Breaking news:
Ottawa vows to kill new tax shelter for parents.
Bank shares plunge as subprime crisis deepens
New web site tracks real estate turmoil
Forget Chuck Cadman. Forget Brodie and Barack. Forget the mess we’ve created in the House of Commons. Hell, forget about all the sniping that goes on in Canadian politics, and on this hormone-laced little blog. When it comes to the daily life of most middle-class folks in this nation, there is a bigger threat looming.
I took a call from a woman in BC today. She and her husband’s life savings are frozen, and may never thaw, since the money was ‘temporarily’ put by an advisor into high-quality commercial paper which is now illiquid. There are thousands more Canadians in the same boat, victims of a failed attempt by bankers to stem a disaster.
But this is not the big threat.
Canada’s major banks have already written off billions and billions of dollars as a result of bad investment decisions, the US housing collapse, a global credit crunch and a looming recession. I hear there are billions and billions of losses yet to be announced, and that this will be the biggest banking bloodbath in Canadian history.
But the threat is larger, still.
Most of the world’s banks are still carrying on their books hundreds of billions of dollars in loans, almost all based on residential mortgages and their derivatives, at 20 or 30 times their actual value. The leverage bubble that was built up during the real estate bubble which burst in the US and is wobbling in Canada, has turned toxic. It’s not about subprimes or lousy borrowers or over-inflated asset values anymore, this is now about money that actually isn’t there. Money like the retirement savings of the couple from BC.
This is the threat.
As a society we have allowed a tangible asset, real estate, to become valued far beyond its real worth. This was facilitated by easy money in the form of subprime mortgages in the US and 40-year amortizations in Canada. Rising prices meant borrowers had to finance more, and bankers were happy to do that. The average house downpayment in Canada is now just 15%, and more than half of new home buyers put down 5% or less, and take a mortgage which is four decades long.
So long as prices rise, with enough buyers to match sellers, it continues. But when houses become too unaffordable, or debt rises in price, or loans become harder to get, or when potential buyers balk and wait, then prices decline, sales fall and the value of all those sold-previously homes erodes. The thing to remember about real estate, after all, is leverage. It is no longer possible for most people to get a house without debt. They must leverage the asset in order to acquire it.
But here’s the thing about leverage. In a rising market, it amplifies your gains. In a falling one, it amplifies your losses. And with real estate, especially, the dollars involved are substantial – especially for those who got in with 15%, or 5%, or 1.5% down. (That last number is accurate for most new home buyers in my community.)
Where are we now?
• In January, sales of pre-owned homes in Canada fell 6%, or an annualized rate of more than 70%, says the Canadian Real Estate Association.
• The number of people saying they are very likely to buy a new home within the next two years has hit the lowest point in 15 years, says the Royal Bank.
• Home resales in Toronto last month crashed by 11%, says the Toronto Real Estate Board.
• The number of people trying to unload their houses has suddenly mushroomed. Listings soared to a new record in January across Canada, up 9% in a single month, says CREA.
• Meanwhile, three million families in the US now owe more on their homes than they have in equity. House prices continue to collapse, and most experts think this will all go on for at least two more years.
I warned clearly last summer, and again in the autumn, that this was coming. We are on the verge of a correction in real estate values which will have implications for all. The global credit crisis which began in American residential neighbourhoods continues to fester. The Canadian financial fallout may be yet to peak. Billions more, ultimately the property of depositors and investors, will be erased. Once-valued assets will be judged nearly worthless. And everybody whose wealth became concentrated in a house will wonder how in God’s name this happened.
Trust me. You will have many to blame.
193 comments ↓
Very interesting, Garth … and now it begs the question: “which political party is best suited to carry Canadians through the coming economic problems?”
Will it be the “sociologist-led” Dion Liberals .. or the “economist-led” Harper Conservatives?? Canada will desperately need a strong majority government to sail the ship of state with a firm hand at the economic helm.
If we are heading into a full-blown economic depression filled with the corpses of strung-out Canadians and Americans, will Canadians want Dion or Harper as their Captain Canada ..??!!!
Who is best qualified to save Canada .. Dion or Harper ..??!!!
Hard to ascertain that right now. But we do know Mr. Harper has never had a job as an economist. In fact, he’s never met a payroll. I’d be a little cautious about picking your saviour. — Garth
Garth, This whole thing will be incredible. I wonder what will happen to the value of summer homes and cottages? I wonder this because of the ever increasing costs associated with vacation propertry ownership. The Conservatives were supposed to do something in the last election to change the capital gains on cottages but never followed through. This has made it tough on seniors and others when they want to sell their cottage or leave it to someone upon their death.
Garth, I understand that the CPC has increased spending by the stated LPC numbers of something like 14%. How would one find out what the percentage would be if you eliminate all the one time costs such as the much need military purchases etc. What is the increase in normal govt spending per say. Would appreciate a nudge in the right direction on this one.
Program spending does not generally include such expenditures, and it increased by over 6% last year, or twice the inflation rate. The numbers are included in budget documents on the Finance Department website, here. — Garth
Harry; I choose the kind, caring, empathetic Liberals over the bean counters who appear to scoff at the problems of the “ordinary Canadian”. (the term Harper uses to refer to those beneath him)
Who is best qualified to save Canada .. Dion or Harper ..??!!!
By Harry S on 03.06.08 10:10 pm
Hard to ascertain that right now. But we do know Mr. Harper has never had a job as an economist. In fact, he’s never met a payroll. I’d be a little cautious about picking your saviour. — Garth
………………………………………………………………………….
So what are the alternatives to Dion … certainly not Ignatieff or Kennedy .. perhaps Rae, McKenna or Dalton??
Who do the Liberals have in their stable of leadership hopefuls who can sail Canada through troubled economic waters looming??
Garth … you just can’t send out your economic SOS and then leave us drifting in our little lifeboats .. left to the uncertainty of the coming storm … Who can your Liberals offer to lead and guide HMS Canada …. YOU, a journalist cum financial guru …??!!!
What took ya so long, Harry? — Garth
And to think the front page of the Province was that the average house price in Vancouver area is closing in on 1 mil. Count me as one of the potential buyers waiting, as I don’t want the albatross around my neck for 25 years just now. Brand new house 2 blocks away just sold 2 days ago for 1.2 mil on the smallest lot in the area. Area average is around 700K so what that buyer saw that I am missing is beyond my expertise.
By Judy on 03.06.08 10:30 pm
Harry; I choose the kind, caring, empathetic Liberals over the bean counters who appear to scoff at the problems of the “ordinary Canadian”. (the term Harper uses to refer to those beneath him)
……………………………………………………………..
Sorry Judy … but the next majority Canadian leader will have to administer strong medicine to all Canadians, like he did on ITs, to save an economically storm-tossed Canadian economy. It’s not a job for some weak-kneed liberal-sociologist wimp… believe me.
The federal government must be pared down to it’s absolute essentials, and those programs and departments that are not essential to need will have to be eliminated. The central government must be made more efficient and less of a financial drain on the beleaguered Canadian taxpayer. No empathy required here … only harsh cost-saving measures will be needed. After this economic recession-depression is over, you will not recognize the lean and mean Canadian central government … ready to take on the world.. !!!
We will need a strong leader .. a smart leader .. a competent leader … and that ain’t Dion ..!!!
Who can your Liberals offer to lead and guide HMS Canada …. YOU, a journalist cum financial guru …??!!!
What took ya so long, Harry? — Garth
By Harry S on 03.06.08 10:32 pm
…………………………………
UDAMAN Garth … Go for it … !!!!
Garth:
What is the prescription for greed?
(I realize that is an unfair question but you may have some ideas.)
Upon a little more reflection, I guess what we need is an antidote since it seems the prescription for greed has been filled already.
By Harry S on 03.06.08 10:10 pm
or the “economist-led” Harper Conservatives
You do realize that Harper only has a Master’s degree in economics. If there is anyone who shouldn’t be running a country it is a person with a Master’s degree in economics.
If you are looking to compare credentials between these two leaders Harry I hate to break it to you but your guy is seriously underqualified.
With regard to the whole Dion is not a leader … sheesh, you bought into that hook, line, and sinker eh? Sometimes I wonder if you aren’t on the Conservative payroll to continually spew this meme. I know, I know, look at the polls you’ll say, but that is hardly an argument. Rational thought doesn’t seem to be your strongest suit Harry, you seem to be much better at follow the leader.
Know what I would like to see from the Liberal Party? A “Harper is not a leader” campaign … throw it right back at them. He lies, deceives, bullies, doesn’t care about all Canadians, and just isn’t very “prime ministerial”.
Sorry Judy … but the next majority Canadian leader will have to administer strong medicine to all Canadians, like he did on ITs, to save an economically storm-tossed Canadian economy. It’s not a job for some weak-kneed liberal-sociologist wimp… believe me.
By Harry S on 03.06.08 10:44 pm
Harry did you forget that the Conservatives have fizzled away the surplus when it wasn’t such a rainy day. Problem is, the conservatives never could count, so here we are again in a not so eviable economic position.
“Who do the Liberals have in their stable of leadership hopefuls who can sail Canada through troubled economic waters looming??”… Harry O.
Well there’s LOTS of real finance ministers to start with ( I vote finance guy first a la Paul Martin)…
Garth, John McCallum , Ralph Goodale,Dan McTeague…..Any one of whom would be 10 times better than EITHER Harper OR Flaherty…..
Hey Mick Jagger went to Economist school too (London School of Economics)
I guess that qualifies HIM to be Prime minister of Canada too.
Paranoid Android Harper is heading the WRONG way on a one-way street….Some leader….He’s already pissed of the NEXT president of the USA….I seriously doubt his integrity..
By Markus D. on 03.06.08 11:02 pm
You do realize that Dion only has a doctorate degree in Sociology? If there is anyone who shouldn’t be running a country it is a person with a doctorate degree in Sociology.
If you are looking to compare credentials between these two leaders MarcusI hate to break it to you but your guy is seriously underqualified.
With regard to the whole He lies, deceives, bullies, doesn’t care about all Canadians, and just isn’t very “prime ministerial… sheesh, you bought into that hook, line, and sinker eh? Sometimes I wonder if you aren’t on the Liberal payroll to continually spew this meme. I know, I know, look at the polls you’ll say, but that is hardly an argument. Rational thought doesn’t seem to be your strongest suit Marcus, you seem to be much better at follow the leader.
Know what I would like to see from the Conservative Party? A “Dion is not a leader” campaign … throw it right back at them. He lies, deceives, bullies, doesn’t care about all Canadians, and just isn’t very “prime ministerial”.
By Harry S on 03.06.08 10:10 pm
In Academia masters degrees in economics are a dime a dozen. In other disciplines, a masters degree means something, in economics it means little. If Harper had achieved anything worthwhile in economics he would have a PhD. Further, he has never worked a day in his life as an economist. He is definitely NOT an accomplished economist.
We do not need a leader is turning our country into a severe, fend-for-yourself, “winner-take-all”, society, especially now.
Garth … so tell us what you are doing to buffer yourself from the coming economic disaster?
Do you intend to sell your Halton residence? What about all your other properties?
Are you buying gold / precious metals with your cash? Are you withdrawing your money from the banks before their doors are closed?
Do you have a federal MPs pension you can depend on if you are defeated next election?
Any new books on the horizon, should you have to fall back on your journalist trade?
How are you personally preparing for the next two years or October 2009 .. whichever comes sooner?
And Dion spent made his bones as a university professor and your academic credentials are in English Literature so what “qualifies” our leaders is open to debate You may or may not know that various of the “business leader”-types were the folks overseeing the banks, investment firms, etc which led us into the current mess. You do know that, right?
As to you warning us about massively inflated housing, over-indebted buyers, etc that would have been as impressive as all hell if you’d been sounding the alarm a years ago, not last year. By then the alarm bell were sounding all over the place. The problem is that, in order to price real estate at a reasonable or sustainable level, would call for a substantial decline in prices and nobody; bankers, our political “leaders”, home owners will go through that looking good. I think there’s considerable awareness of what should happen, however a lot of people will be burnt if it does. Your solution is…?
Know what I would like to see from the Liberal Party? A “Harper is not a leader” campaign … throw it right back at them. He lies, deceives, bullies, doesn’t care about all Canadians, and just isn’t very “prime ministerial”.
By Markus D. on 03.06.08 11:02 pm
……………………………….
it is all how you look at it bud!
Ah, ‘Arry is back off solitary confinement I see, and posting with the obsessive / compulsive mania he is well known for!
Guess the next Review Board will be another six months, eh?
Now, for something completely relevant!
Garth, I say, is globalism rearing its arse in failure? I think so.
What was that song? “It’s the end of the world as we know…I feel fine!”
Started reading a new book yesterday “Original Instructions: Indigenous Teachings for a Sustainable Future” Edited by Melissa K. Nelson. What WISDOM!
Goodnight All.
By Markus D. on 03.06.08 11:02 pm
Aye! If Harper were from the Maritimes then he would be a Master Baiter, eh?
A party is more than its leader anyway. The Prime Minister isn’t even the one who writes the budget.
By Harry S on 03.06.08 10:10 pm; By Harry S on 03.06.08 10:32 pm; By Harry S on 03.06.08 10:44 pm; By Harry S on 03.06.08 10:46 pm, etc., etc.
Man, doncha have sumtin’ better to do? Strangely, there is more to life than Garth’s blog and politics.
At least for the vast majority of us, but you are a paid conCRAPneandertroll Harry, so you’re actually better off vomiting up your garbage. Gives the rest of us a good laff!
————————————————————————
… and that ain’t Dion ..!!!
