Stimulate this

Deutsche Bank is slashing 18,000 jobs. Big hedge fund manager Jeffrey Epstein was arrested and charged with sex trafficking of minors. Iran is making nukes again thanks to the orange guy. And earthquakes rock SoCal. Hey, just another summer weekend…

Actually the big news is likely to come mid-week, as the Fed boss testifies in Washington on the direction of monetary policy. I know, who ever thought this stuff could be sexy? But what Jay Powell has to say will certainly move markets, influence the 2020 presidential election race, affect your mortgage and probably your portfolio, too. These days everything’s connected.

As you may have read, every analyst and his dog was pricing in three rate cuts by the end of the year including a sure-thing haircut in July. But after Friday, maybe not. The US economy turned out 224,000 jobs last month. Unemployment has turned into full employment. There are more openings than applicants. And now Trump says he’ll be negotiating with China, looking for an end to the trade war.

US inflation is low, consumer spending is robust and weak manufacturing data may be an aberration. So, why would the Fed cut rates and throw gas on a fire that needs none?

Maybe because the yield curve has inverted (short-term deposits are paying more than long-term bonds, often the harbinger of a recession). Perhaps because it’s the 120th month of an unprecedented economic expansion which, unlike me, cannot stay awesome forever. Or just because the president has been thumping on the Fed for months to cut rates, goose economic growth further, make the stock market melt up and deliver him a second term.

So Powell’s in a tight spot. Stimulate too much and the result could be inflation, a wage-price romp, bloated asset values (like stocks) and four more years of Trump. But doing nothing and misreading the signals could hasten recession and (at least temporarily) tank the markets.

Whazzit all mean?

Good job numbers helped inflate bond yields on Friday, while prices dropped. Mr. Bond Market is suggesting those cheapo Canadian mortgage rates may soon be a thing of the past. The advice stands – lock in now. The Bank of Canada’s rate is already seriously below that of the US, so any cut there won’t make home loans here any more affordable. As for the Fed boss, look for him to talk convincingly out of both sides of his mouth this week,then cut rates a little at the end of the month, strictly as insurance. The cost of money falling enough to rekindle real estate? Not a chance.

Those commies from below deck, Jeff and Jake, sure pushed a lot of buttons here Friday as they argued for less capitalism and more taxes. They were the latest Blog Dogs to be given a platform, so it’s only fitting we start today’s Vox Canibus (look it up – nothing to do with weed or people with tats) with a reply.

Derek was seriously triggered by all that socialism. Here’s why.

In his post, Jeff eludes to how capitalists want to lower costs or raise prices. Agreed – that is the underpinning of capitalism. The VERY IMPORTANT factor he fails to see is that all the actors (workers, owners, consumers) focus on their own self – interest.

If you have 3 gas stations on a busy road, and one raises prices by 3 cents/litre, consumers choose the competitors. The owners have no pricing power here. If the owner keeps his prices high, he goes out of business! The market keeps prices in check.

Similarly, in Jeff’s other example where one employer “cheats” and pays his workers a little less to reduce costs…what happens? The workers say, “Chuck you Farley” and go to another employer who is willing to pay market rates. The owner who tries to pay below market rates goes out of business because he has no workers! The market keeps wages in check – up and down.

Since 1980…life expectancy has risen, we live healthier lives, houses are bigger, we have a MUCH larger choice of foods,…the list goes on. In 1980, you used to have to wait until after 6pm to make a long distance call, so it would cost you $1 instead of $2. Now you can call anyone globally for virtually nothing! You used to have to wait for you TV to “warm up” and you would only get a few fuzzy channels – now you have access to hundreds of channels (and streaming) – anywhere, anytime! Life has gotten better on so many fronts.

Some workers have had to accept reduced wages as a lot of manufacturing has been moved to lower cost jurisdictions – but hundreds of millions of workers there have been lifted out of poverty! Overall, globally, we are wealthier than we have ever been. And rich stable countries make the world a much safer place.

A real-life test case to compare socialism to capitalism….oh yeah, Korea offers a great example. North and South Korea split in the early 1950s – the North adopting socialism while the South followed capitalism. Millions have starved to death in the socialist North since then, while South Korea has income levels similar to many western countries. The DMZ (de-militarized zone) keeps prisoners of socialism in the North – is DOES NOT keep South Korean capitalists from trying to escape to the north!

Or China….a poverty-stricken backwater with millions starving prior to 1980 under socialism to the soon to be largest economy in the world under capitalism.

Yes, machines replace workers – which is why we have gone from having over 80% of the population engaged in subsistence farming to having 2% of the population feeding everyone. This has been a boon to everyone. Middle class people today live better, healthier lives than aristocrats did only a few short generations ago. Governments can smooth the rough edges of capitalism (displaced workers, externalities, etc), but overall CAPITALISM ROCKS!!!

In 65 days aircraft technician Michael, 33, gets married in Hamilton. “I am so glad that you opened up your blog to your loyal fans to see if I can get the honourable distinction of becoming one of Garth Turner’s roadie bloggers,” he says. “I am truly thankful for you keeping me entertained and knowledgable about finances and life on a daily basis.  You truly are the Jordan Peterson of the financial world.” For that noble suck-up, he gets to write this…

  Your reality is whatever your perception of life is at the time, and it seems like lately the reality of the life situation is grim. Uranium-crazed fanatics to the east and an over competitive leader to the west of us that wants to be “the biggest player” in the market.

It seems that we very rarely look at our own place in the grand scheme of things to see where we sit. Everyone has a different set of social beliefs – whether it’s equality or human rights. For some, it is the financial stability of our country. If the financial stability of our country is intact- then everything else can be dealt with in time. I do believe that our social issues and financial system are going to finally cross roads at the next recession.

Every recession that has occurred in the past 125 years or so have manipulated and forced change within certain industries. At a point in time, GM was the most successful company in the world until they needed a government bailout to help stop the ship from sinking.

The next recession which some are predicting will be here in a year or so (cough cough Garth) is going to cause tidal waves both socially and financially. The social impact being automation. The normal course of a company during a recession is to lay off workers to ensure the company is stable, and then rehire as the profits start to come back. The problem with the next recession is that businesses won’t need to hire back some of those workers. Why should I hire back that truck driver when I am able to move my product from point A to point B with no one at the wheel? It makes sense in the business world.

Here’s the problem. Canada employs roughly 285,000 truckers from coast to coast, roughly earning $70,000 a year. For arguments sake – let’s say Mr. Musk has perfected the autopilot system on his overpriced Tesla and pushes it towards the trucking industry. Loblaws, Best Buy, The Bay, Tim Hortons, Suncor, Atlas Van Lines etc. will not have to pay for drivers nor will they have to abide by the rest laws for these drivers. These trucks are able to drive all night and all day with only a refuel/recharge stop. What happens to the truck driver? Why they go back to school and get re-trained. Sounds easy, right? I would bet that the readers of this blog that are over the age of 40 would have two very strong words if this scenario would happen to them.

Every generation has had their set of problems, both in the social world and the financial world. Some would say that someone like myself (an early millennial) is quick to blame the last generation of all their wrongdoings. No generation in the history of this lovely planet has been perfect. We are creatures of response and are not very proactive. The next 15 years is going to drastically change the entire landscape both socially and economically. What is here today may not be here tomorrow.

 

155 comments ↓

#1 round and round she goes on 07.07.19 at 4:23 pm

who cares what canadian rates are relative to US rates. what matters is what they are relative to INFLATION. bondholders are losing money to inflation. CPI 2.4% and 5 year Canadas 1.5%. and you wonder why there is a housing bubble with households and governments adding billions in debt month after month….?

central banksters have done a great job lying to the public

#2 Puddles on 07.07.19 at 4:33 pm

Dog voices? My Latin is a little rusty. Those filthy communists. I blame the school system, if I had a boy I would home school him.

#3 Shawn Allen on 07.07.19 at 4:36 pm

Bravo Derek

Excellent points indeed. Anyone who is old enough to have been aware of what things were like in 1980 should agree that things are massively better now. Certainly for most people in the world and also for most North Americans. But there are always some that are worse off.

#4 crowdedelevatorfartz on 07.07.19 at 4:42 pm

Kudos to Derek and Michael.
They speak the truth.
Well done.

#5 Great Pigeon Freddie on 07.07.19 at 4:43 pm

Garth, preferreds have perked up lately. Is this a sign of a multi-year bull run in that space?

We told you they were on sale. – Garth

#6 Boom on 07.07.19 at 4:43 pm

You truly are the Jordan Peterson of the financial world.” For that noble suck-up, he gets to write this…Why they go back to school and get re-trained. Sounds easy, right? I would bet that the readers of this blog that are over the age of 40 would have two very strong words if this scenario would happen to them.
=============

De-militarized zone?

#7 Mike in Airdrie on 07.07.19 at 4:46 pm

Two excellent bloggers today. The socialist argument never stands up to scrutiny.

#8 martin on 07.07.19 at 4:49 pm

Living up to your name and having fun stimulating misconceptions. Iran has never made a nuke (bomb), claims no intention to make one, and Kamalvandi said Iran would enrich uranium for use in fuelling its Bushehr power plant, to the level of 5%, confirming what Reuters reported on Saturday.

Where did I say ‘bomb’? – Garth

#9 Flop... on 07.07.19 at 4:50 pm

Three weeks ago I finished a new- build house on a Friday.

I was lead to believe there was another one for me to start the following Monday.

When I went to get the address I was told someone cheaper had been given the job.

Besides annoying the pants off Garth Turner, what have I been doing in the meantime?

I’ve casually looked around, half-heartedly applied for a job at a University.

I’m probably one of the guys Michael talks about in his post, an over 40 person that probably needs retraining in something else.

Less physical perhaps in my case.

In construction sometimes you are going to war with a house every day, the battle can be gruelling.

Even limping around work I can outwork two whipper snappers playing with their phones all day but sometimes it’s a numbers game.

Everything can change with one phone call.

I’m usually extremely busy this time of year, sometimes a week off to go camping but then the race to the finish line to fulfill someone’s fantasy of having Xmas dinner in their new home.

One of the Poor Boys on here, but not having any debt allows me to press pause in life and take a slow look around, when life would normally be rushing by me.

I will have to pull the handbrake off at some stage, but I have enjoyed taking my 78 year old Father -in -law for daily walks, he follows behind me faithfully, trusting where I want to go.

I’m not a leader, I don’t know what I’m doing myself, but at least I’m trying to enjoy the journey…

M45BC

#10 Yukon Elvis on 07.07.19 at 4:57 pm

Here’s the problem. Canada employs roughly 285,000 truckers from coast to coast, roughly earning $70,000 a year. For arguments sake – let’s say Mr. Musk has perfected the autopilot system on his overpriced Tesla and pushes it towards the trucking industry. Loblaws, Best Buy, The Bay, Tim Hortons, Suncor, Atlas Van Lines etc. will not have to pay for drivers nor will they have to abide by the rest laws for these drivers. These trucks are able to drive all night and all day with only a refuel/recharge stop.
…………………………………..

Not gonna happen. Not on public roads with human traffic. Write this down. You heard it here first.

#11 NoName on 07.07.19 at 5:04 pm

@dog

“If you have 3 gas stations on a busy road, and one raises prices by 3 cents/litre, consumers choose the competitors. The owners have no pricing power here. If the owner keeps his prices high, he goes out of business!”

Derek you got that part wrong, in reality is like this.

If you have 3 gas stations on a busy road, and one raises prices by 3 cents/litre, consumers see their competitors equalize a price to higher one.

#12 akashic record on 07.07.19 at 5:08 pm

Many sources claim that Iran has nuke already from the several hundreds of missing nuclear warhead inventory of Kazahstan and maybe from Ukraine.

https://www.zerohedge.com/news/2019-07-02/does-iran-already-have-nuclear-weapons

#13 Millennial Realist on 07.07.19 at 5:09 pm

LISTEN LIVE

Great discussions about the legacy of Boomers and what that has meant for younger generations and the planet.

https://www.cbc.ca/radio/checkup/sunday-on-checkup-are-boomers-to-blame-for-millennials-misery-1.5200671

So far, it’s been pretty much a complete condemnation of the Paleo generation (including by the Boomers themselves calling in!)

