Messing with heads

First to Calgary, where Amanda is  vexing about what to do.

I’ve been reading your blog for about 5 years now and I’m hoping you can help with a decision my husband and I are in the process of making. We purchased a house in our dream neighbourhood in Calgary a few years ago. The house is old and needs a major renovation to get it to what we’d be comfortable with. We’re looking to start a family soon and would like to get into our forever home in a year or so, but we’re struggling with weather to:

1. Do a major renovation down to the studs
2. Tear down the house and build a new reasonable house
3. Sell and purchase a house in a less desirable neighborhood with little to no mortgage

Ideally, we’d like to stay in our neighbourhood where we are close to downtown, work, parks and amenities. However, it’s also been nice having no mortgage. We’re 35 and 40 years old and make a combined $250k/year. We have $400k in retirement plans, $100k in investments and a mortgage free house worth $750k. What would you do?  If we take out a mortgage, how much would you recommend? Any advice would be appreciated.

Easy. Move. If you go to the studs, a full reno will cost at least $300,000 and take a year, forcing you to move out and rent. If you tear it down and build a new house, the cost will be even greater – at least $400,000 (probably more since you’re not going to do any of the work yourself) – and, yes, you’ll have to move out for at least a year. In both of the above your savings will be eaten up with only crummy company RRSPs left intact, and you’ll owe three or four hundred grand. Of course, this is just when life gets a lot more expensive (kids) and your household income goes down (kids). Moreover, pouring that much more money into the property may mean you never get it out again. (There is no ‘forever’ house…)

Almost always (and especially in Calgary) you will get a lot more for your money with a resale than a new build. So list. Go shopping. Be aggressive.

Now to Montréal, and poor Jean. At 41 he’s jobless – laid off six months ago. He owns a condo, no savings, no investments, with a $140,000 mortgage and two credits cards, one with a $30,000 balance, now in default. “I am paying for mistakes made in the past,” he says. “Obviously that credit card is causing a lot of stress and anxiety.”

I’m thinking of the following two scenarios.

Scenario 1:
Get a 5k Line of Credit from the bank. I would use it to paint my condo (painting the unit will cost approx. 2k + home staging etc.) Once set up, I will sell the condo and make a profit. With it, I will pay off the mortgage, both CCs, save enough money for a 6-month emergency fund. Save a little for retirement. And I still have some money left over to travel, put a down payment on another condo, or simply rent an apartment and invest in stocks, mutual funds, etc. I would be free but homeless so to speak. But I would be able to do anything I want, travel, start a business, invest in my TFSA etc.

Scenario 2:
Accept any job. Keep the condo. Rent it. The monthly rent would cover the mortgage, condo fees and taxes. Borrow some money from the bank to pay off my CCs. Then, I would rent a cheap apartment to live in. I wouldn’t have an emergency fund so I would need to work and save for that. Also, I wouldn’t be able to travel or invest as much as I would love too.

What do you think I should do? Thank you very much for any advice or inputs.

Jean, Jean, Jean. Is this even a serious question? Step away from the poutine for a minute and clear your mind.

First, paint the damn place yourself. You’re unemployed, remember? Second, sell it. Pronto, while mortgage rates are below 3%. Pay off all your debts, forget the vacation (spend the time looking for a job), stuff your TFSA and a non-reg account with nice ETFs (no stocks, no mutuals) and, for the love of Allah, do not buy another condo. Obviously you need to rent and start getting serious about saving and investing (you’re now in your 40s. Grow up). And did I mention getting a job?

Real estate. Messing with heads, one Canadian at a time.

The barking, snapping, licking, whining and snarling continues this week as this pathetic blog brings you more Vox Canabis. One day last week readers were asked to submit a guest post, and scores did. Many are too weird to publish (not a total surprise, I admit), but others are worthy efforts. Should we continue this periodically? Let me know.

Well, here’s KC Jo, who wants us to know what’s wrong with the world (and see her dog). In two words, it’s the Gig Economy. Oh, and you can add Millennials to that.

  Pensions, and government industries exist when workers are supporting the system. Being a manager requires employees to manage, not to mention keeping work flowing as raw products are consumed to create new consumer goods. There are 10 openings for entry level positions that are not being filled by young workers aged 19 – 25 on our site. These are not low paying jobs, the starting wage in my section is $19.00 an hour for the 1st 2 weeks and caps at $26.00. full time with medical dental and pension.

HR and all the managers try to fill these openings, however, the new age workers are only wanting cash gigs and expect payment after each days’ work. Craigslist’s resume section here in Vancouver is full of GIG ads.

When did a cash gig become non-federal offence with the CRA following up on lost taxes? These young people either refuse to comply with paying their way nor do they want to work hard for what is freely given to them. The jobs that need to be filled aren’t glamorous, light bodied positions, however they demand attention to work safe with fast paced environments. The young people we get to choose from would rather do little as possible then actually make something positive in life.

