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By A Smith (anonymous) | Posted September 22, 2011 at 17:10:58
With the U.S. Congress fighting over spending and the debt ceiling, high household debt and an ongoing current account deficit, it looks as if the U.S. will eventually fall back into recession.
If that happens, our exports will slow, leaving only the government or the consumer to take up the slack. With historically high household debt in Canada, the odds are Harper will be forced to push a LOT more money into the economy, lest he wants a 9% unemployment rate.
I wouldn't be surprised to see things like LRT fast tracked in this scenario.
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