Finance committee  Indeed, we are very concerned by the debt level of the United States. But the tax room in that country is among the largest in the world. Their rates of taxation are very low. As we know, Americans do not like taxes. If, one day, they hit their peak, a slight increase in the rate of taxation would probably end up reducing their debt pretty significantly.

Finance committee  Yes, of course.

Finance committee  There is one thing I have learned in economics, and that is never say never.

Finance committee  This may not have been mentioned, but I believe my colleagues are of the view that the probability of another recession in the United States is between 20% and 40%; we estimate the odds at 1 in 3. I am not sure, I think it is roughly between 20% and 40%—regardless, it is a pretty significant number.

Finance committee  It is being realistic, yes.

Finance committee  As is the case for many markets, I think that increases happen over short periods. So it is my sense that the housing market has grown considerably in recent years and that, given where family incomes and people's salaries are at, we cannot go any further. That is why I remain optimistic.

Finance committee  It is true that there is the issue of the quality of employment and that many of the jobs created were part-time. They may not be jobs people want, and it may not be a very good distribution of jobs, but at the very least jobs were created. In the United States, however, SMEs and businesses that normally create jobs have not done so.

Finance committee  When you look at Canada's economic performance for the past 10 years, you see that the economy has done relatively well overall, thanks, in part, to a cleanup of public finances. We had more freedom. The domestic economy grew much stronger. But the export sector is really hurting.

Finance committee  I think the government's plan was very sensible. We have made a lot of progress, I think, thanks to the strong recovery after the recession. If we stay on course, I think Canada will return to a balanced situation as planned, perhaps even a year early. But, as has often been said today, there are a lot of risks out there.

Finance committee  That is a very good question. Of course, it has a lot to do with the government's choices and the current economic situation. In Canada, the poverty rate is still high. Particularly after the recession, we are seeing that food banks are empty and many people are still in need. Different provinces are under a lot of pressure to increase the number of housing units for people who are disadvantaged or in need.

Finance committee  Yes, it is. But the residential housing market is not hurting right now. On the contrary, the market has experienced a boom in the past few years; there was a slight slowdown during the recession. Prices are higher now than they were before the recession. Yes, we have seen a bit of a slowdown in recent weeks, but that was on the heels of a very strong demand after the recession, because of the pent-up demand from people who wanted to buy during the recession.

Finance committee  I am going to say yes as well and I am also going to answer the other question on currency. When I made my presentation at the beginning, I said that the growing volatility of currency was a significant risk. So, the American dollar is showing a long-term downward trend and the Canadian dollar is on the rise and will continue to show a long-term upward trend.

Finance committee  That is an important question. If we go back a few months, when governments were starting to make their expenditure plans, there was fear of an inflation bulge. There were a number of inflationary fears in 2009, but I go back to the fact that demand is extremely weak. In the short and medium terms, demand in industrialized countries is much too weak.

Finance committee  I was making a comparison with the sub-prime mortgages we heard so much about in the United States and the United Kingdom. That is not really the case here; loans are made on a much more solid basis. In a sense, it is—

Finance committee  I agree with Carlos. I feel it is important to understand that those companies create jobs and we have to establish a structure that is as competitive as possible. But earlier, we were talking about a scenario with a lot of risk and uncertainty. I do not think there is a need to make many changes in the next few quarters or the next few years.