The Toronto stock market slurped its way higher in the last few days, before touching the 15,000 mark for the first time Tuesday. So far this year, the market has soared by an unsustainable 24%, far eclipsing the US market, even though the Yanks have goosed their economy with billions in government stimulus.
Why’s Bay Street rolling in it, while most Canadians struggle? Is the market a symbol of the economy to come? Does it mean we’re going to avoid recession and that finance minister Jim Flaherty is a genius?
Well, in fact, there are two reasons stocks are bonkers. They are, in reverse alphabetical order, oil and gas.
Canada’s financial markets have always been weighted towards commodities (except when the Nortel lunacy was in full flower), and never more so than today. The ascent of oil from double-digits a barrel last year to $100 earlier in 2008, to $130 this week to $150 soon, has made investors as wealthy as, say, the guy who owns the Timmies in Fort Mac. This is a boom of historic proportions – but, sadly, only for those who have a direct benefit coursing their way.
For the rest of us, this energy stuff has the markings of disaster all over it. Here in Vancouver this morning, a litre of the regular stuff is north of $1.30, and the boys filling up their Porsches are gulping a buck and a half. Gas prices, as we know, are just the canary in the coal mine. To come with the next cold weather season are home heating costs which will set new records for being exhorbitant.
In places like Halton, where two minivan-families are a way of life, where people routinely commute an hour or two or three a day on the 401, where acres of new homes in former farmer’s fields have no big trees to shield them from the strengthening sun, the cost of energy is eating profoundly into family finances. Ultimately it’s hard to believe it will not affect the very value of the residential suburban, car-centric real estate which defines the place.
This could be why a new Nick Nanos poll out Wednesday morning shows a whopping 48% of Canadians believe the economy will get weaker over the next six months, while just 13% feel it will gain altitude. This directly reflects the reality of every day life, where food at the Loblaws is getting pricier, good manufacturing jobs have retreated as the Canadian dollar holds at par and it now costs $100 to gas up the average SUV. Every night the evening TV news carries stories about people eschewing cottages, boats and summer trips to Muskoka simply because they can no longer afford the fuel to get there.
So, let’s face it. Oil is raging higher not only because of more demand from China, India and other Asian tigers, but because the US dollar continues to crumble and erode. The great economic empire to our south is in serious shape and wise middle-class families know exactly what’s likely to come next.
Back to Jim Flaherty. The miscalculation of spending $12 billion cutting the GST, instead of chopping income taxes by an equal amount; the dramatic double-inflation-rate increase in federal spending; the burning through of a $14 billion surplus, taking us to the point of deficit; the callous disregard of the manufacturing sector; the boastful pumping of our currency – these are the accomplishments of a man beyond his depth, and, apparently, his understanding.
108 comments ↓
And I thought it was the tax cuts
http://tinyurl.com/43jfa5
-R
Back to Jim Flaherty. The miscalculation of spending $12 billion cutting the GST, instead of chopping income taxes by an equal amount; the dramatic double-inflation-rate increase in federal spending; the burning through of a $14 billion surplus, taking us to the point of deficit; the callous disregard of the manufacturing sector; the boastful pumping of our currency – these are the accomplishments of a man beyond his depth, and, apparently, his understanding. – Garth
Relating back to my “dog” story. There is another dog on my morning walk. His name, “Bubba.”
Just like Flaherty, I think Bubba was in law enforcement, and ex-police dog, all German Shepard. Anyone who walks by, especially with another dog, will experience the bark of Bubba. He’s normally kept on one of those aircraft cables, securly tied down; but he will try to get loose and make a statement.
Unless of course his master calls to him, “Bubba!” And being as well trained as he is, he stops.
Just like Flaherty, and his Master Harper. Flaherty tried to make a statement in the last budget, unbeknownst to his Master. Dim Jim heard the voice of Harper, pulling back on his chain.
We all know where the brains are, if I can call it that, in the Harper/Flaherty relationship. Flaherty has been promoted to the highest level of his incompetancy (unless they make him leader of the CPC after Harper goes), but the fiscal mess …. that lays squarely on the PM.
My crying towel is getting wet. All those SUV owners having to pay so much for gas. They could down size, travel less, car pool, take transit or many other solutions.
Like the new proposed liberal carbon tax, these sods can change or just pay the price. Now lets get gas up to $2/litre.
I think you have it backwards. The GST cut relieved inflation pressures because the price of goods went down. This let the Bank of Canada cut rates and is why our economy isn’t suffering like the US. We’ll get hit hard enough, but this MAY spread it out enough to just stagnate rather than crumble.
Commodities have increased because worldwide people are afraid of inflation and they want their assets tied up in ‘things’ because ‘things’ hold value while ‘money’ does not.
In places that are concerned about running their air conditioning to keep cool in the summer why have they not changed their roof to white?
The Liberal answer seems to be tax consumption (by proxy under the carbon tax), which will make inflation spike, rates go up, and people to lose homes and unemployment to increase. Is that really what you want?
Nice try, but the BoC cut had far more to do with the dollar and a desperate attempt by Mark Carney to try and stave off recession. The problem now is deflation, not inflation. — Garth
Hi Garth. When listing the causes for high oil prices please mention that one quarter of US oil consumption is by the military. To reduce demand stop the bloody wars.
http://www.youtube.com/watch?v=y-Bo2IvfmfA
This is a REAL problem.
If I recollect, the reasons for “Liberal” programs like the NEP, Autopact, and others, were directed at getting our economy away from the reliance on natural resources and commodities, and more into the REAL VALUE ADDED markets.
You make more money selling automobiles than selling iron, aluminum, or plastic raw materials. You make more money selling refined petroleum than selling raw crude.
ALL initiatives to support our national manufacturing efforts seem to have disappeared. This is done with the EXCUSE that we need to lower prices of goods for Canadian consumers BUY BUYING OFFSHORE GOODS. Net result? We are far worse off now as an average Canadian middle-class – the majority – than we were. Slowly but surely, wealth is concentrated to the minority, and we are stuck in a downward spiral.
We move our manufacturing offshore, so we can buy goods cheaper. Slowly, our well paying value added jobs disappear, so now we are FORCED TO BUY offshore goods. We cannot afford to buy the quality of domestic production because we cannot afford it, and there is less and less domestic production.
WE MUST move Canada back into a manufacturing and value added economy, or else we will quickly become a 3rd class country.
Global economy and alleged “Free Trade”(NOT!) has serious downside. Added energy costs just moving things around is going to hit us hard in the near future on food, and goods from places like China, so our “lower cost suppliers” will soon become as expensive as our locally manufactured goods once were. It was a short term plan, that now has long term negative ramifications.
What is our government going to do about this?
I WANT OUR CANADA BACK!!!
GST was implemented to combat our deficit as was the excise tax on gasoline.. we haven’t had a deficit in awhile yet both those taxes are still around… why is that? You keep saying cutting the GST was a mistake… is it not more a mistake to keep a tax around even though it fulfilled it’s purpose?
How are we supposed to trust any politician who wants to implement a tax for a specific purpose? (ie – Carbon tax).
Don’t give too much credit to Jim. This one flows from Harperite “think tubs” and like a great many Harperite ideas it demonstrates that Harper has an endless supply of incompetence flowing from all the nooks and crannies.
Whoever first posited the idea of a reduction in the fairest tax in the land (one which would have been a true boon to a government intent on expanding a war), had to be Soviet trained.
Oil’s trend will continue upward. It’s remarkable that it was $25 a barrel five years ago and it is now at $130. Our only option for energy is push for alternatives as rapidly as we can. Climate change, peak oil, or financial cost, pick an alternative and it solves all three. The public only needs to believe in one.
I’d love to see a government push for an energy change aggressively. There is an opportunity to make a real difference for Canadian citizens and to be leaders. Solar, Wind, Wave, Hydrogen, Biofuels are all easily within our grasp. How about the ZENN or Aircar. Why does Europe get energy options, and we don’t? We are creating our own demise and the last 15 years of government have done little for long term planning.
I have no sympathy for SUV owners who purchased their vehicle for status symbol or the feign of “safety”. I do have tremendous sympathy and concern for families who need those vehicles to work. For truckers and farmers who are really going to feel the energy pinch when the price of oil hits the pumps and we start experiencing $2/l. Those people needed options five years ago, and still we wait.
I ride my bike to work now to save a few more dollars. I’m healthier too, but this doesn’t counteract the transportation cost at %60 or higher for supermarket products.
I ride my bike to work now to save a few more dollars. I’m healthier too, but this doesn’t counteract the transportation cost at %60 or higher for supermarket products.
By Ripley on 05.21.08 11:31 am
Right on Ripley!
The problem here in suburbia is the roads are tailored for the automobile, with little concern for pedestrians or cyclists. As an “ex-cross continent” cyclist, I know the effectiveness of travel by bike. Unfortunately, even when I landed a job only 3 km from home, I was unable to use my bike as I had to cross the T-Can 6 lane highway, and the overpasses were death traps for cyclist traffic – particularly on rush hour.
