US, world headed for 25 year depression: Jim Rickards

US, world headed for 25 year depression: Jim Rickards

“When I use the phrase 25 year depression, it sounds extreme but it’s not. We had a 30 year depression in the United States from about 1870 to 1900…The Great Depression lasted from about 1929 to 1940. The U.S. is in a depression today.” Well, it's been in the works for

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Canadian banking haven myth exposed

Canadian banking haven myth exposed

"One of the reasons that Canadians (and international commentators, other finance ministers and global financial institutions) buy this Canadian banking fairy tale is the way the government accounts for the money borrowed to support the banks." The sorry spectacle of Conservat

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Get rid of your mortgage, loans, because interest rates set to rise

Get rid of your mortgage, loans, because interest rates set to rise

Get rid of your loans, guys and gals, because we are going into a high interest rate period. Very high. It will be the equivalent of going into the double digit interest rates we had in the 80s where many people threw their house keys at the bank and we had record numbers of ba

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E-cigarettes save lives, money

E-cigarettes save lives, money

"We know that cigarettes have thousands of chemicals in them and we know that they are killing us. They have been for over a hundred years. So now, the e-cig industry comes along with only one or two chemicals in their mixture and people are freaking out over these as well. Whe

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US inches closer to big bank charges

US inches closer to big bank charges

Federal prosecutors are nearing criminal charges against some of the world’s biggest banks, according to lawyers briefed on the matter, a development that could produce the first guilty plea from a major bank in more than two decades. In doing so, prosecutors are confronting

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Canada’s home sales top predictions; why a real estate crash is inevitable

Canada’s home sales top predictions; why a real estate crash is inevitable

“The assurance of relatively low borrowing costs has likely given home buyers confidence while rising home values have kept new listings at a healthy level. Stable employment has provided some assurance to owners and buyers alike.” Our website is back after many months of

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Comparing today’s recession/depression to the 1980 recession

Comparing today's recession/depression to the 1980 recession

"Much like today, Americans were concerned not only with high unemployment but increasing budget deficits in the early 1980s. A September 1983 Gallup poll found that three-fourths of the public agreed that the federal government's budget deficit was a great threat (42%) or some

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Why savers are getting screwed

Why savers are getting screwed

"Without the intervention of economic policymakers, interest rates would be naturally higher. That would increase the cost of borrowing for businesses and consumers, but there would be some offsetting economic benefits. Savers are getting screwed by the current monetary policy

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Geithner admits USA bankrupt to US Senate

Geithner admits USA bankrupt to US Senate

"Never in our history has Congress failed to increase the debt limit when necessary. Failure to raise the limit would precipitate a default by the United States. Default would effectively impose a significant and long-lasting tax on all Americans and all American businesses

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World economies on verge of currency revaluations to deal with debt

World economies on verge of currency revaluations to deal with debt

"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." -- Henry Ford Basically what the world central banks are doing is increasing their money by devaluin

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Is Obama the next Mugabe of Zimbabwe?

Is Obama the next Mugabe of Zimbabwe?

"America, Britain, Japan, Germany, France, Sweden, Holland, Norway, Canada and Australia make up the Fishmongers Group and their meeting on Tuesday will deliberate on the state of the inclusive government, debt relief, public finance administration and the controversial economi

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US raiding foreign countries with dollars, not soldiers

US raiding foreign countries with dollars, not soldiers

""The United States is going to China and saying: we want you to commit economic suicide, just like Japan did. We want you to follow the same thing: we want you to revalue your currency, we want you to squeeze your companies, we want you to go bankrupt,” says Michael Hudson,

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Content By: The Coming Depression Editorial Staff (dates cited below)
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tourism downturn

In a previous article we explored how the sex industry is a forgotten economic barometer never used in analysis.   However, economists do use tourism statistics in their findings — a similar industry to the adult entertainment sector — indeed, the two are often inter0connected.

