Saturday, April 25, 2009

Canada could be in the same shows Finland was in in 1990

Before 1990 Finland had a large trading relationship with the Soviet Union. With the collapse of the Soviet Union, this trade relationship collapsed and caused a severe recession in Finland in the early 1990s.

Canada is highly dependent on the US as a market. If, as I believe is the case, the US is headed towards a long term economic 'wilderness', our economy in Canada is going to be suffering longer than most expect.

We should brace ourselves for the loss of a large portion of the auto industry as we know it. Ontario is realistically looking at a 10 to 15 years period as a have not province.

Our forest industry is also going to suffer because most of the product has been going into the states. Internationally we are going to hard pressed to compete with all the Siberian wood that will be flooding the Asian market for the next several decades. Siberia is huge, bigger than Canada and the US combined and more productive forest than all of North America.
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