about problems and future concerns without completely politicizing the issues.
Every place looks good to invest when it's benefiting from an asset price bubble. When Canada's and Australia's crash, they'll be just as much up shit creek sans paddle as the rest.
Not you too GoC! In every Canada related thread I've posted in the past two years, people always chime in and tell me "the bubble is about to burst". I can respect the fact that some may think Canada is currently experiencing an asset price bubble, but please, give me some form of timing! If the "bubble" will burst in five years, then start posting about it in 4.5 years. Then I will be impressed.