Monday, May 29, 2006

Debtors Nation

The impact of the Bank of Canada's stupid inflationary policy of raising interest rates adversely affects working class Canadians. As I have said here. The current North American economy is NOT being driven by production and manufacturing but by consumer debt.

Too much debt puts consumers in a bind
Latest rate hike adds to already heavy burden
Many Canadians spending more than they earn

Alberta farmers reap bitter harvest
Incomes plunge 50% while neighbours in energy sector enjoy good times

They live among millionaires, and yet Alberta's farmers have seen their net incomes drop more steeply than their peers in any other Canadian province.

Provincial government coffers are bubbling over, oil-and-gas corporate profits are sky high, and per-capita income in the province is by far the highest in the country.

And yet, Alberta farmers' net incomes dropped 50 per cent in 2005, compared with a national average decline of 7.7 per cent, Statistics Canada said in a recent report.

The 50-per-cent drop is not just a numbers trick caused by a good year in 2004, Statistics Canada pointed out. Net income in 2005 was 30.5 per cent lower than the average income over the previous five years -- and those years were notable for their troubles with droughts, beef bans and bad weather.

See my:

The Truth About the Farm Crisis

For an analysis of the US Debt Crisis see the latest issue of Monthly Review online.

The Household Debt Bubble
by John Bellamy Foster

The End of Retirement
by Teresa Ghilarducci

Trouble, Trouble, Debt, and Bubble
by William K. Tabb

And see my:

Storm Clouds Over The US Economy

Housing Boom or Bust

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