Again, catering to the petroleum economy has removed a green option.
Our society is not yet ready to consider the options, and our infrastructure needs investment to accommodate differing methods.
And, so instead of investing in our communities and infrastructure, we got a 2% GST cut… What a bunch of CRAP!
By Dan on 05.21.08 11:17 am
Good point.
Part of the answer lies in the massive debt we still have due to those defecit budgets. So until that’s paid off, the GST and excise tax will remain.
However, as the debt reduces, and the carrying costs deminish (assuming interest rates go balloon), almost everyone believes that the taxpayer should receive some benefit.
The question then becomes one of how best to do that. As you point out the GST and excise taxes were brought in to balance the books and pay down the debt. So maybe these should be the first to be cut.
But, economic thoughts have changed in the time between their institution and now. Maybe the best form of tax is on consumption (GST) and not income. Hence income taxes should be cut and the GST/Excises taxes left unchanged?
Remember, just like the GST and excise taxes, income tax was also supposed to be a temporary measure!
Of course, as you rightly point out, this is all predicated on the government not spending the benefits of lower debt, which they have a tendancy to do.
As I understood it at the time the GST was implemented the PC plan was to move totally to a value added tax once the deficit was eliminated. Income taxes would disappear in favor of this value added tax.
The new Conservatives have moved away from that concept entirely.
I do not have enough knowledge of the idea to evaluate but it would be interesting to get comments.
Sympathy, Ha ! I have no sympathy for those who live in houses in excess to their needs and who drive a “large” SUV to commute to work in or to drive to the grocery store in. “Keeping up with the Jones’” continues to be prevalent in our society along with the debt that is necessary to sustain its lifestyle. Motherhood — I know, but I just had to say it!
Nice try, but the BoC cut had far more to do with the dollar and a desperate attempt by Mark Carney to try and stave off recession. The problem now is deflation, not inflation. — Garth
I wish you knew what you were talking about.
As opposed to, say, you? — Garth
And I thought it was the tax cuts – Rob Wiebe
The link you supplied is no good on this site since it doesn’t point to either the Toronto Star or the CBC.
‘Inconvenient Truths’ About Conservatives
The Leader-Post
Published: Wednesday, May 21, 2008
I’m glad my article about the failing economic policies of Stephen Harper’s government provoked a response from Conservative MP Andrew Scheer (“Liberal formula: hike taxes, spending”, Leader-Post, May 12).
He tried to claim that Conservatives are prudent fiscal managers, but there are a few “inconvenient truths” that Scheer should not ignore.
Historically, right-wing governments tend to run deficits. Think of Grant Devine here in Saskatchewan or Mike Harris in Ontario, or Brian Mulroney federally or Margaret Thatcher in the U.K., or Ronald Reagan or the two Bushes in the United States. It must be something in their DNA!
It was a Liberal government in the mid-1990s that had the courage to tackle Canada’s federal deficit, balance the books and turn around the economic mess left by a Conservative regime.
Restoring fiscal sanity required tough decisions, but we had the unequivocal support of the vast majority of taxpayers despite the sacrifices that had to be made. In fact, there were some at that time — including Scheer’s predecessors in the Reform Party — who called for deeper cuts.
When Liberals left office in 2006, we left Canadians the strongest economy, the best fiscal situation and the cleanest set of books in history. Both debt and taxes were coming down faster than ever before.
Annual federal transfers to the provinces for such vital things as health care and infrastructure had been boosted to their highest level ever. We had made the biggest investment in National Defence in more than 20 years. And the country still had $100 billion in future financial flexibility to work with.
That margin of fiscal security is now gone. It has been squandered by the Harper government over the past two years. So the risk of another Conservative deficit is very real. And it’s deliberate. Harper wants that deficit threat hanging in the air — to hobble the Government of Canada, to diminish its relevance in the lives of ordinary Canadians. That’s the consequence of his right-wing ideology.
Ralph Goodale
Goodale is Liberal MP for Wascana.
Regina
© The Leader-Post (Regina) 2008
Hi Garth,
I was wondering when our government leaders will open a discussion around the planned North American Union, and demand a new investigation into 911.
The case has already been made to warrant a new investigation, and yet our leaders are silent. The truth is already out in the public if one is paying attention….
Have you done your homework yet Garth?
The Liberal answer seems to be tax consumption (by proxy under the carbon tax), which will make inflation spike, rates go up, and people to lose homes and unemployment to increase. Is that really what you want? – Traciatim
My friends at TD agree with you.
As opposed to, say, you? — Garth
I never said I was a financial guru. However, I take advise from a multitue of sources.
As a Liberal, it would be in your best interests for the economy to tank. It would also help you if you nudged it along….
I wish only the best for my country. — Garth
A report from the Public Utilities Commission in Kingston said that natural gas prices will go up by 20% (at least) by next winter. How can anyone on a fixed income afford that? How can anyone on ANY income afford that? (The very rich can just burn the peasants for warmth. Joke – but not funny. I think Jonathan Swift had similar satirical advice to the starving Irish, that they eat their babies. Some people took him seriously, too, and became incensed about it.)
Ontario Hydro had a scheme for charging less for off-peak electricity – mainly middle of the night and weekends. With their usual bubble-headed ideas, they figure that everyone worked Monday-Friday, 9-5. So, what about nurses, caregivers, anyone on shifts or those who work weekends like police and firefighters, the retired, those taking care of small children. Are they supposed to cook their dinners and wash their clothes in the middle of the night while everyone else swans off to air-conditioned or heated offices?
Can’t some kind of a basic amount of energy be given at standard price, with overuse at higher price? A kind of “Here’s your gas card. Your first so many litres will cost $x, after that you pay a surcharge.”? You then get to decide what you want to fuel up – a gas sipper or a honkin’ great hunk of junk.
Is this what the carbon tax is all about?
I’ve recently been wondering what is going to happen to a few families around here. One woman has a severely disabled son who is now about twenty. They walk everywhere. He’s well-cared for but it can’t be easy. (No father. He pushed off long ago – couldn’t take the strain of a disabled son, you know.) What’s going to happen to them when food prices go through the roof?
And then there’s another one, living on welfare. She has a small subsidized house, flaming red hair which is regularly and expensively cared for, smokes like a chimney (who can afford that these days?), is at least twice my size (sideways, not upwards) and drives a large gold SUV with a yellow “Support Out Troops” magnetic ribbon on the back.
I guess she has the system figured out.
I don’t blindly follow the “Support Our” anything trope, whether it’s religious groups with hidden histories of child abuse, police with corruption and cover-ups, or the military if they blindly follow without thinking what they are doing. The case of the two reservists who kicked a homeless man to death while they were drunk after a military do and said that their dog-tags allowed them to do this and that they “hated homeless people” made me step back and wonder which direction they were going in. There was hardly a squeak from the military about their behaviour except to discharge them. They were trained and ready to go to Afghanistan.
Politicians, I can see, have to tread more carefully about what they do or don’t support. There don’t seem to be many shades of grey in politics, and one sentence can be taken out of context and spun by the ConBots with keyboards, as in Garth’s case.
I also resist being told that I have to respect something – usually something like the office of the Prime Minister or some other authority. The office – whether symbolic or real estate – is inanimate. Respect will not enhance nor disrespect diminish it in any way. Just because a person holds high office does not in any way mean that he is automatically worthy of respect. Seeing the behaviour of some of the people who have “Honourable” before their names these days is enough to make me gag.
Anarchist? Not in the least, but you can see what the times have done to the most mild-mannered and law-abiding of us (that’s me). Hate to think what’s simmering among the real anarchists.
Garth,
Weren’t you advising us to buy Nortel Stock back in the day? It’s not like I’m accusing you of bad judgement (even a really good market analyst is only good at predicting the future maybe 50-55% of the time), and I don’t think Flaherty’s tax policy has been the greatest, but it’s not as though you or anyone else has a crystal ball. All I know is that the analysts, public opinion polls like the one you cited etc. have been saying that a recession of the scale of 1991 was just around the corner since around the end of 2001. So far, even though lots of things about the economy continue to suck, the apocalypse hasn’t happened, and I have a feeling that the sub-prime crisis is not going to cause that much more damage than the various crashes and bankruptcies that were supposed to cause a new Great Depression back in the late 80’s.
I sometimes wonder if being a professional politician for a certain length of time gradually dulls one’s sense of perspective. I agree with almost all of your criticisms of the Flaherty/Harper economic policy. But I think you go too far in saying that their actions are somehow crippling the economic future of the entire country, when really they are only messing around with a couple of billion here and there, significant to the people paying the tab, but hardly enough to radically alter the course of a trillion dollar economy. By the same token I wonder if that same outrage at the Cons. isn’t leading you to jump the gun a bit, always assuming the worst about the economy. Maybe you should just chill, and tone things down a bit.
