China Moving in "One Direction" With One Belt One Road While Federal Liberals Are Taking Canada in the Opposite Direction

As China announced a monumental infrastructure effort that will require enormous amounts of capital over the weekend at its symposium (various opinions are out there on this program) Canada's Federal Liberals have decided that development, progress, infrastructure maintenance nevermind NEW infrastructure will be forever mired in studies and regulation based on their own interpretations of "what Canadians want". 

The Liberals' election platform (remember that $10B deficit....for infrastructure?) may turn out to just be the deficit without infrastructure considering the extra approval body created and "where's the peanut game" of transferring control and veto powers to these various bodies (bona fide or not).

Their own infrastructure plans that they have sold to Canadians may never ever be built due to the Liberals view of "science based" conclusions and constant changing of the rules to have the outcome they want. That new subway line, critical bridge, new hospital location, additional university building or housing will have to answer to the bugs, bunnies and mice that may need to be transplanted or the carbon created put on hold....for the next election, or worse, new approval body to be formed to stet the whole review process all over again. The NDP may actually win an election by the time anything will be approved under the Liberals' new rules!

http://www.financialpost.com/m/wp/news/blog.html?b=business.financialpost.com/fp-comment/terence-corcoran-1-fake-bank-2-project-smothering-energy-panels-the-liberals-3-pillars-of-stagnation&pubdate=2017-05-17

Red is for (Liberal) Deficit: Why are There Not Outcries and Protests in the Street?

With Federal deficits now forecasted (well a Liberal forecast, based in Liberal math) out to 2050 and with such bloated payouts within the province of Ontario (a proxy for other provinces), why are Canadians not in a panic over future benefits,  oh say, CPP!

(The following "Sunshine list", those making over $100,000 working for the Provincial government was released. Some select positions as outlined. I do not know how the IPO of Ontario Hydro affects some of these positions being reported now, but I will have to investigate)

Sunshine List: http://news.nationalpost.com/news/canada/ontarios-sunshine-list-2017-all-the-ways-you-never-thought-you-could-make-100000-a-year

Although interest rates are low today, the Liberals at both Provincial and Federal levels are spending like proverbial drunken sailors (and on the flip side were receiving payments at a fire hose rate for that little issue called "cash for access", remember that one? As Liberals are also good at using media techniques of distraction which is their proverbial " broom" to sleep things under the rug).

Enough of the clichés, what does this all mean?  Sadly, as the Liberals have a high chance of regaining power in the next Provincial (Ontario cannot help themselves, despite record low rates of approval for "the Kathleen", Ontario voters only see Liberal red and will likely vote this gaffe induced party in again) and Federal elections (no clear leader for ANY of the opposition parties), Canadians had better beef up on their personal finance skills and mind their savings, RRSPs, TFSAs, company pensions, real estate holdings and how they can minimize their tax situation over the coming decades.

I'm 46 now, deficits are " forecasted" to be eliminated when I'm 80, I'm not depending on a CPP and review my RRSP every day.

Liberal Advent Calendar

I saw a "Trudeau-scented candle" in an inept email that came my way recently,  Scented? Does it smell like b#llsh!t?  Afterward, I then started thinking what would have been a bigger seller. Immediately what came to mind - a "Justin Advent Calendar".  Every square that is opened up adds another C$1.0B to Canada's deficit levels.  Oh! And of course, the calendars would be paid for by taxpayers.  Merry Christmas.

Deficit...Infrastructure Bank...No Matter What It Is Called, the Liberals Are Drunken Sailor Spenders

(from a much earlier post found in "draft" folder that appears I forgot to hit "send") 

See earlier post, "Like Father, Like Son", this elected Canadian federal government is out of touch and out of control.  Yes the Canadian economy is weak and slow to any recovery. Yes we are tied to the US GDP (which is weak and slow). Yes there are tens of thousands of Albertan oil sands workers out of work (I can hear Notley and Mulcair smirking).  Yes the unemployment rate in Canada is 7.0%....yes 7%.0!!!! Yet this government wants to "spend their way out of it" selling an infrastructure financial panacea, increasing immigration levels (unemployment? that's right...7.0%) and pressing on with seasonal foreign workers (remember 7.0%?). The Liberals' drunken sailor spending habits and fictional math skills are a toxic combination for all Canadians.

But if you live in Ontario, you also have Wynne ("The Kathleen") to deal with. One day after hallowe'en and I'm feeling spooked all over again! 

http://www.financialpost.com/m/wp/news/blog.html?b=business.financialpost.com/entrepreneur/fp-startups/trudeau-woos-investors-with-35-billion-infrastructure-bank&pubdate=2016-11-02

Deficit...Infrastructure Bank...No Matter What It Is Called, the Liberals Are Drunken Sailor Spenders

See earlier post, "Like Father, Like Son", this elected Canadian federal government is out of touch and out of control.  Yes the Canadian economy is weak and slow to any recovery. Yes we are tied to the US GDP (which is weak and slow). Yes there are tens of thousands of Albertan oil sands workers out of work (I can hear Notley and Mulcair smirking).  Yes the unemployment rate in Canada is 7.0%....yes 7%.0!!!! Yet this government wants to "spend their way out of it" selling an infrastructure financial panacea, increasing immigration levels (unemployment? that's right...7.0%) and pressing on with seasonal foreign workers (remember 7.0%?). The Liberals' drunken sailor spending habits and fictional math skills are a toxic combination for all Canadians.

