By Tom Bradley

The Canadian economy is a real conundrum to me.

Clink - Real estate sales have returned to previously robust levels and prices have recovered nicely from the lull in 2012 (if you can call it that).

Clink - Canadians bought 1.7 million new cars last year, which is a new record. The last record was set in 2002.

Clunk - Finance Minister Flaherty says the economy is too fragile to withstand increased CPP premiums.

What gives? Booming construction activity. A sizzling auto market. But Mr. Flaherty and Bank Governor Poloz keep saying our economy isn’t strong enough to support higher interest rates.

It certainly feels like we should test the waters on increasing rates, especially with the weaker loonie. If not now, when?