Stunning News in Canada – Economy Loses 71,200 Jobs, Unemployment Jumps to 5.9%…


Elections have consequences.  On the same day the U.S. economy reports astoundingly successful jobs growth of 226,000 jobs and a drop in the unemployment rate to 3.5 percent; the Canadian state economic minister reports surprisingly terrible jobs losses of 72,200 jobs and a jump in unemployment from 5.5 to 5.9 percent.

The Canadian economy is roughly one-tenth the size of the U.S. So in equivalent terms the results from Canada reflect a comparative loss of 720,000 jobs on the same day the U.S. revises all figures upward to over 300,000 gains.  A stunning economic contrast:

OTTAWA (Reuters) – The Canadian job market lost a surprise 71,200 net positions in November while the unemployment rate rose to 5.9%, the highest in more than a year, data showed on Friday, as analysts said a repeat of the weak numbers could force the Bank of Canada to rethink its monetary policy.

Analysts in a Reuters poll had forecast a gain of 10,000 jobs and had predicted the unemployment rate would hold steady at 5.5%. […] November’s numbers followed a weak report in October, when the labor market unexpectedly shed jobs despite a likely boost from hiring related to the federal election.

[…] Canada’s goods-producing industries saw a decline of 26,600 net jobs, largely on manufacturing. The services sector lost 44,400 net jobs.

November’s unemployment rate was the highest seen since the 6.0% reported in August 2018. 38,400 full-time jobs and 32,800 part-time jobs were lost in November. (read more)

It is worth remembering that Canada does not allow competition in their media sector.  The Canadian government considers the news media a protected “cultural industry”; and through a process of subsidizing broadcast all news media is essentially state run media.

Why is this important?  Well, when the expressed priority of the government is controlling broadcast information if you are intellectually honest you should apply that same ideological outlook toward any information from the government in a general sense.

The Canadian election was held on October 21st, 2019.  The central control government of Justin Trudeau would likely hold-back any negative economic information in an effort to support the ideology of the central government and maintain public opinion in advance of the voting.  However, with the election over the economic books need to be reconciled.

I strongly suspect the Canadian November jobs report encompasses some of that state run reconciliation effort.  Meaning the Canadian economy was in much worse shape in the months leading up to the election than state media were broadcasting.  The reality is now catching up….

Secondly, it was obvious in July of this year that Speaker Nancy Pelosi and Justin Trudeau entered into an agreement of mutual benefit.  Trudeau would hold back submission of the USMCA for parliamentary ratification, and left-wing political ideologues in the U.S. would help Trudeau win re-election.

At the time CTH forewarned of what this type of political arrangement really meant.

In essence Prime Minister Justin Trudeau was willing to compromise the health of his own economy for stunningly political reasons.  There was a perfect storm of negative economic dynamics clearly visible on the horizon…. but few were paying attention.

In combination with leftist economic policies on energy development that strangles economic growth through excessive regulation, the leftist government of Trudeau has dismantled the natural underpinnings of a market-based economy.  The manufacturing base of Canada is compromised, perhaps to the point of no return.

For two decades liberal (left-wing) Canadian policy essentially transformed their economic model from manufacturing to “assembly“.   The goods-based production within the Canadian economy was structured to take advantage of the NAFTA loophole.

Goods production in Canada was reduced from full manufacturing to a process of assembling parts brought in from overseas and then selling them into the U.S. market.   This process exploited the NAFTA loophole allowing foreign companies to ship parts to Canada and then assemble for transport into the U.S. without tariffs.

Over time the Canadian economy became more and more dependent on this system of brokering goods, while Canada simultaneously dismantled their heavy industry at the request of extreme environmentalists.

The Canadian assembly system for durable goods was always at risk of the NAFTA loophole being closed.  When President Trump renegotiated the USMCA, primarily with Mexico, the loophole was closed.  The USMCA rules on origination now require the parts to come from inside the North American manufacturing system.

Importing parts from Asia and simply assembling them in Canada is no longer permitted under the USMCA agreement.  The majority of the parts -which require heavy industry to produce- must originate from North America.  Canada has little capacity to take advantage of this economic opportunity because they dismantled their heavy industry.

As a consequence, if any multinational company wanting to invest in a manufacturing system, that avoids tariffs, to bring their end product to the massive U.S. market… well, Canada is no longer a viable option for that investment.

The multinational banks and investment groups who fund corporate manufacturing investment; and who are now no longer willing to underwrite Asian investment due to the impact of Trump tariffs; are focusing on where that investment can support the economic activity.

