Users: Brian Ripley: Picture

Canadian exports are not booming, there is a global slowdown in demand for commodities, finished products and services and a falling CA$ which is good for exporters has not yet materially changed the current account balance which remains in a deep funk since the Pit of Gloom in March 2009. The CA$ dropping is however affecting the private sector balance with increased costs on import prices and a rising cost of living for our consumer dominant society. 

If society wants more private sector saving (which is the source of investment capital), then either the Federal government must run a bigger deficit or exports must increase. When the government runs a surplus, then the private sector must run a deficit unless exports are booming and make up the difference. More at www.chpc.biz