It sure as hell isn’t harpo either, ‘coz when CRAP is officially eliminated from the voting forms very shortly, the Libs. will have to spend a few years fixing the mess CRAP has now put most of us into.
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. . . She and her husband’s life savings are frozen, and may never thaw, since the money was ‘temporarily’ put by an advisor into high-quality commercial paper which is now illiquid. . . .
Seems a little suspect. I’m not a fan of GIC’s or any “safe investments” like the aforementioned, but if I had a large wad of cash and wanted a small return, there is no doubt it would be in GIC’s.
One of the last newspaper columns you ran was about “the last fool in” (or something to that effect).
Here in the OK Valley, because there are so many retirees coming to live, if the real estate market stays flat, or has incremental increases, that will be okay. We’re gonna move into a smaller place once all the kiddies and grandchildren have gone.
Young people are still being bamboozled by glittering homes, luxurious condos, etc., yet they don’t have any concept of the reality of paying back debts.
Is it possible that no one has thought to let them know to start small, and build up instead of starting huge and losing the whole lot? What is wrong with a ten-year-old townhome, with none of the luxuries?
I’m getting old, and I simply can’t understand a generation who wants everything handed to them on a gilt-edged platter.
This is from a Washington State paper.
http://tinyurl.com/2z9phg
I’m looking forward to the housing market crash. The market is in horrible need of a correction, things are way to pricey right now for anyone my age (25) to even consider buying.
So, Harper has an economics degree.
Dubya has an MBA, and gee, that’s worked out real well.
By Harry S on 03.06.08 10:44 pm
Sorry Judy … but the next majority Canadian leader will have to administer strong medicine to all Canadians, like he did on ITs, to save an economically storm-tossed Canadian economy. It’s not a job for some weak-kneed liberal-sociologist wimp… believe me.
My blood just boils when I hear anyone mentioning income trusts! It reminds me of that lying SOB HARPER and FLATULENCE. The reason why I would NEVER vote Reform/CONservative again. By the way check the Canada Pension Plan investments site and you will see that the CPP were into the income trusts also. The CONS lost your money and mine with 18 pages of blanked out documents… Yup a huge Harpo pinochio sign right in the middle of my lawn….
Hey Garth, I’m with you on this one. I’ve mentioned a few times on your blog over the last couple of weeks that I’ve got visions of the early 80′s dancing in my head.
This is gonna be nasty. Really, really nasty. You know it, I know it, and most anyone who has been alive for more than 40 years and been paying much attention to the ways of the world knows it. Too bad Flaherty missed the boat. We’re headed for the tank and unless somebody wakes up real quick and does something to put measures in place to ensure the economy stays afloat, well, can you say high unemployment? How about high interest rates? Perhaps bankruptcy? Or better yet, bankruptcies galore?
And guess who is walking right into the middle of it? Yep, The Liberal Party when they win the next election. And everybody will end up screamng for your heads because you can’t legislate a simple fix. Flaherty had the chance to put measures in place, but he blew it.
People, get used to it would ya? We have to pay taxes to support life in Canada. No matter how much the Cons want you to believe that everybody can keep every single nickel they earn, it just doesn’t work that way in a social democracy. Ain’t no such thing as a free ride, no matter how much Albertans would like to think so.
The biggest problem with the Cons is that they have a bad habit of providing for those who need the least.
Damn I hate Conservatives. I used to be one until I finally woke up and realized that a truly Canadian lifestyle can’t happen as long as all of of us aren’t willing to give a little to ensure that all of us have something. The trouble with Conservatives is that all they see is ME. ME ME ME ME. Greedy C-Suckers that you are…
As for you Albertans wanting to jump down my throat. Have at it! Fact is, you’ve had it too good for too long without paying your due to the rest of the country. Seems to me that way back in the separatist days of the Reform Party you had a hard on for Ontario because you thought things were too good here. All that wealth and prosperity, how dare thay? Fact is, the eastern half of the country kept the country afloat during the tough times of the 70′s and 80′s and you folk out there had no problem with accepting federal welfare generated by prosperity in the east.
Welcome to Canada..
By Harry S on 03.06.08 10:10 pm
Very interesting, Garth … and now it begs the question: “which political party is best suited to carry Canadians through the coming economic problems?”
Will it be the “sociologist-led” Dion Liberals .. or the “economist-led” Harper Conservatives??
I’d rather put my money on sociologist-led than your stated alternative. Seems to me that Flaherty should have seen the signs of an impending economic downturn and missed the boat. Where was the economic stimulus in Flaherty’s budget? Where were the preventative measures in Flaherty’s budget? Oops.
Chantal Hebert stated on the CBC National last night that there was a plan from the Quebec Liberals to send an open letter to request Stephane Dion to step aside as a leader. However, they stopped because they were told that the other Liberals wanted to get some mileage from false Cadman accusations they were currently hurling.
“She and her husband’s life savings are frozen, and may never thaw, since the money was ‘temporarily’ put by an advisor into high-quality commercial paper which is now illiquid. ”
Would this advisor be similar to the advisors that “advised” to invest in Nortel in 2000?
Buyer beware should be in everyone’s mind when people have some monies to invest.
If you were silent more often, we’d think you were smarter. — Garth
The problem here is that the present two leading parties are misnamed, the CPC are the furthest thing from financial conservatives, they are certainly social conservatives but throw money about like a drunken sailor.(e.g. the largest budget in history) The liberals under Paul Martin turned into fiscal conservatives and social liberals so it is difficult to identify the parties by their labels. Needless to say, the present government has not shown any fiscal responsibility and the Dion liberals haven’t put forth an economic platform. The one thing we can be assured of however, is that times will be tough for a few years for some and forever for those whose investments were in ABCP…the banks here have yet to fully disclose their losses and UBS thinks it is triple what has already been disclosed worldwide.
Who is best qualified to save Canada .. Dion or Harper ..??!!!
By Harry S on 03.06.08 10:10 pm
Hard to ascertain that right now. But we do know Mr. Harper has never had a job as an economist. In fact, he’s never met a payroll. I’d be a little cautious about picking your saviour. — Garth
Well the light shines through….Ladies and Gentlemen……who bailed us out last time?…..Martin and Chretien…ya ya we hated it. Who spent all our goods in the pantry….Harper.. and who continues with their head in the sand “Flaherty” paying $122,000 for a dam speech. O/K is Dion perfect no, does he have a team and a network of people who will willingly contribute to the team speak up and be listened to….YES, Garth has been saying that for months….it must be true because Harper himself keeps harping on the fact of all chatter in their back rooms…Hello? Do we here word from Harper’s back rooms…NO….Never why, they sit like sheep parade to their seats and read their scripts.
Your choice your vote, but do not wait to speak up, do it now……last point if the Cadman & Obama Affairs do not strike a cord in your heat on “Honesty” give your head a shake, remember this, when the barn yard dirt hits the fan, Harper and his selected clowns will do just fine, and leave you/we/us to clean the barn yard….and blame it on ……who? The Liberals!
any bets?
Speaking of economists – it came out on TVO’s Steve Paiken, The Agenda, one night in a panel discussion that economists are WRONG 95% OF THE TIME.
Harry S. zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz
As usual you post drivel.
zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz
Speaking of economists – I watched a panel discussion on TVO’s, The Agenda, with Steve Paikin a few weeks ago it was discussed that economists are WRONG “95%” OF THE TIME.
I’d rather trust someone who’s been an economist/ANALYST and who’s had a real job in the financial world – someone like McCallum who was in a senior position and the finance sector of the Royal Bank, for example.
“Sorry Judy … but the next majority Canadian leader will have to administer strong medicine to all Canadians, like he did on I[ncome] T[rust]s, to save an economically storm-tossed Canadian economy.”
By Harry S on 03.06.08 10:44 pm
Dear Harry S,
Hahahaha… LOL… ha a ha a…. Ahhhh…….. HAHAHAHahaha… OMG!!! rotflmho…….. ahhhhhhh..
Once again Harry S you certainly AREN’T a True-man!!!
The only reason Harper taxed Income Trusts is so he could make it is easier to sell off corporate Canada to non-Canadian interests… Especially Oil production companies!!!
But that’s not where it ends Harry!
Minister Jim Prentice is in the process of reviewing the sale of a Canadian company that has developed THE MOST ADVANCED SATELLITE TECHNOLOGY in the world to a United States company!
A state-of-the-art satellite technology that will be U.S. OWNED if approved by Minister Prentice which will, by all accounts, jeopardize the sovereignty of Canada in many many ways.
The sale of this Canadian satellite company has been approved by both companies’ boards of directors for approximately $1.3 BILLION… the boards of directors represent their shareholders NOT CANADIANS!!
It is Minister Prentice’s JOB to represent CANADIANS on this proposed sale.
THANK GOODNESS it’s Jim Prentice who is representing Canadians on this decision because he is a man of integrity and we at least have a CHANCE that he’ll do the right thing and keep this company, and control of this technology, in Canadian hands.
I know Jim will do the right thing!
Sincerely,
MB
Read the story of the sale of the Satellite company sale here: http://tinyurl.com/3dtotl
What Canada needs is to undo some of the ill-conceived actions of the Harper government.
1. Move the GST back up to 7% (heck, why not take it to 8% or 9%) and take the billions of dollars that action would create and give it back to Canadians in the form of an income tax cut. This is what all of the leading economists in the country advised would be a much smarter strategy. And, work with all of the provinces to harmonize the GST with retail sales taxes. That would significantly lower the cost for business to invest in new technology, machinery etc.
2. Cancel the multi-billion dollar military expenditures. We are not a war-mongering vassel of the US and we don’t need all that military hardware anyway.
3. Institute a carbon tax and invest that money to help Canadian manufacturers and resource companies adopt new environmental technologies. It will help them increase their competitiveness and profitability as they make their operations more energy efficient.
4. Invest in infrastructure. Not at the paltry level that the Conservatives announced in the budget when they instituted many Liberal tax policies.
5. Accelerate the depreciation rate for manufacturers to allow them to upgrade technology more rapidly and increase their competitiveness. With the Canadian dollar at historic highs this would encourage business investment.
6. Take a strategic view of the economy and keep key industries like steel, atomic power generation, and hydro electric power generation in Canadian hands. Limit foreign control over our natural resources so we can initiate a national competitiveness strategy.
So what are the alternatives to Dion … certainly not Ignatieff or Kennedy .. perhaps Rae, McKenna or Dalton??
By Harry S on 03.06.08 10:32 pm
Harry, you always look at the alternatives within the LPC. But what are the CPC alternatives to Harper?
And when it comes to a steady hand on the rudder, do we want a finance minister, like Faherty, who knows only how to steer straight at the iceberg?
What are the alternatives there?
Remember the sub-prime mortgage problems in the US. occured under the Republicans, the idols of our PM. Their policies led to this mess. Do the CPC have the economic IQ to sail us through the looming icefield?
Just when Canadians might need it most.
EI overhaul underhanded
Fri. Mar 7 – 4:48 AM
CAN CANADIAN workers and employers expect to pay lower employment insurance premiums now that federal Finance Minister Jim Flaherty is turning EI into a self-financing Crown corporation?
Not likely, in our opinion. For it’s hard to imagine premium-payers getting a break if Mr. Flaherty gets away with the huge financial deception that lies at the heart of the underfunded EI restructuring announced in last week’s budget.
In a nutshell, the shell game is this: When EI shifts from government program to Crown corporation, its $54-billion accounting surplus is going to get lost in the shuffle. The Harper government is cynically wiping this debt to EI stakeholders off the books – though you won’t see any admission of this anywhere in the budget papers. Instead, Mr. Flaherty merely tells us that the government will provide the new EI with a $2-billion cash reserve and run the plan on a “go-forward basis.”
Now that’s a sweet deal for the finance minister. He’s redeeming the federal government’s $54-billion IOU to EI at four cents cash on the dollar.
It’s not a sweet deal for those who will pay future premiums. For $2 billion is not nearly an adequate financial reserve for EI.
In recent years, EI’s actuary has estimated that $15 billion is a prudent reserve for EI – if we want to ensure the fund can get through a recession, when payouts shoot up, without a dramatic spike in premiums as well.
So where does Mr. Flaherty suddenly get the idea that $2 billion is the appropriate financial back-up for the new fund? The budget, typically, doesn’t say. But it’s probably no coincidence that EI is currently taking in $3 billion more in cash every year than it needs to cover annual benefits. So Ottawa can easily fund a $2-billion reserve for the new EI out of the old EI’s current cash flow. Basically, Mr. Flaherty would be putting nothing into the new corporation beyond the cash raised from EI premiums this year, and maybe not even all of that. This is irresponsible and a disgrace.
http://www.thechronicleherald.ca/Editorial/1042305.html
Hot update on the environment…and such a typical response from ‘do nothing except embarrass Canada Baird’…blame the Liberals and not accept any responsibility for Conservative non-action on the environment. These turkeys embarrassed us at the Commonwealth Summit and at Bali.
“When it comes to environment policies the federal government doesn’t come close to making the grade, says a report released Thursday by Canada’s environment commissioner.
CTV.ca News Staff
Environment Commissioner Ron Thompson discusses his report at a news conference, in Ottawa on Thursday, March 6, 2008. (Tom Hanson / THE CANADIAN PRESS)
Ron Thompson gave a rating of “unsatisfactory” in nine of 14 areas. His status examined key issues broached by the government in the past and measured how much progress had been made.
The government needs to create better strategies to effectively protect people, plants, animals and habitat, he said.
“We don’t think that’s a very good track record, frankly,” Thompson told CTV on Thursday. “We have four chapters (in the report) on ecosystems, they (have all seen) unsatisfactory progress… In terms of the areas of concern in the Great Lakes, we’re not in very good shape at all.”