As with this latest report, when we see: “Canada’s goods-producing industries saw a decline of 26,600 net jobs, largely on manufacturing” leading the headline, this is a direct consequence of the economic dynamic identified above.

Elections have consequences; and those economic consequences are extraordinarily impactful in the era when U.S. President Trump is dismantling global supply chains; focusing on bringing high-wage manufacturing industry back to the U.S; and driving a process of profound consequence through economic nationalism.

Economic Security is National Security” ~ President Trump

Socrates Project – Best Kept Secret


QUESTION: Marty; A friend of mine is an analyst at one of the major banks in New York. He said they are not allowed to forecast some things as you said. He used to work for a European bank and did say it was much worse.  He said everyone who is anyone reads you. He also said that none of the mainstream media will ever report on Socrates because you will put all analysis out of business. Is this why you intend to go public?

Thanks so much for your insight in creating Socrates.

MH

ANSWER: Mainstream press in the USA has never been interested in really covering our analysis. They are not interested in reporting that a computer can actually write reports and forecast the entire world. You have to understand, we remain the best-kept secret. Even when Nigel Farage was our guest speaker in Rome, he said he had to come after we forecast BREXIT. Now, not a single British newspaper ever reported our forecast before or after. Nonetheless, those in power and in strategic institutions and corporations, all know what our forecasts were. So it is an interesting paradox. We are the best-read, but the most under-reported.

Nobody wants to report there is a computer that forecasts the world for it at the same time exposes the true trend of the economy and all the interconnections, including climate change. In the summer when the Inverted Yield Curve was taking place, all the newspapers were forecasting Trump would lose because the economy was headed into a recession. That was their typical biased war against Trump. Our model showed there would be a moderate decline in the expansion into the ECM for January, but that we did not see a major correction or a major recession.

These types of forecasts are not luck nor are they based upon what “I think” for we are all human and thus we are subject to making mistakes. We need a dispassionate analysis of a computer to provide an objective outlook. People keep trying to compete with me personally which is often quite funny to me.

Socrates will only be recognized when (1) we go public, and (2) after my death. That is just how things work. Even in the Bible, Jesus said that a prophet has no honor or is recognized in his own country’ (John 4:44). That is the way it has ALWAYS been in every field. Not exactly sure why it is that way. It just is! I have always been covered more by the press outside the USA than inside.

Italy & the Euro


QUESTION: Dear Mr Armstrong,
When will the Euro begin the final drop against the USD?
My second question is property in Italy seems to be rising. Is this what you referred to a currency inflation?

CDP

ANSWER: The decline in the euro since 2008 has been steady, but gradual to some extent. The EU government has been warning banks not to accept short positions and they have done their best to try to hold the currency. The final blow comes ONLY when the general public realizes that there is a problem with all central banks. They cannot support the economy while the fiscal side makes no effort at reform. That is more likely in the 2021-2022 time period.

As far as property in Italy is concerned, Italians have a cultural attachment to property. Many have more than one place. They have traditionally sought to park money in property because the Italian lira was in a perpetual decline.

Pension funds on a global scale will become a major crisis. Japan has the worst aging population. However, the same problem exists in Europe and America. This is a long-term issue rather than instantly, right now

German Politics


QUESTION:

Hi Martin,

It can not be said enough: thank you for everything that you do.

I have a question that has been bothering me for some time now. I haven’t had the time to compose it until now.

You often talk of the fact that Hitler was elected with only 30% of the vote, and was allowed to propagate because of it. This changed the face of Europe and the world.

Was this the same for Merkel? Was she allowed, with only 30% of the vote, to open the borders and so change the face of Europe for decades to come?

If so, then Germany, with all its preoccupation about hyperinflation, has misread history and so should have focused on electoral reform rather than austerity.

Thanks, from a dedicated daily reader,

D

ANSWER: Yes, political reform in Germany is really essential. At the very least, it should adopt the French system where the first round of voting reduces the multi-party factions to two. Then the people have to vote between them. In the case of Germany, they form governments from groups to form coalitions. This means there must be compromises in what the people voted for. It is wrong that those compromises are then decided by politicians rather than the people. The next result, someone with only 30% can change the face of Germany and Europe

Conspiracy Against Trump


QUESTION: Are you familiar with Qanon and if so what are your thoughts.
KJF

ANSWER: No I do not believe it. That is a conspiracy theory that there is a worldwide cabal of Satan-worshiping pedophiles who rule the world, essentially, and they control everything. They control politicians, and they control the media. They control Hollywood, and they cover up their existence, essentially. And they would have continued ruling the world, were it not for the election of President Donald Trump. I do not agree with this idea. I think it goes way over the top.

