March 1, 2022
Homework:
- talk to parents about rising interest rate in Canada
- talk to them about the collapse of the Russian Ruble (drop 30% in three days)
- advise parents to lock their mortgage rate because rate will go up 4 to 5 times this year
- gas in Toronto will go up 2 cents tonight and 6 cents on Thursday. Gas up the car
- heart breaking to see a war anywhere in the world
- Russian troops marched into Ukraine
- Many countries, including Canada, launch financial sanctions against Russia
- Russian Rouble drops 30% in value in three days
- that means
(1) all the imports to Russia become 30% more expensive
(clothing, machines, cars, shoes, airplanes, building materials, wheat, meat, milk). Many Russians will not be able to afford the daily goods
(2) Most commodities (raw materials such as copper, lumber, gold, plastic, oil, natural gas etc) are priced in US dollar. These commodities become really expensive
- cost more to buy a shirt or shoes or car or a house
(3) during the time of uncertainty (e.g. war, recession, massive job layoff), people want to get US dollar or gold
- things will get more expensive (food, fuel, clothing, electronics, houses)
- trips will get a lot more expensive (hotel, tickets, airfare, gifts, food), about 30% more
- war is bad for everyone
- tomorrow Wednesday March 2: Interest rate in Canada will go up by 0.25% to 0.50%
- Canadian dollar will be stronger with higher interest rate
- interest rate in Canada will go up 4 to 5 times this year (2022)
- tell parents to lock their mortgage now at a lower rate (rate will be fixed for the next 3 to 5 years)
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