Society has created these “GIG KIDS,” did their parents want better for their offspring but by wanting better, not show these pale bodies how to work hard in life for what they want? How can these young’ins pay our pensions and hospital bills doing cash GIG jobs all their lives?

Let’s hear from Ed now. No dog pic, and he didn’t actually want this published. But, too bad…

First of all thank you for the blog I’ve ready daily for years, it is an important part of my life. My concerns are really centred around the political environment, both here and around the world.

At home I’m very concerned that we seem compelled to run deficits even when unemployment and the cost of borrowing are at historical lows. How can this be seen as anything but stealing from future generations? Should we expect the deficits to swell considerably as the cost of money increases or do we plan to further increase taxes. Unfortunately, it seems like a sustainable budget is nowhere to be found as new votes are purchased and spending cuts are political suicide.

You may say that the conservatives would tackle this problem but there are two foundational issues there. First, a conservative government is far from a guarantee of a balanced budget (think Doug Ford and subsidized beer). Second, the conservatives are opposed to a carbon tax which seems like a necessary step to combat climate change. How can we possibly expect to reduce emissions when goods and services do not include the cost of polluting to influence our purchasing decisions? So are the choices that we can continue to dig ourselves deeper in debt or ignore climate change with decorative programs without specific targets?

This email could have been a lot longer and I hope you don’t publish it as I’m sure I would never heal from the abuse I would take. Thanks for listening and all that you do.

Finally, today, Julia. If you’re walking around reading this blog on your devise instead of intereacting with fellow human beings, she says, shame on you. Bad zombie!

   What is wrong with the world, you ask? To me it is the zombification of the mind of an individual. The fact that as if overnight all people seem to have disappeared from the face of this planet and it is now inhabited by walking cell phones. I watch individuals on public transport, women especially, how they put the phone down. Then a hand begins to twitch, exhibiting immediate withdrawal, until the person snaps and has to check the phone again, even if there is nothing there. Constant nervous reaching for the thing that is now the pivot around which every life revolves. Each moth has a personal little flame it gets to circle around endlessly.

Everyone is a dopamine addict. Imagine those same people as any other kind of addict and ask yourself: “What kind of a functioning society can you construct when 99% of the population can’t last a minute without a dopamine hit from a battery powered wireless dispenser.” Can you trust these addicts to watch over someone else’s baby or to raise a child of their own? Can you trust them to plan long term and exercise restraint, instead of seeking instant gratification? What can you do when everyone has a brain trapped in a cell phone, and the world is slowly decaying around them?

 

155 comments ↓

#1 Sask to AB on 07.09.19 at 4:14 pm

Continue Vox Canabis periodically. It has been great.

F56AB

#2 Caledon dave on 07.09.19 at 4:15 pm

Julia,

I totally agree. Cell phones are the new scurge. Yesterday 1 saw a young girl about 25, driving her souped up Honda down Highway 10 in town. Phone in lap and texting. Light turns green and off she goes. Still texting but going at least 140 in an 80 zone. Unfortunately she may end up killing herself or someone else

#3 HoweStreet.com on 07.09.19 at 4:19 pm

Ross Kay on HoweStreet.com Radio:
Millenials Walloped with Property Tax Increase.
Vancouver Condos Drop Quicker than Toronto.

https://www.howestreet.com/2019/07/08/millenials-walloped-with-property-tax-increase/

#4 Yukon Elvis on 07.09.19 at 4:22 pm

Everyone is a dopamine addict. Imagine those same people as any other kind of addict and ask yourself: “What kind of a functioning society can you construct when 99% of the population can’t last a minute without a dopamine hit from a battery powered wireless dispenser.” Can you trust these addicts to watch over someone else’s baby or to raise a child of their own? Can you trust them to plan long term and exercise restraint, instead of seeking instant gratification? What can you do when everyone has a brain trapped in a cell phone, and the world is slowly decaying around them?
……………………………

There is an app for that. It is called App Yours.

#5 Barb on 07.09.19 at 4:23 pm

Jean’s 30K into a credit card and thinking of travelling?

It’s not our abuse that’ll keep you from healing.
You seem to have excelled at that all by yourself.

#6 Smartalox on 07.09.19 at 4:28 pm

The barking, snapping, licking, whining and snarling continues this week as this pathetic blog brings you more Vox Canabis.

Vox Cannabis indeed. Most of these guest posts have been drivel, though in some cases, informative in terms of what and how people are think things SHOULD be, instead of how they are.

#7 JB on 07.09.19 at 4:31 pm

#127 T on 07.09.19 at 2:54 pm

#123 JB on 07.09.19 at 2:27 pm

#124 James on 07.09.19 at 2:27 pm

Go back to your Xboxes boys, get that rage out on the other losers wasting their time in virtual land. Or go upstairs and cry to your moms. The rest of us will gladly move on without you in the productive world.