This is again using labels very loosely. Pedophilia is a sexual attraction to prepubescent children. Ephebophilia is the primary sexual interest in mid-to-late adolescents, generally ages 13 to 17 post-puberty. Jeffrey Epstein was engaged in Ephebophilia but perhaps for reasons people have overlooked. He seems to have ensnared famous people into this act for the reason of having power over them in terms of blackmail. If he were truly a pure Ephebophilia for himself,  it is unlikely he would have been so open about it bringing in people like Bill Clinton and other high profile people.

Epstein is dead BECAUSE he would have implicated so many people and most likely the prosecutor did not understand what he was stepping into. Being a simple Ephebophilia in al single personal context would have been a feather in the prosecutor’s cap. The law does not distinguish between Pedophilia and Ephebophilia. However, Epstein had way too many blackmail cards in his deck he believed provided him with protection. They came back on him for there was no way to bargain his way out after being publicly charged in such a manner. The government could NEVER put him on trial so he just had to go.

From this perspective, the plot to power is still that of an individual – Epstein. I have never encountered any group with designs of controlling the world. That is the stuff for megalomania characters in fictional action movies. So why do they have to be Satan-worshiping pedophiles is beyond me. That seems to be just a tactic to dehumanize the people they are talking about.

Pedophiles tend to be sick people, to begin with to the point I seriously doubt they would be able to even fathom controlling the world. Underage post-puberty girls/boys does not involve pedophiles – that is children like 5 to 10-year-old children. That is more of a mental disorder. I believe Epstein was probably into blackmail more than anything else for strategic reasons. I seriously doubt that if Epstein was engaged in pedophilia he would have had as many people joining him. For strategic blackmail reasons, he merely sought to get people involved in Ephebophilia and then used that perhaps to get favors and money. I seriously doubt that many can tell the difference between at 17-year-old girl and a 19-year-old just looking at them these days. So I would think he was deliberately trying to get girls under 18 to provide the means for blackmail.

I think this Qanon conspiracy is just spinning things too far. There are people out to get Trump, absolutely. But I do not see them as Satan-worshiping pedophiles, just power corrupt individuals.

 

2020 Elections to be the Most Violent


QUESTION: The more I read that Trump’s opponents will resort to violence, I am amazed at your computer and how it has been putting all this together years in advance. Are we just pre-programmed somehow?

KF

ANSWER: I do not think it is the people who are pre-programmed. It seems to me that government inevitably turns to corruption. I believe the term limits are the only way to stop this and I am not sure if even that will be enough. What I do see is that given the same set of facts, the people will respond in an identical manner no matter what century we look at. To me, history repeats because the same set of patterns unfold and in the same precise order.

The Democrats are simply moving to extreme measures for socialism. They are turning to violence BECAUSE they have been losing ground. Our model shows that 2020 will be the most violent political election since the 1960s. It really does not matter who wins. Both sides will take to the streets and refuse to accept the victor. This nonsense that Trump is #NotMyPresident has simply invoked the exact opposite position where the Republicans will not accept a Democrat as president. This is what I mean when I say that civilization is collapsing and this leads to separatism.

Cheering Up Progressives as They Fail at Everything They Try


From climate change to recycling to health care to capitalism and impeachment, Progressives fail at everything that matters to them. Scott Ott, Bill Whittle and Stephen Green take a crack at cheering up our Progressive friends. Right Angle comes to you fives times each week thanks to the Members who fund it, and who run their own blog and vibrant comments forum at https://BillWhittle.com

The Democrat Ticket That Scares Trump Most: Mayor Pete and Tulsi Gabbard


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Douglas McKinnon writing at TheHill.com says the Democratic ticket that scares President Trump the most is Mayor Pete Buttigieg with Rep. Tulsi Gabbard. Two young, telegenic, military veterans, who can think on their feet and connect through the camera with apparent authenticity — even Bill Whittle thinks they’re the best pairing in the current field. Will the Democratic establishment bypass Joe Biden, Elizabeth Warren and Bernie Sanders to connect with their more moderate base? Does anyone actually frighten Donald Trump? Bill Whittle Now with Scott Ott comes to you five times weekly thanks to our Members who contribute to fund this enterprise, and who run their own vibrant blog and comments forum. Come, meet your people at https://BillWhittle.com