You should accept that lowering the gst should also cut down on the “all cash, no gst” part of the economy. That should increase the overall base for the now reduced gst to be collected, thus offsetting the revenue reduction from the lower rate. It should also increase income taxes collected due to improved compliance for invoiced and booked work instead of underground economy all-cash work.
According to the UN, about 6.5 million Afghans don’t have enough food for their daily needs.So some poor guy has to sell his daughter to feed the rest of his family.Not the first time.
http://us.oneworld.net/article/view/160601/1/
The west has sent billions to this country in the last few years.Just goes to show what happens when corruption supercedes everything and everybody.
On the escalating gas prices.The Saudis’ just told Bush to F off in so many words when he asked for an increase in oil production.
http://www.truthdig.com/report/item/20080520_paying_for_war_at_the_pump/
And closer to home The logic is simple. If oil companies are making money at $70 a barrel, and through no action on their part, their price increases to $115 ($132 today) a barrel, why should they get to pocket the difference.
http://www.rabble.ca/news.shtml
So sorry for the people paying 100 dollars to fill their SUVs. Guess someone will be advocating for subsidized gasoline soon, after all we subsidize transit options for commuters so why not their gas for their big vehicles.
GST was implemented to combat our deficit as was the excise tax on gasoline.. we haven’t had a deficit in awhile yet both those taxes are still around… why is that? You keep saying cutting the GST was a mistake… is it not more a mistake to keep a tax around even though it fulfilled it’s purpose?
How are we supposed to trust any politician who wants to implement a tax for a specific purpose? (ie – Carbon tax).
By Dan on 05.21.08 11:17 am
Only partly correct Dan, the GST was to designed to replace the Manufacturing TAX and simplify the tax system for business. It was suppose to a neutral tax, meaning that, overall it be revenue neutral at the Federal Collection level.
The second purpose was of the tax was to eliminate help eliminate the Federal Deficit AND START PAYING OF THE FEDERAL DEBT. I don’t why it is, but people seem to forget the National Debr when they try to balance the books.
So you want a tax break eh? Well you have to earn that tax break be paying off the nation debt. Want to guess how much me THROW AWAY EVERY YEAR on interest carrying charges to manage our collective National Debt?
Lastly. Cutting Income Taxes makes way more sense than cutting a consumption tax. Let me spell it out for you.
1) The 2% reduction in GST reduces Government Revenues by 10 too 12 billion dollars PER YEAR.
2) The average Canadian Family sees about $200.00 per year in savings from the GST Cut.
3) There are approximately 9 Million Family Household in Canada
4) That means every year, on average, Canadian Households save a total of 1.8 Billion because of the GST Cut. But lets call it 2 Billion, nice round number.
So Federal Coffers are light 10 to 12 Billion per year because of the GST Cut. Lets call it 10 Billion (just to be conservative). So who is getting the other 8 Billion in savings?
Yup, the GST Cut was an amazing gift to Business interests who got 80% (conservatively) benefit. They also got even greater tax savings when Mr Flartity handed them even more saving as he cut the Tax rates on businesses. The CPC put you and every Canadian over a barrel and screwed us up the arse with their GST cut.
The math is simple, the GST should have been a Income Tax cut so that Canadian Families would have received the full relief of 10 Billion in savings and the Businesses would have gotten their fair share from the reduction in the Business Tax Cut. For people who consume wisely, they can save their families even more and avoid the consumption tax and gain even more savings.
On the other hand, as a small business owner, I really do appreciate the mindless CPC Harper-Bots who think the GST Cut was the best thing since sliced bread, since I am saving more that way. Nice for you guys to pay more and save me company money.
But hey, it’s your pockets that Harper is robbing not mine ~evil grin~
I think you have it backwards. The GST cut relieved inflation pressures because the price of goods went down.
By Traciatim on 05.21.08 11:07 am
No, only the tax went down.
This statement alone tells me that you know absolutely nothing about the true definition of inflation. I mean that in the kindest way and I wish you would research the subject of inflation and deflation for that matter.
By Ripley on 05.21.08 11:31 am
Dear Ripley
I agree to a certain point but there are four factors that have contributed to the heated price of a barrel of oil.
1 Supply and Demand – the price is driven by demand from the U.S., China and India but…
2 US Dollar Value – the slide of the US dollar has created another bubble. First the Hedge funds were messing with the US housing market with sub-primes and when the bubble burst where do you think those financiers and speculators went? Oil futures – so about 30% of the price of a barrel of oil is speculative.
3 OPEC – this cartel created by Henry Kissinger under Nixon, controls the amount of crude supply in the international markets. OPEC is just as worried about the price as the G7 as the price is too heated.
4 Oil Companies – control gasoline refining and refinery capacity so they win in the summer months as demand increases. Also, with such windfall profits they are hardly excited about pursuing research on alternative fuels. They all do PR but most of it is a smoke screen.
So we have a perfect storm.
Regardless of the price of a barrel of oil we have to aggressively look at transition fuels and create an east to west electricity grid so consumers can go to hydrogen and electric cars in a ten to fifteen year timeframe. We will still need biomass diesel for our trucking and farming industries.
Well, C.B.
I think the GST is an effective tool for wealth equalization and tax fairness. I would greatly prefer a GST of 10% – or higher – if it would offset the income taxes paid.
I do not, for one instant, swallow the CRAP position that the GST REDUCTION was beneficial for low incomes. Those with little disposable income spend most of their money on rent and food. Both these items tend to have GST removed, or at least significantly lower. Sure, it might have an effect on travel costs – but they usually use public transport as they cannot afford a personal vehicle.
Consider the person making $20k. With monthly food $500, rent 600, misc 100; added gives about $14,400 with relatively low GST if ANY. That $20k taxed at 10% adds another $2000 so leaves disposible income AT BEST $3,600.00. Taking 2% GST off that gives a whopping benefit of $72.00. Compare that to the $2,000 hypothetical taxes.
In conversation with a friend, he feels the GST should be closer to 25%, and totally remove income taxes. Not sure about that one, but the concept is similar to the wise words of a previous blogger that deserves repeating:
“TAX WHAT WE BURN – NOT WHAT WE EARN”.
From my understanding of VAT, it is a consumption tax. Ere go, another form of our GST. I am all for taxing consumption. I believe it will have numerous benefits to personal income, as well as possibly helping the environment due to more reasonable and sustainable consumption patterns.
Please include here the Carbon Tax concept. Tax what you want to control, and pass the costs along to those creating the problem. Don’t make others who are not eating up all the resources subsidize those who are.
ONE THING LEADS TO ANOTHER
“The
search
for truth
implies a duty.
One must not conceal any
part of what one has recognized to be true.”
–Albert Einstein
This quote is on the website http://www.edmonton911truth.com/lobby.html
which was on http://www.youtube.com/watch?v=y-Bo2IvfmfA on Jon Duddy’s comment to-day.
Garth, you must have been pleased to have young people so aware speaking with you when were always told they are all tuned out.
Although oil and gasoline prices are at record levels, there may be an eventual silver lining that results from this.
Companies and individuals – through these sheer market forces – will be required to find ways to conserve and develop alternatives.
A well thought-out ‘tax shifting’ plan, too, will provide even greater incentive to conserve and develop and implement alternatives.
After all, necessity is the mother of invention, as they say.
My friends at TD agree with you.
By Eric Foreman on 05.21.08 12:40 pm
Yeah, like the same friends who thought the sub-prime market in the USA was such an “opportunity”….
And of course Harper, Flaherty, Carney and their CON ilk are far too ignorantly stupid – and without any cognizant ability of foresight – to realize that one way Canadians, especially seniors and retirees, are/will be able to provide some level of self-sufficiency is through the cash distributions provided by income trusts.
Individuals who rely on these distributions – especially those without cushy government pensions – to provide for themselves without government assistance will be devastated when 2011 rolls around. To be sure, the effects are already being felt, with restrictions on growth, reduced distributions and fire-sale prices to predatory government pension funds, foreign equity pools and wealthy private interests (entities unencumbered by this CON duplicitous deception).
Indeed, Canadians have already been devastated by the HUGE unnecessary destruction of their wealth and hard-earned savings that the CON government callously, unjustifiably and treasonously wrought on them on October 31, 2006.
There is some glimmer of hope though, and that is with a Liberal government, that has a compassionate and much more equitable plan for Canadians and their income trusts.
One can only hope that more Canadians will “brighten up” and send Harper, Flaherty and their CONS into a black hole where they belong.
The problem now is deflation, not inflation. — Garth
But, but, but wasn’t it reported today that infaltion is increasingand isn’t that the opposite of deflation?
Just asking,
Gord.