The government received failing grades in:
Protected Areas for Wildlife
Protection of Species at Risk
Control of Aquatic Invasive Species
Areas of Concern in the Great Lakes Basin International Environmental Agreements Strategic Environmental Assessment Greening of Government Operations
Listing of Species at Risk
Genetically Engineered Fish
Areas where the government received a passing grade including regulating toxic chemicals, mandating insurance for nuclear operators and cleaning up military dumpsites.
The report cited a lack of political will to dedicate money to environmental issues, which may not garner the same kind of political support as more hot-button topics.
“I’m left with the view, frankly, that there’s been far too much talk and far too little action,” Thompson said, noting successive governments have passed environmental laws and policies even they have failed to uphold.
RELATED: Groups demand action on environmental health
Some of the issues in the report go back years and are not focused on the current government.
Environment minister John Baird shrugged off any blame Thursday, saying the previous Liberal dynasty that failed to act appropriately.
“We can’t clean up 13 years of environmental mismanagement in two years,” Baird told CTV on Thursday. “We’re acting. We’re putting our money where our mouth is.”
Aaron Freeman, policy director for Environmental Defence Canada, disagreed. He was quick to note the government has had two years and two budgets to improve funding for the country’s environmental causes.
“We’re seeing $10 billion to pay down the debt but virtually nothing to clean the Great Lakes,” he told CTV.
Great Lakes need attention
Despite repeated promises to clean them up, the report said the Great Lakes remain a cesspool of problem areas and sewage. Of 17 “severely degraded areas of concern” identified for intense clean-up efforts more than 20 years ago, only two have since been addressed.
According to the report, problems in the worrisome regions included fish deformities, beach closings, and taste or odour problems with drinking water, harbours tainted by toxic sediments and rivers choked by surface run-off.
Yeah Catherine…and these ‘rumors’ were probably started by your neoCon masters.
Know what I would like to see from the Liberal Party? A “Harper is not a leader” campaign … throw it right back at them. He lies, deceives, bullies, doesn’t care about all Canadians, and just isn’t very “prime ministerial”.
By Markus D. on 03.06.08 11:02 pm
This is just the point. Most people recognize performance and leadership based on merit and capability. Harper’s gang have to use a marketing approach to suggest he is a leader.
Harper is impulsive…he is not a leader and based on party political support polls it looks like no one else thinks he is either.
I guess this blog belongs to Harry S, as he has the most posts and responses…I am staggered at how mnay of you fall into his trap everytime, he spews nothing but garbage and is repetitive with it as well…grow up folks and ignore him. He has to a Liberal plant trying to make the Cons look bad.
Pardon me for posting the whole article, but I think it worthwhile considering Garth posted on this the other day.
Ottawa vows to block education tax shelter
Tories go on defensive after Liberal MP sneaks bill through Commons that would allow parents to set aside up to $5,000 each year
KEVIN CARMICHAEL AND CAMPBELL CLARK
From Friday’s Globe and Mail
March 7, 2008 at 12:24 AM EST
OTTAWA — The Harper government vowed Thursday to kill legislation introduced by a Liberal MP and quietly passed by the House of Commons that would allow parents to contribute up to $5,000 a year to their children’s education and deduct it from their income tax.
The measure would cost the government $900-million and wreak havoc with projections contained in last week’s federal budget, which predicted a razor-thin surplus of $2.3-billion in the next fiscal year and $1.3-billion the following year.
“We will do everything in our power to stop this bill from progressing further as it represents a flagrant abuse by the Liberals of the use of private members business in order to spend taxpayers’ money,” said Chisholm Pothier, spokesman for Finance Minister Jim Flaherty.
Mr. Pothier would not say how Ottawa would stop the measure, which quickly and quietly passed through several stages of the legislative process Wednesday and was headed to the Liberal-dominated Senate.
However, the government could add an amendment to technical legislation to implement last week’s budget, said a person familiar with the government’s thinking.
The legislation, put forward by Toronto-area Liberal MP Dan McTeague, would treat registered education savings plans the same as registered retirement savings plans.
Unlike RRSPs, contributions to RESPs aren’t tax-deductible. Instead, Ottawa allows investments to appreciate tax-free. It also tops up a small percentage of parents’ contributions as an extra incentive to save.
Killing the measure would help Mr. Flaherty keep his promise of avoiding a deficit. But it puts the Tories, who philosophically favour tax cuts, in the position of killing what could be a hugely popular one, especially among middle-class families.
“Everyone knows the government’s budget situation for next year is pretty tight, especially with the downturn in the economy,” said Jack Mintz, the Palmer Chair of Public Policy at the University of Calgary. “This [the Liberal bill] could create a deficit for the next year.”
However, by attaching an amendment killing Mr. McTeague’s proposal to a future budget vote, the Liberals would be forced to choose between their colleague and forcing an election, something Leader Stéphane Dion has sought to avoid. Budget votes are considered matters of confidence.
Liberal MP Garth Turner said the government wouldn’t like Mr. McTeague’s proposal because families would choose the immediate tax breaks over Mr. Flaherty’s proposed tax-free savings account, the centrepiece of last month’s budget, which is only for after-tax income.
“It beats the poop out of it,” Mr. Turner said, comparing his colleague’s plan to that of Mr. Flaherty. “Families will think twice now.”
Mr. McTeague’s bill, which he said was inspired by what he heard while campaigning in the last election, would give parents a tax break on contributions of up to $5,000 for each child. He would maintain the current lifetime limit of $50,000.
“We can navel gaze about what this bill will cost today,” Mr. McTeague said in an interview. “The lost revenue would be gained down the road when kids get higher paying jobs.”
The bill passed Wednesday night with the backing of 156 opposition MPs, more than enough to overcome the resistance of 122 Conservatives.
“Dan was pretty excited,” said Mr. Turner. “He did not expect it to pass.”
In getting his bill through the Commons, Mr. McTeague achieved a rare victory. Backbench MPs have a success rate of about 1 to 3 per cent at getting legislation through without the support of the government, said Ned Franks, a parliamentary expert and emeritus professor of political science at Queen’s University.
“It’s very unusual for them to get past third reading,” Prof. Franks said in an interview.
Conservatives in the Senate could use procedural manoeuvres to slow the bill’s progress, but would ultimately succumb to the Liberals’ greater numbers. It would be unprecedented for Mr. Harper to ignore legislation approved by both houses of Parliament.
“If the government tried to ignore it, they would not be respecting the rule of law,” said Prof. Franks. “They could be taken to court over it.”
Oh what a refreshing way to start your day – the responses of Harry S (what does “S” stand for – slow?) and Catherine.
When God was handing out brains these two were no where to be seen – obviously.
I guess Catherine keeps a little catalogue of negatives to response – wow, impressive. I just bet she’ll call me slug again – my, my.
Hey, Catherine why don’t you go back for to say, Diefenbaker cancels Avro or something. Yawners or what.
My god,the sky is falling,run everybody,run,run.The economy just created 43000 jobs.The employment rate is 5.8 a 33 year low.
Those numbers, of course, reflect past economic activity. It’s what is coming we need to be concerned with. — Garth
By Johnny on 03.06.08 10:22 pm
I wonder if the insurance companies didn’t have something to do with the cancelation of the capital gains rollover promise. After all, one way to leave a cottage to ones children or grandchildren after death is to take out an insurance policy for the value of the estimated capital gains tax owed on the transfer of the capital property on death, and have the children or grandchildren pay the premiums.
Rising prices meant borrowers had to finance more, and bankers were happy to do that. – Garth
Which came first, the buyer wanting/needing to borrow more or the banking industry making it easier to do so?
The “rule of thumb” when I first bought a home was for a 25yr ammortisation, 2.5 times family income was the max to ensure that you didn’t exceed your capacity to pay.
But the problem with the sub-prime meltdown is not the extended ammortisation which allows people to borrow more, but that the banking industry also relaxed their qualification of applicants. If your credit rating was not so good, you could still get the loan and pay a higher rate. Well that was two strikes against to start with, too big a loan with too high a rate. All that was needed was interest rates to rise…
strike 3, and the deck of cards tumbled.
So what is the solution going forward?
Tighten the borrowing rules. Some will complain that will mean people won’t be able to get the loans. True, but did they ever consider that they should have them because they can’t support them?
Another complainaint will be that this will lessen demand and house prices will slump. Also true, but housing prices are now overinflated. When prices correct those who bought high will be stuck with negative equity. Financial institutions must be made to renew the loans, even with negative equity, without bias.
This has happened before, maybe not to the depths of this crisis. The banks and the borrowers made their beds. For the banks, they will have to continue with the risks associated with loans with negative equity, for the borrower, they will have to continue to pay on a mortgage debt higher than the value of their home.
The big problem occurs when either, in large numbers, start to jump ship, either by not renewing mortages upon renewal (banks), or by defaulting.
See the case of Northern Rock in the UK.
By Barb on 03.07.08 8:04 am
And Barb, those jobs were largely created in Ontario. So Mr. Flaherty should stay away from the press for the weekend.
When we were discussing the isotope crisis that led to highly unusual government action, I wondered if it really was an isotope supply crisis or an MDS Nordion sales crisis.
Imagine my surprise when I read in the Business section of to-day’s Ottawa Citizen that “Isotope slowdown hits Nordion bottom line”, since “shipment of isotopes … was halted for several weeks last year by a dispute … over regulatory issues.” (http://www.canada.com/ottawacitizen/news/bustech/story.html?id=8f322722-9c97-48ed-adc2-9eb40a72a396)
Mali soit qui mal y pense, but how do I emulate Nordion’s success and get this Government to leap to my assistance in trying economic times?
This is all happening as inflation is hitting the pocket books of regular Canadians, especially for food and fuel. Maybe those of you with big pay checks are not noticing the impact yet but for some it is becoming a major topic over coffee.
like Faherty,
By James- Chatham on 03.07.08 7:38 am
Ooops, golf vs. budgets. Maybe Faherty (David) knows more about finance than Flaherty (Jim)… I suspect the latter learnt all he knows from Mike Harris on the golf course.
Harper’s CONs, who claim to want to put more money back into the pockets of ordinary Canadians, have now pledged to block the RESP deduction form income tax. The only people benefiting from this CON dictatorship are Harper’s friends from the NCC.
http://www.theglobeandmail.com/servlet/story/RTGAM.20080307.wresp07/BNStory/National/home
Here’s an excerpt from the article:
“Killing the measure would help Mr. Flaherty keep his promise of avoiding a deficit. But it puts the Tories, who philosophically favour tax cuts, in the position of killing what could be a hugely popular one, especially among middle-class families.”
My god,the sky is falling,run everybody,run,run.The economy just created 43000 jobs.The employment rate is 5.8 a 33 year low.
By Barb on 03.07.08 8:04 am
Read this. And remember, that markets are a leading indicator, that is they look forward. They fall before problems hit and rise before things recover.
http://www.bloomberg.com/apps/news?pid=20602003&sid=aoVU4aweJjqM&refer=world_indices
Catherine: I watched Chantel Hiebert and no where did she use the word”false”accusations. What she did say was that some Liberal party members were going to ask Dion to step aside but decided to wait while the current Cadman and Nafta scandals were being aired. They were waiting to see if the current Con scandals would further diminish Harper’s polling numbers.
Once again you inserted adjectives that were never used.
In anticipation of next week’s Afghanistan debate, Norm Spector has an interesting take on political leaders and media perception in this issue:
http://www.members.shaw.ca/nspector4/globe321.htm
Did Dion just out-manoeuvre Harper?
http://www.theglobeandmail.com/servlet/story/RTGAM.20080307.wresp07/BNStory/National/home
I’ve got to say – I LAUGHED MY ASS OFF when I read this.
So the Cons – who “anti” tax (GST cuts, TSFA’s), “anti” nanny state programs (why should the government run the program ala no national day care) and “pro” giving people money to make their own decisions (ie. $100 cheque a month for “daycare”) are vowing to defeat or block the new RESP bill?
Garth – this is such a GREAT thing to have an election over.
Dion just came up with a superior plan (tax deducable RESPs totally kick the pants of TFSAs), and the Cons have to vote against it because THEY spent the cupboard bare with poorer choices. I love it.
Oh – the day just seems … I don’t know… brighter.
I’m not so sure that the CPC created jobs, but more that we have a shortage of labour/people.
CRAP no longer nimble, CRAP no longer quick.
CRAP going down….tick…tick…tick
Do you tink eet is eezy to keep a minoritee?
Good morning!
I watched Primetime Politics on CPAC last night and was amazed how the party strategists are mirrors, or the source, of the CRAP and NDP leaders.
The BIG (I look like a flunky security guard) CRAP guy had a smirk on his face the entire time…just like Harper.
The Dipper guy sounded like a teen in heat that has not figured out mature debate.
Both raised the question of which came first the chickenshit or the egghead?
Only the Liberal guy had a personality that was recognizable as an independent thinker.
The experience was like noting the difference between the writers being absent and present on The Daily Show and Colbert Report. When the true source of their opus is absent, they lack trueness.
One can see who the Puppet Masters are and who the puppets are. In Harper’s and Layton’s case the Puppet is the one we see speaking in the HoC. Either that or they have employed mindless bots to advise them of their own opinions including personaliy types.
It explained more than words here can express. It was like having the curtain pulled back and revealing the little man behind it.
Have a nice day!
Could someone tell me where I can find out the status of the Cons plan to bring in additional common seats?