Big changes are clearly coming, just have a listen today!

Boomers – be part of the change, or be run over by it.

We are NOT KIDDING.

#14 Keith on 07.07.19 at 5:15 pm

“CAPITALIST ROCKS!”

Until it fails, which it does quite spectacularly from time to time, then socialism is brought in as a fix.

The crash of 87, Savings and Loans, Asian crisis, dot com, and 2008 in my adult lifetime in the financial sector. The bailout of Chrysler in 1981, followed by Ford and GM in 2009. A complete list would take days to uncover and list.

Relying on the market to regulate business excess works when everyone has equal access to information and resources. They don’t, and when it goes wrong innocent people and workers are injured or killed. The idea that reliance on human self interest as an effective regulator works in the real world ignores the history of human nature and the ugly consequences of making profit the overriding consideration in business decisions.

Rather than decrying any taxation, or regulation as a giant leap towards dictatorial communism, start coming up with a better mousetrap and working on better government. The lack of quality of the leadership of our current federal parties is pretty telling about the times we are living in. No superstars of the business world can be found trying to make Canada a better country. Not hard to tell why.

#15 Stan Brooks on 07.07.19 at 5:27 pm

DELETED (hit your limit)

#16 Stan Brooks on 07.07.19 at 5:33 pm

#11 NoName on 07.07.19 at 5:04 pm
@dog

“If you have 3 gas stations on a busy road, and one raises prices by 3 cents/litre, consumers choose the competitors. The owners have no pricing power here. If the owner keeps his prices high, he goes out of business!”

Derek you got that part wrong, in reality is like this.

If you have 3 gas stations on a busy road, and one raises prices by 3 cents/litre, consumers see their competitors equalize a price to higher one.

He meant in the perfect world, not in the land of oligopolies and cartels. Things work differently here, it is funny how theory and practice differ in this world, just look at Shawn Allen who claimed persistently that loans are based on existing deposits only to acknowledge today that they create new money and deposits, i.e the opposite of what he believed yesterday.

#17 Stan Brooks on 07.07.19 at 5:37 pm

#13 Millennial Realist on 07.07.19 at 5:09 pm

Boycott of the system that benefits some (based purely on birth date) while condemning other generations to misery for life is way overdue.

It is your choice on whether to wipe those dirty bottoms and change their diapers for life while eating substandard foot and renting a cell in the basement or just kick that big fat lazy behind with your boot and just walk out.

The choice is yours.

#18 Yanniel on 07.07.19 at 5:42 pm

“I would bet that the readers of this blog that are over the age of 40 would have two very strong words if this scenario would happen to them.”

That kind of changes do not happen in one day. You see them coming from miles away as long as you don’t burry your head on the ground.

Life choices Michael; life choices.

#19 Reality is stark on 07.07.19 at 5:43 pm

Life for you is not getting any better if you live in Canada.
Yes you are likely fortunate enough to be paying more tax. You are also lucky enough to not receive a defined benefit pension plan.
You will need to work longer to enjoy this “better life”.
You have never in the history of the country been saddled with so much debt.
But the big difference is the unreasonable financial
obligations foisted upon you by the family courts. Not to mention the outrageous fees you face from lawyers and judges who have no interest in the case just in finding out what the total assets are and billing until they hit a magic number.
The country needs to be reformed.

#20 Flop... on 07.07.19 at 5:45 pm

Boom 43 pm
You truly are the Jordan Peterson of the financial world.” For that noble suck-up, he gets to write this…Why they go back to school and get re-trained. Sounds easy, right? I would bet that the readers of this blog that are over the age of 40 would have two very strong words if this scenario would happen to them.
=============

De-militarized zone?

//////////////

Not sure if you deliberately did this to test my resolve but I’m asking you to have a bit of respect.

I believe the guy yesterday made an honest mistake.

You?I’m not so sure.

If you read yesterday’s thread and then did this for a laugh then shame on you.

One of my favourite Boom moments was when he was having a discussion with someone who he thought was disrespectful towards himself.

From memory the person was having a go at him because he was a boomer and he did not normally initiate any confrontation but would stick up for himself.

In this case after a back and forth he wrote something like ” What’s your problem binky?”

I thought “binky”? Why are you calling this person binky?

I checked to see what a binky was.

It turns out it is something you give a baby to keep it quiet.

You guys call them pacifiers, I believe.

In Australia, we call them dummies.

Don’t use the handle “Boom”

Have some respect.

Don’t be a dummy.

M45BC
M64WI

In Australia it

#21 Sebee on 07.07.19 at 5:46 pm

All these posts about who’s right and who’s wrong. Who wins and who loses. We let ourselves be divided and conquered so easily.

No wonder we hand ourselves over with such ease to be ruled by such capable politicians, who are in it from the goodness of their heart and never ever for their own gain.

#22 Shawn Allen on 07.07.19 at 5:47 pm

Money and Banking

#72 Shawn Allen on 07.07.19 at 2:24 pm

Stan, see my responses in square brackets.

You just acknowledged that:
New money were created in the loan process that did not exist before. What good was created in the process? None. [The “good” here is the ability to buy things today in return for repayment with interest later. This incents people to work hard and create more products and services. Money is an intangible, a score keeping. The true wealth is the products and services. The lending process facilitates more products and services being created]

So you have more money chasing same amount of goods, i.e. inflation. [True, it creates some inflation]

You did not say how the money to pay the interest on the loan is created. It simply does not exist. How are you going to earn it if it does not exist? [Well, if the new money I earn is created by someone new loan, that is not my concern. I never had any problem earning money to pay interest and repay debt. Especially with today’s low interest. Despite your bleating the system is working fantastically. Look around. Compare the real goods and services per person today versus even 1980. Far more per person today]

You also said nothing about the process of conversion of loans, i.e M2 into M1 through purchase of assets.
In US they are held at the Fed. Here they circulate in the economy + we have no deposit reserve requirements. [I don’t know really anything about that. So I have nothing to say on that. I doubt you know much either. I do know a lot about how banks make money and how lending benefits the economy]

If loans were based on capital or existing deposits we would have had very different debt picture. [Loans create deposits. Deposits are owned by bank customers. One man’s debt is another man’s savings. Deposits fund loans. See any bank balance sheet. We have been over this. Share owner capital in banks provides the balance sheet strength that is needed to attract deposits above the government deposit guarantee levels. Remember deposits can move from bank to bank and each bank needs to attract and keep them despite that they are initially created through loans]

Stan can you name a successful economy that does not have banking and money creation through banks?

#23 Marcus on 07.07.19 at 5:51 pm

DELETED

#24 gimme stuff on 07.07.19 at 5:52 pm

“The bailout of Chrysler in 1981, followed by Ford and GM in 2009. A complete list would take days to uncover and list.”

Keith is right.
Its bailout after bailout. Gubmint funding. Ah, capitalism.

#25 Sebee on 07.07.19 at 5:55 pm

Socialism? In socialism the citizens don’t own their land, right? Just like in Canada…”your” land that your really actually belongs to the chick on the $20. Which is funny because everyone always say “the value is in the land not this leaning garage sized bungalow seller claims is a house”.

How much is an 8 acre estate in Ontario? $5m? $6m? It’s 500k in Buffalo, 100km south of precious Toronto. Leaf tickets are way cheaper there too. Comes with 5-6bdrm, 4-6bath, in ground pool and ride-on lawnmower. Oh…and you actually truly really own the land down there in the USA.

#26 Shawn Allen on 07.07.19 at 5:55 pm

Bank Reserve requirement

Stan said

we have no deposit reserve requirements.

************************
No bank has a “deposit reserve requirement” You are talking about a cash reserve requirement. On a balance sheet cash is an asset. Deposits are liabilities owed to customers.

Canadian banks keep a prudent amount of cash. There is no present minimum. A pure lending bank has assets that consist of a bit of cash and a lot of loans funded on the other side of the balance sheet by a bit of owner capital and a lot of deposits. Check Canadian Western Bank’s balance sheet for example.

Maybe get back to me when you have read CWB’s latest annual or quarterly report.

#27 SWL on 07.07.19 at 6:03 pm

Great guest posts today. Much more refreshing that Jeff and Jake’s train of thought.

I feel like one of the biggest problems we are now facing though, is the rampant corruption that spoils both socialist and capitalist societies. There are far too many deals being made that end up privatizing profits while socializing losses which does make it harder for most to get ahead. The very realization of this is enough to put a bad taste in your mouth no matter which side of the fence you sit on.

Either way if most elected politicians simply valued a strong moral conduct rather than simply selling us out to the lowest bidder we would be in much better shape as a society

#28 BS on 07.07.19 at 6:07 pm

Capitalism vs Socialism

People are motivated by incentives. When you reduce and remove incentives for people they are no longer motivated to do things like work. If everything you need is free and provided by the government why work? If the government takes most of your earnings in taxes why work or run a business? Socialism creates disincentives to work or to run a business. Capitalism creates incentives for people to be productive where socialism gives no incentive for productivity.

Socialism always fails. History has proven that time and time again. Socialism always ends in ruling by force which proves what a bad system it is.

#29 Re-Cowtown on 07.07.19 at 6:13 pm

“Iran is making nukes again thanks to the orange guy.” GT

++++++++++++++++++++++++++++++++++++

I didn’t realize that Obama was orange……

#30 crowdedelevatorfartz on 07.07.19 at 6:16 pm

@#13 Millennial surrealist
“We are NOT KIDDING.”
+++++

Your right.
You’re just kids.

#31 crazyfox on 07.07.19 at 6:29 pm

Pumpers of capitalism should at least get their facts straight concerning socialism, they really should. North Korea is not socialism. True socialism is wealth equality, hardly what we are witnessing with North Korean family dynasties of power living the life of extravagance while the people suffer from famine and poverty. That’s not socialism, that’s fascism. Likewise, one can’t use socialism to describe fascist capitalism coming out of Russia or communist capitalism out of China:

https://en.wikipedia.org/wiki/Fascism

I would argue further, that we’ve never seen a pure socialist political system in practice but if I had to venture a guess of something close, it would be Norway. I don’t see Norwegians complaining about over taxation and government provided essential services, nationalization of oil assets or poverty because there is none, per capita they are among the richest in the world. But lets face it, Norway was lucky and not just with resources. This is the one nation that didn’t face CIA hatched regime overthrows and coups or trade embargo’s and aircraft carriers at their coastlines, no, because Norwegians are smart and kept trading in U.S. dollars. And look where they are now.

Why is it that people have to demonize socialism to pump capitalism, I don’t know. Inaccurate, unimaginative or is it something more, something narcissistic, born out of superior/inferior, the need to run down “different” to build one’s self up perhaps, so and so is doing it, the environment of the day, I can’t say, to do so would generalize but I can say that pooling resources to build wealth works and if that’s socialism or something close, then wtf are we talking about?

https://en.wikipedia.org/wiki/Socialism

After all, that’s what united families do, its what communities do, its what the markets do, its what governments do taxing and spending on government services that for profit industries either can’t or won’t deliver because their self interests are not the same as the national, province, state or local interests (in a perfect world), no, its because of self interests, the interests of making money and we recognize that.

But again, lets be real for a moment. None of us are expecting something for nothing even though waste exists in both government and private spending. None of us are really expecting something for nothing even though windfalls exist publicly and privately tilting the scales in favor of one over the other. What most of us want is equal opportunity (at the risk of sounding socialist) to make a decent living (like I said, most) and rest assured, the ones who don’t are lying their asses off tilting the scales in favor of themselves at everyone else’s expense which is why we need trade agreements and adherence in practice and why governments need to regulate capitalism because if governments fail to do so, the health, wealth and security of all under that governments protection is at risk.

We see these risks building now more so, not just with trade, currencies and debt, but with global over populations, biodiversity loss, falling life expectancy rates, ballooning chronic illness stats, pollution, climate change and on it goes and the main problem as I see it is not just in calling a spade a spade, but in the general self interests we all have even though many are at the detrimental expense of others. Whatever happened to being our brothers keeper?