What I would do to meet people like this in person. I would love to put faces to these types. They need to be outed as the losers they are.
………………………………………………………………..
Did we have a bad day T?
Wow now I know what you are like T baby.
Never played x box in my life. But I did play hockey!
BTW My mama is Italian and doesn’t take shit from anyone like you.

Don’t waste my blog real estate with crap like this. – Garth

#8 DON on 07.09.19 at 4:38 pm

I like the guest posters and of course the wisdom given.

“First, paint the damn place yourself. You’re unemployed, remember?”

Face meet palm.

Julia…we said. Zombification and/or stupdification of the population.

The funny thing is watching a couple on a date texting others.

#9 SunShowers on 07.09.19 at 4:38 pm

I’m not sure what kind of gig jobs KC Jo is referring to, but the one that I work (in addition to my 9 to 5) and others that I am familiar with barely clear minimum wage BEFORE expenses, and are usually worked out of necessity rather than by choice.

All of these gig economy startups which are essentially AirBNBs that rent labor instead of real estate are able to survive by classifying workers as independent contractors instead of employees. No minimum wage, no benefits, no protections under labor law, and the workers shoulder all their own expenses.

#10 AGuyInVancouver on 07.09.19 at 4:45 pm

Yesterday I showed how Vancouver’s Empty Homes Tax was working. Today the Globe helps illustrates how the provincial Foreign Buyers Tax is working exactly as intended:

“Foreign buying has dropped dramatically in the Vancouver region’s real estate market three years after British Columbia introduced a tax that targets international purchases, a policy move that has helped drive down prices.

International buying of real estate decreased to 2.5 per cent of total residential sales in the Vancouver area in the March-to-May period of 2019, down from 13.2 per cent in the early summer of 2016, according to statistics compiled by the B.C. Finance Ministry. In real numbers, only 261 sales involved foreign purchasers over March, April and May this year, compared with 1,974 over the 2016 period…”
https://www.theglobeandmail.com/business/article-vancouver-real-estate-market-experiences-dramatic-drop-in-foreign/

Yesterday you should how socialist policies create unfairness and division. Today you show how they cause a flight of capital. Both have destructive long-term consequences you will undoubtedly understand when you grow up and stop being driven by covetousness. – Garth

#11 Howard on 07.09.19 at 4:46 pm

#128 Hogtown Harry on 07.09.19 at 3:42 pm
#114 T on 07.09.19 at 1:12 pm

Has it ever occurred to you that anyone who bought before 2005 in the GTA has made a small fortune?Further, there are boomers like me who bought 3 plus decades ago and who own multiple rental properties. Further, when we cash out our principal residence, we can buy elsewhere in the province and then pocket a cool million? I have several friends who have done this in the past year. The GTA is a tough place to start out in now but for us boomers who knew how to invest, it has been better than we could have ever imagined…

——————————————————-

Wow Harry. Congrats on winning the birth lottery and buying real estate in Toronto in the 80s like EVERYBODY ELSE in your age cohort (including my parents and all of their friends). You’re such a financial whiz!

You might reflect on what the Boomers actually accomplished with all that unearned wealth aside from self-indulgence. They certainly didn’t improve much about the country.

#12 Leanne on 07.09.19 at 4:58 pm

@Ed: “So are the choices that we can continue to dig ourselves deeper in debt or ignore climate change with decorative programs without specific targets?”

Older end millennial here and I ask myself the same question. Fiscally conservative so often vote Conservative. However, I can not take a government seriously that panders to climate change deniers/people too selfish to care, and has no real plan to address it. Read today that Scheer plans to scrap proposed clean fuel standards, which would add 5 cents to the price of gas by 2030, and thought, that’s enough. He will not get my vote. So incredibly short sighted. Several of my friends and family share this thinking. All well educated, higher earners, fiscally conservative, and I suspect vote Conservative most of the time. I think the Conservatives are badly miscalculating this!!!

#13 JSS on 07.09.19 at 4:59 pm

“We’re 35 and 40 years old and make a combined $250k/year. We have $400k in retirement plans, $100k in investments and a mortgage free house worth $750k.”

Story of everyone these days…
I must admit, i feel jealousy when I read this

#14 Howard on 07.09.19 at 5:00 pm

#108 Something Better on 07.09.19 at 12:11 pm
#106 Howard – There is a first class country, and all you need is to fill out a simple application form. Just show up, and within 10 days your given a permanent ID card for free health care and a residency status. No upfront money or real estate purchase is necessary, and if you find an employer to offer you a job get to work; or start your own business with no permit needed. All income from outside the country is tax free, and inside its 4%. This country is rated AAA in the world with everything, and is not even in Europe, but the Europeans, Canadians, and Americans live there.

——————————————————

I believe you have posted this riddle before.

Yes, Uruguay is a beautiful country. Wonderful people. If one is willing to learn Spanish (it’s not a hard language to pick up) it’s definitely a viable option. And weed is legal there too!

Is it really THAT easy to establish oneself there? Surely there are more administrative obstacles than you indicate.