Be patient. — Garth
I think the GST cuts are a GOOD thing. BUT, I see the LCBO hauled in $4 BILLION with a cheque to the Ontario government of $1.3 Billion.
We never saw ONE DAMN CENT of price reduction from the 2% GST cut. So, go figure. They claim they still have to charge the same price because they have a ‘minimum price’ set on hard liquors! BULLSHIT!
By the time Parliament gets done playing on their summer vacation the oil price set by the greedy, nutbars in the commodities market will have brought the economy to a bloody standstill.
Guess what? I no longer GIVE A DAMN.
We will figure out a way to survive, and that means we are not spending any monmey on anything we absolutely do not have to have.
Watch your tax intake drop because people are not going to be able to spend on anything but essentials.
Better tell Steve to cancel his Great White North War Machine plans.
What a total joke of economic manglement by this joke of a government.
Oh, and this Canadian remembers that Dion had numerous chances to bring it down, but DID NOT! Why? Because his party’s political future is more important than the people’s future. Fine, that goes BOTH WAYS!
Like Spock said ‘Remember!’
As to what Bay Street is doing…I regard it as nothing more than the activity gauge for the largest casino in Canada. BFD!
Financial tit-bits for lack of biker chicks:
Soros says…lesson learned from the credit crisis is that central banks must not just regulate the money supply but must regulate the credit as well.
ChickenLitlle’snose says…the lesson learned from the credit crisis is that more have lessen.
The greater population still doesn’t have a home, but is now the proud owner of a delinquent Jumbo Mortgage. Carney will soon have permission from Canada’s Parliament to give credit too where credit is due. I say, I say again…that’s unlimited credit son, unlimited!. Uh-huh-it’s in the Budget. It’s as easy as ABCP or BCE.
______________________________________
Buffet says….the American dollar will continue to devalue long term.
ChickenLitlle’snose says America is exporting their recession and paying bills with shrinking paper. Canada’s Dutch Disease strikes more than trees. The TSE measures the velocity of the inflation wheel.
Wheeee….we’re too busy
going forward 
to measure our lack of progress. Natural gas up 20%, my car insurance up 25%, property tax 7%, gasoline up 30%. What gives us the official 1.7% inflation? must be that 10000 carat diamonds went down. Or is it that they don’t want to pay the Seniors?
But the Garth says “deflation” is the problem. Confusing? Hell no, we’re Boomers. We want it all and want it now. So, we’re getting inflation and deflation, both at the same time. It doesn’t have to make sense – just put the normal financial fairy tale spin on it….Put lipstick on the pig and call it an Alice in Wonderland market.
Tintinfitsrightin
I don’t know how much there is to this but if there is then I am once again very worried:
Canadian DMCA about to come down again
http://www.boingboing.net/2008/05/20/urgent-canadian-dmca.html
Word on the street is that Canadian Industry Minister Jim Prentice is about to try to shove the Canadian version of the US’s failed Digital Millennium Copyright Act through Parliament very soon, and very fast. He made plans to do this before, and the overwhelming public outcry caused him to shelve them, but now he figures we’re all distracted and we’ll let him get away with it (especially since he’s made a couple of cosmetic changes to the bill that he’ll use to show how much he really, really cares about us poor Canadians, rather than the US government and entertainment companies who are giving him marching orders).
The Tories promised that they wouldn’t do any more treaty-law without public consultation, but Prentice stalwartly refuses to have any public consultation on his plans, despite outcry from industry (he’s the Minister of Industry, remember?), artists’ groups, library groups, educator groups, and public interest groups. He just keeps on ploughing ahead with his half-baked plan to follow the US off the same stupid copyright cliff it leapt off of in 1998 when it passed the DMCA, a law which has done nothing to reduce infringement, but which has screwed up libraries, competition, and education, and has led to lawsuits against tens of thousands of ordinary citizens.
Our society is not yet ready to consider the options, and our infrastructure needs investment to accommodate differing methods.
And, so instead of investing in our communities and infrastructure, we got a 2% GST cut… What a bunch of CRAP!
By maybe Rhino? on 05.21.08 12:00 pm
Spot on!
BY TS ON 05.21.08 8:46 AM
TS, on the earlier blog today..
Incredible post!
Can you post that again?
[and again, and again, and again]
Ralph Goodale says that in 2006, when the Cons. got in. their was surplus of 100 billion dollars!!!!
Finally something ‘open and honest’ from Harper. I support this 100%
Harper announces changes to Canadian food label laws
YES! I want to KNOW where food is coming from because I support OUR FARMERS!
I can figure out that things that do NOT grow in Canada are from FOREIGN countries. No problem. No banana, pineapple, guava, kiwi, mangoes, oranges, grapefruit, or other tropical products come from Canada. Unless someone has a hydroponics plant in oeration? Oh, wait, those usually grow a popular Canadian crop called Wacky Weed.
It is all the other stuff we cannot tell…like most produce, canned or pre-packed foods, etc.
Good on him…for this instance.
Oh, and anyone see the Global National piece last night on the contaminated surgical gloves with insect parts entrapped in the latex? Another fine foreign made products imported by Nedy in Calgary. And they wonder why surgical patients get infections? Let me take a wild guess?
Question: Who complains about the high price of gas after floating a new carbon tax the week before?
Answer: A liberal politician that’s who.
Blame the Rogue Programmer:
Investigation ongoing: Did a computer programming error cause incorrect ratings on debt instruments? Financial markets in turmoil.
Programmer: “I never was good with decimals…but they hired me on because they liked my work on the election machines.”
Floor Trader Reaction: “What’s the problem? It’s all fictional anyways. Just tell George to mail out more cheques.”
My friends at TD agree with you.
By Eric Foreman on 05.21.08 12:40 pm
You have friends ? Prove it moron .
GST was implemented to combat our deficit as was the excise tax on gasoline.. we haven’t had a deficit in awhile yet both those taxes are still around… why is that? You keep saying cutting the GST was a mistake… is it not more a mistake to keep a tax around even though it fulfilled it’s purpose?
By Dan on 05.21.08 11:17 am
Don’t forget about all previous the accumulated deficits – called the National Debt – which is at $450 Billion.
When all the accumulated deficits are gone, then you can talk about eliminating the GST.
All you have to do is look at the economics policies of Reagan, Bush Sr. and Bush Jr. – do you really need to ask if Harper’s economic policies, which are the same – will be successful?
Right wing economics DOES NOT work – just look at what’s going on in the US – and it isn’t just the war in Iraq. It’s the greedy rich conservatives that don’t give a damn for the working people.
An array of tactics adds up to a larger, unscrupulous set of behaviours.
Harper wraps himself in cloak of openness and transparency, but proof is in the pudding
Wednesday May 21st, 2008
Canadians are not happy — the office of the Information Commissioner reported that complaints filed under the Access to Information Act have doubled in the past year.
“Far from living up to his campaign promises of a more accountable government, what we’ve got is the most secretive, unaccountable, non-transparent government we’ve ever seen.
Of the 200 Access to Information requests made by the Liberal Party in the past two years, only 57 were processed within the 30 to 60 day time period, which was the average process time under the former Liberal government. A full 65 took 6 months or longer to fulfill, 12 of those took at least a year. Come August, one will have been sitting on someone’s desk, unfulfilled, for two years.
That is not just unreasonable — it is outrageous.
Also outrageous are the unacceptable extensions that Access to Information coordinators are imposing on the deadlines. Liberal staffers have received letters informing them two requests made to the Department of Foreign Affairs for information on Afghan detainee transfers are being delayed by 290 days.
As well, a request to the Department of National Defence for information on the acquisition of Chinook helicopters is being delayed by 330 days”
http://miramichileader.canadaeast.com/article/301780
The penchant for secrecy was dramatically underscored by Harper quietly killing the Coordination of Access to Information Requests System.
Shutting down access, formerly set up by Mulroney no less, is the writing on the wall.
After seeing the latest postings on the Official Conservative Party website, it is clearly evident that juveniles with intellects less than those of 5th graders are running this once proud country.
Harper and his Conservatives, it seams, are bereft of any mature and lucid thought processes.
Sadly, and perhaps frighteningly, these are the people in charge of Canada – autistic children.
Invented Statistics
BY TS 05.21.08 8:46 AM
Re: Science and Politics of Fear
According to the author we respond to impressions in our unconscious mind which are based on incidents that we can easily recall (like a sound bite news item for example), as oppossed to responding to things based on logic and reason.
The author used an example of a ’statistic’ recently in the media about “50,000 sexual predators on the internet at any given time prowling for child victims”. When he took the time to actually check this out (the FBI offices in Virginia) he found that it was just an invented number – there is actually no way that anyone can calculate how many sexual preditors may be using it. It was a great example of how the population can be manipulated by the invention of “statistics”.
This may be one of the reasons why the Conservatives appear to be purposely sending out gobs of misinformation to the Canadian public. The majority of people are intellectually lazy and do not question what they see or hear, nor do they question anything by applying some logic to it.