Also, what can the Cons do to stop the private members bill to allow a deduction to RESP’s
I still can’t figure out this train thing with Flaherty. Does he have a train set or belong to a model railroad club?
THIS JUST IN! WHAT A BARN-BURNER!
Ian Brodie has told Prime Minister Stephen Harper he WILL NOW ACCEPT THE PRIME MINISTER’S RESIGNATION … DESPITE THE FACT THE PM has said, “I won’t leak the same way as I LEAKED on NAFTAGATE AND THE CADMAN AFFAIR!”
This announcement COINCIDES with Birdy [Boo!] Baird’s all-gnu emphasis on “SPESSHIES-AT-RISK,” which is expected later today.
http://corrigan.ca/april22-07.jpg
http://www.ctv.ca/mar/photo.html?pname=http://images.ctv.ca/archives/CTVNews/img2/20070501/460X_cp_baird_070501.jpg&win_width=620.0&description=Environment%20Minister%20John%20Baird%20stands%20during%20question%20period%20in%20the%20House%20of%20Commons%20on%20Parliament%20Hill%20in%20Ottawa,%20May%201,%202007.%20
Also, what can the Cons do to stop the private members bill to allow a deduction to RESP’s
By DoryD on 03.07.08 8:50 am
The can HUFF HUFF PUFF PUFF HUFF PUFF and then walk over to see the Governor General to tell her, “We’ve lost control and the apparent support of this Parliament, [sob, sob, sob!] AND WE NOW NEED AN ELECTION.”
Susan Delacourt on Politics
March 06, 2008
Tense and ugly affairs
Last night, BlackBerries in Ottawa were buzzing when CBC and CP confirmed that Ian Brodie, the Prime Minister’s chief of staff, was indeed the source of all the trouble for Barack Obama’s “Canada problem” in the U.S. presidential race. This is huge. We are expecting reverberations today.
Readers of this blog will remember that this is the second time Brodie has been outed, so to speak. Last week, ABC News in the U.S. also reported that Harper’s chief of staff was the leaker. ABC reported that the confirmation came from someone “close to the Prime Minister.” Now we’re getting a second confirmation, this time from the CTV reporters who received the leak. Brodie apparently was chatting to a clutch of CTV reporters in our federal budget lockup last week, they passed the news to their Washington counterparts, and thus, Obama’s troubles began.
And so, if Harper is looking to “get to the bottom” of this international incident, he need only look at the next office over.
A couple of things that shouldn’t get lost in today’s firestorm:
1. Brodie apparently also told CTV that Hillary Clinton offered similar reassurances to Canada – that all this talk of NAFTA was just campaign rhetoric. So why did CTV only pursue the Obama angle? And interestingly, CTV had not a word to say about this developing story on its news last night – at least the one I viewed at 10 p.m.
2. Clinton’s officials are confirming that this incident helped seal Obama’s poor results in the Ohio primaries. That’s serious too. Obama will remember Canada, and not in a nice way.
3. In ordinary times, heads should roll in Ottawa for how this government has responded to this incident and the whole controversy over whether a $1-million life-insurance policy was offered to the late MP, Chuck Cadman. The statements in the Commons and from the PMO to reporters, to be diplomatic, have hovered at the fringes of out-and-out untruths. I didn’t write that last sentence lightly. These are tense and ugly affairs and many of us will be writing about them in the days to come.
http://thestar.blogs.com/politics/2008/03/tense-and-ugly.html
Alternatively, you could choose THE BIRDY [BOO!] BAIRD Modern Scientific Method;
Form clique of friends
•Announce new “ground-breaking paper” to the press. Announce “result” in sound bite form.
•Get papers published peer reviewed by friends
•Go to United Nations and declare “the science is settled”
•Denigrate other scientists who disagree with you as “Deniers” and in league with [insert scary corporation here]
•Praise other “independent” scientific papers written by your friends which miraculously support your hypothesis.
•Repeat the above two processes so that you and your friends get lions share of grant money while your opponents are starved of funding and attention.
•Hide data/methodology so as to prevent replication. [Like Flim Flam Dim Jim Flaherty on Income Trusts]
•Make sure only copy of data is on a floppy disk and never, ever backed up like normal people.
•Start weblog.
•When cornered, declare that “science has since moved on”
It could go on for years.
What does Rona say? Nod! Nod! Nod!.
Both raised the question of which came first the chickenshit or the egghead?
By Bill-Muskoka on 03.07.08 8:49 am
Bill – you should do a stand up, political comedy routine. You kill me!
LMAO!!!
BIRDY [BOO!] BAIRD “STOOD UP” THE CANADA YOUTH DELEGATION AT BALI, WHILE CLAIMING IT WAS PART OF THE HARPER 42-PAGE PLAN ‘STANDING UP FOR CANADA!’
http://ca.youtube.com/watch?v=gb2ArjWsNcg
EBENEEZER HARPER GETS SCROOGED … TWICE!
http://multimedia.thestar.com/images/22/5d/acf5861a44ddaa6c094e57d1864c.jpeg
This RESP bill is delicious. Harper must be having fits – not only has this made his measly TFSA look bad, it’s made all of his past budget decisions look incredibly foolish and ill-conceived. Now the Liberals have come up with an idea that beats the pants off of anything the Cons have put forward to date – something that actually HELPS CANADIANS – and Harper wants to block it.
Nah nah naaah naaah, hey heeey…goodbye.
they lack trueness.
By Bill-Muskoka on 03.07.08 8:49 am
Colbert calls it ‘Truthiness,’ Bill.
Yeah Catherine…and these ‘rumors’ were probably started by your neoCon masters.
By TS on 03.07.08 7:43 am
so TS, you are calling Chantal Hebert (from the Toronto Star) a liar. Right?
Point of interest to note:
Rex Murphy got it WRONG last night because he was not upto date that it was the CLINTON campaign who was behind the statements regarding ‘not to worry’, not the Obama campaign.
Things are moving swiftly now, just as a river does when nearing the FALLS!
Garth, can you please explain how this new RESP would work?
Can grandparents contribute to the new RESP?
Should parents or grandparents put the maximum into this new RESP (5,000 a year upto 50,000 lifetime), will they be able to claim tax credits against their own taxes in the year of the contributions?
When withdrawals start, who claims these withdrawals on their taxable income?
What if the child does not go to the post secondary institutions, what happens to the RESP account? Can the contributors then roll it over into their RRSPs? What happens if they have already max out their RRSP?
There are many reasons for a child not to attend post secondary education – the child does not meet the entrance standars (marks, etc.); the child dies; the child chooses not to attend; the parents relocate to another country.
While this plan, on the surface, is interesting, the answers to these questions need to be answered.
Here you go. Enjoy. — Garth
Willy Wonka Jim Flaherty & his hypocrisy factory
http://caiti-online.blogspot.com/2008/03/willy-wonka-jim-flaherty-his-hypocrisy.html
Colbert calls it ‘Truthiness,’ Bill.
By PYOTR PETROBITCH on 03.07.08 9:41 am
Yes he does! LOL I loved his ‘Where-O-Meter’ Tuesday night!
It has gotten to the point that Stewart & Colbert give better and more accurate news than the network Talking Heads! LOL I record both shows every night, or stay up and watch them.
You’re quoted in the Globe article as saying, “Families will think twice now.”
No, they’re not. It’s not worth considering the tory option over Mr. McTeague’s bill. McTeague’s wins hands down. The $5000 tory savings account is completely out of my reach because it’s after tax and if I have to choose between my own retirement savings and my kids education my kid wins every time. To have it be pre-tax is a policy that has ZERO compromises. I don’t have to think twice. I barely even have to think about it.
If it takes forces an election over it if the Tories attach it to a budget somehow then then force the election. Letting the LPC back away from this one is not an option. Your so perfectly in the right on this one and it’s a dream situation for you guys where Harper will find himself fighting a good, no compromise, tax cut for the middle class vs. a bonus for the rich.
Please, please, please don’t let them kill this.
By Lisa, NL on 03.07.08 9:28 am
LOL Thanks Lisa!
I think I will stick with the Sit Down comedy instead. I makes my back ache bending over to type! LOL
More questions, if the child gets full scholarship or partial and doesn’t use the balance, what happens to the balance?
Can the RESP be shared by other children?
Here you go. Enjoy. — Garth
By Catherine on 03.07.08 9:57 am
As follows –
1st Session, 39th Parliament,
1re session, 39e législature,
55-56 Elizabeth II, 2006-2007
BILL C-253
PROJET DE LOI C-253
An Act to amend the Income Tax Act (deductibility of RESP contributions)
Loi modifiant la Loi de l’impôt sur le revenu (déductibilité des cotisations à un REEE)
R.S., c. 1 (5th Supp.)
Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
Sa Majesté, sur l’avis et avec le consentement du Sénat et de la Chambre des communes du Canada, édicte :
L.R., ch. 1 (5e suppl.)
1. Paragraph 60(i) of the Income Tax Act is replaced by the following:
1. L’alinéa 60i) de la Loi de l’impôt sur le revenu est remplacé par ce qui suit :
Premium, contribution or payment under RRSP, RESP or RRIF
(i) any amount that is deductible under section 146 or 146.1 or subsection 147.3(13.1) in computing the income of the taxpayer for the year;
i) toute somme qui est déductible, en application des articles 146 ou 146.1 ou du paragraphe 147.3(13.1), dans le calcul du revenu du contribuable pour l’année;
Prime, cotisation ou paiement dans le cadre d’un REER, REEE ou FERR
2. (1) The definition “RESP annual limit” in subsection 146.1(1) of the Act is amended by striking out the word “and” at the end of paragraph (b) and by replacing paragraph (c) with the following:
2. (1) L’alinéa c) de la définition de « plafond annuel de REEE », au paragraphe 146.1(1) de la même loi, est remplacé par ce qui suit :
(c) for 1997 to 2005, $4,000,
(d) for 2006, $5,000, and
(e) for 2007 and subsequent years, the total of the RESP annual limit for the preceding taxation year and the product obtained when the RESP annual limit is multiplied by the average percentage change in the Consumer Price Index for the year in question, published by Statistics Canada under the authority of the Statistics Act;
c) pour chacune des années de 1997 à 2005 : 4 000 $;
d) pour 2006 : 5 000 $;
e) pour 2007 et chacune des années suivantes : la somme du plafond annuel de REEE pour l’année d’imposition précédente et du produit de la multiplication de ce plafond par le pourcentage de variation moyenne de l’indice des prix à la consommation publié par Statistique Canada en vertu de la Loi sur la statistique pour l’année visée.
(4) Section 146.1 of the Act is amended by adding the following after subsection 146.1(2):
(4) L’article 146.1 de la même loi est modifié par adjonction, après le paragraphe 146.1(2), de ce qui suit :
Amount of RESP contributions deductible
(2.01) There may be deducted in computing a taxpayer’s income for a taxation year such amount as the taxpayer claims not exceeding the lesser of
(a) the total of all contributions made by the taxpayer into a registered education savings plan in the taxation year; and
(b) the RESP annual limit for the taxation year.
(2.01) Un contribuable peut déduire dans le calcul de son revenu pour une année d’imposition le montant qu’il demande, à concurrence du moins élevé des montants suivants :
Déduction des cotisations versées au REEE
a) le total des cotisations qu’il a versées à un régime enregistré d’épargne-études durant l’année d’imposition;
b) le plafond annuel de REEE pour l’année d’imposition.
(5) Subsection 146.1(7.1) of the Act is amended by striking out the word “and” at the end of paragraph (a), by adding the word “and” at the end of paragraph (b) and by adding the following after paragraph (b):
(5) Le paragraphe 146.1(7.1) de la même loi est modifié par adjonction, après l’alinéa b), de ce qui suit :
(c) each refund of payments made in respect of any contribution paid by the taxpayer after 2005.
c) chaque remboursement fait à l’égard d’une cotisation versée par le contribuable après 2005.
(6) Subsection 146.1(7.2) of the Act is repealed.
(6) Le paragraphe 146.1(7.2) de la même loi est abrogé.
3. [Deleted]
3. [Supprimé]
Published under authority of the Speaker of the House of Commons — Garth
Interesting that CTV’s President refused to comment on his organization’s participation in Obama Bashing!
Faux News North shows its true colours once again!
Yeah Catherine…and these ‘rumors’ were probably started by your neoCon masters.
By TS on 03.07.08 7:43 am
so TS, you are calling Chantal Hebert (from the Toronto Star) a liar. Right?
By Catherine on 03.07.08 9:42 am
I have found that Hebert is willing to take liberties with the truth. She does not have good judgement when it comes to believing sources and in the past has had to resort to being less than truthful to cover-up her inadequacies.
“The experience was like noting the difference between the writers being absent and present on The Daily Show and Colbert Report. When the true source of their opus is absent, they lack trueness.”
Bill, I thoroughly enjoy your posts, and I am a fan of The Daily Show and the Colbert Report as well. I am not sure what you meant about the above statement though. Did you mean you enjoyed the show more without the writers (which I did) or with the writers? The phrase “true source of their opus” is the phrase I am unfamiliar with.
And what happened to Rick Mercer? Seems his shows have been repeats lately!
Here you go. Enjoy. — Garth
By Catherine on 03.07.08 9:57 am
Garth, BAD link due to a double http
Corrected the link is this one
OOPs, wrong link.
Here it is CORRECT!
By Drew on 03.07.08 3:26 am
You have stayed up way to late, you need rest to clear your mind. The biggest problem for Alberta in the 80′s was the rape of the NEP instituted by the Lib’s
as way of transferring wealth to their political strong holds in the east. The best government that we can have is a Harper majority in the event our economy
takes a nose dive. There is no political party that will prevent economic corrections. Yes in Alberta we believe in working hard, taking chances, and helping less fortunate as much as any other.