#15 saskatoon on 07.09.19 at 5:01 pm

“How can these young’ins pay our pensions and hospital bills…”

one of the funniest lines yet on your blog, garth.

#16 Brian Ripley on 07.09.19 at 5:03 pm

…Calgary, where Amanda is vexing about what to do.

Right now single family detached houses in Calgary are still in high demand and have been trading in a narrow range at the highs for the last 5 years. But total residential sales have been in a steady downtrend for 6 years.

My Calgary housing chart: http://www.chpc.biz/calgary-housing.html

Calgary condos are priced at 2006-07 levels, ie: at 12 year old pricing. Does this mean that family detached houses have a much further decline ahead of them if the Alberta oil patch goes into rigor?

Or will the “Vancouver Model” (money laundering) continue to keep detached houses aloft?

Greg Draper, a national leader with law firm MNP and a former senior investigator of financial crimes with the RCMP, said the report did not surprise him. In his time with the RCMP, he watched an inflationary housing market attract a large amount of financial crime.

https://www.thestar.com/calgary/2019/05/15/albertas-money-laundering-problem-made-worse-by-attitude-lack-of-transparency-by-government-report-author.html

Calgary Crime Group Linked to Fentanyl Lab, Drug Importation, Homicide
https://alert-ab.ca/calgary-crime-group-linked-to-fentanyl-lab-drug-importation-homicide-2/

Renting in walking distance to amenities is still a good lifestyle.

#17 Rob in Germany on 07.09.19 at 5:07 pm

Regarding the writer who is having financial problems. simple solution. He files either a proposal or bankruptcy.
Doug Hoyes has a great podcast highly recommended

#18 Calgary Rip Off on 07.09.19 at 5:15 pm

$250k for two incomes in Calgary is a little above average.

All the housing sucks in Calgary. ALL OF IT. There are no rental controls so landlords can do whatever they want. Most rentals are priced the same as a mortgage. Enjoy putting money in someone elses pocket.

Then there is mortgage ownership. Also lousy. You dont own the place. The city does. If your lawn is above 6″ expect to get a $400 fine if some idiot out for a walk decides to complain they dont think you have the right to decide how your house looks. And nothing above a 4 ft fence around the property. The city needs to make sure no vehicles are parked on the lawn. Then the property taxes are high so the city officials get their money too. Dont forget the home inspector may make numerous errors which you have to pay for later despite paying close to $500k property. And lastly the houses are only 8 feet apart. May as well just have a communal property as your neighbours will be in your face.

The solution? Eject from Calgary. Its Siberia without the Russian culture and without the money. No oil and gas equals a dying city with no money.

#19 Andrew on 07.09.19 at 5:17 pm

Carryover about bitcoin from yesterday

Just want to leave this here and trigger some gold bugs

https://youtu.be/_BIDcmh_6Es

#20 Penny Henny on 07.09.19 at 5:27 pm

You may say that the conservatives would tackle this problem but there are two foundational issues there. First, a conservative government is far from a guarantee of a balanced budget (think Doug Ford and subsidized beer). -Blog Dog Ed
//////////////////

Subsidized beer???
Sign me up.

Actually Ed, Doug Ford has lowered the minimum sales price of a bottle of beer to $1.00 per.
It is not being subsidized rather the government is simply lowering the price that beer CAN be sold at.
Seeing that you know nothing about this issue I am not surprised you are also misinformed on the carbon tax issue.

#21 Leo Trollstoy on 07.09.19 at 5:28 pm

These blog dog contributions aren’t wisdom. THIS is wisdom..

“Ticking away the moments that make up a dull day
Fritter and waste the hours in an offhand way
Kicking around on a piece of ground in your home town
Waiting for someone or something to show you the way”

“Tired of lying in the sunshine
Staying home to watch the rain
And you are young and life is long
And there is time to kill today
And then one day you find
Ten years have got behind you
No one told you when to run
You missed the starting gun”

“And you run and you run
To catch up with the sun, but it’s sinking
Racing around to come up behind you again
The sun is the same in a relative way, but you’re older
Shorter of breath, and one day closer to death”

“Every year is getting shorter; never seem to find the time.
Plans that either come to naught or half a page of scribbled lines
Hanging on in quiet desperation is the English way
The time is gone, the song is over,
Thought I’d something more to say.”

#22 Linda on 07.09.19 at 5:28 pm

KC Jo: I think the youth you mention want jobs that are exciting, cool, flexible & don’t require a lot of heavy lifting. Truth: pension & benefits are not the draw to the young as they are to those who are older & beginning to think about their future. A healthy youth sees those items as costly deductions off their pay that diminish the take home they earn so they can go do fun, cool stuff. As for paying taxes, youth may want to own but they definitely do not want to pay into a system they see as slanted towards paying for those geezers who already have ‘struck it rich’.