It stops with us as individuals or our families, or our city or province or national border, why is that? Being our brothers keeper is what, too socialist, too hard a concept to grasp?

On the weekend I was thinking about a wedding and what life really comes down to and for me its about perfect moments. If perfection exists, its fleeting because this existence is finite and nothing lasts. The best thing we can hope for are moment’s such as bringing a baby into the world where the parents through fear and thrill connect and bond through love with a newborn child. It’s messy but its perfect because we are connecting with something greater than ourselves. The perfect moments in finding a partner, making babies… even the act of trying and later passing down the fruits of our labor, sharing the labors of love, when we get those perfect moments, frame it because through all the highs and lows and gains and losses they don’t come often and for some none at all. Families of our own or families we were born into (if we are lucky) teach us this, or we just pick it up on our own experiences through “being our brothers keeper”.

I haven’t seen any perfect moments watching someone acting in their self interests at the unwarranted expense of others but I’ve seen my share of perfect moments as witness of those who share the wealth of man and God.

#32 Buford Wilson on 07.07.19 at 6:42 pm

It was a well meaning initiative Garth but it’s time to stop the guest columns.

They’re not interesting.

#33 oakville sucks on 07.07.19 at 6:53 pm

Blah blah blah blah blah… todays post made me laugh…

All this economics talk is all hypothetical and for school aged people. Decisions are never made based on economics or economic theory but instead by the movers and shakers of this world both domestic and foreign. I see it every day!

#34 TurnerNation on 07.07.19 at 7:16 pm

Keep on truckin’ and eat up:

https://money.cnn.com/2017/10/03/investing/pilot-flying-j-warren-buffett-berkshire-hathaway/index.html

Berkshire Hathaway (BRKA), the conglomerate controlled by Buffett, announced Tuesday it was buying a 38.6% stake in Pilot Flying J, the truck stop operator run by Cleveland Browns owner Jimmy Haslam.

Haslam will remain CEO of the company, which has more than 750 locations in 44 states and generated more than $20 billion in sales last year.

But Berkshire (BRKB) will eventually become the majority owner of Pilot Flying J. As part of the deal, Berkshire will buy an additional 41.3% stake in the company in 2023, bringing its stake to just under 80%. The Haslam family will own the remaining 20%.

#35 BS on 07.07.19 at 7:32 pm

31 crazyfox on 07.07.19 at 6:29 pm

True socialism is wealth equality

———————————————————–

If everyone gets the same no matter how hard you work or what you produce how many people will work hard? Why would someone start a business? Why would someone work at all? Why would someone invest and risk capital?

Socialism creates wealth equality by making everyone poor. Cuba, North Korea, the former USSR, Venezuela are all examples of it.

#36 Marcus on 07.07.19 at 7:41 pm

Very interesting that you deleted my post that points out the issue with Epstein and Pedophilia. Very interesting indeed. It will be fun to see what names in Canada are linked to this investigation. There are some you know.

Your post was libelous. – Garth

#37 Sail Away on 07.07.19 at 7:44 pm

I agree with Buford, Oakville and others about the guest posters so far. They are like [insert topic] 101 as explained by someone who just learned an interesting new concept, reinterpreted it, and gave it back with errors and poor examples. For God’s sake (or at least our sake), Derek, don’t use “eludes” when the correct term is “alludes”.

#38 Cici on 07.07.19 at 7:44 pm

Thank you #14 Keith, #11 NoName and #10 Yukon Elvis.

If we had a few more pratical realists like these guys in society, I’d be much less worried about the future.

Unfortunately, the greater masses are far too easily manipulated.

#39 Randy on 07.07.19 at 7:49 pm

It was an underground weapon tested at China Lake (secret Naval Testing Base) ….the Epicentre of the so-called Earthquake…there were no early warnings that there was an Earthquake. All live feed cameras were shut down.

#40 Herb on 07.07.19 at 7:50 pm

Socialism always fails. History has proven that time and time again. Socialism always ends in ruling by force which proves what a bad system it is.

And that, # 28 BS and fellow Garthians, is why US capitalism spends considerably more on the defence of capitalism than the rest of the world combined in protecting itself, and maintains 800 to 1,000 (no one knows for sure) military bases around the globe to ensure that no socialist notions gain enough strength to serve as a credible alternative to the capitalist way of life or endanger the resources it needs to operate efficiently.

Socialism, even in its Communist extreme form, is so weak that the Soviets survived invasion by the Western allies in 1918-20, invasion by Germany in 1941-45, did four-fifths of the heavy lifting in the war in Europe, won the civil war in China, survived the unprecedented US bombing of South and North Korea, kept North Korea going and developed it without capitalist assistance. Of course you would assign China’s current status to the benefits of capitalism, but I’d recommend a closer look.

Look at other socialist experiments and how and why they failed, such as Iran in 1953, Indonesia in 1965, Chile in 1973, Honduras, Nicaragua etc., or survived despite continuous hostile US actions, such as Cuba, Vietnam or Venezuela. Name the socialist “experiment” that failed on its own, without political, economic and /or military intervention by the defender of freedom and capitalism.

Don’t just swallow propaganda whole, check a bit of history and the facts.

#41 JSS on 07.07.19 at 7:59 pm

Nice article today.
A couple of generations ago, there was no such thing as an office job. Then the office job came. Every parents wanted to, and still does encourage their kid to head for the “office job”. I believe these office jobs will continue to be eroded. The multigeneration office job thing is a thing of the past. Either the office job will be eliminated through automation, shifted overseas, or receive pay cuts to salaries where it becomes financially useless to work in the office job.
There is a finning facility nearby where I live, where they pay just over $100,000/yr for a HD mechanic. My friend works as an engineer there, and makes much less. So much for the coveted office job. To make things even more interesting are the number of educated professionals coming to Canada that are willing to take an office job for half the salary, and work twice the hours. Are Canadians ready to do this? I didn’t think so.
At the end of the day, what won’t go out of style are assets: be it cash, dividend growth stocks (RBC, CN rail etc), or income properties.

#42 the Jaguar on 07.07.19 at 8:01 pm

It’s strange this subject of the trucking industry. My spider sense is tingling……
It’s about to be turned upside down.
Why? Rail. Not sure I have figured out all the puzzle pieces yet, but it sure seems like rail is undergoing a sudden resurgence. Unrelated to O&G by the way….but more about transportation of goods in general. Can this be about Peak Oil?
Just when you thought it was safe to go back in the water again….. ( cue the ‘JAWS” theme song).

#43 Out Of Work CEO, Will Travel on 07.07.19 at 8:02 pm

Derek is correct in seeing the future will be one of enormous change but Canada’s newer generations under 40 will have some flexiblity built in from their immigrant parents. The new immigrant Canadians educated here won’t find roadblocks but will be open to beyond Canadian borders. This level of immigrant population will finally be a big plus in its ability to move beyond Canada if required to succeed. My grand-son is French English educated but from Latin-America and Canadian educated. People with broad frame of reference won’t fold like cheap suits.

#44 Spade on 07.07.19 at 8:09 pm

#11 NoName on 07.07.19 at 5:04 pm
@dog

“If you have 3 gas stations on a busy road, and one raises prices by 3 cents/litre, consumers choose the competitors. The owners have no pricing power here. If the owner keeps his prices high, he goes out of business!”

Derek you got that part wrong, in reality is like this.

If you have 3 gas stations on a busy road, and one raises prices by 3 cents/litre, consumers see their competitors equalize a price to higher one.

^^^^^^^^^^^^^^^^
Sounds like price fixing or signalling. Doesnt matter really, any activity that looks anti competitive is illegal and dealt with by the competition bureau. They also keep prices in check.

#45 Hank Perkins on 07.07.19 at 8:14 pm

Round and Round she goes. Why would anyone buy a 5 year 1.5% Canada bond when i just got 3.15% and 3.25% 5 year GIC rates and are deposit insured by CDIC, same federally.

Nobody buys bonds for a yield. – Garth

#46 NoName on 07.07.19 at 8:14 pm

interesting read

vino, coins and cars… best performing

https://www.knightfrank.com/wealthreport/2018/luxury-spending/luxury-investment-index-2018

and this

https://www.knightfrank.com/wealthreport/2019/global-wealth/rise-of-super-rich

Ten or 15 years ago, UHNWI residential property investment would have been driven largely by where children were to be educated,” notes Andrew Hay, Global Head of Residential at Knight Frank.

“Education is still a key consideration – but UHNWIs are also becoming more strategic in response to global uncertainty and political upheavals, investing in additional homes in cities and countries where they can see greater levels of stability,” he adds.

#47 Shawn on 07.07.19 at 8:21 pm

The FED will cut 25 bps July 31. The BOC will cut later in the year but will follow the FED cut for cut.

#48 MF on 07.07.19 at 8:22 pm

#8 martin on 07.07.19 at 4:49

Garth is correct.

Maybe he has to spell it out for you in simple question format:

Do you think it is good for a radical religious government that threatens and antagonizes its neighbours to get any nuclear capabilities?

MF

#49 DON on 07.07.19 at 8:39 pm

#14 Keith on 07.07.19 at 5:15 pm

“CAPITALIST ROCKS!”

Until it fails, which it does quite spectacularly from time to time, then socialism is brought in as a fix.

The crash of 87, Savings and Loans, Asian crisis, dot com, and 2008 in my adult lifetime in the financial sector. The bailout of Chrysler in 1981, followed by Ford and GM in 2009. A complete list would take days to uncover and list.

Relying on the market to regulate business excess works when everyone has equal access to information and resources. They don’t, and when it goes wrong innocent people and workers are injured or killed. The idea that reliance on human self interest as an effective regulator works in the real world ignores the history of human nature and the ugly consequences of making profit the overriding consideration in business decisions.

Rather than decrying any taxation, or regulation as a giant leap towards dictatorial communism, start coming up with a better mousetrap and working on better government. The lack of quality of the leadership of our current federal parties is pretty telling about the times we are living in. No superstars of the business world can be found trying to make Canada a better country. Not hard to tell why.
**********

This makes too much sense!

#50 Spectacle on 07.07.19 at 8:41 pm

#9 Flop… on 07.07.19 at 4:50 pm
Three weeks ago I finished a new- build house on a Friday.

I was lead to believe there was another one for me to start the following Monday.

When I went to get the address I was told someone cheaper had been given the job.

Besides annoying the pants off Garth Turner, what have I been doing in the meantime….

——– Hi Flop. ————
You are not the only one annoying him : ) Flop .

Regarding “Stimulate This”
Have some developer builder friends, their current business plan is to keep,their employees employed & company running . Others had 2 to 3 full demo, back to back New Builds in the works; then everything stopped. Those guys are getting in to renovations, or commercial gigs, or Strata type Service work at best.

Have you seen the same Regional inability to stimulate (generate…) work projects like in the near past?
Absolute tall grass and crickets in Richmond, getting worse .

Regards,

#51 Headhunter on 07.07.19 at 8:47 pm

great comments .. please keep you eye on the ball. Socialism/Capitalism are a magik trick to keep you off the scent and the real rabbit hole.

We live and always have lived in a “caste” system. Yes some people have made it big but the system needs them to make everything look above board.

Tucker made a superior car a few decades back.. Hmmm gov’t said we need like 100 cars for testing before you can “play the game” Little guy crushed.

Poster last week stated clearly about truckers wanting to pick up at ports. Well need a big wad just to comply with the regs. Keeps the small and mid “caste” players out.

How many places can we buy food from in Canada? Lower “caste” grocers are shut out and the big ones we subsidized with 15 Million $$$ freezers. Caught price fixing slap on wrist. You and I be in a jail cell with “binky”

Dairy quota.. small farms shut out. List can be 1000’s of examples long.

#52 Yukon Elvis on 07.07.19 at 8:51 pm

#40 Herb
Herb. Herb Herb Herb. You are not as well informed as you think.

