Eurodollar University This Shocking Collapse in Canada and Mexico Is a Warning for America
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Jul 7, 2025 Steve Van Metre, a macroeconomic analyst, dives into the troubling economic situations in Canada and Mexico as potential warning signs for the U.S. He discusses how ineffective rate cuts fail to address rising unemployment and declining exports. The disparity between robust stock markets and a faltering bond market reveals a more accurate economic landscape. Van Metre emphasizes the risks facing U.S. consumers, particularly in real estate, and warns that a global economic downturn could have severe implications if trends continue.
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Tariff Shock's Temporary Boost
- The initial tariff shock caused a harsh impact, followed by a brief rebound that quickly faded, especially in Canada and Mexico.
- These countries exemplify the global economy's fragility and the fading artificial boost from tariffs.
Canada and Mexico's Economic Decline
- Canada faces rising unemployment and declining exports as tariff distortions fade.
- Mexico suffers from collapsing investment and construction, signaling economic contraction ahead.
Rate Cuts Not Reviving Economies
- Rate cuts by central banks globally are failing to stimulate economic recovery.
- Canada and Mexico illustrate that rate policy doesn’t revive slowing economies effectively.