Canadian Election

QUESTION: Marty, Socrates seems to be pointing to a C$ bounce. Does this imply that Carney will lose, or does it mean the bounce will be brief on his nonsense and then turn south?

RE

ANSWER: The only hope that Carney has is a coalition. Comparing the Conservatives to the Liberals in Canada provides an interesting picture. Trudeau was able to be the leader of Canada with 32% of the vote. The computer clearly shows that Carney will beat Justin Trudeau, who was first elected as Prime Minister of Canada on October 19, 2015, and served until his recent resignation in January 2025. He led the Liberal Party to victory in three federal elections during his tenure. In 2015, he had 39.47% of the vote. Then in 2019, he won with 33.1%. Then in 2021, he won with 32.6% while the Conservatives beat him with 33.7%. This is the problem with a Parliamentary system – it allows fragmentation and coalitions.

Trump threw his 2 cents into the ring on Truth Social. That could help Carney. Canada would never become the 51st state. Each province would become a separate state, and that would mean each gets two senators, and they could join the Democrats and kill the US economy with their EQUALITY that has killed Canadian productivity. Canada’s once-thriving economy is now facing severe challenges, from a housing bubble that has pushed debt beyond GDP to a massive brain drain of skilled workers. With real estate prices climbing over 300% in two decades while wages lag far behind, homeownership is slipping further out of reach for most Canadians. At the same time, Canada’s productivity is declining, with the average worker producing 30% less than their U.S. counterpart. With rising discontent, increasing financial strain, and a lack of strong leadership. This has led to the question of how much longer Canada can hold on before a major economic crisis?

In the last election, the Conservatives beat Trudeau with 33.7% vs 32.6%. To get a majority, they need 172 seats. The Liberals will most likely carry the East – Newfoundland, Nova Scotia, Prince Edward Island, New Brunswick, Quebec, and Ontario. This election could ignite the separation fires burning beneath the surface in the West. Our model warns that it was the completion of a 72-year cycle in the 2021 election for the Liberals, and that should be the low point. They have a fighting chance this time and will beat Trudeau’s numbers.

We still have the risk of war in May. Germany has just instructed Zelensky not to agree to any peace deal with Trump. The key level will become 7225 in the future, going into May.