Canada’s Business Bankruptcies Face 19-Year High, 129% Year-Over-Year Increase

The following report is by The Trends Journal:

In January, 759 Canadian businesses notified the government’s Office of the Superintendent of Bankruptcies that they have gone bust, 42 percent more than in December and a 129-percent surge year over year.

January marked the worst month for business bankruptcy filings since 2005, the office said.

During the 12 months ending 31 January this year, 5,238 businesses failed, 49 percent more than the same 12-month stretch a year earlier.

Businesses blamed high interest rates, inflated costs, a sluggish economy, high debt loads, and the end of COVID-era aid for their collapse, the housing industry newsletter Better Dwelling reported.

Canada’s GDP grew a scant one percent in last year’s final quarter, according to the National Bank of Canada.

“Don’t expect much of a rebound in 2024,” Stefane Marion, the bank’s chief economist, wrote in a recent note. “Restrictive monetary policy”—high interest rates—“is certainly playing a role as well” as other factors in the rate of business failures, he added.

TREND FORECAST: Despite the high bankruptcy rates, last Monday The Bank of Canada said that inflation persists and kept its key interest rate at five per cent.

What is never mentioned is the fact that Canada’s, as with many other nations draconian COVID War mandates destroyed the lives and livelihoods of billions across the globe, and that economies were artificially propped up with trillions of dollars of fake money backed by noting and printed on nothing along with record low interest rates. 

Therefore, while the BOC, as did the ECB last week, claim that it’s still too soon to consider rate cuts because underlying inflation persists, they are responsible for the inflation and the bankruptcies. And, the longer interest rates stay high the higher bankruptcies will rise and the lower the economies will fall.

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AUTHOR COMMENTARY

I usually only really report on the American economy (being that I am an American, and it’s the world’s largest economy), but I mention this report about Canada because it highlights the problems are all over; from Canada, to the U.K. and Europe, to Australia and New Zealand, to Japan and South Korea, and many other “Westernized” nations, and for that matter most of the rest of the world.

As The TJ, the mainstream news and economists and financial analysts do not dare to bring up the lockdowns, Covid restrictions, vaccine mandates, and so on for the reasons why the economy is collapsing, coupled with all the helicopter money central banks have flooded the markets with.

And the rain descended, and the floods came, and the winds blew, and beat upon that house; and it fell: and great was the fall of it.

Matthew 7:27

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[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).

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