About a week ago, I saw a documentary on the CBC (the Canadian equivalent of CNN) News, which detailed just how the tourism industry in Canada has been affected by the economic recession and the new passport requirement which went into effect in June of 2009. This is obviously disappointing but I remain hopeful that the situation improves. Here is the report CBC News, which was also conducted online by Yahoo! Canada:

According to the head of the tourism industry association (Commercial Tourism Canada), the market for tourism is suffering through the worst period in its history:

“This is worse than any other recessionary period that we’ve seen,” Travel Industry Association of Canada CEO Randy Williams told CBC News on Tuesday. “This has been the most challenging that many [in] our industry have seen in their lifetime,” he said, in terms of reduced demand and revenue.

The same day, Statistics Canada reported tourism spending in Canada fell for the fourth straight quarter in the three months ending in June. It fell by $128 million, or 0.8 per cent, to $16.4 billion.

Tourism was hit in that quarter by tougher passport requirements for people crossing the American border that took effect on June 1 and the cancellation of Canadian flights to Mexico after the outbreak of the H1N1 influenza virus (CBC, 2009).

Looking back at the predictions, the current conditions don’t look too far off from what experts in the field were envisioning:

As the NY Times reported, the new passport rules brought worry to tourism areas such as Niagara Falls where they say the new rules are discouraging millions of visitors from coming to one of the nation’s most majestic and romantic tourist attractions and result in billions of dollars a year in lost revenue (NY times, 2009).

Other affected regions of the country going whose tourism industries that have been decimated are Windsor, Ontario, and Sarnia, Ontario, Canada.  “I think there will be an impact,” John Winston, general manager of Tourism London, warned yesterday. “ It is just another barrier for people to go through if they want to go back to the U.S.” Especially hard hit could be bus tours, which rely on people on moderate incomes and seniors for business, Winston said. The London region relies on the U.S. and other countries for about 12% of its tourism business, he added (Cnews, 2009).

All signs are pointing to a total economic, political, and social collapse in the United States, but also in Canada once the full effects of the economic crisis spreads to its norther neighbor as the US economy slows to a halt. Since Canada depends mainly on the United States for its economic well being, any kind of economic collapse of the United States would immediately obliterate the Canadian economy. Indeed, during the Great Depression, Canada was affected more negatively than the United States. Canada was hit hard by the Great Depression. Between 1929 and 1939, the gross national product dropped 40% (compared to 37% in the US).

To add ammunition to these facts, Paul Krugman, a famous economist, recently pointed out that “the scale of the collapse of world trade has been so large that it has produced a degree of international linkage that surpasses what even the pessimists imagined” (WSJ, 2009).

Related posts:

  1. Canadian real estate taking drastic downturn: Baker, Turner“The economist who received an award for being the first to sound the alarm on the U.S. housing bubble, is warning the same could happen in Canada if we aren’t...
  2. US new Berlin Wall deepening depression: analysts“That longest and friendliest border in the world is now an invisible Berlin Wall,” Mike Bradley told CBC News. A new passport requirement set by the United States Homeland Security...
  3. Chinese ban on Canadian canola shocks industry“China has blackleg within their own country,” Weber added. “So it’s a red herring.” It is quite obvious now that the world’s major trading powers, China and the USA, are...
  4. USA Today posts biggest drop; Canadian Canwest fate similarPeople are increasingly getting their news from the Internet and television, and newspapers. Instead of walking outside to pick up whites and blacks easier to warm your Mac or PC...
  5. Slavic countries' economies severely affected by H1N1 outbreak“Ukraine has joined the global pandemic zone,” Vasyl Knyazevych said. Tymoshenko said the government would also be banning “all public gatherings, every concert and every cinema showing for three weeks.”...
  6. New York, German, Canadian, British stock exchanges seen mergingLittle Press: Andrew Mitchell, an analyst with Charles Stanley Securities, predicted the deals signalled a new wave of consolidation in the sector. He described the Deutsche/NYSE tie-up as “a much...

This entry was posted on Friday, October 9th, 2009 at 11:46 am and is filed under Main Street. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

1 Comment

  1. April 14, 2011 @ 2:21 pm


    You’ve hit the ball out the park! Indcrieble!

    Posted by Jenita

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