The housing market is an extremely strange beast. Last year I was reading reports from California about massive, still ongoing construction in developments where multiple new homes were “FOR SALE” and “REDUCED”. New strip-malls were still going up despite completely empty similar developments in surrounding neigbourhoods.
It reminded me of a science fiction scenario where the machines keep on mining, building and making armaments although their human masters had died out long ago.
Locally, I see non-stop construction of new dwellings. I can’t imagine where all those people would find work in this small community. Our statistics seem to indicate that when our economy slows down, employment goes up. Strange.
Because of the time lag, the financing process energizes development to take on a life of its own, long after it should have tapered off.
Unemployment rate remains unchanged at 5.8 per cent
The jobless rate in Canada held steady at 5.8 per cent.
Economy adds 361,000 jobs over the past 12 months
Mar 07, 2008 08:01 AM
THE CANADIAN PRESS
OTTAWA–The economy added 43,000 new jobs in February and the unemployment rate held steady at a 33-year low of 5.8 per cent.
The job gains were in full-time private-sector jobs and were concentrated in Ontario, Statistics Canada reported Friday.
The proportion of Canadian adults holding jobs rose to a record 63.9 per cent, as the economy has added 361,000 jobs over the past 12 months.
Well done CPC…..
The new Flow of Funds is in.
Households and Nonprofits (L100) fell 0.56% from the previous quarter.
sheds a whole different light from the norm on the phrase “deflationary monetary policy”.
By TS on 03.07.08 7:36 am
I completely concur.
This is from a Washington State paper.
http://tinyurl.com/2z9phg
By Charles Oxley on 03.07.08 1:18 am
Mabye it was an old memory, maybe it was an epiphany/premonition… but weeks before GWB came out with his hail mary spend and consume our way of an economical meltdown with a $150 billion dollar handout scheme, I sensed that 8 months after the announcement was to be made, the U.S. economy would crumble harshly. The markets should begin a spiral typical of the U.S. Nasdaq/NYSE collapse of 2003, only the bottom will lagger. Spidey senses are tingling Charles, spidey senses are tingling.
Two things will happen naturally that will need no extra help in explaining. By the end of the century, the U.S. dollar will be next to worthless and GWB will go down in history as the worst ever president. Neither of these will help Harper look shiny when history looks back in questioning those who would back such a loser.
By Barb on 03.07.08 8:04 am
Plenty of investors in early 1929 said the exact same thing as you!
Mr. Flaherty’s Conservative Tax-Free Savings Plan benefits rich families, while Mr. McTeague’s Liberal Registered Education Savings Plan benefits all families.
Sounds about right, coming from a conservative, non?
-R
To save a lot, you must earn a lot
http://www.thestar.com/comment/article/309368
Artfully clever scheme achieves Tories’ goal
http://www.thestar.com/Article/307325
RESP, RRSP and TFSA: how they work
http://www.theglobeandmail.com/servlet/story/RTGAM.20080306.wrespside0306/BNStory/National
Are we surprised that the Cons. would try and quash Mr. McTeague’s RESP tax deducability.,.. no…
and for the second time in two days, I’m eating soap because the numbers would seem to justify it.
Assume $2500/year (gives max CESG) for 12 years at 8%.
Both using after tax dollars (current RESP rules) and that the child will be paying an average of 11% tax ($20,000 income/year will do that, marginal 21%)
Then:
RESP
2500 annual contribution and
500 CESG
grows to $61,485
tax 11%
leaves the child with: $54,722
Proposes TFSA
2500 annual contribution
no cesg
grows to $51,238
child pays no tax, neither does parent on withdrawal:
Child gets $51,238
End result, even without being tax deductable, the RESP is still better than the TFSA for saving for education, because of the CESG (20% refund essentially) being more than than the tax on withdrawal.
Now here’s an even better one:
What if the RESP worked the same as an RRSP, tax deductable, but no CESG, still taxable in the hands of the child…
at 40$ $2500 after tax would be $4166 before taxes.
Therefore $4166 at 8% for 12 years is
$85,397.
Child taxed at average 11% (Probably slightly more) leaves $76,000.
I know its all a number crunching exercise, but we can’t have our cake and eat it…. personally, I’d take the cake (last option) but its not on the menu!
Pecked to Death by Ducks on 03.07.08 10:29 am,
There is a huge delay in the impact of economic changes on development projects. When I was in Florida last spring there was all kinds of high end condos, in the million dollar plus price range, under construction. At the same time real estate agents were telling us that the market for these condos had virtually collapsed.
In the area where I live people are continuing to create new sub-divisions although there are dozens of sub-divisions in which there is no construction activity.
By C. B. Innes on 03.07.08 10:22 am
So you are calling Chantal Hebert a liar and not credible. Right?
Thanks Garth for the link, but it still doesn’t answer my questions, namely, if the child does NOT attend post secondary, what happens to the balance!
As you would expect, it becomes taxable if not rolled into an RRSP, subject to one’s allowable room. There are details yet to be clarified, but this is one likely outcome. — Garth
Imho the biggest news this week was the Bank of Canada is considering accepting collateral such as U.S. subprime mortgages, credit card receivables and auto loans.
Ref: Bank of Canada to set terms for ABCP collateral
The Liberals approved this?
Not forgetting politics as economic clouds gather, Aaron Wherry has a couple of goodies from the Commons yesterday.
The bold print in the first post provides a priceless example of how truth is treated by this Government.
http://forums.macleans.ca/advansis/?mod=for&act=dis&eid=62
Catherine: I watched Chantel Hiebert and no where did she use the word”false”accusations. What she did say was that some Liberal party members were going to ask Dion to step aside but decided to wait while the current Cadman and Nafta scandals were being aired. They were waiting to see if the current Con scandals would further diminish Harper’s polling numbers.
Once again you inserted adjectives that were never used.
By Judy on 03.07.08 8:37 am
Yeah Catherine…and these ‘rumors’ were probably started by your neoCon masters.
By TS on 03.07.08 7:43 am
so TS, you are calling Chantal Hebert (from the Toronto Star) a liar. Right?
By Catherine on 03.07.08 9:42 am
No, dummy, TS is calling YOU a liar. Apparently, Judy is as well.
But this is not news, this is reality.
Conservatives in the Senate could use procedural manoeuvres to slow the bill’s progress, but would ultimately succumb to the Liberals’ greater numbers. It would be unprecedented for Mr. Harper to ignore legislation approved by both houses of Parliament.
“If the government tried to ignore it, they would not be respecting the rule of law,” said Prof. Franks. “They could be taken to court over it.”
By kpn on 03.07.08 7:55 am
I thought conservatives were all for tax cuts for the working family?
Flaherty: He of tax credits for private school tuition, vows to block post secondary education tax shelter
Ottawa vows to block education tax shelter
Tories go on defensive after Liberal MP sneaks bill through Commons that would allow parents to set aside up to $5,000 each year
KEVIN CARMICHAEL AND CAMPBELL CLARK
From Friday’s Globe and Mail
March 7, 2008 at 12:24 AM EST
OTTAWA — The Harper government vowed Thursday to kill legislation introduced by a Liberal MP and quietly passed by the House of Commons that would allow parents to contribute up to $5,000 a year to their children’s education and deduct it from their income tax.
Hi Garth,
You’re right, as usual. And I’m part of the problem.
I’m not buying a home this year. Prices are too high. I’m balking. I’ll have none of this craziness.
I’ll also point out that there are comparatively very few people my age. We’re the ‘baby bust’, those who were born into one of the worst recessions in Canada (hence, many people didn’t plan on having kids). So, not only are there fewer first time buyers because of the market, there’s just fewer of us in absolute terms.
Are we Busters sheltered from the recession? No. Not entirely. If I didn’t have high demand skills, I’d be freaking. If I was overpriced and sinecure, yes. I’d be freaking.
Concerned, yes. Recessions aren’t fun. The recession of 1988-1993 taught me: “get skills. Don’t do a trade. You’ll get screwed”. Glad I learned that lesson.
Not forgetting politics as economic clouds gather, Aaron Wherry has a couple of goodies from the Commons yesterday.
The bold print in the first post provides a priceless example of how truth is treated by this Government.
http://forums.macleans.ca/advansis/?mod=for&act=dis&eid=62
By Herb on 03.07.08 10:57 am
Great article.
On Monday, the Prime Minister denied there was anything askew. On Tuesday, he said the government would investigate only part of the controversy. On Wednesday, he was louder and angrier in his response, but no more forthcoming. But at this question he suddenly announced a full inquiry.
“I have to say very clearly, Mr. Speaker, we will investigate this entire matter and take whatever action is deemed to be necessary, based on the facts we are able to discover.”
He might’ve left well enough alone at that point, but, as is his habit, he didn’t.
“I would point out to the Leader of the Opposition,” the Prime Minister added, “that when he was throwing around wild accusations of scandal, the leader of the NDP was already on top of this issue.”
The Conservatives laughed hard at this one.
But up again came Dion. “Mr. Speaker, it is the only defence of the Prime Minister that we do not know how to choose among all the scandals he has.”
At that the laughter suddenly stopped.
“Ouch!” yelped a mocking voice from the opposition side
Trust me. You will have many to blame.
posted by Garth Turner on 03.06.08 @ 9:59 pm |
that’s right – All those fools that thought they could finance their retirements living in houses larger that their needs can just take a good long look in the mirror.
WAKE UP EVERYBODY!!!! Libs and Cons alike.
NEWS FLASH!!! No government has neither the ability nor the will to protect our citizens from physical or financial harm.
We would all like to think so but sadly it’s not the case.
Right now as we exchange comments , our gov’t along with the US feds are printing money at a break neck speed. This is called inflation and it is being caused by our gov’ts who have apparently decided on our behalf that we should bail out the New York banks first . You have to ask yourself, any chance the gov’t is going to throw a couple hundered thousand my way or your way? Not.
Money and wealth are two different things. Our money is being inflated and our wealth is being undermined. And so the end result of these events simply adds to the demise of the middle class.
Is there a leader out there somewhere that understands this and has the ability and the will to do something about it.
I’m still looking
Like Rope always says! Cash is GOOD!
So Harper, not Ottawa (what a vain attempt to whitewash Harper’s actions), plans to tell the Senate what to do…AGAIN?
Did Steve ever study anything relating to democracy or how Canadian government is structured?
Oh, that’s right, he is a Master ‘Bean Counter, which ex-plains his continuous Brain Farts!
The Liberals approved this?
By Pecked to Death by Ducks on 03.07.08 10:54 am
1. The BoC is supposed to opperate in cojunction with, but at arms length from, the Government.
2. last time I looked, it was the financial neo-con ideologs of Harper and Flaherty running the country’s finances.
So asking about the Liberal approval makes no sense.
Unless of course, the Cons haven’t spoken up to advise their new BoC governor appointee that he’s on another planet suggesting that these forms of debt could be used as collateral, and the Liberals haven’t either!
Talk about digging the sub-prime and credit meltdown hole deeper. If the BoC is making these suggestions, they just brought in a TBM!
I cuaght a bit of QP today and watched the posturing by the NDP and CONS attacking Liberals for everything and anything.
On the climate change issue – ah, Harper’s government have been in power 26 months now – Dion was only Env Minister for just over a year.
Also, if the environment was so important to the NDP what was Layton doing at the CanWest party with Harper instead of honouring Nobel prize winner for his work on the environment?
Catherine on 03.07.08 10:46 am,
I am saying that she is not creditable.
One of the problems is that many in the media are prone to manipulation because “sources” can target them with propaganda without having to prove what they say.
A couple of weeks ago Mike Duffy was all excited about a leak from the PMO that the government would fall on March 4. He based part of his broadcast on that bit of information. Was it accurate?
In fact, I heard a discussion among journalists recently on the issue of reporting based on these “off the record” reports from those who never have to defend what they say. Apparently the practice has become so prevalent that some journalists are starting to question just how they are being used by political manipulators.
Those in the media who have a natural bias one way or another tend to be the ones targeted by those who seek to use their bias for their own purposes.
Hubert has always exhibited bias against certain individuals including against Dion. Political operatives know that she is more likely to accept what they say and print it if it shows Dion in a bad light.
I had an exchange with her over opinion verses fact and sources. It all started over what I saw as a clear bias against a Conservative MP. I discovered that what she had written was not backed up by fact (although she argued that her opinion was “fact”) and instead was based on an inaccurate depiction of the issue from a blogger. The source she gave me for her “fact” did not include the information she claimed it did but she depended on the probability that I would not have taken the time to check the source, which I did.
The problem of political operatives using certain targeted members of the media is also true for Mike Duffy and other CTV employees. That is why the PMs chief of staff was comfortable telling CTV reporters about the NAFTA comments. These media personalities allow themselves to be used in order to get a “scoop.” In this case, they probably did not have the resources to follow up on the story and gave it to a U.S. network that let the cat out of the bag.
While columnists like Hebert are hired to present opinion, they should try to base them on fact but they don’t bother often because it takes a great deal of time and work to verify the accuracy of information.
It may not be good journalism but it is the reality of the Canadian media today.
Garth, I say, is globalism rearing its arse in failure?
By Bill-on 03.07.08 12:17 am
Well done Bill.
In tribute you deserve a response in recognition yours is the only post on topic and meaningful.
I`ve said this before but because Garth has the courage to open the topic and you nailed it, it is fitting I leave this with all for more consideration.
One post on the basic problem and not one response. Not that RESP isn`t a worthy subject but it is as far off topic in dealing with the problem as is the multiple `who`s the best leader posts`.
