Proving Me Right

http://www.theglobeandmail.com/servlet/story/RTGAM.20081214.wdohcanada1214/BNStory/politics/home

I just wanted to point out this article to everyone so they can bask in all my glory (glory being how accurately I have been describing the intelligence of Canadians). Based on an Ipsos Reid survey the answers are shocking. Most noteworth, 75% of Canadians do not know who the head of state is and 51% think that we directly elect the Prime Minister. No wonder nobody understands the problems at hand. If this does not support my call for a reformed education system nothing will. At least I have one new ally in the struggle, Marc Chalifoux who comissioned this survey is quoted saying: "Our school system needs to be doing a better job of training young people to be citizens". I don't want to say I told you Canadians are ignorant, but I told you so. Please stop dissapointing me Canada and teach these people about the system.



Who do you think the head of state is (hint: its not the PM)

C.

Debt 101

It has been a while since I expressed my opinions, but I have returned and the topic of the day is Money (not the small amounts residing in my bank account but the large amounts collected, spent, and owed by the government of Canada).

$508 billion. That, my fiscally irresponsible previous generation, is the weight of what has been left to this generation, that is Canada’s debt. Now entering into another era of deficit financing I decided it would be important to have a quick look at it. Now I am not saying that a short term deficit is the worst thing we can do, especially considering the circumstances. I am saying that the current governments spending decisions are what destroyed the flexibility in the Federal surplus that could have allowed us the opportunity to combat this crisis without issuing bonds or turning into the US. This number may seem small compared to the trillions of dollars being allocated to bailout packages in other countries, but do not forget that this is not a large country. The public debt was estimated at 64.2% of our GDP last year (https://www.cia.gov/library/publications/the-world-factbook/print/ca.html) and will only increase with a deficit and shrinking economy. National debt is not the worst thing in the world, the same way mortgages and credit cards are not the worst thing, but not paying down the debt and adding to it, well that is where it starts to get bad.



How did the current government get us into this problem? They started off strong by cutting the GST (they are in fact considering the introduction of a third cut as part of a stimulus package (http://money.canoe.ca/News/Economy/2008/12/10/7700926-cp.html)- I personally have trouble believing that a 1% cut in taxes will motivate sales, considering people are fearful of losing their jobs). Then they greatly increased military spending (currently $20 billion annually – remember that we are paying to send soldiers to Afghanistan). These are good starters in lost revenue and crazy spending, but are just a sample of the information available to those of you who voted Conservative in the last election. So imagine we did still have a large budget surplus. Would we be able to finance a stimulus package, which economists recommend should be in the area of $16 billion, without entering into a deficit again? Would we be able to pursue green stimulus packages (i.e. high speed rail construction, wind mill construction, how about a machine that harnesses energy from waves which does exist) that not only invest in sustainable developments but are also proven to keep more of the money within the country than alternative stimulus packages creating high paying jobs in manufacturing, engineering, science, etc...)?

Oh the options that have been taken away from us by a party designed to motivate people utilizing cheep (ok extremely expensive) gimmicks. I am not trying to chastise everyone who voted Conservative in the last election, I am not saying it is your fault that Canada is in this terrible situation, I am saying that perhaps more people should pay more attention and stop being controlled by attack ads and political deception. Sure I love saving a few cents at Tim Horton’s on my steeped tea and sure I like thinking that sending people I know to Afghanistan to fight with people I am supposed to fear is keeping me safe. Sure I like to think that everyone who voted Conservative cares about the future of Canada and was only deceived into pawning the problems of the nation onto the guiltless next generation (especially me since I have no interest in paying down a debt created by the current government to solve problems it is partially at fault for creating – cough, Flaherty: “Ontario is the last place to invest”, cough).

So if you voted Conservative in the last election or ever consider voting that way in the future, I recommend you think long and hard about your legacy. Do you want to be viewed with admiration for standing up against insurmountable odds and endearing or do you want to be viewed as a generation that was fooled by Stephen Harper, a man who has done nothing deceive the nation, taking advantage of the ignorance (how many people understand the political system and the economic impact of a recession) and intolerance (Dion may not have spoken good English but his economic plan did not call for 6 months of no government during the worst economic crisis facing the generation). You can all make your own decisions, but next time you go to the polls try doing a little bit of research and I do not mean watching Harper’s commercials and quoting them. (“Dion is going to tax everything” – “Dion is out of touch” – “Harper looks like the steady hand we need at the helm, he wears sweater vests and his son is getting to that age where he doesn’t want to spend all his time with dad”.) Come on people get informed and stop embarrassing Canada, even the US was able to elect a leader who supports more than Big Oil and an insatiable quest for power.

C.

Canada’s Finance Minister is Lost

I have often thought to myself over the past few months that Jim Flaherty has no idea what he is doing as federal Finance Minister.

As a man that stated that Ontario is the “last place” people should be investing, one would think that as the low point in his post as the man behind the money. These words coming from a man that Ontarians had so much contempt for he had to run with his tails between his legs from the same provincial office. Today it got a whole lot worse.

The Globe and Mail came out with comments by Flaherty that makes one’s head spin.

Read full article here:
http://business.theglobeandmail.com/servlet/story/RTGAM.20081212.wflaherty1212/BNStory/Business/home

Ok, after reading that, I am left with the opinion that fear mongering the ‘devastation’ of doing something is a way to get around a significant problem. The Tories have no idea what do it and continue not to plan anything.

This comes on a day where the Globe announced that Michael Ignatieff, the new Liberal leader, has been having meetings with prominent financial minds.

According to Flaherty, any planning at all isn’t necessary. We are still in a position to do very well weathering this storm according to the article linked above. WHAT?

His words here also come a day after the Bank of Canada made statements suggesting that many Canadians may in fact lose their homes in a US-like mortgage fiasco. But, I mean, those are only foreclosures and people’s homes, right? Maybe Flaherty is banking on none of them being Conservative voters anyway.

Fact is that the Tories have no idea what they are doing. Those that are going to read this blog will have just as much of an idea.

I also find the last bit of that article quite humourous. Flaherty suggests that handling this economic crisis is not a sprint. Well, he hasn’t even started running. Instead, we have had a Finance Minister who has been on vacation since an ‘illegal’ election was called (Conservatives broke their own fixed date elections bill). That is going to be 5 months.

Those are five months he and the CPC should have been running. Instead, they are going to wait until this last minute to leave the gates and turn it all into what they said it isn’t, a sprint.