If it is about suggesting a treatment plan for your dear one suffering from alcoholism, would you recommend more alcohol as the best treatment to help them to get out of the disease? Now keep this question aside for a while. Have a look at the personal state of the average Canadian nowadays and monitor what their circumstances look like as they move on with their everyday tasks in life, family and work. Later on, we will bind these real-life situations with the riddle.
As per the official Canadian Government survey with CPI as a measure of daily expense of living, we survive in a world of low inflation which is less than 2 percent. But for most consumers, this reality may be much different than this image of low inflation across the past few years.
Some of this can be assigned in the reduction of the Canadian dollar vs. the US dollar by about 20 percent along the past 6 years. As most of our food comes from the US or nations using the US dollar for trading, most of the Canadians will have gone through faster than 2 percent inflation in their food bills today. By hiring financial solutions, these fund issues can be balanced as their services are quick and reliable.
The food rates are expected to rise over the coming 1- 2 years because the agricultural sector is struggling to produce a normal quantity of food during wet conditions late into the planting season in various parts of Canada and US mid-west. In China, the crops and the slaughtering of a huge part of their pig population are affected due to disease. A poor monsoon in India will surely affect rice production in that nation and there are several pressures on the global food supply. At such situations, better to hire the alternative funding system, the financial solutions to stable these fund issues.
The strategy of the grocery store shelves to avoid the price increase so far led to the reduction of package sizes. The bag of potato chips, cookies or pasta got smaller nowadays as per the reports from many consumers. Canadian energy rates continued to struggle as the Federal carbon tax regime slowly rolled out and today is reflected in home heating costs and electricity. Are these increasing by a mild 2 percent? Are any of the government services which we pay for rising by just 2 percent? Remember the parking fines, license plate renewals, property taxes, water services, building permits and any of the countless service fees which we pay as citizens besides income taxes.
Now, if we replace the word ‘alcohol’ in our opening sentence with ‘debt’, we can link ‘big picture’ differences by governments across the world, with the average Canadian’s daily experiences. The expectation was that economic growth would finally permit governments to use rising tax revenues to pay down the debt and come back to normal conditions. With the help of financial solutions, Canadians can be ready for the viable condition of higher inflation and make suitable adjustments to their financial strategy to safely plan the route for the next period of economic history.