Julia, the only solution I see to the cell phone dopamine addiction is a complete & permanent shut down of the systems that support them. Yes, there would be hysteria & plenty of folks in fetal positions as a result, but eventually the survivors would get up & start to interact with others – many for the first time so be patient, it takes time to learn social skills:)

#23 Homeless in Niagara on 07.09.19 at 5:29 pm

Seems like Niagara’s June housing stats have switched to the Home Price Index (HPI) rather than the average or median price. Any thoughts on why the change in reporting?

https://www.niagararealtor.ca/sites/default/files/Media%20Release%20%20-%20June%202019%20Stats.pdf

#24 Gulf Breeze on 07.09.19 at 5:37 pm

KC Joe,

Do the math. 19.00 to 26.00 is a liveable wage possibly in Cape Breton. In Vancouver or anywhere in the lower mainland nobody can live on it. All the millenials skilled enough to do this job have moved away or the gig economy pays more. How much do YOU make. Bet it’s more and I bet you have lower costs for your home.

#25 expat on 07.09.19 at 5:41 pm

19 Andrew wrote
Carryover about bitcoin from yesterday
Just want to leave this here and trigger some gold bugs
_____________________________________________

Funny ad.

Now I have a few questions for you.

When the power goes out from climate nutters and greedy tax hungry politicians converting everybody to elecric cars and heat pumps and the grid cracks under the weight how will you connect to the internet to transact your beautiful e-coins?

Better yet when China decides to collect all the coin cause they have your passwords and have tracked every transaction and steal your “Precious” what then?

When Trudeau decides bitcoiners are an enemy of the state and the climate since it takaes a billion watts to make one and locks you up in Toronto how will you bribe the prison guard?

When you login into your porn site and a Russian hacker steals eveything on your computer including the thumb drive you forgot to eject and have your bitcoin on what then?

When your amazing diversified bitcoin ETF that is 100% in bitcoin companies and futures gets massive redemptions from panicking millenials needing dope and who thought it was safe – what then?

When the Vinklefoss twins cash out and crash the price what then?

Or better yet when govts say enough is enough and block bitcoin transactiosn from the SWIFT system what then?

And here’s the kicker, Whne Google, Apple, and Facebook light up their bitcoins and everyone runs to to them screaming “Squirrel”. what then?

It all depends what side you are on.
There are NO safe anti-trades. Gold, Bitcoin, Tulips,

Only hucksters

#26 English Village on 07.09.19 at 5:45 pm

#14 Howard – Its that easy and English is spoken everywhere. I prefer the area called English Village that is near the International airport, and modern transit will take you into the main city in 20 minutes.
https://www.youtube.com/watch?v=n2uuT6dvaJs
The City of Toronto looks lame compared to the Capital, and crime is not tolerated.

#27 X on 07.09.19 at 5:53 pm

KC Jo – Is it not the ‘workers’ of the gig economy who want everything from the gov’t yet want to pay no taxes? Ironic.

Ed – Personally I don’t mind deficits to a certain extent. I liken it to a business that takes out a loan to become more profitable. I do however like to at least be given a glimmer of hope that we are fiscally going in the right direction. Not all parties offer that. And it does vary from time to time.

Also, is the carbon tax the only mechanism to stop climate change? I would be willing to bet we would reduce carbon more if all autos were hybrids. Then the carbon tax money would be spent on a more expensive hybrid cars yes, but I could actually see the reductions in emissions my money went towards.

No doubts there are several more mechanisms to reduce carbon emissions, and I might actually like some of them better than a tax. What is concerning is the level of thought that went into fighting carbon emmisions. Tax, Tax, Tax.

#28 Ron on 07.09.19 at 5:59 pm

To Amanda from Calgary:
I work downtown and we make similar incomes as of recently – our path to savings have not been as great as yours though but it’s something we are working on.

My observation is that many couples who work downtown tend to want to live inner city. And I’ve noticed those same couples want to double down on that concept even as new parents. I don’t understand it at all. Kids change everything, but in a good way. We eventually moved further out (but not too far out). Great houses, yard space, and parks. Less expensive. More safe.

In fact, for the $750K you mentioned, you can buy a solid property in many desirable communities. And the commute doesn’t have to take you to the boonies. Look at places like Edgemont or Arbor Lake in the NW (or equivalents in the SW). If you really want to live it up you can add a small mortgage and see what that gets you.

The trade-off is worth it

Ron

#29 TurnerNation on 07.09.19 at 6:02 pm

Bitcoin is a nuanced nothingburger.

Get ready for a melt-up in QQQ.
Seeking alpha with zerohedge

#30 Hogtown Harry on 07.09.19 at 6:02 pm

#130 IHCTD9 on 07.09.19 at 3:58 pm

“Based on all studies studies done regarding Canada’s big cities (Toronto leading the pack), that I’ve read – the hell is only just beginning.Imagine a Metropolis packed to the gunwales (even worse than now), but with mostly seniors and immigrants from the Middle East, and Africa. A new trend building now is Toronto dwellers primarily of the Millennial cohort bailing out for other parts of Ontario. I’m guessing this will keep increasing ..”