Shame on us for being so gullible and naive.
[Let's] help educate the Canadian public. I would encourage you to post material that is factual (along with sources of the data) and refute the mass of garbage being spewed out by the Conservatives.
No one appears to be holding them accountable for their campaign of misinformation.
BY TS 05.21.08 8:46 AM
~ Where did news “reporting” disappear to?
Didn’t we used to have laws preventing a couple of corporations from owning all our news sources?
Wasn’t that a good idea?
BY 300BAUD 05.21.08 7:12 AM
~ If so, we NEED it back. Abuse is rampant.
There’s a site called “Media Matters” in the U.S. which examines statements made by journalists, pundits, etc. to get out the “truth”. It shows how misleading journalists, radio talk jocks, MSM are.
We really need something like this – then people like Janke, National Post, etc. can’t get away with their nonsense.
BY SLG ON 05.21.08 8:28 AM
~ Hey SLG, I second that suggestion!
For Canadians the writing on the wall is clear [if they are aware that it's time to be glancing at it]
Barb the proof reader
and
Garth;
Would like to comment on the “inappropriate” presentation you made to the Liberal caucus?
Who misquoted you this time (just preparing myself for your defense; it’s never your fault, eh Garth)?
I never comment on what happens in caucus. You should know better. — Garth
except when the Nortel lunacy was in full flower
BY GARTH TURNER 05.21.08 10:36 AM
Nortel lunacy.. a scroll down memory lane
http://www.hereinreality.com/news/axis.html
This from todays Government announcements……
Little bit off topic, but maybe not so much if it truly alows consumers to see what is and is not a Canadian product!
Prime Minister Stephen Harper today announced a plan to modernize the federal guidelines governing use of “Product of Canada” and “Made in Canada” labels to ensure they clearly identify the Canadian content in food products.
“Our new guidelines are designed to redefine Canadian food content labels to better reflect the true origins of products in today’s global marketplace,” said Prime Minister Harper. “Our government is tightening the definitions of these familiar labels, so Canadians know exactly what they’re getting, and get exactly what they want.”
The current food labelling guidelines, unchanged since the 1980s, do not clearly reflect the actual Canadian content in foods sold in Canada. Under the proposed new guidelines, when a label says “Product of Canada,” both the contents and processing of that food must be Canadian. A qualified “Made in Canada” label can be applied to products containing imported ingredients as long as the products are manufactured or processed in Canada.
http://news.gc.ca/web/view/en/index.jsp?articleid=399829&categoryid=1&category=News+Releases
At first viewing this looks like something all our MP’s can and should support, I just wonder what other clauses will be hidden in the final bill that may not be so good. I wonder also how extensive the “consultation” will be and if this new labeling will in fact help with identifying Canadian products or simply make more paper work for those few left who can say “Product of Canada” and not be “misspeaking”? Am I less than confident and / or paranoid about this government and our representatives in general? You had better believe it!
But Canadian folks ….. if you can find anything!
Egads! It just came to mind that the reason the government will NOT regulate the oil industry and commodities market is because they are an offshoot from Hinduism (of the new sect..The NMFSCB ‘Not My F’in Sacred Cow Buddy’) and they can’t kill their Sacred Cow!
I knew there had to be a religious basis for it all…and there we have it!
Oil is now, at last report, $132/bbl. What happened? Did a seagull crap on another oil rig? Did the Great Suck take the oil from in the ground? Could be it is just plain, unregulated GREED!
Oddawahahaha is, as always, raking in the taxes, as are the provinces.
Yeah, tell us come the
erectionelection how much you all care about the people? BS! I can’t wait to show you how much I care about you.Ah! Big drop in mortgage rates
Oh, and oil is now upto $133 bbl.
Earth to Dim Jim! ‘Dive! Dive!’ Aaaoogha! Hope your sub isn’t one of those used ones from England?
“GST was implemented to combat our deficit as was the excise tax on gasoline.. we haven’t had a deficit in awhile yet both those taxes are still around… why is that? You keep saying cutting the GST was a mistake… is it not more a mistake to keep a tax around even though it fulfilled it’s purpose?
How are we supposed to trust any politician who wants to implement a tax for a specific purpose? (ie – Carbon tax).
By Dan on 05.21.08 11:17 am”
Dan, you are completely mistaken about the purpose of the GST…I have no idea where you get this nonsense about the GST being introduced to fight the deficit.
The GST was designed to ‘level the playing field’ for Canadian manufacturers by eliminating the domestic manufacturing tax that they had been paying, and replacing it with the GST which would be applied to all goods and services consumed by Canadians, not just goods manufactured in Canada.
This was an initiative by the Mulroney Conservative government and was actually an excellent tax shift. There was NEVER any discussion about the tax being created to fight the deficit.
Your attempt at rewriting history failed.
“For the rest of us, this energy stuff has the markings of disaster all over it. Here in Vancouver this morning, a litre of the regular stuff is north of $1.30, and the boys filling up their Porsches are gulping a buck and a half. Gas prices, as we know, are just the canary in the coal mine. To come with the next cold weather season are home heating costs which will set new records for being exhorbitant.
In places like Halton, where two minivan-families are a way of life, where people routinely commute an hour or two or three a day on the 401, where acres of new homes in former farmer’s fields have no big trees to shield them from the strengthening sun, the cost of energy is eating profoundly into family finances. Ultimately it’s hard to believe it will not affect the very value of the residential suburban, car-centric real estate which defines the place.”
posted by Garth Turner on 05.21.08 @ 10:36 am
And just how is a liberal carbon tax going to fix that???
Oil hits record $133 US a barrel
The price of oil surged by more than $4 US on Wednesday, shooting above $133 US as crude’s march upward continued.
Buoyed in part by a U.S. government report that showed a surprise fall in U.S. oil inventories, the price for light, sweet crude for July delivery gained $4.19 US to settle at $133.17 US on the New York Mercantile Exchange. In after hours trading, it hit a new record intraday peak of $133.72 US.
The U.S. Energy Department said crude inventories in the U.S. fell by five million barrels last week. That came as a surprise to the market as analysts had been projecting a small increase in supplies. Gasoline supplies also saw a surprise decrease.
The rise in oil was aided by more weakness in the U.S. dollar, which traded lower against the euro. A lower U.S. dollar makes it cheaper for investors to buy oil.
The latest surge in oil came as executives from the biggest oil companies — Exxon Mobil Corp., ConocoPhillips Co., BP America, Chevron Corp., and Shell Oil Co. — were grilled by U.S. senators on Capitol Hill over the profits their firms have made.
J. Stephen Simon, executive vice-president of Exxon Mobil Corp., said high earnings are necessary “in the current up cycle” at the current time to pay for investments when profits go down.
“Current up cycle,’ that’s a nice term when people can’t afford to go to work,” Vermont Senator Patrick Leahy said sarcastically.
The executives used their appearance to argue against new taxes against their industry.
Man, I gotta raise my rates too. i, of course, would go out of business if I did so, because I don’t deal in an etherial commodity tied solely to stockholder earnings and happiness.
I’ve got their ‘Up Cycle’ right here ,,!,
What a crock fof pure CRAP!
So when the stock market falls 150 points we are screwed.
http://www.garth.ca/weblog/2008/01/07/screwed/
But when it hits a record high were also screwed. And it’s all Harper and flaherty’s fault.
Love the nortel reference.
So garth nothing on income trust going back to the levels before before flaherty tax them.
http://www.financialpost.com/story.html?id=517667
Hockey Night in Fort McMurray
So when we kids, Hockey Night in Canada was this comfortable place where our family gathered to watch our national game on Saturday night. It was sponsored by Esso.
Curious, how at a young age, we believed there was a human side to Esso.
So there was an interesting announcement today. Apparently, the patriarch of Esso; Exxon Mobil received a fast track for their Kearl mine development in the Tarsands from you guessed it – our Conservative government.
It seems they had a slight problem with water and the delay might mean they would not make the rush to go to production before Mr. Harper’s elimination of CCA (Capital Cost Allowance) in 2010. Seriously, they need the subsidy to invest in that risky business of the tarsands.
So I am sure there are some high fives at Exxon and a celebration of just how stupid Canadians have become. Heaven forbid, we should worry about the water table in Alberta or Exxon’s windfall profits.
When Dion unveils his revenue neutral Carbon-Income Tax scheme, I want to hear his say that his new taxation regime will be so effective that Canada will not need to purchase Billion$$$$ of Kyoto Carbon Credits to mitigate our now 30% GHG excess to our Kyoto targets.
If Dion doesn’t say NO to Kyoto Carbon Credits and altruistically sending Billion$$$$ to China, India, Russia is still his objective, that will reveal his Liberal deviousness..,!!!
before Mr. Harper’s elimination of CCA (Capital Cost Allowance) in 2010.
