Hey Monkeys,
China may have been getting the most press over the past few weeks, but Canada isn't doing too well either. Here is a quote from the Financial Post:
Canada counts for 19 per cent of total U.S. exports, followed by Mexico at 16 percent, each more than double China’s 7 per cent share. And the Canadian dollar is sliding much faster: It has fallen about 12 per cent against the U.S. dollar since the start of the year, while China’s yuan has dropped just about 3 per cent.
Since Canada is the largest U.S export market, does Canada's current situation spell more trouble (in the U.S.) than China's decline of late?
More from the Financial Post Why Canada is a bigger problem for the U.S. economy than China
China is a huge driver of the global economy and will have significant impact on trade flows outside of just US-China and a slowdown in the Chinese economy would have contagion effects in Europe/LatAm/ROW which also affect the US obviously. Canada does not have the same global scale so it's more complicated than just looking at US imports/exports in trying to figure out which is the bigger driver.
Or is the Canadian drop a result of the Chinese drop? Canada being largely a resource exporter. Similar to Australia.
Canada is not even close to China's impact on both U.S. and global economy.
I'm embarrassed for the writer of that article you posted.
Yeah I agree with you. I chose it because I thought it would make for interesting discussion.
China and Canada are in two completely different leagues, you can't even compare them. One has a direct effect on the global economy and supply chain while the other is essentially almost exclusive to a continent and intensive on a select set of energy and metal commodities.
Here is what I think the author of the FP article is referencing: (Additionally, FP is a Canadian newspaper so there might be bias as to Canada's importance)
http://www.trade.gov/mas/ian/build/groups/public/@tg_ian/documents/webc…
If you look at the PDF, US imports from CHINA are greater than CANADA. However, US exports into Canada are 3x that of China.
China hands down. The whole global economy is structured around the 'Chimerican' economic system (America as the consumer/provider of liquidity; China as the manufacturer/provider of savings).
Sorry, off topic, but am I the only one that thinks we should just invade Canada? Russia is annexing E. Europe, China adding territory in SE Asia and Pacific, we'd better do something. It's clear Obama was not very good at Risk.
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