As someone who says he avoids Toronto at all costs your dire predictions for North America’s third largest metropolis are patently absurd and laughable. Let me enlighten you on what is actually happening. In the west end where I live, for the past 20 years, older bungalows are being torn down and two story homes are being put up. This is happening systemically on every street. 50 ft lots are being severed and two homes are being put on. This is what happens when you have the world’s biggest greenbelt enveloping the city. Some home owners are actually severing the lots themselves, retirees, and selling each 25 ft lot for $ 750k. Same thing is happening in Port Credit. A buddy’s neighbour across the street sold a bunglow on only a 44 ft lot. Sold for close to a million. Developer put two semis on the lot and sold both for close to $1.5 million EACH. Whole process took just over a year. This is happening on street after street after street…. Sorry, your Mad Maxx scenario for Toronto is only in your wishful imagination….

#31 commentsforyou on 07.09.19 at 6:04 pm

first, $19 dollars an hour is not a living wage in vancouver period. Unless you are parked in an RV behind home depot. Start at $25 and I am sure you would have people willing to fill those 10 positions, but its probably crap manual labor work with no future when you inevitably get injured.

second, to the people at the other end of the spectrum making 250k and having a 750k house paid off.. cry more. rich people problems my god…. i could live comfortably for 5 years on 250k (50k/y)… my advice would be to bank as much as possible, gamble on investments if you want, but it really doesn’t matter how much money you waste with that kind of income coming in. i cant imagine how you couldn’t save at least 150k a year and still live like a king. I know that budgets grow to incomes, but what the hell are you wasting all that money on? YOU DONT EVEN HAVE KIDS!

#32 The Donkey on 07.09.19 at 6:10 pm

Vox Canabis was fun and should continue to make a periodic appearance.

““Why not start a contest?” he asks. “Let the steerage section have a chance to author some of the posts on your pathetic blog. You set the rules. Then the deplorables can vote on their favourite. Gives you a break from the daily grind.”

Hmm. Okay, I’m open to that.”

What was the prize again?

#33 Lorne on 07.09.19 at 6:13 pm

#10 AGuyInVancouver on 07.09.19 at 4:45 pm
Yesterday I showed how Vancouver’s Empty Homes Tax was working. Today the Globe helps illustrates how the provincial Foreign Buyers Tax is working exactly as intended:

“Foreign buying has dropped dramatically in the Vancouver region’s real estate market three years after British Columbia introduced a tax that targets international purchases, a policy move that has helped drive down prices.

International buying of real estate decreased to 2.5 per cent of total residential sales in the Vancouver area in the March-to-May period of 2019, down from 13.2 per cent in the early summer of 2016, according to statistics compiled by the B.C. Finance Ministry. In real numbers, only 261 sales involved foreign purchasers over March, April and May this year, compared with 1,974 over the 2016 period…”
https://www.theglobeandmail.com/business/article-vancouver-real-estate-market-experiences-dramatic-drop-in-foreign/
……
Yesterday you should how socialist policies create unfairness and division. Today you show how they cause a flight of capital. Both have destructive long-term consequences you will undoubtedly understand when you grow up and stop being driven by covetousness. – Garth
……….
As well as many long term positive results including slowly making homes affordable to a larger segment of the population.

That is unlikely to occur. – Garth

#34 Hookshot on 07.09.19 at 6:17 pm

#23 Homeless in Niagara on 07.09.19 at 5:29 pm
Seems like Niagara’s June housing stats have switched to the Home Price Index (HPI) rather than the average or median price. Any thoughts on why the change in reporting?

https://www.niagararealtor.ca/sites/default/files/Media%20Release%20%20-%20June%202019%20Stats.pdf
………..
Maybe because average and medial prices are actually accurate numbers whereas there HPI is a made up number that is not very meaningful and can be manipulated.

#35 Keith on 07.09.19 at 6:20 pm

“Unfortunately, it seems like a sustainable budget is nowhere to be found as new votes are purchased and spending cuts are political suicide.

You may say that the conservatives would tackle this problem but there are two foundational issues there. First, a conservative government is far from a guarantee of a balanced budget (think Doug Ford and subsidized beer).”

The federal Conservatives don’t have a good fiscal history in Canada, at least in the last 35 years. Partly due to poor timing, but also because they fail to practice true fiscal conservatism.

For Conservative governments, the time to cut taxes is always right now. The hard part is to cut spending enough to pay for the tax cuts and to put the economy in surplus. We have record low unemployment, a growing economy and we are over a decade into economic expansion. Scheer promised to end the deficit in two years, then he walked that one back.

It’s one thing to make promises in opposition, quite another to make things happen in government. With all the squawking about the current Liberal deficit in good times, you think it would be child’s play to balance the budget in a couple of years. It’s the political suicide of cutting spending that makes it so difficult, and is the reason why we run deficits in this country – very few people actually want to face the music. Scheer knows that when he gets rid of the carbon tax and cuts taxes for the wealthy, small business (hopefully) and corporations deficits will continue for some time.