The best leader is the one with the plan to solve the problem.
Here`s the problem, who has the plan?
The US consumer makes up 70% of their economy while we export 70% of our goods to the US.
The can be no Cdn plan to put US consumers back on their feet.
Even with the trading advantage the US dollar has, US manufacturing is not doing well which means global consumers are in the same boat. This is a global problem so only a global solution will work.
We can put together a few plans like RESP to ease landings but it won`t change the overall picture.
To complicate matters at last report there was $12T sitting idly in cash accounts. This has likely climbed to $15T and I have no doubt it will continue. My predictions on reaching $20T is not healthy while $25T will take the best investment opportunity, which will be armaments.
We have a choice, war as a result of the retraction of globalization or a solution that creates jobs globally.
Garth and a few of us warned last year about the economic situation taking place now.
A few of us have warned about the consequences of a global meltdown.
Don`t bitch about not having enough warning
Leave out the partisan opinions, the ideology arguments and the finger pointing, pick a leader with a plan or buy a flak jacket.
Rope always says! Cash is GOOD!
By Bill 03.07.08 11:35 am
lol, I`m hanging up my keyboard and now you notice. It goes like this, you`re a day late and I`m a dollar short but thanks for noticing.
btw I changed it to `fill in blank`.
heh “scooter-brodie”… classic =P
Off topic but oh, so important:
When you adjust your clocks, please, please, please CHECK YOUR SMOKE DETECTORS AND CHANGE THE BATTERIES!!! MAKE SURE THEY ARE IN GOOD WORKING ORDER. Too many tears have been shed because people failed to do this.
Landlords: Do not ‘trust’ your renters, get off your asses and make sure these detectors are WORKING!
Thank you,
Leasa
I just noticed that Garth’s new Real Estate Blog is now open for comments.
http://www.greaterfool.ca/
congrats Garth
By kpn on 03.07.08 7:40 am
From your referenced article;
“Starting with Paul Martin, finance ministers have used this $54-billion mountain of excess cash, first to balance the budget, and later to pile up large surpluses. Legally, however, the money was a loan from EI and was supposed to be paid back by lowering future premiums paid by workers and employers. But the Liberals fudged this obligation by changing the rules so that the finance minister could ignore the EI surplus when setting premiums, and the Tories have continued the charade.”
Recently Minister Flaherty stated many Ontario residents who were receiving EI benefits, shouldn’t be. The intent now becomes more clear. Apparently the Mini-ster does see the fund as his to raid. Why not? After all the Liberals plowed the first furrow. Then there was that little GST fib. All in a good cause wot? Keep the Cybil Service growing and the trough full too!
Pip Pip hooray!
I read where Lizzie May had a tree huggers party and guess who was there? Michael Chong – does Harper know about this – or, was Chong a spy?
Mr. Flaherty’s Conservative Tax-Free Savings Plan benefits rich families, while Mr. McTeague’s Liberal Registered Education Savings Plan benefits all families.
Sounds about right, coming from a conservative, non?
-R
By Rob Wiebe on 03.07.08 10:38 am
Any plan that allows for income to be reduced for tax puposes always benefits the rich more than the poor!
The TFSA is a non issue, you pay the taxes up front or at the end. And if you’re still in the same tax bracket, you’ll end up with exactly the same dollars as if you put the money in an RRSP!
As stated earlier, the 20% CESG can be equated to a tax refund. And now you want tax deducability of the total contribution as well. If that doesn’t help the rich more than the poor, I don’t know what does.
Maybe a better solution wuld be to extend the CESG on all contributions. But then again, this would help the rich more as they are the only ones making the full $5000/year contribution.
Whichever way you cut it, the one who pays more tax will always get more back from any tax break, in dollar terms, or as a percentage of their contributions because of our progressive tax system. Only solution to that….. flat tax.
Whatever happened to that idea Mr. Harper? Oh, it treats the rich the same as the poor. Heaven forbid, Mr Harper.
Whoops – I owe an apology – Layton was a both the tree hugger party (honouring our Nobel prize winner) after all – he managed to get to both Canwest shmooze party and the other – photo-op anyone?
By Leasa on 03.07.08 12:25 pm
Well said Leasa….
and make sure there’s a working smoke detector on every level of your home!
I’m going to check mine right now.
Thanks for the reminder.
Hmmm…Jack Layton was on CNN’s Lou Dobbs last night (publicity stuff you know) talking about NAFTA. He rambles about China/Asia – ah, last I heard China was not in North America – NAFTA – North America Free Trade Agreement.
Has China moved and why wasn’t I told
lol, I`m hanging up my keyboard and now you notice. It goes like this, you`re a day late and I`m a dollar short but thanks for noticing.
btw I changed it to `fill in blank`.
By not again on 03.07.08 12:13 pm
Actually, I have lived by that policy for about 20 years. It works very well.
I hate paying interest. To me it money from which I derive no joy. I pay cash for everything, and even if we charge something it gets paid off within 30 days, unless it is a car or a house. Everything else is pay as we go.
I stopped believing in the long term future based on this silly assed economic theory a long time ago.
Inflation is like watching someone blow up a balloon and not stop. You KNOW the result will be a BANG! BURST! BUST!
I consider it a law of physics.
Have a good day!
Subject: George Bush Meets With the Queen of England
He asks her, “Your Majesty, how do you run such an efficient government? Are there any tips you can give to me?”
“Well,” say the Queen, “the most important thing is to surround yourself with intelligent people.”
Bush frowns. “But how do I know the people around me are really intelligent?”
The Queen takes a sip of tea. “Oh, that’s easy. You just ask them to answer an intelligent riddle.” The Queen pushes a buttom on her intercom. “Please send Tony Blair in here, would you!”
Tony Blair walks into the room. “Yes, Ma’am!”
The Queen smiles, “Answer me this, please Tony. Your mother and father have a child. It is not your brother and it is not your sister. Who is it?”
Without pausing for a moment, Tony Blair answers, “Well, your Majesty, that would be me.”
“Yes, very good,” says the Queen.
Bush goes back home to ask Dick Cheney, his Vice President, the same question. “Dick, answer this for me. Your mother and your father have a child. It’s not your brother and it’s not your sister. Who is it?”
I’m not sure,” says Cheney, “let me get back to you on that one.” Cheney goes to his advisors and asks everyone, but non can give him an answer.
Finally, he ends up in the men’s room and recognises Colin Powell’s shoes in the next stall.
Cheney shouts, “Colin! Can you answer this for me?”
“Your mother and father have a child and it’s not your brother or your sister. Who is it?”
Colin Powell yells back, “That’s easy. It’s me!”
Cheney smiles, and says, “Thanks!”
Then, Cheney goes back to speak with Bush. “Say, I did some research and I have the answer to that riddle. It’s Colin Powell.”
Bush gets up, stomps over to Cheney and angrily yells into his face, “No, you idiot! It’s Tony Blair!”
Looks like our nasty, brutish and short Finance Minister has infected Harper with his poisonous political philosophy..
What these guys forget is that they work for us, not us working for them!
When is the Canadian public going to fire these clowns!
Don’t expect bailouts, Harper says
March 07, 2008
THE CANADIAN PRESS
Prime Minister Stephen Harper says Canadian families and workers feeling the squeeze of a slowing economy shouldn’t expect any bailouts from Ottawa in the coming year.
Harper says the opposition’s reaction to hard economic times is always to throw money at the problem.
The prime minister says it’s wrong to suggest every economic problem demands immediate, high-cost government interventions and subsidies.
Harper, in a speech in Toronto, says the government didn’t do that in the budget and doesn’t plan to take such action in the coming year.
Critics were pushing the government to provide tax relief of families, workers and seniors in last week’s budget.
http://www.thestar.com/printArticle/310568
James’ comments re. Bank of Canada taking on riskier collateral of ABCM:
“The BoC is supposed to opperate in cojunction with, but at arms length from, the Government.” – well for this particualar move, they exceed their mandate and had to go to Parliament to get permission to do so. Flaherty gave assent in a motion related to the last Budget.
See: Bank of Canada to Get More Scope to Handle Tight Credit Markets – Bloomberg Feb. 28
As to your “So asking about the Liberal approval makes no sense.”…The Liberals did NOT vote down the Budget, hence they gave approval to this.
The reasoning behind it seems to be….other G7 countries are in financial trouble and have put the debt burden on the back of the taxpayers. We’ve been prevented from doing so by restrictive rules. We better change our rules so that we can join them.
Ain’t it amazing what you DON’T hear announced on the Business Channel?
You mentioned a ticking time bomb…Do you remember those $33 billion in ABCP packages that were frozen in August. Well, they are still frozen, but a resolution is expected in March. Of course, there’s no connection between that and the Bank of Canada move.
Garth, it’s great man.
I just bought a place in Scottsdale for half of what I would have a year ago, and I just sold a vacant lot in Washington for 5k less than my ask price, at a tidy profit.
I say bring it on, and too damn bad for the suckers who live on Credit.
An opportunity for investment in a market like this only comes along a couple times in a lifetime. I’m just damn glad to be taking advantage of it.
My home in Calgary is up 14% from last year as well.
God I love Oil and Gas.
On the flip side, you bray on and on about all the people who are about to be in trouble, but where were the education programs, the restrictions on risk assessment etc…
Should I feel bad for a Bank that made poor risk investments, or bad for some dumbf*&$ who went and bought a cadillac house on a Skoda budget.
Where were you with your advice and knowledge as a government official the last 20 years Garth.
Why don’t you do something actually useful and put forward a Bill which requires School systems to teach a course on financial management.
Just a hunch, but you may be why people dislike Calgary. — Garth
By Joe Calgary on 03.07.08 1:56 pm
Your house is up 14% based on the hyperinflation in Alberta caused by the oil and gas boom.
Industry out there needs more workers. So they come to Calgary and buy a home at inflated prices. The Oil and gas boom won’t last and then what….they become the dumba&% who bought a skoda home for a cadillac price.
And essentially, that’s what’s now happening in the rest of Canada were the resource boom isn’t having a helping effect.
From Geoffrey L.’s 1:40 PM -
“The prime minister says it’s wrong to suggest every economic problem demands immediate, high-cost government interventions and subsidies.”
Harper neglected to add the prime qualifier for government economic intervention: “Except for a few carefully selected interests.” But that’s understood by cynics, and none of the sheeples business.
Like Rope always says! Cash is GOOD!
So Harper, not Ottawa (what a vain attempt to whitewash Harper’s actions), plans to tell the Senate what to do…AGAIN?
Did Steve ever study anything relating to democracy or how Canadian government is structured?
Oh, that’s right, he is a Master ‘Bean Counter, which ex-plains his continuous Brain Farts!
By Bill-Muskoka on 03.07.08 11:35 am
Bill,
We know that he certainly studied Stalin!
Mr Garth TurnerMP, FYI,
CBS News Video, 3min.
Where Have All The Bats Gone?
Bats are dying from mysterious causes. Some biologists claim pesticides are to blame, but others think the bats are the latest casualty of global warming. Daniel Sieberg reports.
http://www.cbsnews.com/sections/i_video/main500251.shtml?id=3915838n
I’m still waiting for your great solutions, fully costed of course.
Violent storms, water shortages in store for Canada: report
Drinking water shortage
While some communities will be coping with more rain, others may endure droughts lasting a decade or more. Western Canada, in particular, could face short winters and long, dry summers.
Water levels in rivers in Alberta and British Columbia are already dropping significantly, as are the levels of the Great Lakes.
The result could be a shortage of drinking water, the report says.
It also warns that industries that rely on water — oil, gas, hydroelectricity, agriculture, even salmon fishing — will also suffer, while there could be an increase in forest fires.
Ah, I really hope Calgary Joe enjoys drinking the polluted water, maybe even oil, because Alberta is using their water up to get the Oil Sands pumped out.
Let’s check how this might work shall we?
We used to be on a Gold Standard.
Then we went to a Black Gold Standard.
Next up is the Blue Gold Standard. Guess who has most of the freshwater? Ontario!
We might just say ‘Hey, it’s OUR resource…SCREW YOU!’ Funny how fate brings such things about isn’t it?
Sing with me ‘How ya gonna keep there on the farms when its a Dust Bowl and ther’s nothin’ to drink?’
I think the Age of Humility may be dawning because it sure will not be the Age of Aquarius for the West!
Have a wonderful weekend. I will see you Sunday. Time for a Grankid fix! LOL
We know that he certainly studied Stalin!
By Gord on 03.07.08 2:48 pm
He didn’t learn much apparently?
Have a great weekend Greg!
I was reading this article this morning Signs point towards radical Harper agenda and fully agree with it.
By brain on 03.07.08 10:38 am
Hi Brain. Pretty much explains why everything down south is heading “Due South” now, and the so-called power brokers down there really couldn’t care less what happens to whom.
As long as harpo and fellow lying dipshits stay where they are (in so-called power), Canada will follow the US, as dubya is harpo’s mentor.
So yes, there will be some kind of a meltdown here, and there is very little anyone can do to prevent it.
When the Libs. are re-elected with a majority, then (as a poster said) they will head straight into a lion’s den, courtesy of CRAP’s amateurish fiscal policies.
This time, however, there won’t be outright lies and cheating skinflints as there are with CRAP.
————————————————————————–
If anyone is interested, there is a documentary on Global BC at 10 p.m. PST, Tuesday night (check other Global and / or CTV outlets).
It focuses on Af’stan, and the write-up reads: “Canada originally agreed to join an “early-in, early-out” combat mission in Kandahar. Further political decisions moved Cdn. troops to Kabul, then back to Khandahar, where the level of resistance seemed to catch everyone by surprise.