By Bonnie N BC on 05.21.08 6:19 pm
Say WHAT? Do you have any details please?
I want to punch Jimmy Flaherty in the face.
Gee, what happened to the posts from 1:41 – 6:19?
Say Bonnie, I saw some very interesting news from USA. The Senate are grilling the US oil barons. Seems the Senate is worried about the high environmental costs of oil sands product. Seems the Senate are not ready to back their efforts in the Oil Sands.
Would that not be a hoot if Harpo’s Bizarre gooberment were halted by actions of the US Senate!
I can always dream….
By Bill-Muskoka on 05.21.08 2:42 pm
Ha ha ha Bill….
I gotta tell you this… This should be in Ripley’ believe it or not.
A friend once had a hydroponics farm in Quebec, with a 30 ft dome for growing legal herbs. Right at the center, he planted a banana. Strange as it may seem, the bloody thing grew Quebec bananas! Seriously!
So, I have actually eaten Canadian grown bananas! honestly!
However, the cost per bite was rather high, as this needed controlled environments and lights – in winter!
Amazing what Canadians can do if given the opportunity!
By Bill-Muskoka on 05.21.08 2:03 pm
Bill, After the GST cut in Jan. I did notice that my preferred beer was 8 cents cheaper. That is in B.C. though. They have since raised it higher then it was before, so I really wonder what the point in lowering it was? Funny how government run departments do such stupid things that make next to no sence.
If harpo had said the WW in today’s KDC, then the quote would have been bang on:
“If I only had a little humility, I’d be perfect.” — Ted Turner
“. . . that finance minister Jim Flaherty is a genius?”
When I read that, I almost drenched the monitor in green colored spew, I was laughing so hard.
Upon realizing I would have to clean up my own mess, I chose the lesser of two evils, and proceeded to an extremely stupid sketch from Monty Python . . .
http://youtube.com/watch?v=IIlKiRPSNGA
An idea for CRAPpers who worship their gods, dubya, carney, harpo and dumdimjim is to have harpo et al explain on all Cdn. TV and radio channels why our economy here is in such great shape, and take direct questions from ordinary folk and give them clear, concise answers.
An idea that won’t ever happen, because CRAP’s fraud of a govt. would be exposed for what it is — incompetent / sheer lunacy at best and a national disaster at worst.
A report from CP said that food banks are bracing for a food-price fallout, which means donations will have to rise substantially so they can afford to buy bread, rice, pasta and wheat.
Yet, more and more people are finding it harder and harder to make ends meet. Go figure. Are our elected leaders or dumbbells? There doesn’t seem to be much difference.
“. . . Jim Flaherty. The miscalculation of spending $12 billion cutting the GST, instead of chopping income taxes by an equal amount; the dramatic double-inflation-rate increase in federal spending; the burning through of a $14 billion surplus, taking us to the point of deficit; the callous disregard of the manufacturing sector; the boastful pumping of our currency – these are the accomplishments of a man beyond his depth, and, apparently, his understanding.”
On CHBC-TV news tonight, SRI Manufactured Homes will lay off close to 200 employees shortly. SRI was recently purchased by a company in Michigan.
One reason given for the layoffs is the market is saturated, which is pure BS; what of folk who WOULD be able to buy a manufactured home, instead of getting a useless McMansion, which serves little or no purpose?
Once again, when America sneezes, Canada catches the cold.
Combined with 1,400 and more forestry jobs gone in BC, primarily due to the strong dollar and the US housing downturn.
It will be quite interesting to see how the forthcoming Xmas spending season goes — whether folk consciously choose to incur more debt, or whether they have seen the writing on the wall.
It looks much clearer — at least to me — that the downturn across North America was designed to happen, maybe prior to 9-11.
Once that event had taken place, no one would be bothered to keep tabs on what the NWO does quietly behind our backs.
The Usual Suspects are now running amok amongst us, and they cannot be stopped.
Say WHAT? Do you have any details please?
By Bill-Muskoka on 05.21.08 7:21 pm
My friend Bill in Muskoka
Yes, in the 2007 budget Mr. Flaherty announced that the “oilsands’ would lose their Accelerated Capital Cost Allowance by 2010. Go to CBC budget to substantiate my research. But to be honest, the outcome is a bit obscure. Could be the old “may” or “shall” maybe we will or not enforce the announcement ‘ we’ll eliminate ACCA for the oil companies.”
Come on, after today’s announcement on Exxon, do you think they care about anything but being an energy super power? Seems Stephen thinks he’s a blue eyed Sheik…
Garth, here is your chance to increase your blog reach!
Conservative Party of Canada recognizes the growing importance of bloggers in sending our vision to Canadians. As a result for the 2008 Conservative Party of Canada’s National Convention we will be formally accrediting bloggers.
The accreditation of bloggers will be based on various factors – including interest; space availability at the convention; the readership and influence of a blog; the amount of original content the blog typically generates to name a few.
All bloggers who would like to register for accreditation must submit the form below for review.
Click here
Already done, of course. — Garth
Yup, the GST Cut was an amazing gift to Business interests who got 80% (conservatively) benefit. They also got even greater tax savings when Mr Flartity handed them even more saving as he cut the Tax rates on businesses. The CPC put you and every Canadian over a barrel and screwed us up the arse with their GST cut.
By Zorpheous on 05.21.08 1:10 pm
I agree with your explanation that the GST replaced the old manufacturing sales
but there is no benefit to a company whether the GST is 7% or 5%, other than maybe increased sales.
Companies are only collectors of the tax. They charge 5%, deduct their input tax credits on what they purchase and send the difference to Ottawa. It’s the customer that benefits and not the company.
Corporate taxes are being reduced because we are competing in a global economy and all countries are cutting their taxes.
Garth,
I’d like to see more done for the underpriviledged in Toronto. Geez, I’ve recently watched a documentary on the complex that houses very poor people. The housing complexes were riddled with cockroaches and bedbugs. I listened in disbelief about a blind man’s plight and I listened in disbelief about people with disabilities, their choices were ‘zilch’.
Wish something could be done for this sector of our population. Please check into their demise and let me know what we can do to assist them having a better quality of life. Thanks.
“This may be one of the reasons why the Conservatives appear to be purposely sending out gobs of misinformation to the Canadian public. The majority of people are intellectually lazy and do not question what they see or hear, nor do they question anything by applying some logic to it.”
“Shame on us for being so gullible and naive.”
By barb seeking truth not tactics
on 05.21.08 3:28 pm
—————-
Barb, I must sadly agree with your premise.
Just reading some of the comments in this blog today proves your point.
(Names withheld to protect the stupid.)
Slug (used affectionately),
what do you mean Reagonomics, or right wing economics, doesn’t work. It works flawlessly.
It only was advertised as “trickle down” economics, which, of course, is pure rot. However, when you consider the real purpose, to suck money into deeper pockets, it worked like a charm. Still does.
About a week ago I asked if someone could explain why the S&P/TSX had risen to 14,600 plus, while we were watching the manufacturing sector bleed, contemplating the collapse of the housing sector, and beginning to wonder about the affordability of fuel and food?
Now it’s at 15,000, and Garth ascribes it to the oil and gas sector, which is only one component of the index. Which leads me to another question: what separate reality do the investors whose buy/sell decisions move the market, live in?
By barb seeking truth not tactics
on 05.21.08 3:46 pm
Interesting post, Barb.
Now the NAU / SPP and their precursor, NAFTA become easier to understand.
Yet I wonder . . . somewhere under Yellowstone, or around that area, there is a “super volcano”; set that off, and then for a double whammy, ‘owzabout awakening the San Andreas Fault to do the Funky Chicken?!
Just how much power would the NAU / SPP / NAFTA hold over people then?
The show from the earth itself would be quite spectacular — we could even have our own version of the Titanic going down!
Plus, there wouldn’t need to be an economic downturn, ‘coz none of us would be here to live with it!
Be patient. — Garth
By Gord G on 05.21.08 1:55 pm
Patient, how can I be patient, I want my recession now, damn it. LOL
Gord.
Nice try, but the BoC cut had far more to do with the dollar and a desperate attempt by Mark Carney to try and stave off recession. The problem now is deflation, not inflation. — Garth
Maybe you could explain this comment. There seems to have been a marked change in how things like “cost of living” and inflation or deflation are measured.
When the government creates these measure they seem to ignore the concept of “necessities” when measuring. It is easy to create statistics by simply selecting the items in the “basket” to make sure the real costs of living are hidden.
If the bulk of my spending is on necessities and those costs are increasing it does not matter whether the price of widgets is falling my cost of living is going up.
This is a serious problem for seniors because governments are able to distort the impact of the price inflation of necessities so they will not have to index pensions according to real costs.
Everything today seems to focused on “selling” smoke and mirrors.
