The Loonie Hour The Fiscal Bazooka is Coming
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Jul 4, 2025 A massive fiscal stimulus bill is set to roll out, prompting speculation on interest rates and potential financial repression. The podcast dives into Vancouver's real estate slump, contrasting it with U.S. trends and discussing immigration's effects. Furthermore, it examines Germany's pivot in energy policy amid geopolitical strife. Recent job numbers from the U.S. showcase surprising growth, despite recession fears. Lastly, the Canadian digital services tax is evaluated for its true aim of shaping discourse rather than just revenue.
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Investor Impact on Condo Market
- Condo markets face investor flight causing record new listings, unlike single family homes which remain low in supply.
- Investor demand largely funds new construction as end-users typically avoid pre-sale risks.
US Growth Over Debt Strategy
- The Trump administration plans to grow GDP faster than debt to stabilize debt-to-GDP ratios.
- This pro-growth policy implies running the economy hot with potential monetary loosening.
Interest Rate Cuts Reduce Deficit
- Lowering interest rates reduces government interest expenses and temporarily controls budget deficits.
- US seeks rate cuts from 4.25% to around 2% to ease debt servicing costs amid heavy debt maturities.