Income tax cuts have very unequal benefits in this country, it makes me wonder why instead of giving low velocity money to the high income earners, they don’t accelerate the basic exemption or give an equal tax credit to all people who file income tax. It would encourage tax compliance and more money would go to people who spend it all locally.

#36 Dolce Vita on 07.09.19 at 6:27 pm

#1 Sask to AB

Ditto.

———————

#6 Smartalox

I’ve enjoyed them all.

From some clever poetry, to opposite views from the political & tax spectrum, to should I spend my cash on a make work project (I’m set but bored with life), to walking zombies, to the value of digital currency, woke up this morning with a hole in my pocket what should I do,…

Pretty far varied discussions for just a few days of Vox Canibus.

Garth’s acolytes are an eclectic, vibrant, lively bunch and forthright.

There is learning in this. It is not drivel, it is merely a sampling of the human condition.

———————

Keep blogging & keep voxing Garth. I’m enjoying it all.

Buonanotte e ciao d’Italia.

#37 Andrew on 07.09.19 at 6:34 pm

#25 expat

Bitcoin is no longer dependent upon the internet or electrical grids. Over the past year a leading bitcoin research company (blockstream) has begun broadcasting the bitcoin network via satellites worldwide

https://blockstream.com/satellite/

Mesh networks (also handy when camping for communicating) allow bitcoin transactions to be sent without internet or data:

https://gotenna.com/

Everyday that goes by bitcoin continues to strengthen itself as the most anti fragile network that has ever existed.

China banned bitcoin over a dozen times between 2013-2015. Guess what… bitcoin is alive, well and thriving in China.

The question isn’t when will governments ban bitcoin (lol), the question is which central bank will be the first to come out and say they have accumulated bitcoin as part of their reserves. There is a game of musical chairs happening right now, the music is going to stop. It would be nice if Canada took a nice early seat.

With best practices for cold storage, bitcoin is the most secure data you can store. If you follow best practices you have more reason to stay up at night worrying about hackers getting access to nukes rather than your bitcoin.

Bitcoin will drive the world towards green energy, the more energy bitcoin uses the more secure it becomes. It loves converting excess natural gas that would have been burned off into the atmosphere in electricity securing an open financial system ( https://hut8mining.com/ ).

It searches for cheap trapped renewable energy, the first true inventive for going green:

https://medium.com/@danhedl/pow-is-efficient-aa3d442754d3

Kings would never allow the printing press.
Britain wouldn’t allow the 13 colonies to break free and establish America.
History isn’t a story about being allowed to do something.

Just watch us.

#38 Yukon Elvis on 07.09.19 at 6:36 pm

Climate change. Back in the olden days when lightning caused forest fires the fires would burn unchecked from April/May until October/ November when the snows finally extinguished them. Imagine Canada, Russia, and the USA burning uncontrolled for six months of the year. Helluva carbon footprint that. Nowadays we try and extinguish the forest fires asap and replant trees faster than even Mother Nature could. If I am not mistaken there were even ice ages back in the day before peoplekind inhabited the earth. Don’t even get me started on volcanos and dinosaur extinctions. Tell me more about climate change. I am all ears. Jes’ don’t tax me while you’re ‘splainin.

#39 Sail away on 07.09.19 at 6:37 pm

Why the anger from the younger cohort towards the generation that’s done well in real estate? People in their 20s and 30s have always had to work hard to set their path- this was no different when the Boomers were buying their houses.

If the Boomers, instead of buying a house, started a business or invested wisely 20 years ago, would Millenials also think they are entitled to that wealth? Is this only real estate envy, or just overall entitlement greed?

It is absolutely baffling to me that people like #11 Howard would disparage someone else’s good fortune. Either be happy for them or ignore it, but don’t whine. Get out and create your own way. Whining is not productive.

News flash: there are options. You don’t have to stay where houses are expensive. I hear the military provides free room and board.

Thou shalt not covet thy neighbour’s house, nor his wife, nor his manservant nor his maidservant nor his ox nor his ass, nor anything that is thy neighbour’s. Looks like this isn’t a new issue… :-)

#40 Andrew on 07.09.19 at 6:37 pm

into*
incentive*

#41 Sail away on 07.09.19 at 6:46 pm

And #31: quit whining. We’ve all been through it. Why don’t you just choose to make yourself rich instead of complaining?

I assume the posters earn that kind of living because they made significant sacrifices earlier in life.

#42 Dolce Vita on 07.09.19 at 6:49 pm

#10 AGuyInVancouver

vs. Garth.

There are some Comment outcomes that are predictable, this was one of the many thus far.

Strangely, comforting.

#43 Cristian on 07.09.19 at 6:51 pm

“Zombification” is exactly why my kids won’t get a mobile phone until they’re 14-15 years old (and then they’ll get the one with the smallest screen available) and won’t get a “smart phone” until adulthood.

