A report published by the McKinsey Global Institute earlier this week noted that Canada is a world leader in debt. In fact, the Great White North is only second to Greece in terms of an increase in household debt since the start of the economic crisis to the present. The Canadian debt-to-income ratio is 155 percent as of 2013, and this has surged by 22 points since 2007.
With the Bank of Canada deciding to reduce interest rates, and the possibility of the central bank making the same move at its next policy meeting, it’s likely that consumers will take on even greater debt, whether it’s mortgages, credit cards or automobile loans.
This chart below from the St. Louis Federal Reserve really illustrates how much of a problem Canada is facing in terms of debt, and how it can pose a serious risk to the national economy.
It appears to me that in the nations we call “democracies”, is where the greatest debt to GDP occurs. Even though China is “communist with a capitalistic societal trend looking forward, the government is still keeping their INFLATION rates under control. This seams to be working for them, why is the USA and the EEU, seaming to let their inflation rates rise farther than the actual rate of inflation. The people know this is happening and all they say is, ” If our government ca continue to spend and waste money, then I guess that means we can to”.