“All of the key political ecision-makers during the Chretien-Martin years are interviewed and offer some candid comments.”
—————————————————————-
Hey Mick Jagger went to Economist school too (London School of Economics)
I guess that qualifies HIM to be Prime minister of Canada too. . . .
By winner on 03.06.08 11:13 pm
Hi winner. Interesting note — whenever the Stones have a major worldwide tour, Jagger and Keith Richards make sure any and all extraneous expenses are covered beforehand, so there is absolutely no overspending at all.
Usually, the first half of a tour is designed to lose money, and after that, they are swimming in the stuff. An interesting lifestyle!
By Lana on 03.07.08 1:29 pm
Great joke, Lana!
By Greg W., Oakville on 03.07.08 3:01 pm
Hey Greg … have you seen that air pollutant tv ad by Oreck (the vacuum cleaner people) showing how much dirt can be collected in their electronic air purifier?! Wow .. the air is filthy in your house .. and living in Oakville like you do, it must be downright gagging.
What do you do to ensure you don’t suck up all those pollutants spewing out of the Hamilton steel industry and huge diesel truck traffic that surrounds Oakville ??!!
Hi all,
A must read to get informed about Harper and this Gang and what they really want to do to Canada!!!!
Tell all your friends, send them the link!
Full text of Stephen Harper’s 1997 speech.
http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20051213/elxn_harper_speech_text_051214/20051214/
What kind of Canada do you want your family to live in???
Thanks again you Blogger for the link
By Joe Calgary on 03.07.08 1:56 pm
Forgot to add….
and I’ll bet the cost of renting in Calgary has also risen along with the cost of housing.
So now you have the sitation where all these people coming to Calgary have the same choice everyone else has, rent or buy, that is pay for someoneelses mortgage, or their own.
Either way they’re going to pay more than most in Canada for housing.
Violent storms, water shortages in store for Canada: report
……..
By Bill-Muskoka on 03.07.08 3:35 pm
………………………………….
Help Billy-M …..!!!!
Will all this stop if we all vote Liberal … and send Billion$$$ to China for Kyoto Carbon Credits .. or is it too late because the Cons have hesitated for the last 2 years and we have gone over the tipping point .. and the planet is doomed …??!!
Dear Lord .. help us save us forgive us for voting Conservative .. your wrath is upon us and we shall vote Liberal next time … believe us ..!!!
God I love Oil and Gas.
By Joe Calgary on 03.07.08 1:56 pm
‘Old money speaks softly, new money is loud’
FYI, Nuclear electrical power.
The Canadian Press Mar 07 12:51
Province lays out competitive process for new nuclear reactors (Nuclear-Reactor-Vendo)
http://www.commandnews.com/fpweb/fp.dll/$cpac/htm/cpac/x_dv.htm/_ibyx/daj/_svc/cp_pub/_Id/1148384530/_k/U1qdmEMV0OiUhm5J
For more on Canadain CANDU Nuclear Energy,
http://www.aecl.ca/
More on Nuclear Energy,
http://www.cna.ca/
Help Ontario choise CANDU, write the Minister!
http://www.choosecandu.ca/
Just heard on CBC Politics program … Don Newman believes that the Liberals will have to vote no confidence in the government after the March 17th by-elections. If they don’t and continue to abstain, the Liberals will be ‘laughed’ out of Canadian politics.
So … we must wait until BobRae and Martha H-F are elected before Dion decides it’s time to pull the plug on the government and send Canadians back to the polls in an election that the most Canadians don’t want .. particularly those Canadians in the 4 ridings which just had by-elections a few weeks prior.
I tend to agree with CBC Don Newman … if the Liberals continue to abstain, they will lose all relevance as a viable opposition party, let alone a legitimate political party and become the laughing stock of Ottawa.
So Garth .. can we expect a vote of non-confidence by the end of March and a general election date in May ..??!!!
Garth – or anybody…
Can anyone point me to a government or other website that shows HOW DO YOU CALCULATE UNEMPLOYMENT FIGURES.
Several others – including at least one blogger here, have been trying to find out how the calculations are done. What effect does people who run out of EI have on the figures. How does “discouragfed workers” effect numbers. etc,ete.
To be blunt, I find unemployment figures are constantly tweaked in the positive way to make the sitting governments look good. The reality is they understate REAL employment problems.
Can anyone help here?
Hi Harry S on 03.07.08 4:06 pm
Have you seen ‘tv ad by Oreck’.
No I have not. Do you have a link for?
Re: my indoor air.
When we moved into our used townhouse home, I had the air ducks cleaned!
We remove the wall to wall carpets and put in laminate fooring.
We replaced our pollows, they say you should ever 6-12 mouths do to dust might poo, it’s toxic. You inhale for 8 hours each night next to the pollow!
I don’t let anyone smoke in my home.
***I always use the 3M Filtrete furnace filters 1700 maximum Allergen reduction filters and change then ever 3 mouths. I write on the side the day I install the new one, so I can tell when 3 mouths has passed.
http://solutions.3m.com/wps/portal/3M/en_US/Filtrete/AirQualityProducts/?WT.mc_id=www.3m.com/filtrete
There are other HEPA filters that are out there. Some homes have fresh air exchange systems, to bring in out side air, they have a heat exchanger to reduce differance in inside/outside air temp.
An interesting system I have seen to reduce indoor air pollution is by
Genesis Air, it uses a Photocatalytic Oxidation with UV light to break down many toxic air pollutants.
http://www.genesisair.com/index1.html
(I don’t have one, but it looks good)
A good home vaccum with HEPA filter is important so you don’t just blow the very small particals back into the air your breathing. It’s the very very small particals that get really deep into the lungs that are the wost. Central air vaccums that exhaust to outside would be best.
We were give a dyson hand held vaccum cleaner at x-mas. It works well and is quiet. I wish the recharge battier lasted longer thow.
They have a regular plug-in kind.
I saw them at a few big name stores.
http://www.dyson.com/
I’m looking forward to NO Coal burning power plants, they put out lots of toxic stuff, smog, mercury, uranium isotopes, ect. into the air we all breath. It is killing people!
We need more nuclear power plants to replace the always needed electrical power and stop climate change. yes more renewable also, but it isn’t always windy and sunny!
Remeber peak-oil will be all out of oil and gas soon, about 30 years the way we are going. Were does your food and water come from???
No dangerous radiation is getting out!
No one has even been hurt or killed by Canadian nuclear power plants!
We’re going to need lots of clean electricity to recharge the new electric cars that are coming soon!
and/or make hydrogen.
I planing to buy a plug-in-hybread when there coming out in 2009-2010. There is new battery material that make electric cars possible/pratical that is in the pipe. (I hope Canadians still have good paying jobs so they can afford to buy new cars?)
http://www.altairnano.com/
http://www.phoenixmotorcars.com/
http://www.rasertech.com/
http://www.toyota.ca/cgi-bin/WebObjects/WWW.woa/19/wo/Home.Vehicles.Prius-4x7GJyFaabAoZvVrebXfDM/0.9?fmg%2fprius%2fintro%2ehtml
http://www.chevrolet.com/electriccar/
To help improve air flow in my home I have put ‘Stop leak’ tape (NOT duck tape)
on the duct in the basement that I can get at, it can improve furnace efficence by as much as 20%.
The new home furances with direct drive two speed motors help improve energy use and indoor air quality.
Make sure you change your furnace humidifier filter from time to time!
Spiders only make webs in air that moves. Stopping air leaks reduces cob-web manufacture in the basement as an added bonus.
Hi Harry S,
more on Air,
Some air filters use or make ozone
(atomic oxegen) to clean air. I’m not sure extra ozone is what you want in your home.
Too much radon in the home isn’t very good either. Good ventalation is important. Some types of ground soil/rock has more radon in it that ceeps into the basement.
Some well water has lots of radon and it is releast into the air when taking a shower!
By Harry S on 03.07.08 5:48 pm
I would really hope that a general election does not happen so close to the completion of the 4 by-elections. I think they cost about 300K each to host, so I would hate to be the one door knocking in any of those ridings telling about 200 of the constituents that there hard earned tax dollars paid for the by-election that now has no purpose. I would expect a minimum of 6 months for a cushion between by-elections to general elections, so at least Canadians could know their tax dollars are respected.
Garth, how do explain the 43,000 new jobs in Feb?
http://ctv2.theglobeandmail.com/servlet/story/RTGAM.20080307.wjobs0307/business/Business/businessBN/ctv-business
It’s not what is in the rear view mirror that good drivers watch. — Garth
By Greg W., Oakville on 03.07.08 6:07 pm
Greg, not criticizing in any way your choices, but to be more environmental and reduce less waste I bought a furnace filter that lasts a lifetime. I only have to spray warm water on it every 3 months and reinsert it and keep using it. Can’t remember the brand but I got it at Rona so maybe have a look as it is the only one in a metal case if you are interested.
for home Radon test kits
I just looked up for anyone interested.
http://www.radontestkits.com/
http://www.radon.com/
http://www.homeradontest.com/
maybe Rhino? on 03.07.08 5:53 pm,
It appears to be collected similar to any other public opinion poll.
http://www.statcan.ca/english/Dli/Data/Ftp/lfs.htm
Larry on 03.07.08 6:18 pm
Has anyone got numbers of the gross pay of the jobs lost and the new jobs?
Or hourly wage rang of lost and created jobs?
Just wondering.
brain and I cyber-spoke about something like this, and a couple of possiblities / rumors have existed for some time now.
Whoever wins the Dems’ nomination doesn’t really matter, because they will both end up in the WH.
A few days ago, Clinton supposedly made overtures to him, and Obama was open to this option.
The other possibility is that dubya and cheney will have a pre-planned “event” on or before the end of this year, which will allow the neo-cons to declare martial law.
http://tinyurl.com/2mxfoo
By Marc on 03.07.08 6:15 pm
I would expect a minimum of 6 months for a cushion between by-elections to general elections, so at least Canadians could know their tax dollars are respected.
………………………………..
So you would accept and even condone Liberal abtaining on confidence votes for the next 6 months??
What about CBC Don Newman’s comment that the Dion Liberals would be ‘laughed’ out of existence if they continued to abstain after March 17th ..??!!
The only way the Liberals could justify abstaining is if they somehow installed a new leader this month and continued abstaining.
If the Dion Liberals continue abstaining, they will be ground into dust politically …!!!
Stuff about rice and wheat worldwide shortages.
http://tinyurl.com/33yjys
This is interesting.
http://www.publicvalues.ca/ViewArticle.cfm?Ref=008
More interesting.
http://www.rabble.ca/columnists_full.shtml?x=68393
And to complete the connection this.
http://www.thestar.com/comment/columnists/article/306751
When Harper said something to the effect Canada would be unrecognizable when he was through with it he was very serious.
And now while we have here-a-gate there-a-gate everywhere a gate-gate, Harper is doing a fine job of getting his agenda accomplished bit by bit while the oppostion sits idly by watching it happen.
By Catherine on 03.07.08 10:16 am
Lots of questions about how RESP’s work.
Go ask a financial advisor but don’t sign up for one of those educational savings plans whose name starts with “Canadian…….”
By Larry on 03.07.08 6:18 pm
How do you explain plant closings and machinery being unbolted, loaded on trucks and shipped off to Mexico?
Well…
Now that you’ve identified the crisis we’re all facing it seems reasonable to expect you to follow up with a plan on how you’d fix things.
What would Garth do if Garth had to do something?
by Harry S on 03.07.08 5:48 pm
Coming from Don Newman, with the caveat that the date is flexible, I have to agree. The longer the Libs sit on the fence, the more like Harper will get a majority…
and that’s a bad thing, Garth!
By Harry S on 03.07.08 4:20 pm
Watch out for thunderstorms, Harry!
Major union of U.S. port workers to Bush: End Iraq war by May 1 or West Coast ports will stop.
http://www.indybay.org/newsitems/2008/03/01/18482849.php
By Pecked to Death by Ducks on 03.07.08 1:51 pm
I can now see why you asked your question on Garth’s site. By not voting against, the Libs have given the move free passage.
Did you also ask the same question to the Blogging Tories as its their reps. that put the measure in the budget?
Protect the CANDAIAN PEOPLES VOTES!
Never use voting machines!
Only allow people to count the votes, Never use vote counting machines!
Or will ALL be screwed!
You have heared of hakers?
Who says we need instant vote results anyway? I can wait a few dau if needed!
MSNBC: The three companies that certify the nation’s voting technologies operate in total secrecy.
http://www.msnbc.msn.com/id/5762054/from/RL.4
Maybe Rhino? – you are indeed correct that unemployment figures are tweaked – and the amount and sophisitication of that tweaking would amaze you. This is true of most politically valuable numbers.
It was once said that figures never lie, but liars can sure figure.
CBC: Obama memo a complete fabrication! Smoking GUN! OHIO voters got the shaft!!
http://www.cbc.ca/mrl3/8752/vsu/wmv-hi/macdonald-obama-memo080303.wmv
Who was stupid enough to leak this out right Lie, Steven H. himself???
Were is the RCMP when you realy need them?!!!
Garth, how do explain the 43,000 new jobs in Feb?
If the economic picture in Harper’s crystal ball for Canada was good, why would he come out with this:
Don’t expect bailouts, Harper says
March 07, 2008
THE CANADIAN PRESS
Prime Minister Stephen Harper says Canadian families and workers feeling the squeeze of a slowing economy shouldn’t expect any bailouts from Ottawa in the coming year.
…
http://www.thestar.com/printArticle/310568
The RESP sounded like a good idea. However, I just read an article where Don Drummond stated that It would cost over 2 billion a year in lieu of the $900 million.
