Rosenberg also warns the return of consumer spending will likely be hampered by high debt loads, especially in Canada, where alarm bells were already sounding over the problem before it entered the COVID-19 economic crisis.

He also believes it’s almost a certainty Canada will lose its coveted AAA credit rating as government relief programs dramatically increase the country’s liabilities. click here for full story

Bank of Canada Governor Stephen Poloz, in his final speech before stepping down next week, said the deflationary risks associated with the pandemic and lockdowns are more concerning than the potential build up of inflationary pressures and vulnerabilities due to the extraordinary measures taken by policy makers.

“Although a minority of observers worry that these extreme policies will create inflation someday, our dominant concern was with the downside risk and the possibility that deflation could emerge,” Poloz said, according to remarks prepared for a speech to the University of Alberta…… click here for the complete article