Winnipeg Free Press

Winnipeg Free Press (Newspaper) - October 17, 1995, Winnipeg, Manitoba Winnipeg free october 1995 b5 kiss that Good life goodbye if Quebec its swooning loonie time by Sandra Rubin Canadian press Toronto there is no shortage of dire predictions about Quebec Standard of living if the yes Side wins the ref what about the rest of us should All canadians be prepared to kiss their current lifestyle Good Bye if Quebec goes its own Way heres some in a nutshell pucker you could be in for a bumpy ride especially at the hammered it would be what i describe As the two weeks from said Lloyd former chief economist of Bank of my guess is that Short what Hap pens in Quebec will happen in the rest of were going to get this thing will get very Atkinson predicts a yes vote would Send International investors fleeing for surer dumping their Canadian Bonds and dollars along the the swooning loonie would land up in intensive we economists Are terrible at forecasting but it would be a currency crisis of Earth quake he a 25 30 per cent decline is not out of the in other think a 50cent us Atkinson very very a 50cent Dollar for Many canadians already watching their pen that would spell Adieu to French Olive so California it gets a partner in it associates investment says interest rates could very easily hit 2030 per cent As the Bank of Canada grappled with the currency thinking of buying a House a car a Winter coat and putting it on your credit card forget and just Hope your mortgage Doest come up for he says while the dust would eventually the grim state of affairs would last until such time As there Are agreements worked out Between a Sovereign Quebec and that could take says Denis an economics professor at the Ecol Des hates Etudes com Mercia Les in in the he Canada would almost certainly be plunged into a got a Job hold because thousands would its Clear if the Dollar Falls sharply and the Bank of Canada raises interest rates there would be a Complete slowdown of the said and everyone from coast to Cost would pay the jobs would be theres no doubt about and if thoughts of a 50cent Dol double digit interest rates and Job losses Arent enough to Send you lunging for How about higher taxes and deeper cuts in government steel Belanger says each percentage Point Rise in inter est rates forces Ottawa to cough up another billion a year in interest on the Federal if the Federal government has to come up with another billion a it would use its surplus of billion or billion but then it would have to turn to and there would also surely be government but economists say a no Victory Means bidding a Revoir to fears of higher rates and a sagging Cana Dian a stronger Dollar and lower yes vote Means everybody loses Canadas Standard of living is on the line in the 30 Quebec refer heres what Many economists say would happen As a result of a yes or no vote bloc quebecois Leader Lucien Heads off to rally for rates would be great for con said Rob Palombi of mar Ket forecasters mrs it would make cars and durable goods like appliances less and give canadians the Confidence to Start spending that would give the Economy just the boost it Atkinson says he sees a dramatic improvement with a no with Lon term interest rates hitting about per big time reduction in interest a goodnews Story All the Way he not Only does that bring Down mortgage it brings Down general borrowing rates and it also Means debt servicing costs for government Are going to be a lot which reinforces All of Ottawa efforts to put our fiscal House in yes investors flee currency lose Canadian Dollar plunges imports including food get More interest rates Rise Bank credit card pay ments More Cost of debt servicing rises possible tax More government Economy slows Down jobs no investors reassured Canadian currency hold Canadian Dollar strengthens imports become interest rates drop Bank mortgages and credit less expensive interest Falls on debt servicing Falls Ottawa can step up Deb reduction keep lid on new Economy picks up More Naftal status at stake by Chris Morris Canadian press Washington an influential thin tank Here says an Independent Quebec May lose its lucrative trading relationship with the United the Centre for strategic and International studies said in a study yesterday that Quebec currently enjoys Rich Cross order Trade with the United Worth roughly billion us a that would make Quebec the eighth or ninth largest trading partner for the United said the it was written for the Centre by former Trade negotiator Chip Roh noted that even without que Canada would still be by far the largest Trade if Quebec becomes ind Epen the United states will want Good relations with Quebec but not at the Price of bad relations with the rest of Roh said in his Roh said yesterday he wrote the study to help policymakers be prepared for the possibility that Quebec will vote to separate from in the 30 the United on the is certainly better off economically with a economically uni fied Northern neighbor than with two economically weaker even if negotiating leverage would be greater in the latter he in the event of he said the trading relationship with Quebec would be almost impossible to resolve until Quebec and Canada sort out a relationship Between if Quebec opts for ind Epen by far the least disruptive Way of handling this whole Situa Tion is for Quebec and the rest of Canada to come to a he if that Doest Roh said it would be very difficult for an Independent he would not have automatic rights under Trade deals like the North american free Trade that Means major Trade disruption and High tariffs in its dealings with the United scr investing for Hilt Slit being nah to enjoy your Money our flexible investment options grow your Money the Way you at Well help you turn today hard earned Money into maximum returns for tomorrow no matter when you decide tomorrow will maximum these special time limited Pic offers will help you Max your Money the Cibic rate Booster Gic can boost your rate automatically if interest rates Rise after you the Cibic convertible Gic guarantees the higher rate of a 3 year plus the flexibility each year to or convert to a higher yielding if interest rates go some limits apply to these ask for maximum with the Cibic flexible Gic you get a competitive interest rate plus the flexibility to reinvest if interest rates go or redeem if you need Access to your after 30 youll earn the full rate of right up to the Day of maximum we offer a full Range of investment from 17 no Load Mutual Money Market and fixed income to personalized investment maximum your personal banker will take the time to understand your individual investment needs and recommend solutions right for we also offer specialized investment services available through Cibic investment private management Cibic Cibic investors Edge discount and Wood to help you make the most of your special gics Are available for a limited time for full talk to your Cibic personal banker or Call 1 800 Security chs we see what you for the Rale Booster the rate is increased if 6 months after you invest our i year Gic rate is higher than the rate on your rate Booster Gic that higher rate applies for the remainder of the the convertible Gic can be at any interest is paid at competitive rates set by Cibic on redemption within 21 Days after the 1st or 2nd no interest is paid on redemption which occur outside these of Cibic offered by Cibic securities offered by Cibic investor services interest is paid if redeemed after the Fust 30 personal deposits ;