But if you live in Ontario, you also have Wynne ("The Kathleen") to deal with. One day after hallowe'en and I'm feeling spooked all over again! 

http://www.financialpost.com/m/wp/news/blog.html?b=business.financialpost.com/entrepreneur/fp-startups/trudeau-woos-investors-with-35-billion-infrastructure-bank&pubdate=2016-11-02

Justin:Like Father, Like Son

As his first year of his deficit forecasted budget and term has come and gone, I am first of all surprised after after a wild ride to stsrt 2016 the C$ is flat versus a year ago

However more worrisome are the characteristics his Father exhibited that are showing up in him:

1. Deficit spending like a drunken sailor.  Elected on a $10B deficit platform, this has already and quickly ballooned to +$34B.  But it's ok, a group of faceless taxpayers that apparently have no voting preference or say will just pay for that....down the road...in some year ....All thanks to a leader that has reaped the benefits of a privileged upbringing through hard working Canadian taxpayers and never really worked in his life.

2. Alienate the west over a curious energy policy that only caters (and buckles) to the wishes of leftist utopian Canadians.  The Liberals lost many votes for years after Pierre left his mark with Petro Canada (for those in their 40s  and above may remember "Pierre Elliott Trudeau Rips Off (PETRO) Canada"). The seats Justin has picked up in sweeping Atlantic Canada and Alberta's surprise swing to the left with the NDP may not be there come next election time.

3. Liaising and keeping company with rogue countries and leaders. Pierre liked to have friends that flew in the face of the US and the western world's leadership at the time, such as Fidel Castro. The Liberals' current strategy is not to combat the Russians for sovereignty in the Arctic but...to work with them? And how can we forget Justin comments on China well before he started campaigning. 
All that's left is i) for him to piss off the US by muttering to the current or upcoming President a bleeped name and ii) perform some childish manoeuvre behind the Queen's back. Justin still has another three years to do it. 

(Although I still hope for pulling the rabbit out of a hat as his Father delivered one of the most important Canadian institutions of Bilingualism and a Constitution)

Liberals and their spending habits: amazing what a month can do

Amazing what one month of spending can do (I certainly felt it on my Visa after my Dublin trip). Here's to "sunny ways"...

http://business.financialpost.com/fp-comment/joe-oliver-the-liberals-spent-9b-in-a-single-month-just-so-they-could-say-there-was-a-deficit

The Liberals' First "Dudget": A Lower Loonie and How to Benefit

The Liberals will be releasing the party's first federal budget tomorrow (March 22, 2016) after markets close.  We will see if Justin has learned anything living the insulated upbringing in a family supported by the wealth of politics.

The rumour mill has been churning with speculation that capital gains tax may be tinkered with, which if so, will only inflate the housing market even more as this will be the last bastion of tax efficient vehicles available to Canadians, permanent residents and others who stay or invest here.  The Liberals would rather take away all advantages and rewards of those who take on risk of building a company, hiring people and selling it in a tax efficient way.  Or perhaps penalizing investors from taking a high risk equity investment in a startup that may become something revolutionary (BlackBerry? Love it or hate it , fortunes were made by dedicated, hard working people, without which none of these companies would be born).  The Liberals would prefer to tax these events more similar to someone bringing a pay cheque home every two weeks.  Keep your head down, be like everyone else, don't rock the boat.  If the Liberals truly want innovation, well they will have just killed it if the capital gains tax is diminished.

Also rumoured, a greater than $20B deficit (or something certainly greater than the $10B Liberals were elected on) or other such surprises as changes for small business owners.

The C$ closed higher at 0.77.  Once Morneau (Finance Minister) starts speaking tomorrow (similar to when the Red Atlantic seats started rolling in during election night, during Justin's swearing in ceremony, and comments in Paris at the climate change fiasco), the C$ should begin to tick downward before your eyes.  Those US and Mexican vacations will likely be deferred.

How to play it? Buying "put options" on currencies is not that easy as a retail investor.  Personally, for reasons that are to be part of another posting, I would be buying gold and buying it in C$ terms.  Simply, gold is going to increase (reasons later) and the C$ is going to be weaker starting Tuesday afternoon, Eastern time zone.

More specifically, buy gold in C$ terms such as the Central fund of Canada and Sprott Physical Gold Trust.  Links below.   

http://mobile.tmxmoney.com/quote/?symbol=CEF.A

http://mobile.tmxmoney.com/quote/?symbol=PHY.U

Or something a little more exotic but still doable in even the most basic online trading account, buy call options on GLD (SPDR  Gold Trust, www.spdrgoldshares.com).

May be a way to ease that all inclusive price shock in Cancun or Florida.