He also stated that the rich would benefit similar to RRSP’s.
So on the surface it looked like a good idea until people had a chance to study it.
I do not think this is sound financial policy.
Lots of questions about how RESP’s work.
Go ask a financial advisor but don’t sign up for one of those educational savings plans whose name starts with “Canadian…….”
By James- Chatham on 03.07.08 7:13 pm
These RESPs would have to work differently than the ones we have now. So the Libs do owe us answers to their new proposal, don’t you think?
John G.: According to your employment stats, Mr. Flaherty should be congratulating Mr. McGuinty on his skilful economic policies that saw such great job growth in Ontario.
Perhaps Mr. McGuinty should tutor Mr. Flaherty in successful economic policies and job creation.
Congratulations are in order for Dan’s handling of the bill — amazing that it got through.
On the other hand… WHERE WAS THE GOVERNMENT?? Only one person would have had to stand up and point out to Speaker Milliken that the bill was dealing with financial matters and therefore was out of order and the bill would have been quashed.
Holy crap! Really!
Of course, now that I think of it, the bill doesn’t require a royal recommendation as it’s regarding a tax cut, not a tax increase. Hmm.
Still, where the heck was the government???
Of course there still is a way to kill the bill… if parliament is dissolved…
Yes in Alberta we believe in working hard, taking chances, and helping less fortunate as much as any other.
By Duane W on 03.07.08 10:27 am
Saskachewan man dies when turned away at Galgary hospital
Thats how “Generous” they are.
(News report TODAY)Look it up on Google news RIGHT NOW. Reported in National post, CBC, and Canada,com.
This doesn’t qualify as the joke of the day, because this joke is on Harvard!
http://tinyurl.com/3ddq6q
By David Halfkenny on 03.07.08 8:27 pm
The problem with RESPs is that they are under utilized because we Canadians can barely afford to contribute. A tax break similar to making an RRSP contribution is in order. If Don Drummond is such an expert on the costs, why didn’t he talk about the costs of the TFSAs when he said this:
Don Drummond, chief economist at TD Bank, thinks seniors will also be big users of TFSAs. “At age 71, you’ve got to start collapsing your RRSP, but a lot of [people] want to continue saving and I think they’re massively going to turn to this vehicle,” he told CBC News.
http://www.cbc.ca/news/background/budget2008/tfsa.html
..because he is simply a cheerleader for the CON agenda!
I do not think this is sound financial policy.
By David Halfkenny on 03.07.08 8:27 pm
No you wouldn’t D. Not when your in deep with the neocons. Its refreshing to see the other 3 parties sticking together for a change.
Cheers
A new sub-prime whoopsie moment in the UK?
http://tinyurl.com/yrofd7
Plus, the housing market in the US seems to be getting all antsy.
http://tinyurl.com/ynkjwo
I think the Liberal idea of RESP is very prudent for Canadians families.
The Harper folks should embrace it as it is solidly in favour of supporting our youth with an education.
What a great idea!
Conservatives must learn that all things Canadian will really advance when no one cares who gets the credit.
Give credit where credit is due. Way to go Liberals!
Youtube keeps taking this one down. I wonder why? Just under five minutes.
http://www.youtube.com/watch?v=Tq5_vG3cYGM
Yes Garth. Joe Calgary represents why ALL of Canada cannot stand Alberta. They act as if they own Canada. Laugh now people.
No worries…what comes around goes around. Read about the cyclical nature of oil and we will see who is laughing.
By James- Chatham on 03.07.08 7:17 pm
by Harry S on 03.07.08 5:48 pm
Coming from Don Newman, with the caveat that the date is flexible, I have to agree. The longer the Libs sit on the fence, the more like Harper will get a majority ….. and that’s a bad thing, Garth!
………………………………..
In your opinion, how many more weeks or months can the Dion Liberals continue evading a confidence vote before they descend into complete irrelevance ..??!!!
Personally, I think Dion only has 4 weeks max before the Liberals collapse completely. The NDP will continue to table a series of substantive confidence votes .. not like that shameful silliness that the Liberals have tabled over non-confidence in the NDP and BQ opposition.
I get this feeling that Dion is already an interim leader, and he will not be leading the Liberals into any next election. Liberal finances and organization is apparently in shambles, and the Liberal executive are continually telling Dion the party is not ready for an election campaign.
The only out for the Liberals is to initiate a new leadership search … Ignatieff, Rae, McKenna, others, and Dion only functions as an attack dog .. a toothless attack dog..!!!
Billy, lol, you brought up the biggest problem Canada is facing and then faded off into your personal spending habits.
Does it scare you to think about it? Relax, here`s a short summery that everyone should think about.
Politicians on both sides of the border have been using job loss as the reason globalization is very very bad. Pitting jobs, mostly unionized and profits of international companies as the chief reason it is not working. On the flip side the benefit to the consumer who outnumber the workers laid off by 10 to 1 has contributed equal to growing the economy. I`m a free trader but that`s too close to call.
How about the overview before we get wrapped up arguing a tie.
Recently globalization opened China to international criticism like most other countries. From a state like North Korea to a participant in globalization. This leads, at times slowly, to increased human rights and I`m reasonably sure we`ll see free speech soon which leads to free thought and greater contributions to the state. North Korea has expressed participation in globalization. Globalization played a major part in ending the cold war and bringing down the Berlin Wall. The rate it has lifted people out of poverty over the last 20 years is astronomical.
Is it really such a big inconvenience to retool our economy from jobs that oil reserves dictate a short life span anyway, to keep the world moving ahead instead of backwards?
I`m concerned globalization is out of gas and this will push the many trillions of idle dollars to bullets and flak jackets. It would seem to me that putting the trillions to work in creating jobs globally is preferable to the alternative investment.
Click on my name to read my plan.
By Harry S on 03.07.08 9:49 pm
Harper has called the four by-elections for March 17th.
Let Dion introduce the new members to the House after the by-elections and then I think you will see things really crank up, driven by the Liberals.
I think all the Ottawa crowd needs to put more water in their booze and take it easy.
Hard to ascertain that right now. But we do know Mr. Harper has never had a job as an economist. In fact, he’s never met a payroll. I’d be a little cautious about picking your saviour. — Garth
And what exactly has Dion ever did besides being a professor?. Has he ever had a job as an economist? Has he ever met a payroll? So Garth what is you point? Does this mean you are implying the neither leaders should be considered our saviour?
Still wavering on what direction the world will take as countries globally decouple.
Here`s a few mind benders for your entertainment.
Before the global economy even stalled the amount of violent confrontation remains high. Russia was complaining about the arms buildup. China is building 3 subs to every one the US is building.
Now we`ve got the most recent hot spot for international investment, C and S America in turmoil. The area is now under threat of war with the build up of troops on borders.
History shows us time and time again how and why conflicts get pushed past the limits of sanity. Since the advent of the ballistic missile we`ve been capable of making a global conflict a real possibility. It`s becoming a larger threat now than even during the cold war because of the amount of players.
Globalization good, war bad. Read my blog damit, time is of the essence.
How did I know I’d get a bite and land a great big sucker?
By Duane W on 03.07.08 10:27 am
You said – You have stayed up way to late, you need rest to clear your mind.
—
Actually, I work nights and this is my time of day. Trust me, I’m well rested.
——————————————
You said -
The best government that we can have is a Harper majority in the event our economy
takes a nose dive.
—
Who are you trying to kid? “in the event our economy takes a nose dive?” Take a serious look outside the borders of your own province would ya? The rest of this country is headed into the crapper right now unless the feds wake up and take action to prevent it. Granted the oil rich wont feel it but the rest of us surely will, as many already are. Our biggest trading partner is in a recession, although their government won’t openly admit it. The dollar is high, exports are taking a hit. We’re in trouble my western friend. The Harper government had the chance to do something about it with the last budget and chose not to, in spite of all of the indicators. Spare me the crap of how great Harperco is. I’m not buying it.
——————————————–
You said -
There is no political party that will prevent economic corrections
—
I’m certainly not one to suggest that our government can control what is going on with our biggest trading partner, but I will most certainly suggest that I believe our government could predict the potential outcome and take preventative measures. Which is exactly where I see the Cons failed in the last budget. I won’t get into detail because I believe that what I think about where the Cons failed is exactly the sort of ammo that the Libs need in being able to table a platform to put Harperco out of business. If I were to state my opinions here, there is no doubt in my mind that the Cons would have it on the table next week.
To date, Harper hasn’t tabled an issue yet that hasn’t been shot down, watered down or somehow improved upon by others that I can think of. He’s like Bush in that he has a bad habit of coming down on the wrong side of issues. Ever notice how it’s always made to look as though the Libs are conceding while in fact it is Harperco that moves to the Libs position to get bills passed?
———————————————
You said –
Yes in Alberta we believe in working hard, taking chances, and helping less fortunate as much as any other.
—
I won’t deny that, to a point. You Cons don’t believe in paying taxes, in spite of the fact that it goes to a greater good. Next time I speak with my bro-in-law (an Albertan dentist) I’ll ask him how it is that the barter system you folks rely on so much and keeps his freezers (yes freezers, as in more than one) full serves a greater good. And please don’t try and con me by arguing that the use of the barter system isn’t as common as seeing oil tankers heading south at the USA border. I know better.
Take away the oil sands and where are you? Back to being a bunch of dirt poor grain farmers is where you’ll be. Trouble is, with the environmental damage being done all you’ll have left is sand so you won’t even have that. Keep that fact in kind while you look to the future and the evolution of energy. Enjoy the ride, while it lasts. And while you’re at it study history, both what is written and that which you are writing. Mark my words, history will repeat itself.
It’s not what is in the rear view mirror that good drivers watch. — Garth
Very well put Garth,
Although it has to be part of the bigger picture, as any good driver knows.
Billy, it`s all very amusing. Your comment on globalization didn`t even cause a ripple to anyone in our second in command political party.
Here`s the parting question, hope you enjoy solving the puzzle.
Given the stalling out of globalization do you really think commodities keep hitting record price levels because of future consumer demand?
However, over all, Ontario was the principal driver of the February increase, as large gains in construction, building and related support services and public administration more than offset to bring net gains of 46,200 jobs.
That’s NET gains, Flaherty! Tell me again what the Ontario Liberals are doing wrong?
Don Drummond, chief economist at TD Bank, thinks seniors will also be big users of TFSAs. “At age 71, you’ve got to start collapsing your RRSP, but a lot of [people] want to continue saving and I think they’re massively going to turn to this vehicle,” he told CBC News.
..because he is simply a cheerleader for the CON agenda!
By Geoffrey L. on 03.07.08 9:16 pm
The point here is that the seniors who are in a financial position that they could use the TFSAs are not the people who need them. Drummond is speaking as a member of a specific economic class.
While it is true that not all families are in a position to use education savings accounts, it is the young middle income families that could use them and could increase their contributions because of the tax breaks.
Their children are our future.
While it is true that not all families are in a position to use education savings accounts
Their children are our future.
By C. B. on 03.08.08 10:15 am
You`ve finally crossed the line with me. I have little patience with people that propriety put childrens interest as important while supporting everything that`s anti-family.
By my calculations there`s only about 500,000 Cdns that can afford to take advantage of tax free savings, the`re not the middle class family and certainly not in high risk families that have the most and create the most problems.
Langley BC is a place where I spent a few misguided teenage years. The youth there have now gone to making explosives similar to those used by terrorists. Over the next ten years our out of control youth are going to tear this country apart, if there`s anything left after the trillions make the flight to armaments. We leave them debt, GW, global hunger decoupling globalization and global conflict while the seniors get a tax free savings account.
You can hear it already on this blog in the words typifying our youths words, `smelly old farts`.
It`s time we told our youth Ottawa is going to stop screwing this up country with it`s `in the best interests of the Party`. You can peddle all the bs you want CB but as usual you never take the results into consideration.
not more bs on 03.08.08 11:35 am,
This is probably one of the most irrational rants you have put on here in a long time!!!!
TO IRENE 03.07.08
What is a neocon ???
It is amazing how you can put labels on people you do not know. If neocon means that I am a conservative then you are wrong. I have stated on here before I was a card carrying liberal. I help nominate the MP who represents presesntly in Ottawa. I just wanted you to know that I was part of the whole process not just voting or switching parties.
I have grandchilden and think the RESP is a good idea. However, I wonder why the Liberals with a 13 year majority failed the canadian people and caused a complete generation of kids to carry a school debt.
After reading several articles on this program I still stand by my financial statement. On the one hand several post critcize the government for its out of control spending and then wrap their arms around a new social program that could cost 2 billon annually.
This was not an item in the 2008 budget and where is the money to come from.
We as grandparents have RESPs for our grandchildren so I have been there and done that.
David Halfkenny on 03.08.08 4:13 pm,
It seems to me that you are missing the point here. It is all about priority spending and what people believe the priorities should be.
The new Conservative priorities are cutting taxes and business regulations, the protection of multi-national corporations, the reduction of social spending, and increased spending on the “big stick” items of police, the arming of border guards, the judicial system, prisons, military combat, and so on.
While Liberals support those policies designed to promote globalism instead of the big stick issues they are more focused on the kind of spending that has positive social implications.
The problem is that if you are going to support the globalist ideology, that both parties espouse, eventually governments will not have the money to support either the “big daddy” or the “nanny state.”
Ultimately, the objective is a world governed by mega-corporations fighting for private dominance of the global economy. What I fail to understand is why so many people have been beguiled into supporting an agenda that in the long term is not in their interests.
I am just buying lots of gold and silver.
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