Nikita Khrushchev, having served as a military commissar and intermediary between Stalin and his generals during the war, addressed directly the significance of Lend-lease aid in his memoirs:

I would like to express my candid opinion about Stalin’s views on whether the Red Army and the Soviet Union could have coped with Nazi Germany and survived the war without aid from the United States and Britain. First, I would like to tell about some remarks Stalin made and repeated several times when we were “discussing freely” among ourselves. He stated bluntly that if the United States had not helped us, we would not have won the war. If we had had to fight Nazi Germany one on one, we could not have stood up against Germany’s pressure, and we would have lost the war. No one ever discussed this subject officially, and I don’t think Stalin left any written evidence of his opinion, but I will state here that several times in conversations with me he noted that these were the actual circumstances. He never made a special point of holding a conversation on the subject, but when we were engaged in some kind of relaxed conversation, going over international questions of the past and present, and when we would return to the subject of the path we had traveled during the war, that is what he said. When I listened to his remarks, I was fully in agreement with him, and today I am even more so.[43]

#53 PA on 07.07.19 at 8:57 pm

re Derek’s examples…

If a gas station pays less, it will always have workers. They may not be as enthusiastic as workers in the other 2 gas stations but someone will work there. Also, most gas stations pay minimum wages anyways.

North Korea is under sanctions which may be the main reason why their economy is not the same as South Korea. Consider the effect of the current and past sanctions on Iran.

#54 Ace Goodheart on 07.07.19 at 8:59 pm

RE: #48 MF:

“Do you think it is good for a radical religious government that threatens and antagonizes its neighbours to get any nuclear capabilities?”

No, that would be just terrible.

Oh, wait, the USA already has nuclear capabilities.

“For arguments sake – let’s say Mr. Musk has perfected the autopilot system on his overpriced Tesla and pushes it towards the trucking industry. ”

I’ve watched youtube videos of these “self driving” vehicles crashing into walls when the white painted lines on the road go underneath construction barricades (the Tesla auto pilot system follows the white lines on the road, put up some construction barricades and forget to change the white painted lines, and crash, there goes your Tesla on auto pilot).

Self driving not happening anytime soon.

#55 Linda on 07.07.19 at 9:09 pm

Micheal makes some good points regarding what may occur regarding automation. However, there are a number of problems that will need to be ironed out before (for instance) the automation of long haul trucking. How will those self driving trucks get fueled? If a mechanical issue occurs how will they get repaired? For that matter, how will they load/offload cargo? How will they handle being pulled over to a vehicle inspection station, detour due to road construction, road closure due to snow/mudslide/earthquake/flood etc.? If the vehicle is being monitored remotely, who or what is doing the monitor work? My point is that what work is being done by humans will be changed – has already been changed – by automation. Thus far whenever the machinery breaks down human intervention occurs. I do not see this changing any time soon. Meanwhile, as Derek correctly points out, the rise of the machine (capitalism) has led to improvements to both human health & wealth globally. Those of us so fortunate to live in first world nations such as Canada do indeed live longer & better lives than the upper classes of the past.

#56 DON on 07.07.19 at 9:10 pm

#27 SWL on 07.07.19 at 6:03 pm

Great guest posts today. Much more refreshing that Jeff and Jake’s train of thought.

I feel like one of the biggest problems we are now facing though, is the rampant corruption that spoils both socialist and capitalist societies. There are far too many deals being made that end up privatizing profits while socializing losses which does make it harder for most to get ahead. The very realization of this is enough to put a bad taste in your mouth no matter which side of the fence you sit on.

Either way if most elected politicians simply valued a strong moral conduct rather than simply selling us out to the lowest bidder we would be in much better shape as a society

**************
Yup.

#57 Hawk on 07.07.19 at 9:14 pm

#14 Keith on 07.07.19 at 5:15 pm

===========

When you cite the bailouts of chrysler and Ford as examples of “capitalism’s failure” it becomes clear that like most socialists you’ve never bothered to actually understand what actually constitutes capitalism and how it works.

Any government bailout —-or for that matter any major government intervention in an economy —-is by definition socialism, not capitalism. Regardless of whether such bailouts benefit the affluent or the impoverished.

The only exception to that rule is when the government intervenes with antitrust or anti-monopolistic legislation, to ensure a “free market” operating.

#58 Flop... on 07.07.19 at 9:15 pm

Spectacle
#9 Flop… on 07.07.19 at 4:50 pm
Three weeks ago I finished a new- build house on a Friday.

I was lead to believe there was another one for me to start the following Monday.

When I went to get the address I was told someone cheaper had been given the job.

Besides annoying the pants off Garth Turner, what have I been doing in the meantime….

——– Hi Flop. ————
You are not the only one annoying him : ) Flop .

Regarding “Stimulate This”
Have some developer builder friends, their current business plan is to keep,their employees employed & company running . Others had 2 to 3 full demo, back to back New Builds in the works; then everything stopped. Those guys are getting in to renovations, or commercial gigs, or Strata type Service work at best.

Have you seen the same Regional inability to stimulate (generate…) work projects like in the near past?
Absolute tall grass and crickets in Richmond, getting worse .

Regards,

Hi Speckie, I mainly go on what I see and first hands accounts rather than anything in the media.

Because of this I only have a small sample size, but sometimes as I proved with my Pink Snow Project, you can sometimes extrapolate in certain ways.

Vancouver crumbled from the top and that is still what I’m dealing with, the high end product.

In the last year the main trends I have seen, once again from a small sample, is the people developing the product eventually moved in, instead of flipping, and never stated that was their original plan.

Some of the other speculators know that the only way to get out without taking a loss is to add value.

That would be in most cases demolishing an eyesore and building new.

This is of course fraught with danger but at least a couple of developers I spoke to said they intended to continue but with new, stripped back, plans.

We’re talking feature walls, crown, simplified architraves etc.
I’ve been watching the slow decline for the past little while but have been unable to work full time due to multiple injuries, so I plan on riding it to the end and have become used of living on less.

Not that long ago it was only detached property in trouble , then town homes and luxury condominiums.

The slowdown is now down to pretty much the second or third rung of condos.

I regularly see losses now on condos below the 750k mark, even in popular areas like Kitsilano and Downtown.

I’ll stay out of that and try to show the occasional piece of value when I see it.

I’ll admit I’m not much value to people on the blog as I used to be but I made a personal choice to look after my wife’s safety first.

The trend will be down for a while yet, I’ll keep my ear to the ground and pass on anything substantial that I think a few people on here can benefit from.

Best value in the Inner Ring, no doubt, is in Richmond at the moment…

M45BC

#59 pay your taxes on 07.07.19 at 9:22 pm

Hey Derek, how about we give your job to someone in a 3rd world country and wax poetic about how much better the world is since we gave away your job? But we’ll wait until you’re in your mid 40s with a family and mortgage before we do it. Bet that would put a smile on your face.

The gas station example is flawed, at best. Take a trip down to the US and you’ll see three different gas stations with three different prices. Canada welcomes oligopolies so we get inflated prices and price fixing.

The wage example would be fine if we had a free market system, but we don’t. The government imports temporary foreign workers to fill those jobs and wages are artificially suppressed. Most of the wages leave the country, remitted to the developing world instead of bolstering our economy. We’ve heard plenty of wailing and gnashing of teeth about increased minimum wages, but I haven’t seen a Timmies or Rotten Ronnies close its doors yet. Nor will we. They raise their prices by 5 cents per item and life goes on. The workers are still ahead.

#60 Smoking Man on 07.07.19 at 9:30 pm

DELETED

#61 Bob Dog on 07.07.19 at 9:37 pm

What most people don’t consider when thinking about self driving vehicles is this. There will never be 100% perfect self driving vehicles. The goal is to achieve a kill rate lower than human drivers. This goal is probably 5-10 years away. People really suck at driving. The bar is fairly low.

First will come industrial vehicles like mining. Next will be long haul interstate highway trucking then lastly average cars in the city.

Vehicles are quite simple. They move forward backwards accelerate decelerate and turn left or right. Trivial problems for automation. Once sensors can detect and predict all obstacles it’s solved.

There will be an enormous job loss in trucking. Prepare for the future. Learn to code.

#62 Shawn Allen on 07.07.19 at 9:50 pm

Why Buy a 5 year government bond at 1.5%?

#45 Hank Perkins on 07.07.19 at 8:14 pm
Round and Round she goes. Why would anyone buy a 5 year 1.5% Canada bond when i just got 3.15% and 3.25% 5 year GIC rates and are deposit insured by CDIC, same federally.

Nobody buys bonds for a yield. – Garth

***********************************
I think Hank is quite correct that individuals with relatively modest savings should never buy a 5 year Canada bond at 1.5% when they can get over 3% on a 5 year GIC.

But it is institutions that buy 5 year government bonds. Think Pension funds and Bond mutual funds and Bond ETFs.

These big buyers are not eligible for the deposit insurance that individuals get. A $100,000 deposit insurance maximum rounds to zero even if an institutional investor otherwise qualifies.
A small investor under $100k can safely invest in the GIC of a small bank or credit union. A pension fund can’t take the risk of putting many millions with a tiny credit union for example. In contrast the government bond is 100% risk free as to repayment.

That is one reason for the discrepancy. Basically there are structural reasons and a different supply and demand curve applies to government bonds versus GICs.

Some institutional investors in these bonds need the ability to be able to sell the bonds immediately in mega dollar quantities if needed. That is not possible with GICs that are locked in for five years.

#63 Smoking Man on 07.07.19 at 10:00 pm

The truth on Jeffrey Epstein deleted.

Chicken shit.

Any post with libelous content will be deleted. – Garth

#64 Re: Office Job on 07.07.19 at 10:00 pm

#41 JSS on 07.07.19 at 7:59 pm
At the end of the day, what won’t go out of style are assets: be it cash, dividend growth stocks (RBC, CN rail etc), or income properties.
———–
Ya, no office jobs at RBC…nope.

#65 Yukon Elvis on 07.07.19 at 10:02 pm

#61 Bob Dog
First will come industrial vehicles like mining. Next will be long haul interstate highway trucking then lastly average cars in the city.

Vehicles are quite simple. They move forward backwards accelerate decelerate and turn left or right. Trivial problems for automation. Once sensors can detect and predict all obstacles it’s solved.
………………………..

Who is gonna put snow chains on those bad boys when they travel thru the Rockies in winter? Will it be you or Elon Musk ?

#66 akashic record on 07.07.19 at 10:06 pm

31 crazyfox on 07.07.19 at 6:29 pm

True socialism is wealth equality

Historically more like poor equality.

No socialism managed to reach to be true, most collapsed on their way there.

It’s a heartwarming idea, though.

#67 Millennial Realist on 07.07.19 at 10:10 pm

#54 Ace Goodheart

“I’ve watched youtube videos of these “self driving” vehicles crashing into walls when the white painted lines on the road go underneath construction barricades (the Tesla auto pilot system follows the white lines on the road, put up some construction barricades and forget to change the white painted lines, and crash, there goes your Tesla on auto pilot).

Self driving not happening anytime soon.”

Dude, you sound like you are 200 years old and out of touch completely.

You do not understand the testing of AVs at all. Like most Paleos, you overemphasize reports of collisions and mishaps etc… which serve your narrative that these changes will never happen.

So wrong, Boomer Doomer.

AVs will be everywhere within 2-3 years. Within 10 years they will account for the vast majority of miles driven.

Boomers like you typically just do not see the changes that are coming.

Be part of the change, or be run over by it.

(not the AVs of course – they are already testing as much safer than average human drivers, LOL!)

#68 Smoking Man on 07.07.19 at 10:15 pm

DELETED

#69 akashic record on 07.07.19 at 10:16 pm

#61 Bob Dog on 07.07.19 at 9:37 pm

Prepare for the future. Learn to code.

When the code is good, nobody will code better than the code.

What to learn then, what to prepare for?

#70 Smoking Man on 07.07.19 at 10:22 pm

Garth trade in Cowboy boots for Walmart flip flops

Safe toes cant think. While your at it. Toss the underwear

Let tose and nuts be free, fearing nothing is the only way a real man rocks.

