Canada just “unexpectedly” fell into a technical recession. But the important part is not just that Canada contracted. The important part is that Canada’s contraction is lining up with the same weakness now spreading through France, the UK, Germany, Sweden, Mexico, and increasingly the rest of the global system. As one result, central bankers hawkishness is starting to seriously evaporate. Eurodollar University&#x27;s Money &amp; Macro Analysis -------------------------------------------------------------------------------- Learn more about Augusta Precious Metals and what they have to offer - including physical gold for IRA accounts - by going to: https://EurodollarGold.com or text EURO to 35052. -------------------------------------------------------------------------------- https://www.eurodollar.university Twitter: https://twitter.com/JeffSnider_EDU Starting today, I’ll also be active on Bravais Social - a new AI-centered social network designed for professionals and knowledge workers. The platform aims to bring together a wider range of tools and functionalities tailored specifically for professional interaction, research, and knowledge exchange in one place. You can find me here: https://bravais.social/profile/edu

Canada Sends HUGE WARNING & its SPREADING To The Rest of The World

Eurodollar University

Canada just unexpectedly fell into technical recession. The country reported back-to-back negative quarters of GDP, but the important part is not the contraction. It's how that contraction lines up with a whole bunch of other data from around the rest of the world. We've got France, the UK, Sweden, Mexico, Germany, and a bunch of other places beyond.

And then the other part of this is how that weakness is getting to be so substantial, even formerly hawkish central bankers have had to change their tune. For months, policymakers have been trying to frame the energy shock as an inflation problem. Oil goes up, gasoline goes up, headline CPI goes up, therefore central bank policy rates need to go up. They need to stay hawkish, maybe even hike further. That was the fear. That was what the market was pricing too, knowing how irrational central bankers can be.

That's their bias. But the data is now saying those central bank theories were wrong. France just reported a surprise contraction of first quarter GDP, along with more job losses. The UK central bank, the Bank of England, is now openly saying it may tolerate higher inflation because economic and labor market weakness is becoming too obvious to ignore. Germany cut growth expectations, slashing them. Mexico has done the same thing.

Sweden's weak economy is keeping the Riksbank cautious as it reports, yes, another contraction in GDP. The energy shock is indeed turning into the classic recession case. Higher energy prices act like a tax. They squeeze household income, compress business margins, they destroy demand and eventually force employers to cut jobs. And worse than that, these GDP reports we're getting come in from before the oil spike itself.

Canada Sends HUGE WARNING & its SPREADING To The Rest of The World

Read the full transcript

The candid version is on a podcast,
not the earnings call.

Canada Sends HUGE WARNING & its SPREADING To The Rest of The World

Read the full transcript

The candid version is on a podcast, not the earnings call.

The candid version is on a podcast,
not the earnings call.