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U.S. Seizure of Russian-Flagged Tanker Heightens Global Tensions

The ship, currently between Iceland and the British Isles, has been accused of breaking US sanctions and shipping Iranian oil. It has historically transported Venezuelan crude oil. The United States has seized a Russian‑flagged oil tanker linked to Venezuela after a prolonged pursuit across the Atlantic, marking one of the most assertive enforcement actions under Washington’s sanctions program. The vessel, previously known as Bella‑1 and later renamed Marinera , was intercepted after evading an earlier boarding attempt near Venezuelan waters. U.S. military aircraft and naval units tracked the ship for weeks as it traveled across the Atlantic, at times shadowed by Russian naval vessels. Officials say the tanker was part of a network used to transport sanctioned Venezuelan and Russian oil. Its capture underscores Washington’s efforts to disrupt what it describes as illicit energy shipments that help sustain both governments. The operation comes at a delicate geopolitical moment, wit...
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Why the U.S. economy outperforms Canada's: A guide for investors

 

If you are looking for a stable and prosperous market to invest in, you might want to consider the U.S. economy over Canada's. Despite the challenges posed by the covid-19 pandemic, the U.S. economy has shown remarkable resilience and growth, while Canada's economy has lagged behind and faced several headwinds. Here are some of the key factors that explain why the U.S. economy is in much better shape than Canada's.

1. GDP growth: The U.S. economy grew by 6.5% in the second quarter of 2023, surpassing expectations and marking the fastest pace since 2003. In contrast, Canada's economy contracted by 0.3% in the same period, the second consecutive quarter of negative growth, indicating a technical recession. The U.S. economy has recovered all the output lost during the pandemic, while Canada's economy is still 2% below its pre-pandemic level.

2. Fiscal stimulus: The U.S. government has enacted several rounds of fiscal stimulus to support the economy during the crisis, totaling about 25% of GDP. These measures have boosted consumer spending, business investment, and job creation. On the other hand, Canada's fiscal stimulus has been more modest, at about 17% of GDP, and has been less effective in stimulating demand and growth.

3. Monetary policy: The U.S. Federal Reserve has maintained an accommodative monetary policy stance, keeping interest rates near zero and buying $120 billion of bonds per month. This has helped lower borrowing costs and support credit markets. The Fed has also signaled that it will not raise rates until inflation is moderately above 2% for some time and the labor market is fully recovered. Meanwhile, the Bank of Canada has been more hawkish, tapering its bond purchases from $4 billion to $2 billion per week and hinting at a possible rate hike in late 2023 or early 2024. This has put upward pressure on the Canadian dollar and made Canadian exports less competitive.

4. Trade relations: The U.S. has improved its trade relations with its allies and partners under the Biden administration, rejoining the Paris climate agreement, the World Health Organization, and the Trans-Pacific Partnership. This has enhanced the U.S.'s global leadership and influence, as well as opened new opportunities for trade and investment. On the other hand, Canada has faced some trade disputes with its major trading partners, such as China, Saudi Arabia, and India, over issues such as human rights, security, and agriculture. This has reduced Canada's access to some lucrative markets and increased its reliance on the U.S.

These are some of the reasons why investors should take note of the U.S. economy's superior performance over Canada's. The U.S. economy offers more stability, growth potential, and diversification than Canada's economy, which is more vulnerable to external shocks and domestic challenges.

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