How bad is Canadian household debt? Not nearly as bad as Japan’s
Our lead story today is the US jobs report. The unemployment rate fell to a 6-year low of 5.8 percent and non-farm payrolls increased by 214,000 in October. This marks the 49th consecutive month of net job creation, the longest stretch of job creation since the 1930s. But despite the positive headline, underneath weak wage growth remains, as average hourly earnings are up only 2.0 percent in the last year. Erin weighs in.
Then Erin is joined by Nick Rowe, professor of economics at Ottawa's Carleton University. We break down the terms used all too frequently by the central banks of the world like quantitative easing and forward guidance. And Nick tell us why he’s not too bothered about high household indebtedness in Canada.
After the break in our Defining Moments segment, we take a look back at some of the best moments from our Boom Bust guests. In today's Defining Moments, Karl Denninger tells us what impact zero rates and quantitative easing have had on the economy, John Mauldin tells us what to think about a rising US dollar, and Gerald Celente cautions that sanctions should be considered an act of war and hearkens back to World War II to explain why.
And in The Big Deal, Erin and Edward Harrison are talking Japan. The Bank of Japan has taken a massive amount of assets onto its balance sheet relative to other major central banks. Will this work to stop the rot? We’re skeptical. Take a look.
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