I’m starting to despise your cowerdness. Thought you were a rebal, guess the man taught you a lesson.

Disappointed man is all in saying.

Stop protecting me with your deletes. I have no money left , let them sue .

Foul language, ad hominem attacks, slander and libel are unwelcome here. It’s not about protecting you. That’s a lost cause. – Garth

#71 Gravy Train on 07.07.19 at 10:24 pm

#31 crazyfox on 07.07.19 at 6:29 pm
“[…] [A]nd the main problem as I see it is […] in the general self-interests we all have even though many are at the detrimental expense of others. Whatever happened to being our brother’s keeper?” See the hedgehog’s dilemma.
https://en.m.wikipedia.org/wiki/Hedgehog%27s_dilemma

“If perfection exists, its fleeting because this existence is finite and nothing lasts. The best thing we can hope for are moment’s such as bringing a baby into the world where the parents through fear and thrill connect and bond through love with a newborn child. It’s messy but its perfect because we are connecting with something greater than ourselves.” Your writing and subject matter are reminiscent of Arthur Schopenhauer’s. You might want to do some reading of his works. :)
https://en.m.wikipedia.org/wiki/Arthur_Schopenhauer

#72 Millennial Realist on 07.07.19 at 10:24 pm

A reminder for those Boomers who believe change will never happen to their comfortable 1970s-era world of transportation:

https://www.youtube.com/watch?v=2b3ttqYDwF0

Not just self-driving and electric cars, but MEGA political and economic plus environmental changes are right around the corner, Boomers.

Be part of the change, or be run over by it.

#73 Spectacle on 07.07.19 at 10:40 pm

58 Flop… on 07.07.19 at 9:15 pm

….The trend will be down for a while yet, I’ll keep my ear to the ground and pass on anything substantial that I think a few people on here can benefit from.

Best value in the Inner Ring, no doubt, is in Richmond at the moment…
——- Big Thanks Flob —

Above and beyond as always Flop.
I am not going to be involved with taking on real estate for next long term. For your exact examples.

I do like how Sir Turner created a company and sold it , The Belfountaine ! My idea of how real estate and a modern enterprise should be created. Ps: I lay awake nights thinking of his recent purchase of a Boat and how that will pay off as always!

My friends in the industry are just hoping to pay bills, staff, and not to lose too much money doing so! These people have been in business for generations in BC.

I have a business direction to take , having seen the carnage since 1980 onwards. When I see these young Dummies in trades, who just bought a suburban condo, new car and truck, and say things like “real estate always recovers” , or “you have to live somewhere”, or “I’m not paying some guys mortgage” ; well, the hurt and grief that can be around the corner is unfathomable in depth !
Cheers all.

#74 Smoking Man on 07.07.19 at 10:41 pm

Foul language, ad hominem attacks, slander and libel are unwelcome here. It’s not about protecting you. That’s a lost cause. – Garth

I still love you even though you have no balls
Shit you say when your day drinking.

Courge of 10000 men

#75 akashic record on 07.07.19 at 10:48 pm

#62 Yukon Elvis on 07.07.19 at 10:02 pm

Who is gonna put snow chains on those bad boys when they travel thru the Rockies in winter?

The reason why tires can’t grow spikes is because tire manufacturers did not anticipate that there is no driver around to put on the snow chain.

#76 Smoking Man on 07.07.19 at 10:53 pm

The libtards are going after old man Don Cherry.

Let’s make sure they dont get away with it. Out an antifa freak , share the addreess of moms basement.

#77 Mike on 07.07.19 at 10:59 pm

Why is it thanks to the “orange guy” that Iran are making more “nukes”. Please explain.

#78 Smoking Man on 07.07.19 at 11:01 pm

Gartho. My life. Not ashamed. Saw then disintegrate in the nursing home. Not for me

https://youtu.be/LQiOA7euaYA

#79 SunShowers on 07.07.19 at 11:02 pm

Goodness, I had expected an uproar in the steerage section if my post were to get published, but to get an entire one in response is something else entirely. Nevertheless!

“If one raises prices, consumers choose the competitors.”

Yeah…except this doesn’t actually happen. Ever notice how almost all gas stations (at least ones close to each other) have the same posted price?

After crude oil prices spiked with the “War on Terror”, gas prices spiked along with them. Crude oil has come back down to 1990s prices since then. Has gas gone back to (inflation adjusted) 1990s pricing? Hahaha. No.

“Aha!” You might exclaim. “Those are ‘anti-competitive’ practices, which are illegal! The competition bureau would sort that out!” Why they haven’t yet I don’t know, but you said THE MARKET keeps prices in check. The competition bureau is not ‘the market’, in fact, it is government intervention. You know, that thing capitalists hate.

“if one employer pays his workers a little less to reduce costs, The workers go to another employer.”

Again…this doesn’t really happen. If it were just ONE employer doing it, then it might be the case. But what happens when ALL (or at least a significant number) of the employers cut their pay, as is the current case with our largely monopsonistic labor market? After all, it’s a sensible thing to do in order to turn a higher profit. Workers have nowhere to go and there is no recourse.

To be honest, too many people are so hung up on “laws” they read in Econ 101 textbooks and think that the economy HAS to behave this way as if by divine decree.

“Since 1980 life has gotten better on so many fronts.”

It has, but at the cost of higher basic costs of living, lowered wages and increased hours worked. And the things that make life better today than it was in the 1980s has more to do with scientific advancement than capitalism. And as I said Friday, most of that advancement is thanks to publicly funded organizations like the NIH. For example, pretty much every individual piece of technology at work in the iPhone was discovered and developed by DARPA before Apple even existed.

“Some workers have had to accept reduced wages, but hundreds of millions of workers there have been lifted out of poverty!”

No they haven’t, they’re still absolutely in poverty. Read comment #25 on Friday’s blog, I’ve already cracked that old chestnut.

“A real-life test case to compare socialism to capitalism….oh yeah, Korea offers a great example”

No it doesn’t. Please read the second part of the exact same comment I previously mentioned. Cool coincidence how things worked out like that!

Also, thanks Keith, great comment!

#80 Marcus on 07.07.19 at 11:13 pm

Oh this is going to get VERY interesting indeed. House Speaker Nancy Pelosi’s daughter issued a cryptic tweet in reaction to billionaire financier Jeffrey Epstein’s arrest for sex trafficking minors, suggesting that some Republican and Democrat politicians will be implicated in his crimes.

“This Epstein case is horrific and the young women deserve justice,” Christine Pelosi tweeted Saturday.

“It is quite likely that some of our faves are implicated but we must follow the facts and let the chips fall where they may – whether on Republicans or Democrats.”

#81 Herb on 07.07.19 at 11:15 pm

#52 Yukon Elvis,

if the German troops and material the Russians ground up in four years on the Eastern Front had been available in the West, we’d still be sitting in the UK trying to get a foothold on the continent. Unless, of course, the Americans had gotten tired of trying and atomized the continent when those weapons became available.

On 15 June 1944, Germany had 199 divisions in the East. The western Allies faced 45. (Stacey, ‘The Victory Campaign’, p. 279) Lend Lease was the ante that kept Russia in the game, but it didn’t win it.

#82 Smoking Man on 07.07.19 at 11:19 pm

DELETED

#83 Leo Trollstoy on 07.07.19 at 11:22 pm

It doesn’t matter what blog dogs post

If they choose to live in a capitalistic society, they’re pro-capitalism

#MAGA

#84 AACI Homedog on 07.07.19 at 11:25 pm

Good work, as always, Garth. And yet, as i am sure, you have met Smokey. Yet you put up with his stuff and let us read “most” of his comments. I would pay to read the others. Cheers…rt

#85 Smoking Man on 07.07.19 at 11:32 pm

https://youtu.be/uOAyOqi_KyE

Some where in my memory .

I hate gratho

#86 Paul on 07.07.19 at 11:36 pm

#8 martin on 07.07.19 at 4:49 pm
Living up to your name and having fun stimulating misconceptions. Iran has never made a nuke (bomb), claims no intention to make one, and Kamalvandi said Iran would enrich uranium for use in fuelling its Bushehr power plant, to the level of 5%, confirming what Reuters reported on Saturday.

Where did I say ‘bomb’? – Garth
=====================================
I will say it BOMB! Iran doesn’t need to have the ability to deliver a nuke by a missile a dirty bomb in a backpack works.

#87 Isms and reality on 07.08.19 at 12:37 am

Very interesting posts all four.
“Isms” of any kind are theoretical constructs build upon “ideal conditions”.
Reality is more like a chaotic and complex [emerging] system where those ideal scenarios never occur and hence “Isms” derive to imperfect forms, many times blending aspects of several “isms” and often going through cyclic transitions from one “ism” to another.
Factually, those cyclic transitions have lead to a steady increase of population world-wide and overall increase in well-being globally, even if unevenly distributed.
A different matter is for how long this planet can sustain human race’s expansion and increased demands.

#88 Vampire studies (doctoral thesis) on 07.08.19 at 12:43 am

67 MR

“AVs will be everywhere within 2-3 years. Within 10
years they will account for the vast majority of miles
driven”.

Perhaps. But what do boomers care? It’s the mills who will lose those jobs.

#89 Dolce Vita on 07.08.19 at 1:17 am

#13 Millennial Realist

The Emperor has no clothes.

Free will, use it – after all it’s “free” (something that ought to appeal to your thinking).

Determinism proven to be sham, apologetic, “poor me, the Devil made me do it” thinking. The scourge and bane of today’s Society. The words and references that you proffer are poster children for the Determinists.

Take charge of your life instead of blaming others.

—————–

#24 gimme stuff

Zombie companies too big to fail bailouts – Socialist meddling throwing good money after bad.

Let them fail. Schumpeter’s Creative Destruction ensues.

—————–

#62 Yukon Elvis

Luddite.

You would have been in good company with Edison when he had Topsy the Elephant electrocuted in the War of the Currents (his DC vs. Tesla’s AC for the long distance transmission of electricity).

Epitaph to the wise:

Tesla won.

#90 Dolce Vita on 07.08.19 at 1:27 am

“aircraft technician Michael”

We got thru Gutenberg’s press just fine although Venetian Scribes and English Typesetters not all that happy with German Johannes.

Agreed, something always done at the last moment to fix matters as is typical of Humanity.

Thus, have faith that we’ll get thru Automation just fine (using albeit, technology, and pardon the deliberate double entendre).

#91 Dolce Vita on 07.08.19 at 1:55 am

To the to and fro’s of automation, capitalism, socialism, etc. today:

-History is an excellent teacher with few pupils.

-A nation is born stoic and dies epicurean. [Entropy]

-Nature has never read the Declaration of Independence. It continues to make us unequal.

-Science is organized knowledge. Wisdom is organized life. [Try not to confuse them]

-Men are not content with a simple life: they are acquisitive, ambitious, competitive, and jealous; they soon tire of what they have, and pine for what they have not; and they seldom desire anything unless it belongs to others.

——————————–

Just a few observations from someone that examined with a fine tooth comb and wrote about the history of human thinking (“love of wisdom”) from the ancient Greek’s on thru the outset of the 20th Century.

…not much has changed about the Human Condition and Mind and I doubt will ever change; although we think, change is constant.

#92 Fortune500 on 07.08.19 at 2:05 am

Derek’s post says it all. Well put. Cheers to you.

#93 Fortune500 on 07.08.19 at 2:07 am

Michael as a a fan of both, I like the Jordan Peterson to Garth Turner comparison. I often find myself checking both out during my power morning routine.

Later buckos

#94 crowdedelevatorfartz on 07.08.19 at 2:12 am

@#72 Millennial Dreamist
“Be part of the change, or be run over by it….”
+++++

Like the poor lady in Arizona?

https://www.theguardian.com/technology/2018/mar/29/uber-settles-with-family-of-woman-killed-by-self-driving-car

I fully expect self driving cars to be in the future.
I also expect human driven car insurance rates will render most private car ownership obsolete unless your rich ( Boomers).

Just not any time soon.
Keep dreaming surrealist… your loathing of Boomers shall sustain you in the decades ahead.

