Get Ready for 60-cent Loonie and Canada Downgrades, Rosenberg Warns
- Rampant growth in money supply will hurt currency’s standing
- ‘The Great Canadian Debt Surge has come home to roost’
This article is for subscribers only.
Canada’s currency will depreciate sharply and its credit rating will suffer as the federal government is forced to “backstop everyone,” rolling out more assistance for provinces, companies and households, according to economist David Rosenberg.
The country is “likely facing a series of downgrades” to its AAA rating, given that the total debt in the economy is already an unprecedented 350% of GDP, he said. In the Group of Seven, only Canada and Germany have the highest rating.