Now it’s at 15,000, and Garth ascribes it to the oil and gas sector, which is only one component of the index. Which leads me to another question: what separate reality do the investors whose buy/sell decisions move the market, live in?
By Herb on 05.21.08 9:05 pm
The facts are that the economy is no where near as bad as the media and this web site make it out to be. Yes, we are losing some manufacturung jobs but manufacturing only represents about 12% of total jobs in Canada.
And despite all the doom and gloom talked about here the housing market in Canada will NOT copy the US downfall.
That is why the markets continue to rise.(except for today)
“The housing market in Canada will NOT copy the US downfall.” Could you please give us a source for that comment? — Garth
Nice choice of words from harpo — a cash grab by the govt. (or words to that effect — first para.).
What about ITs? Would that not be construed as a tax grab?
Of course harpo doesn’t like Dion’s ideas — they might actually appeal to the undecideds to vote for Libs. in the election, so CRAP is tossed!
http://tinyurl.com/4wljue
Companies are only collectors of the tax. They charge 5%, deduct their input tax credits on what they purchase and send the difference to Ottawa. It’s the customer that benefits and not the company.
Corporate taxes are being reduced because we are competing in a global economy and all countries are cutting their taxes.
By George B on 05.21.08 8:31 pm
That is only true on the Goods and Services the buy and sell for their services/goods that market in. Businesses still consume in their Operating budgets which they save hugely on the GST cut. Sorry you are wrong, or else explain where the 8 Billion per year is going.
As a Liberal, it would be in your best interests for the economy to tank. It would also help you if you nudged it along….
I wish only the best for my country. — Garth
By Eric Foreman on 05.21.08 12:44 pm
I think the CPC are heading into the perfect storm, some of which is their doing and some outside of theor control.
However, Captain Harper has a choice, turn into the wave or let it hit broadside with all its consequences. Unfortunately, he doesn’t need Garth or the Libs to assist him (he wouldn’t anyway) as his fiscal policies have turned the good ship Canada so we wil be hit broadside.
—————————————
By Gord G on 05.21.08 1:55 pm
Inflation – the rise in price over time.
Low inflation is a good thing coupled with economic growth.
Deflation – decrease in prices (won’t happen until oil and other commodities go down!) Not a bad thing.
Stagflation – inflation combined with slow economic growth and rising unemployment. – This is the one to worry about. If inflation keeps rising due to fuel pressures, and manufacturing continues to slump such that only the resource sector is growing, will our low unemployment rate continue?
The liberal carbon tax plan with its hidden agenda is becoming clear. They won’t tax manufacturers in Ontario, that would result in higher prices to consumers and job losses. They won’t tax Ontario Hydro, the largest emitter of GHG because they would just pass the extra expense onto the consumer. Industry in Ontario and Quebec will be immune to the tax because those are vote rich regions.
The one place they can tax big time without consumers picking up the tab is the oil and gas industry in Alberta and Saskatchewan. Taxing their production would simply come from their bottom line. Their product price is set on the world market so they can not pass that extra cost to consumers. This would be quite popular to central Canada because they won’t be adversely affected and everyone hates “Big Oil” anyway so let them pay.
Trudeau did that with the National Energy Program. It shut the industry down. Calgary had office sky rises empty, massive job losses.
The reason the liberals can do it again is because there are no votes to be had in Alberta and Saskatchewan. Goodale is probably safe because he is in red Regina. Other than that, the liberal’s hopes are in Ontario, Quebec, and Atlantic Canada.
There is always a casualty of war. If the libs win, Alberta will be that again. Only this time, they won’t take it lying down.
Wow, Janice. Does this mean you guys might elect onloy Conservative MPs in Alberta? Big news. — Garth
The GST cuts were a boon to business, an under-the-table tax grab for many businesses. While the prices of some things came down, more accurately the GST wasn’t collected on those things, many more things stayed the same price: parking, movie tickets, concert tickets, transit tickets, admission prices to aquariums, museums, etc., and the 2% was simply pocketed by the businesses and corporations who set the prices to begin with. Things like rent, fuel, heat, water were unaffected by the GST cut, and Canada and many Canadians were left the poorer for it.
Look around and now you will see a 2008 SUV going for far, far less than people ordered them for last year; same applies to air conditioners or swimming pools. So, there are some savings to be had by people who really wouldn’t notice 2% to begin with.
Now, food is going up, labour and construction costs are going up. Just two weeks ago Harper ‘announced’ the Canada First spending, and this week we are hearing that the figures given (or not) are already double…
Yeah, I trust the government. o.O
As a Liberal, it would be in your best interests for the economy to tank. It would also help you if you nudged it along….
By Eric Foreman on 05.21.08 12:44 pm
A CPC talking er blaming point if ever there was one.
Watch for it. Now we’re going to hear the Conbots blaming the Liberals for Canada’s woes because it won’t take the Harper (so-called) government down, and so save Canada!
Spare me. Stew in your own juices for a while. You built the boat, you sail her.
Canadians will say when it’s time to take the Harper Cons out, until then…
Now, food is going up, labour and construction costs are going up. Just two weeks ago Harper ‘announced’ the Canada First spending, and this week we are hearing that the figures given (or not) are already double…
Yeah, I trust the government. o.O
By Liz on 05.21.08 10:15 pm
According to Garth deflation is just around the corner. Just be patient.
Gord.
Come on, after today’s announcement on Exxon, do you think they care about anything but being an energy super power? Seems Stephen thinks he’s a blue eyed Sheik…
By Bonnie N BC on 05.21.08 8:23 pm
I was being very, very serious. Mess with the CCA really hurts small business. We eek out a living and every cent saved makes a difference. I am thinking about the CCA’s I have in process, and waiting to come to maturity for total write-off.
As to Harper being a Blue eyed Sheik. LMAO! what other colour would he choose?
Haw Haw! Just watched Harper on CPAC introducing his Ag Min as ‘Tony’, being corrected and Gerry takes the podium while Harper wiggles around in the background like a boy who needs a hall pass PDQ, grinning foolishly.
The guy is so remote that he doesn’t even get the names of his own puppets er Ministers right!
And apparently he admonished Bernier for fooling around with organized crime figures or figurines… who knows, maybe he lambasted Toews by mistake.
Yah, I trust this government.
Ian Brodie resigns as Harper’s chief of staff
http://www.theglobeandmail.com/servlet/story/RTGAM.20080521.wbrodie0521/BNStory/Front/home
“Sources said Mr. Brodie made the decision before the delivery of a report looking into a leak of information regarding the NAFTA free-trade deal which influenced the Democratic Primary in the United States.”
Very interesting development.
Brodie is toast..
http://www.theglobeandmail.com/servlet/story/RTGAM.20080521.wbrodie0521/BNStory/National
Obviously it can’t be said too many times – you are an idiot, a certifiable idiot. Of course the price of oil and therefore the price of gasoline is Jim Flaherty fault. After Canadians control the world economy.
btw loved your post back a couple where you referred to reporters and bloggers as “beating off” because they challenged your version comments you made to a public audience. Honestly you are an embarrassment to the role of an MP as well as being somewhat emotionally stunted. Remember Garth? – beat-off, idiot, fag – those were the insults you called people in high school because that was the deep dark question about yourself. Or haven’t you got over that?
Gord @ 10:27
Correct me if I’m wrong, but deflation isn’t going to do worse to middle and low income Canadians than inflation. So, why worry?
Still not going to get those boats a-floating, and serving and protecting our troops either way.
Ya, I trust this government. o.O
I think an election this Fall is now inevitable. Either the next Conservative is voted down, or Dion will attempt to table his Carbon-Income Tax shifting scheme and it is passed thus forcing Harper to resign and have an election in October-November.
If the Harper government is allowed to survive into 2009, it will most likely finish it’s term to October 19, 2009. Dion will most likely not be the Liberal leader either.
All this frothing and foaming and fighting seem rather pointless now …..
Btw Garth … did you go to Vancouver in your official capacity within the Liberal party as the Leader’s Special Advisor for Riding and Constituency
Outreach …. a key political and fundraising role ..???!!!!
Giorno, Guy – To be Conservative campaign “script-writer”
Former Mike Harris heavyweight helped organize anti-Kyoto front group supported by John Baird in 2002.
Guy Giorno worked with John Baird in opposition to Kyoto before Baird was Environment Minister.OTTAWA, November 19, 2007: Last week the Ottawa weekly newspaper Hill Times reported that Guy Giorno, one of the architects and top commanders of Ontario’s radically right-wing “Common Sense Revolution” government under Mike Harris is writing the campaign script for Stephen Harper’s next election campaign.
Giorno, a corporate lawyer and lobbyist, was one of the hard-liners in the Harris years, along with with prominent Conservatives like Tom Long, Leslie Noble and Deb Hutton. Giorno’s and Hutton’s names came up prominently in the inquiry into the death of Dudley George in Ipperwash, Ontario in 1995 in connection with a native protest that was brutally suppressed by politically-driven police action.