I plan on being around for at least another 40-50 years… :)

Perhaps I can drive your grandkids around in my 8 cylinder, gas belching , standard transmission, car with the 8 track cassette playing Steve Miller while I smoke a doobie…….”Fly like an Eagle”…….and regale them with stories of the good old days before the internet …..

Of course we could all just pray for another solar max event to take us all back to the stone age.

https://en.wikipedia.org/wiki/Solar_storm_of_1859

#95 Dolce Vita on 07.08.19 at 2:13 am

I like your:

Vox canibus.

On behalf of my forefathers, try:

Canis Latrantia Rostra.

Yes I know, too many words. Dare to be different (and precise).

————————

“Bonum Mane” from the former “Imperium Romanum”.

#96 crazyfox on 07.08.19 at 4:35 am

#35 BS on 07.07.19 at 7:32 pm

https://en.wikipedia.org/wiki/Socialism

wealth eqI provided this link for a reason… because socialism is defined there. Please… please, would you just read it before you go on

#97 crazyfox on 07.08.19 at 5:02 am

#35 BS on 07.07.19 at 7:32 pm

https://en.wikipedia.org/wiki/Socialism

Wealth equality is an obvious oversimplification which is why I provided the link in my first comment as well as above. Socialism is best defined there. Please… please, would you just read it before you go on with assumptions on what you think I implied? Two words don’t give it justice.

While we are on the subject of socialism definitions (or lackthereof), it would be wise to look at “market socialism”.

https://en.wikipedia.org/wiki/Market_socialism

I mean, if anyone actually cares about the issues of “wealth inequality” or problems inherent to concentrated wealth that is (greeders don’t lend much empathy to the aforementioned).

Apologies to readers for the duplicate comment.

#98 Howard on 07.08.19 at 5:17 am

This is a little bit scary. The Liberals can now throw you in jail for having a drink AFTER you return home from driving.

http://warrenkinsella.com/2019/07/yell-at-the-spouse-lose-the-house/

Lawyers like me have been warning, for months, that this change is wildly unconstitutional. It’s legislative overreach. And it’s a political suicide note, too.

But it’s the law of the land. It gives police the power to demand you submit to a breathalyzer, even they don’t have a reasonable suspicion you’re impaired. Even if you aren’t behind the wheel.

When this change was being considered, legal experts warned that a Canadian who drives home, sober, and then consumes some alcohol could register a fail on the breathalyzer – even though they didn’t drive while drunk. And that’s in fact what happened to a B.C. woman: she was by the pool at her sister’s place, having a drink, when the RCMP arrived and demanded a breath sample.

She lost her licence and her vehicle. Ultimately, she defeated the impairment charge on a technicality – but not before spending thousands on legal fees.

The media are already calling this a “police state” law. That it’s “an inexcusable violation of an individual’s Charter rights, and an invitation to police harassment of visible minorities“. Hell, even the CBC is calling it “unnecessary police power.”

#99 crazyfox on 07.08.19 at 5:31 am

It should be said (not sure why, it should be obvious) that there is the ideal and then there is the practice of the ideal. They are often quite different from each other. How many times have the best of ideals failed us because we couldn’t deliver in practice? Conversely, how many times have we made inferior, imperfect systems work because people made them function in practice? Haven’t we learned anything? Motive is the key to it all.

If we’ve got each others backs, well get through our challenges. If its everyone for themselves, we’ll fail. Only fools think perfect systems will save us when nothing can save us from ourselves. And it just so happens that its easy to adopt the ideal of every man for himself when you’ve got it all… or got nothing. Its not so easy when you’ve got a conscience AND a brain.

Fm, Its not difficult to see why there won’t be much by way of survivors in the age to come.

#100 Scott Reid on 07.08.19 at 6:45 am

C.P.I. at 2.4% which is already understated would of meant a 5% GIC rate or government bond rate just 10 years ago. Now, it seems they are purposely trying to make your money worthless.

#101 expat on 07.08.19 at 6:52 am

It astounds me that socialists still don’t get it.
Equality is not a human condition.
Humans have different motivations and desires.

If I choose to wealthy and successful I get up early, work hard and save my money and invest it – I will be wealthy later in life.

This is a fact.

If the government takes 75% of my wealth through various forms of taxation the desire to succeed disappears.

Government intentionally drains the life force from their people. Hopelessness prevails. Talk to the PEOPLE!!! who lived or live under this regime.

You live in it now? Do you enjoy being taxed and regulated into oblivion? You have more and more “regulations” as the apparatchiks bring more and more regulation into your life. They have to – to prove their value at their government job.

This is why capital is leaving Canada. They can’t profitably do business here.

Those of you who mention Norway
Have you been there?

You state it is a place of bliss.
I have been there and the majority of the people I talk to love the benefits – but are broke.

They live off the avails and desires of the government appratchiks.

There is NO INCENTIVE TO WORK HARD~~~~

There is no way to save since the bulk of their earnings re taken.

There is no wealth at the end of their lives.

Norwegians are waking up to the fact that they are indentured to the STATE!

By design, socialism is the economic starting point on the to road to Communism.

Further, The elites form power bases in Norway and other socialist country that allow the select few to hold power.
In essence the rest are serfs working for the government through taxation.

You constantly bring up these points that socialism is beautiful.

You are confusing working in your community for the betterment of all to assigning a proven failed political system that destroys the individual human’s desire to better themselves.

Like Maggie Thatcher said so long ago

“Socialism is wonderful until you run out of other people’s money”

Norway has
Canada did long ago

#102 dharma bum on 07.08.19 at 6:57 am

I am very disappointed with today’s guest bloggers.

Garth, if you keep featuring normal individuals with reasonable, intelligent points of view, it detracts from my opportunity to make derogatory, obnoxious, cynical, and stupid comments.

Now what am I supposed to do?

I can’t really criticize or disagree with anything these guys had to say.

Oh well….there’s always tomorrow.

#103 Gravy Train on 07.08.19 at 6:59 am

#87 Isms and reality on 07.08.19 at 12:37 am
“Reality is more like a chaotic and complex [emerging] system where those ideal scenarios never occur and hence ‘Isms’ derive to imperfect forms, many times blending aspects of several ‘isms’ and often going through cyclic transitions from one ‘ism’ to another.” Your writing and subject matter is reminiscent of Hegel and Fichte, in the sense that human progress evolves through a dialectic, in which contradictory ideas (thesis and antithesis) compete to produce a synthesis in an ongoing, almost-endless process or cycle until the absolute idea is realized.
https://en.m.wikipedia.org/wiki/Dialectic
https://en.m.wikipedia.org/wiki/Thesis,_antithesis,_synthesis
https://en.m.wikipedia.org/wiki/Georg_Wilhelm_Friedrich_Hegel
https://en.m.wikipedia.org/wiki/Johann_Gottlieb_Fichte

#104 dharma bum on 07.08.19 at 7:05 am

#87 Isms and reality

A different matter is for how long this planet can sustain human race’s expansion and increased demands.
——————————————————————-

The planet will sustain it forever.

It’s the human race that will be unable to sustain it.

Most will perish.

The remaining will repopulate and rebuild.

This will continue for trillions of trillions and trillions upon trillions of years.

Garth will be blogging about it in all of his perpetual awesomeness.

#105 Gravy Train on 07.08.19 at 7:12 am

#60 Smoking Man on 07.07.19 at 9:30 pm
DELETED

#68 Smoking Man on 07.07.19 at 10:15 pm
DELETED

#82 Smoking Man on 07.07.19 at 11:19 pm
DELETED

None of your posts will be deleted if you go post your hate on The Daily Stormer. Now leave us alone! :P

T

#106 Sunshowers on 07.08.19 at 7:40 am

I just wish everyone talking about “equality” would google the definition of socialism.

No, you know what? Before ANYBODY mentions socialism again, they need to google the definition, because I’ve seen maybe 2 people since Friday who actually know what the word means.

Socialism is not “when the government does stuff”, and it’s not “everybody makes the same amount of money.”

#107 50 YEARS OF MAPLE LEAF INCOMPETENCE! on 07.08.19 at 7:45 am

5 Shootings, 1 Stabbing in the GTA overnight.

https://torontosun.com/news/local-news/three-shot-near-queen-and-ossington

Umm…well….oops….er….trying to put some positive spin on this so I don’t get deleted…………(can anyone help out!?)

I know!!

LINE-UPS AT TORONTO CONDO VIEWINGS NOW REDUCED – COME EARLY AND BE FIRST TO BUY A GTA GLASS-WALLED GEM FOR ONLY $850,000!!!

#108 Remembrancer on 07.08.19 at 8:23 am

#24 gimme stuff on 07.07.19 at 5:52 pm
“The bailout of Chrysler in 1981, followed by Ford and GM in 2009. A complete list would take days to uncover and list.”

Keith is right.
Its bailout after bailout. Gubmint funding. Ah, capitalism.
——————————————–
Except those bailouts are usually made as a strategy to retain happy registered voters, er jobs, in the jurisdiction – arguably what passes for being called socialism these days… capitalism would simply let the company (capitalist would say deservedly) fail and tell the workers to retrain or move somewhere else with jobs they are skilled for…

Not such as simple binary topic is it?

#109 crowdedelevatorfartz on 07.08.19 at 8:46 am

@#106 Sunshowers
“I just wish everyone talking about “equality” would google the definition of socialism.”
+++++

Why bother.
Socialism either ends up taxing all incentive out of the hard workers and giving it to the lazy lotus eaters OR it devolves into some perverse, murderous, totalitarian regime. Stalin, Mao, Kim Il Whatever come to mind….along with the millions they imprisoned,starved, shot or hung….
Socialism is a failed experiment.
And until someone comes up with “touchy feely Capitalism part deux ” we’re stuck with what works…
The Lizard brains are inherently greedy.
Embrace the power of the Force young Sunshower.

#110 Tater on 07.08.19 at 8:49 am

#86 Paul on 07.07.19 at 11:36 pm
#8 martin on 07.07.19 at 4:49 pm
Living up to your name and having fun stimulating misconceptions. Iran has never made a nuke (bomb), claims no intention to make one, and Kamalvandi said Iran would enrich uranium for use in fuelling its Bushehr power plant, to the level of 5%, confirming what Reuters reported on Saturday.

Where did I say ‘bomb’? – Garth
=====================================
I will say it BOMB! Iran doesn’t need to have the ability to deliver a nuke by a missile a dirty bomb in a backpack works.
—————————————————————–
An Iranian dirty bomb would result in hundreds of thousands, possibly millions, of dead Iranians in retaliatory attacks. And the Iranians know this.

#111 crowdedelevatorfartz on 07.08.19 at 8:49 am

@#104 dharma bum
“This will continue for trillions of trillions and trillions upon trillions of years.
Garth will be blogging about it in all of his perpetual awesomeness.”
++++
Well, I admire your endless optimism or its a Buddhist reincarnation thing…….

#112 down and out on 07.08.19 at 8:51 am

Deutsche bank’s move ,is this a stop gap play to save executives and Europe ‘s financials . Some big investors must have known , What does all this mean for us peons .

#113 n1tro on 07.08.19 at 9:25 am

#35 BS on 07.07.19 at 7:32 pm
31 crazyfox on 07.07.19 at 6:29 pm

True socialism is wealth equality

———————————————————–

If everyone gets the same no matter how hard you work or what you produce how many people will work hard? Why would someone start a business? Why would someone work at all? Why would someone invest and risk capital?
———————
Apparently God will motivate a person to toil away to support others sitting on there asses waiting for handouts.

