Forget China: This Extremely "Developed" Country Just Suffered Its Biggest Money Outflow Ever

While understandably all eyes have been fixed on every monthly capital outflow update from China (even the ones that the Politburo is clearly massaging), few have noticed that one of the biggest total outflows currently in the global developed economy is taking place right in America's own back yard. 

According to BofA's Kamal Sharma, Canada’s basic balance - a combination of the capital and the current account: a measure of national accounts that spans everything from trade to financial-market flows - swung from a surplus of 4.2% of GDP to a deficit of 7.9% in the 12 months ending in June. That’s the fastest one-year deterioration among 10 major developed nations.

DYI Comments:  Canada is now experiencing a massive real estate bubble that is in the beginning process of popping.  Amazing as it is Canadians despite the majority of their population living within 250 miles of the U.S. border believe that it is different there and no bubble existed.  It's in the cards that Canada will experience a nasty recession; however if the world economy goes into recession cutting oil prices in half Canada could very well go into depression.  The housing mania has created a huge debt bubble in the private sector greater than the U.S.
 
If Canada goes into depression would the U.S. experience illegal immigration as they go south looking for employment?  Very possible but with Canada population being so small at 35 million (California 38 million) would anyone notice??

DYI wishes Canada well and lots of luck they are going to need all they can get!

DYI