Canadian Recession Imminent As Manufacturing Sales Plunge

No matter how it is spun, Canada is edging close to a recession, as the latest manufacturing numbers from Statistics Canada confirm.

Sales in the latest quarter plummeted 2.1 percent to $49.8 billion during April, resulting in overall manufacturing sales down 7.3 percent from the same period in 2014.

Inventories also were up 80 basis points, reaching a record $72.3 billion. The Bank of Canada has suggested that a weaker Canadian dollar and lower operational costs in the oil and gas industry would drive the manufacturing base of Canada back up. I believe that's only wishful thinking.

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Canadian Parliament Removes Conservative Party from Power

News from Canada just in says the Canadian Parliament just ousted the ruling Conservative Party from power, with a combination of opposition parties voting no-confidence in the government of Prime Minister Stephen Harper.

CBC News said this:

"The motion says the House agrees with a Commons committee report tabled earlier this week that found the government in contempt of Parliament, "which is unprecedented in Canadian parliamentary history, and consequently the House has lost confidence in the Government."

"Earlier this week, the procedure and House affairs committee tabled a report that said the government is in contempt of parliament for refusing to supply enough information on the cost of the F-35 fighter jets, their justice system reforms and their projections for corporate profits and tax rates."

What this means is the Canadian government has been basically dissolved and there will be new elections soon.

According to Harper, he sees the current fragility of the economy as not conducive to elections at this time.

While interesting, Canadian polls have shown that even with new elections, not only will conservatives hold onto power, but will probably increase in seats to form a majority.

Opposition parties will attempt to paint the Conservative parts as lacking in ethics and accountability, pointing to several alleged improprieties attempted to be made to look like scandals.