#114 James on 07.08.19 at 9:41 am

#107 50 YEARS OF MAPLE LEAF INCOMPETENCE! on 07.08.19 at 7:45 am
5 Shootings, 1 Stabbing in the GTA overnight.
https://torontosun.com/news/local-news/three-shot-near-queen-and-ossington
Umm…well….oops….er….trying to put some positive spin on this so I don’t get deleted…………(can anyone help out!?)
I know!!
LINE-UPS AT TORONTO CONDO VIEWINGS NOW REDUCED – COME EARLY AND BE FIRST TO BUY A GTA GLASS-WALLED GEM FOR ONLY $850,000!!!
_________________________________________
Are you sure that you are not Smoking Mans brother as you are both so filled with vitriol hate for this city. Listen here my little Incompetent Maple Leaf friend. I have lived in several cities in the US including Los Angles and Houston for large ones. I have business dealings in Chicago and I can tell you that as comparison for city sizes Toronto and Chicago are almost identical with Toronto being slightly larger. Chicago is downright dangerous. Not that this can explain away extreme violence and put a sugar coating on it but for Christs sakes give your head a shake. For a city of this size we are going to have that certain segment of the population that are filled with animosity and indignation who make use of violence methods in order to achieve their objectives whatever they may be. I cannot explain gangs, guns and or violence as I simply don’t ruminate like that in my lifestyle. Put things into prospective would you rather live in Chicago or Toronto? And I am not suggesting neither of them but simply given the choice between only these two cities what would you choose as a place to raise your family?
https://www.usatoday.com/story/news/nation/2019/06/03/chicago-52-shot-10-killed-most-violent-weekend-2019/1334351001/
BTW The glass walled GEMS are also for sale in Chicago at a somewhat reduced rate but they are never the less not cheap either. Never buy a condo in a Northern Climate, it’s always fun when the power goes out in the middle of winter! https://www.chicagocondofinder.com/

#115 NoName on 07.08.19 at 9:42 am

#112 down and out on 07.08.19 at 8:51 am
Deutsche bank’s move ,is this a stop gap play to save executives and Europe ‘s financials . Some big investors must have known , What does all this mean for us peons .

It meand that you are like like me talk about at 6.1/2 and never pulled a trigger and sold last friday at 8, i know whats my excuse whats yours?

#116 Ponzius Pilatus on 07.08.19 at 9:47 am

#112 down and out on 07.08.19 at 8:51 am
Deutsche bank’s move ,is this a stop gap play to save executives and Europe ‘s financials . Some big investors must have known , What does all this mean for us peons .
———–
Lot’s of good deals on used Porsches.

#117 Ponzius Pilatus on 07.08.19 at 9:52 am

Swedes own the most vacation homes per capita.
Not bad for a socialist hell hole.

#118 James on 07.08.19 at 9:56 am

Here’s the problem. Canada employs roughly 285,000 truckers from coast to coast, roughly earning $70,000 a year. For arguments sake – let’s say Mr. Musk has perfected the autopilot system on his overpriced Tesla and pushes it towards the trucking industry. Loblaws, Best Buy, The Bay, Tim Hortons, Suncor, Atlas Van Lines etc. will not have to pay for drivers nor will they have to abide by the rest laws for these drivers. These trucks are able to drive all night and all day with only a refuel/recharge stop. What happens to the truck driver? Why they go back to school and get re-trained. Sounds easy, right? I would bet that the readers of this blog that are over the age of 40 would have two very strong words if this scenario would happen to them.
_________________________________________
Here is what will happen when robot truckers take over the world. I see nothing good about this happening!

https://www.youtube.com/watch?v=o_TNfLpc91M

#119 James on 07.08.19 at 10:02 am

#112 down and out on 07.08.19 at 8:51 am

Deutsche bank’s move ,is this a stop gap play to save executives and Europe ‘s financials . Some big investors must have known , What does all this mean for us peons.
__________________________________________
What I am wondering is now will the Russians still continue to launder and hide their assets in the Deutsche Bank or will they try to diversify?

https://www.bnnbloomberg.ca/deutsche-bank-s-reboot-looks-real-this-time-1.1283581

#120 Ponzius Pilatus on 07.08.19 at 10:08 am

In 1970, soon after I was allowed to vote in Austria, I voted for Bruno Kreisky and his socialist hordes.
Turns out I backed the right guy.
https://en.m.wikipedia.org/wiki/Bruno_Kreisky

#121 advice on 07.08.19 at 10:24 am

@#114 James on 07.08.19 at 9:41 am
#107 50 YEARS OF MAPLE LEAF INCOMPETENCE! on 07.08.19 at 7:45 am
5 Shootings, 1 Stabbing in the GTA overnight.
https://torontosun.com/news/local-news/three-shot-near-queen-and-ossington
Umm…well….oops….er….trying to put some positive spin on this so I don’t get deleted…………(can anyone help out!?)
I know!!
LINE-UPS AT TORONTO CONDO VIEWINGS NOW REDUCED – COME EARLY AND BE FIRST TO BUY A GTA GLASS-WALLED GEM FOR ONLY $850,000!!!
_________________________________________
Are you sure that you are not Smoking Mans brother as you are both so filled with vitriol hate for this city. Listen here my little Incompetent Maple Leaf friend. I have lived in several cities in the US including Los Angles and Houston for large ones. I have business dealings in Chicago and I can tell you that as comparison for city sizes Toronto and Chicago are almost identical with Toronto being slightly larger. Chicago is downright dangerous. Not that this can explain away extreme violence and put a sugar coating on it but for Christs sakes give your head a shake. For a city of this size we are going to have that certain segment of the population that are filled with animosity and indignation who make use of violence methods in order to achieve their objectives whatever they may be. I cannot explain gangs, guns and or violence as I simply don’t ruminate like that in my lifestyle. Put things into prospective would you rather live in Chicago or Toronto? And I am not suggesting neither of them but simply given the choice between only these two cities what would you choose as a place to raise your family?
https://www.usatoday.com/story/news/nation/2019/06/03/chicago-52-shot-10-killed-most-violent-weekend-2019/1334351001/
BTW The glass walled GEMS are also for sale in Chicago at a somewhat reduced rate but they are never the less not cheap either. Never buy a condo in a Northern Climate, it’s always fun when the power goes out in the middle of winter! https://www.chicagocondofinder.com/
_________________________

don’t feed the troll.

#122 Joe Schmoe on 07.08.19 at 10:29 am

https://www.cbc.ca/news/business/tax-dollars-1.4545415

Vast majority of tax dollars goes to social services- OAS/EI/Health Care/having a government.

Why would this be corporate accountability?

#123 crowdedelevatorfartz on 07.08.19 at 10:54 am

@#112 Kicked when down
“Deutsche bank’s move ,is this a stop gap play to save executives and Europe ‘s financials . Some big investors must have known , What does all this mean for us peons .”
######

The majority of jobs whacked are in London.
The EU financial hub. ( a precursor to Brexit?).
Next stop New York…..

Next up in Oct….. Epstein “plea deal” revelations?

Could be a long, cold winter…..

#124 Jeff on 07.08.19 at 11:07 am

Self driving vehicles might matter in ten years. More likely twenty. Lots of empty hype.

#125 Steven Rowlandson on 07.08.19 at 11:31 am

“Life has gotten better on so many fronts.”

Are you trying to say that living in my car and working for near minimum wage on a part time basis building stairs is an improvement?

#126 Keith on 07.08.19 at 11:54 am

@ 57 Hawk

The terms Socialism and Capitalism are used and misused in so many contexts, as this comments section proves they have little meaning anymore.

Socialism is government ownership in the economy (look up the definition) in the interventions I cited the government did not wind up owning the businesses, aside from a couple of minor shareholdings.

If you want an accurate definition of what I described, when profits are privatized and losses are socialized it’s best described as crony capitalism. It’s a corrupt practice that makes the hypocrisy of the business sector the equal of that of the trade unionists.

#127 not 1st on 07.08.19 at 12:09 pm

Garth did you miss that Canada lost 2200 jobs last month. Then there is this;

“A substantial federal deficit during a period of economic expansion is bad news for all Canadians—but it’s especially concerning in Ontario, which is also saddled with a whopping $346 billion provincial debt.
That sounds bad enough. Until you consider that Ontarians are also on the hook for approximately 40 per cent of the federal government’s net debt, which comes to about another $280 billion. Add these up, and you find that Ontarians are responsible for an aggregate net debt load of approximately $625 billion.”

#128 crowdedelevatorfartz on 07.08.19 at 12:21 pm

@#120 Ponzie Putsch

“When Nazi hunter Simon Wiesenthal reported that four members of Kreisky’s cabinet were former Nazis, Kreisky did not remove them from the government, though one did resign. Kreisky responded that everybody had the right to make political mistakes in their youth. This incident marked the beginning of a bitter conflict, which did not end until Kreisky died. In 1986, Wiesenthal sued Kreisky for libel. Three years later the court found Kreisky guilty of defamation and forced him to pay a substantial fine.[18]”

*****

Yeah he was quite a guy all right.

#129 IHCTD9 on 07.08.19 at 12:26 pm

#40 Herb on 07.07.19 at 7:50 pm

Socialism, even in its Communist extreme form, is so weak that the Soviets survived invasion by the Western allies in 1918-20, invasion by Germany in 1941-45, did four-fifths of the heavy lifting in the war in Europe…
———-

That’s because communists don’t mind sending in wave after wave of its poorly equipped Citizens with no thought of surrender, even while they’re being converted into hamburger by the tens of millions.

26.6 Million Russian deaths in WW2 compared to about 9 million for Germany. Russians suffered almost HALF of ALL ww2 casualties due to direct conflict. 14% of Russia’s ENTIRE population was dead after the War.

Yeah, communism is so strong… you got it bud.

If it weren’t for communists running Russia, they’d probably have a 500 + million population today.

#130 BillyBob on 07.08.19 at 12:46 pm

#89 Dolce Vita on 07.08.19 at 1:17 am

—————–

#62 Yukon Elvis

Luddite.

You would have been in good company with Edison when he had Topsy the Elephant electrocuted in the War of the Currents (his DC vs. Tesla’s AC for the long distance transmission of electricity).

Epitaph to the wise:

Tesla won.

====================================

Did he?

He died single and alone in a hotel room, spending his last years mostly feeding pigeons. No one even noticed he died except for the hotel staff after two days.

Yes, he was absolutely brilliant – I’m a big fan.

But I don’t think you could say he “won”. More like a Greek tragedy.

An excellent illustration of how one can “win” and be “right” and still be a loser…could be instructive for more than a few folks who post multiple times daily here.

#131 Eks dee Siple on 07.08.19 at 12:47 pm

#40 Herb… well done, very well done. Canada is the best country on earth, the true north strong and free, and it has always been a socialist nation from its very inception until now. Success is neither measured solely in how many aircraft carriers or nuclear subs you have, nor in the selection of products at the supermarket, but more importantly it is in the intangible quality of the freedom we all enjoy everyday. And no country on earth can hold a candle to Canada in this regard. Evil does not subscribe to any particular political bent, don’t be fooled.

#132 James on 07.08.19 at 12:52 pm

#123 crowdedelevatorfartz on 07.08.19 at 10:54 am

@#112 Kicked when down
“Deutsche bank’s move ,is this a stop gap play to save executives and Europe ‘s financials . Some big investors must have known , What does all this mean for us peons .”
######

The majority of jobs whacked are in London.
The EU financial hub. ( a precursor to Brexit?).
Next stop New York…..

Next up in Oct….. Epstein “plea deal” revelations?

Could be a long, cold winter…..
_______________________________________
He is going to sing like a bird in order make another deal and cut his time down to minimums. Alexander Acosta who was the US attorney in Florida that cut Epstein the last deal of a lifetime, may be in for a rude awakening now that he is the Labor Secretary. How in the hell and why did Acosta had make a deal with Epstein even though he was allegedly accused of illicit relations with 36 underage victims by federal investigators?
sing, sing, sing, chirp, chirp, chirp……….

#133 Eks dee Siple on 07.08.19 at 12:57 pm

#61 Bob Dog… AV is the tip of the iceberg. There is something else on the horizon that absolutely no one even suspects is even possible regarding transportation. I know what it is… do you? Sorry dogs, I’m going to keep this one to myself for now… just a teaser to keep you on your toes. Start googling.

#134 gattaca on 07.08.19 at 12:59 pm

Discussions about socialism fall apart when the capitalists use North Korea or Venezuela as examples.

They’re not practicising democratic socialism.

Plus, just like there is no purely capitalist country, there aren’t any purely socialist countries.