Giorno works with the law firm Fasken Martineu, which says he is “widely recognized as Canada’s leading expert on lobbying legislation and lobbyist registration law” on its website.
In 2002, Toronto’s NOW Magazine reported on a meeting in that city by a what proved to be a short-lived industry front group called the Canadian Coalition for Responsible Environmental Solutions (CCRES). This organization was formed to oppose the Kyoto agreement on climate change. Giorno worked with lobbying firm National Public Relations, which set up the organization. The CCRES folded less than a year later.
“There were speeches by coalition organizers, and a particularly passionate Ontario energy minister, John Baird, made his anti-Kyoto rallying cry,” reported Greenpeace campaigner John Matlow. “Needless to say, the audience was very receptive.” Baird went on to get elected federally and to become Stephen Harper’s environment minister.
Matlow reported that two days later, Giorno exposed his hand “by sending every MPP at Queen’s Park an e-mail suggesting what they might say in op-ed news pieces or letters to their constituents about Kyoto. Then Liberal and NDP members, for whom the missive was obviously not intended, were sent a second e-mail that read, ‘Unfortunately, materials from the Canadian Coalition for Responsible Environmental Solutions were sent to your office in error in a previous e-mail. I do apologize for any inconvenience.’”
Related individuals, organizations and significant events
Global Warming update – Harper at G8
Links and sources
Big Oil’s Kyoto Party, NOW Magazine, October 24-30, 2002
Canadian Coalition for Responsible Environmental Solutions, SourceWatch, the Center for Media and Democracy
the man behind mike, by Ted Schmidt, NOW Magazine, January 8-14, 1998
Posted: November 19, 2007
Harper Index (HarperIndex.ca) is a project of the Golden Lake Institute and the online publication StraightGoods.ca
Way to pick and choose, Gord. Perhaps you own a parking lot or movie theatre. Apparently Ottawa got an extra $100,000 ripping off people because the parking meters cannot register the 2% price cut.
Yikes! Bob Duncan’s got a serious high-school hate-on. Sounds like he’s been nursing it for some while…
Good thing there are counselors and groups in schools now so no-one has to grow up like old Bob.
Or, maybe old Bob still prefers to do it old school…
If the libs win, Alberta will be that again. Only this time, they won’t take it lying down.
By Janice on 05.21.08 10:07 pm
Ah, so it will be bent over the table. spread wide, and able, eh? LOL
Here is an investment tip…By K-Y Intimate stock…Sales are prophesized to deeply sore!
And here is why! No gas tax relief: Harper
Beamsville, Ont. — Canadians stung by record-high energy costs shouldn’t look to Ottawa for a gas-tax break as such measures would do little to slash prices at the pumps, Prime Minister Stephen Harper said Wednesday to the chagrin of critics who said there’s plenty of room for government action.
With oil prices having more than doubled over a year ago — surpassing $133 (U.S.) on commodities markets Wednesday — Mr. Harper touted broad-based tax cuts as an antidote and slammed Liberal Leader Stephane Dion’s plan to tax carbon.
“The ability of governments to affect the price of gasoline per se is so small that it’s not worth doing,” Mr. Harper said following an announcement on new food labelling regulations.
More lies from Caesar Disgustus!
Question: Who complains about the high price of gas after floating a new carbon tax the week before?
Answer: A liberal politician that’s who.
By LiberalTaxMan on 05.21.08 2:52 pm
and who’s afraid and is on attack mode already when the Plan hasn’t even been revealed – ConservativeDenierMan-Harper – dogs that bark the most are the one that are most afraid.
Garth;
Would like to comment on the “inappropriate” presentation you made to the Liberal caucus?
Who misquoted you this time (just preparing myself for your defense; it’s never your fault, eh Garth)?
I never comment on what happens in caucus. You should know better. — Garth
By Eric Foreman on 05.21.08 3:45 pm
…ah – what happens in caucus stays in caucus – it’s NONE OF YOUR BUSINESS. Now, go away and find something else to do – like ask Harper or Layton what happens in their caucus meetings – we’d like to know. Thanking you in advance for your efforts in finding out.
I just read bob Duncan thread; oh my goodness, he holds onto resentments, bitterness, and bullying. He’s accusing Garth of all kinds of things that happened in elementary and secondary school…you know, the ‘he said’ she said stuff.
What’s up with that stupid comment. Me thinks Bob actually hates Garth Turner.
Guess that’s his problem, he probably doesn’t know that his life will be shortened for holding onto resentments.
Go Bob Go, You go and get him (Garth).
Thanks Garth for the opportunity to read other peoples opinions, suggestions, and ideas.
Bob Duncan’s is the best so far; sounds like he means business.
What the heck, another one of Harper’s Bullies is resigning…Again, just before an inquiry. Zackie was either going to be fired or he had to resign, he resigned. No big deal, he looks clean; can’t believe that he tried to muddy Ralph Goodale’s name before he got caught in one of his big lies.
Wow, do we have a solid government with the new image. Doesn’t sound promising these days. Where is my sexy Bernier these days? Where is Petro McKay, the traitor? Where in Linn? Where is Kenny? Where is Harper hiding Sandra B, Finley and her husband these days?
Didn’t think they were on the campaigne trail talking to potential voters. Or, maybe I’m missing something. Please help!
Sandy, I can’t say for sure about any of the people you mention but Ms. Buckler is recuperating from thyroid cancer surgery. May she recover fully. Enough said about that. There is no glory in kicking someone when they are down. I hope you agree.
“The ability of governments to affect the price of gasoline per se is so small that it’s not worth doing,” Mr. Harper said following an announcement on new food labelling regulations.
More lies from Caesar Disgustus!
By Bill-Muskoka on 05.21.08 11:59 pm
Sure didn’t stop Stephen Harper from promising to affect the price of gasoline in exchange for Canadian votes in 2004, did it?
The guy simply cannot be trusted.
Thanks buddy, so where are the rest of Harper’s bullies these days? Thanks.
Yeah, you’re right about kicking someone when they’re down, I too, am recovering from thyroid cancer. thanks.
Senator Kennedy has some other kind of brain cancer. Sure too bad cancer will take so many of our dear lives.
“Stock market results don’t tell full tale of North American economies”
- Keith Woolhouse, Ottawa Citizen, http://www.canada.com/ottawacitizen/news/bustech/story.html?id=72bde1a0-faf3-42e1-88ad-b8177febd652
Citing CIBC World Markets economist Avery Shenfeld:
“It’s important to avoid thinking about the TSX’s winners as a mirror being held up to the Canadian economy. The winners have benefited from soaring global prices for energy and food — and, therefore, fertilizer — or they’re selling a particularly world-beating handheld device, the BlackBerry.
“Moving raw commodities has helped the rails (CNR and CPR).
“The softness has been in sectors like retailing, auto parts for North American assembly or financial services where the state of the Canadian or U.S. economy is a key driver. Banking aside, the parts of the Canadian economy worst affected by America’s slump and credit crunch are significantly underweighted in the TSX.
“The auto assembly plants are all foreign subsidiaries with no Toronto listings. The sagging forest products and domestic clothing manufacturing industries have almost no market weight anymore.
“In contrast, aerospace, a factory sector still growing nicely due to its global product demand, does have a few major listings.
“The Canadian stock market is a bet on rising food consumption in Asia, the taste of overseas central banks and Indian households for gold over the U.S. dollar, and the growing number of cars on roads from Beijing to Bombay, St. Petersburg to Santiago.”
That is only true on the Goods and Services the buy and sell for their services/goods that market in. Businesses still consume in their Operating budgets which they save hugely on the GST cut. Sorry you are wrong, or else explain where the 8 Billion per year is going.
By Zorpheous on 05.21.08 9:52 pm
Sorry but you are wrong. Businesses deduct all GST paid from the GST collected and remit the balance to Ottawa. It does not matter if the costs are used internally or on goods purchased for resale,
The reduction of $8 billion goes to you and I, the consumer, not the company.
Well then George please explain where the other 8 billion is going. The Harper Government says the average household is saving 200.00 per year because of the gst cuts.
If we are getting all over that savings, then the average household should be saving 1100.00 per year. That would mean the average household is spending a minimum of 55.000.00 on Gst taxable items every year, and then there is money the Canadian household spends on GST exempt items.
Sorry George the numbers don’t add up
Actually George, businesses do not send all the GST they collect to the government. They are “paid” a percentage for doing the book work involved. They deduct their percentage from the total collected and then remit to the government.
Actually George, businesses do not send all the GST they collect to the government. They are “paid” a percentage for doing the book work involved. They deduct their percentage from the total collected and then remit to the government.
By Judy on 05.22.08 10:28 pm
Would you please tell me what line that is on the return? We do get a minimum of a whopping $20 for the PST, but GST? Where is that please?