#135 I'm A Believer on 07.08.19 at 1:30 pm

#10 Yukon Elvis

You assume humans will still be driving cars. Nope that’s going away. AI and automation is coming very very fast because of this; people want a deal on anything they buy. They want the lowest prices.
It’ll all be direct home delivery of goods, no need to get in a car to get it. This is how it’ll come.

#136 not so liquid in calgary on 07.08.19 at 1:33 pm

@ Yukon Elvis on 07.07.19 at 4:57 pm
…………………………………..

Not gonna happen. Not on public roads with human traffic. Write this down. You heard it here first.

——————————————————————————

ALREADY happening, in Australia, sort of. Several trucks in a convoy, the lead truck has a human driver. Inputs (gear changes, fuel feed, brakes, etc) from this driver are transmitted to the rest of his convoy… one driver 3-4 trucks. The boys from The Grand Tour complained about this once, as how do you pass one of these convoys, these trucks can ride so closely to one another that you can’t pass them one at a time!

#137 crazyfox on 07.08.19 at 1:43 pm

#113 n1tro on 07.08.19 at 9:25 am

As others are pointing out, read the friggin’ definition!

https://en.wikipedia.org/wiki/Socialism

How hard can this be! While were at it, in order to keep from coming across as total illiterates and as a consequence mentally challenged, y’know, special, try this link as well! (again, sadly)

https://en.wikipedia.org/wiki/Market_socialism

“What? Workers owning companies, we can’t have that! Unequal concentrated wealth works so well for us privileged few, we can’t have that, demonize socialism and rip it out root and stem!! We can’t have public ownership of natural resources!!!!! Market socialist systems allowing private ownership and entrepreneurship in the service and other secondary economic sectors, its not enough, we few must own it all!!!!! We’re not Norwegians!!!! Rev up the propaganda machine and quickly destroy this scourge called socialism forever! Pass the hat to the rest of the privileged for the bought off politicians fund and make it happen! Now quit interrupting my precious money count unless its with news the mindless masses have fallen in line.”

It’s not hard to imagine why things are so, is it now. Is it? Is it so hard?

(Good God I’m regressing, using exclamation marks now, CAP will soon follow, how Garth does it, I’m done for the day :)

#138 not so liquid in calgary on 07.08.19 at 1:49 pm

@ Keith on 07.07.19 at 5:15 pm

===========================================

Actually, Ford was the only one of the Detroit Three that DID NOT ask for a bailout; also, they are the only manufacturer that has a hybrid option for each of their models.

#139 Headhunter on 07.08.19 at 1:52 pm

If you want an accurate definition of what I described, when profits are privatized and losses are socialized it’s best described as crony capitalism. It’s a corrupt practice that makes the hypocrisy of the business sector the equal of that of the trade unionists.

_____________________

yes the “nobility class/caste” get the spoils wash rinse repeat

#140 Jesse on 07.08.19 at 1:56 pm

Eks dee Siple if you are referring to Tesla I have a bridge to sell you :)

#141 bdwy sktrn on 07.08.19 at 2:01 pm

it is in the intangible quality of the freedom we all enjoy everyday. And no country on earth can hold a candle to Canada in this regard.
—————————–
???
want freedom? try texas. or mexico.
most cdns have never tasted real freedom.

doorknobs are banned in vancouver.

if you feel you need thousands of laws/rules/codes to protect yourself from yourself, then i can see how you would feel free here!

#142 Tyberius on 07.08.19 at 2:11 pm

#31 Crazyfox

“But again, lets be real for a moment. None of us are expecting something for nothing even though waste exists in both government and private spending. None of us are really expecting something for nothing even though windfalls exist publicly and privately tilting the scales in favor of one over the other.”

How naive!

Also, you’re only making a claim – and claims are not facts.

Furthermore, you can only speak for yourself. Who’s the ‘us’ you speak of? Your comrades?

#143 n1tro on 07.08.19 at 2:12 pm

#137 crazyfox on 07.08.19 at 1:43 pm
My God comment wasn’t about the definition of socialism, communism, or capitalism but more about your general comment about the being your brother’s keeper. As Gravy pointed out with the Hedgehog dilemma, people don’t live in this utopia you romanticise from attending your weekend wedding ceremony. As others have pointed out, people have different motivators that drive them in life and balance self interest with consideration for others. I think it can be said that majority of people would not go out of their way to help strangers to their detriment thus socialism or social ownership by extent would fail to work as not everyone in the collective would think exactly alike.
But lets say there is socialism through ownership or production, how long before that system is destroyed by competition from a greedy company willing to do whatever it takes to make a dollar? What then, should we have the government step in and punish the greedy parties? If so, what does that say about globalism.

Too philosophical for a Monday. Brain hurts.

#144 Tater on 07.08.19 at 2:22 pm

#25 SunShowers on 07.05.19 at 5:39 pm
#2 Tater on 07.05.19 at 3:38 pm
While wages may not have risen in Canada or most of the developed world, they sure have in the developing world.

——————–

I actually made a comment discussing this before. As I said, I don’t comment often so I can’t blame you for not seeing it. Capitalism hasn’t done much for wages in the developing world, to be honest.

“But wages have doubled!” some might say. Well, what’s double an intolerably meager pittance? If a business owner offshores a job, and as a result, someone in the developing world makes $4 per day instead of $2 and the business owner pockets the $150-200 difference, are we supposed to think the business owner is the magnanimous good guy in this scenario? Notta chance. Capitalism isn’t good for the developed world or the developing world. It’s good for capitalists.

And the preceding dollar figures are in 2011 USD PPP, so please Google that before you object on the basis of exchange rates and purchasing power. I’m not trying to be demeaning or anything, but it’s like the #1 response I get, so I just wanna nip it in the bud.
————————————————————–

Global poverty has dropped by more than 75% over the last 35 years, and a huge portion of that is because work has been moving to the developing world.

https://data.worldbank.org/indicator/SI.POV.DDAY?locations=1W&start=1981&end=2015&view=chart

And the beneficiaries of the cost reductions are the consumers, not the corporation as the cost savings are passed through to them. You can see this in US corp profits as a share of GDP.

https://fred.stlouisfed.org/graph/?g=1Pik

Profits today are basically at 1947 levels, and while they have moved up and down, you certainly haven’t seen a sustained move higher, as you’d expect if corps were keeping the benefit of lower wages.

#145 Keith on 07.08.19 at 3:02 pm

@#138 not so liquid in Calgary

It’s true that Ford didn’t get bailed out under TARP, but they received many billions under a couple of other programs – including one that financed the R & D on all those hybrids. A quick google search found several sources on the massive federal largess enjoyed by Ford and it’s shareholders.

https://www.chevyhardcore.com/news/editorial-did-ford-take-bailout-money-too-yes-they-did/

#146 Babooo on 07.08.19 at 3:28 pm

Derek , really?
How about millions starved to death during Great Depression? That was pure CAPITALISM. Since than it was mix of socialism and capitalism with good balance.

#147 Vampire Studies (doctoral thesis) on 07.08.19 at 3:32 pm

117 Ponzie

“Swedes own the most vacation homes per capita.
Not bad for a socialist hell hole.”

They also have a debt to income ratio of over 160%

#148 Pfft on 07.08.19 at 3:58 pm

lets get rid of all gov subsidies and incentives and see what happens

#149 Derek on 07.08.19 at 4:18 pm

GM was bailed out because of overfunded pensions and other costs – “legacy costs”. This is because of union demanding too much over the years. If GM would have failed, the plants would still exists and other company would have moved in to satisfy demand when the recovery happened.

Capitalism does not promise that no company will ever go bankrupt – in fact that is one of the strengths – “creative destruction”. Eatons went out of business years ago, Sears more recently, but there are still places for consumers to buy things. Walmart grew from one store to the behemoth it is today as did Amazon – more efficient so better for society as a whole. Decades ago, North America has a huge textile industry, today, not so much – but we sill have clothes to wear (and cheaper).

Reply to “people starving during depression”…read the end of my post

“Governments can smooth the rough edges of capitalism (displaced workers, externalities, etc)”

#150 Derek on 07.08.19 at 4:24 pm

One more thing to Sunshower…you state workers as a whole keep earning less. You assume people don’t react the changes, but people adapt (that’s why raising tax rates too high often results in LESS government revenue – people adjust behaviour).

With workers, people either leave the industry or start their own business. My former neighbour installed furances, wasn’t happy with his pay so went out on his own…makes more money and charges his customers less win-win!

The reason there are so many unemployable people is because government subsidizes useless eduation. How many psychology or gender studies majors do we really need? But government subsidizes costs and also gives students money to go to school, they graduate, there is no work for them…government policies have distorted the market…

#151 IHCTD9 on 07.08.19 at 4:47 pm

#146 Babooo on 07.08.19 at 3:28 pm
Derek , really?
How about millions starved to death during Great Depression
—-

Baboo, really? How about you’re full of sh!t. Mortality rate did not increase in the US during the Great Depression. Link me your source on millions of starvation deaths (I won’t hold my breath). Not the highly controversial politically motivated Russian paper either – no one (including me) can read that collection of bunk without laughing.

There is not even a lowly Wikipedia page that deals specifically with starvation during the GD, not even a sub heading on Wiki’s main GD page. Good grief man, do you like being an easy target or something?

Oh, wiki does have this extensive page:

https://en.m.wikipedia.org/wiki/Mass_killings_under_communist_regimes

How about 100 MILLION killed by Communism, which is Socialism on crack. That’s not war deaths, that is communist pigs slaughtering their own Citizens.

Give your head a shake…

#152 SunShowers on 07.08.19 at 5:59 pm

#144 Tater on 07.08.19 at 2:22 pm
Global poverty has dropped by more than 75% over the last 35 years, and a huge portion of that is because work has been moving to the developing world.

——————

You didn’t actually read what I wrote in that comment, did you? Do you know what $1.90 in 2011 USD PPP actually is? Did you Google it like I asked?

If you did, you know it’s a Frankenumber, as Garth likes to call them. A number with no basis in any kind of objective outcome. A number conjured up solely to make the people publishing it look good.

You would also know exactly what $1.90 in 2011 USD PPP per day would buy you (diddly squat). It would pay for a basket of goods worth $1.90 USD in 2011 IN THE USA.

So, if you LIVED IN THE USA in 2011 and earned more than $1.90 per day (24 cents an hour!), according to the world bank, you’re not poor! Does that sound like a useful measure of poverty to you?

Just for kicks, lets take a look at the USA povery cutoff in 2011. Turns out it was $10,890 per year for a single person, or about $30 USD per day. Now, let’s go to The World Bank website and use their handy PovCalNet tool (the very tool the World Bank used to aggregate the data on the graph you posted!)

You can pick countries individually (I picked all countries excluding ones the World Bank classified as “high income”, since we’re concerned about the developing world here), aggregate them, and plug in a poverty cutoff of $30 USD per day. The results?

1981 (the first year for which we have data): 98.63% below poverty line

2015: 96.76% below poverty line

The OVERWHELMING majority of people in the developing world live in conditions that are BY DEFINITION poverty. And in 34 years, globalization and capitalism has rescued…2% of them? This is not a success story, this is exploitation.

I have done my research on this topic. You, clearly, have not.

And your FRED graph is using the wrong data. You should be using CPATAX instead of CP. CPATAX is what business are actually taxed on, after all.

And here’s a good FRED graph to look at as well.

https://fred.stlouisfed.org/series/LES1252881600Q

A 5% bump in real earnings over the last 40 years. Thanks capitalism!

#153 Lee on 07.08.19 at 7:39 pm

I see no benefit to low-yield bonds over GICs.

Nobody buys government bonds for yield. – Garth

#154 Babooo on 07.08.19 at 10:09 pm

#151 try to google starvation during GD- tones of infor . From a few thousand died from “malnutrition” to bold 7 mil died from starvation .
“100 Millions killed by communist ”- sound like propaganda

#155 Marco on 07.11.19 at 2:00 pm

Well, you hate socialism because you are descendants of rejects of the world or camp guards from Europe