#44 Eaglebay on 07.09.19 at 6:54 pm

Let’s hear from Ed now.

Oh, Ed, you don’t understand climate change. The climate has been changing for billions of years. We are not climate change deniers, we just know that we cannot change the climate. Ask the dinosaurs. All we want is to use the tools at our disposal to clean up the environments that we live in especially in South Asia, China, etc… CO2 is life, we’re made of carbon. The biggest greenhouse element is H2O. Water vapor in the form of rain and clouds. CO2 at 400 ppm is nothing compared to what was on our planet in the past. I bet you that the CO2 in your house is over 900ppm and in your work environment, it is probably more like 1200 or even 1500ppm. No CO2 no life. Check out Professor William Happer from Princeton University and many others including Dr. Patrick Moore a Canadian.

#45 crowdedelevatorfartz on 07.09.19 at 6:55 pm

I totally agree with Ed’s comment on deficits.
They should be illegal.
Period.

#46 Dolce Vita on 07.09.19 at 6:59 pm

#11 Howard

“They certainly didn’t improve much about the country.”

-Case in point.

(Though I did like your Financial Whiz summation).

#47 crowdedelevatorfartz on 07.09.19 at 7:08 pm

@#31 comments4U
” i could live comfortably for 5 years on 250k (50k/y)… my advice would be to bank as much as possible”
++++

Five years eh?
Lets see……
Taxman will take minimum 25%
Now 190k
CPP another 2500/yr x5
Now 177.5k
EI another .8 k/yr x5
Now 173k
Rent 1200 month = 14400/yearx5
Now 101k
Food/booze/pot? 1000/month = 12000/yearx5
Now 41 K
Car Insurance/gas/park $750/month = 9000/year x5
Now -4k

Yer gonna be looking for work before 5 years is up…..

#48 Marcus Tatum on 07.09.19 at 7:11 pm

Sounds like KC Jo needs a lesson in free market economics – if you’re not attracting applications for TEN open positions, you’re not willing to pay a high enough rate to command the skills you’re looking for in the market you’re based in.

I can’t think of a person I know in my age group (middling Millennial) who doesn’t prefer steady employment over gig jobs, and I’ve got a fairly diverse social group. Generally, entry-level jobs are overwhelmed with applications, but even when I was unemployed there were jobs I passed over because they were demanding specialized knowledge and skills for a laughably low salary. Sounds like someone is expecting to buy prime rib for peanuts.

#49 T on 07.09.19 at 7:19 pm

#30 Hogtown Harry on 07.09.19 at 6:02 pm

As someone who says he avoids Toronto at all costs your dire predictions for North America’s third largest metropolis are patently absurd and laughable. In the west end where I live, for the past 20 years, older bungalows are being torn down and two story homes are being put up. This is happening systemically on every street. 50 ft lots are being severed and two homes are being put on. This is what happens when you have the world’s biggest greenbelt enveloping the city. Some home owners are actually severing the lots themselves, retirees, and selling each 25 ft lot for $ 750k. Same thing is happening in Port Credit. A buddy’s neighbour across the street sold a bunglow on only a 44 ft lot. Sold for close to a million. Developer put two semis on the lot and sold both for close to $1.5 million EACH. Whole process took just over a year. This is happening on street after street after street…. Sorry, your Mad Maxx scenario for Toronto is only in your wishful imagination….

——–

Toronto is not the 3rd largest metropolis in North America (by population), it’s the 7th. The only reason it’s the 7th is due to amalgamation, as most other metropolitan areas do not encompass so much land and municipalities. You live in Port Credit, so you should understand this logic.

The greenbelt is only ‘the largest’ as other metropolitan areas do not call their greenspace a ‘greenbelt’. This is a marketing ploy which you have fallen for, using it to substantiate your beliefs. Fact is there is a ton of space around the GTA, there is no limiting factors beyond the lake. West, North, and East is full of non ‘greenbelt’ land waiting to be developed. It’s not like the GTA is an island, or in a valley surrounded by mountains. It’s all flat land.

The whole Mad Maxx analogy you dropped is just ridiculous. His points are spot on. Toronto has been degenerating into an unliveable city for most. Your extremism is amusing however.

#50 Reximus on 07.09.19 at 7:22 pm

#37 Andrew

would you go to work for a company that only pays in btc?

#51 millmech on 07.09.19 at 7:24 pm

#38 Yukon Elvis
It is still snowing in Saskatchewan this week, the lake I like to fish in the interior still has snow in the shade under the trees, it will probably not melt this year.

Julia do not think of them as zombies, look at them as being in the Matrix, smart people work outside the Matrix and use it to their advantage as you should too.

#52 will on 07.09.19 at 7:40 pm

Mmmm zombification? I don’t know Julia. No doubt many people are going in and out of their FB pages but think about it, what were people doing before phones? Lots of people on the bus or train or even at the pub were reading books or the newspapers they had tucked under their arms. Now they read on their phones. So what? And depending on the source, the news can be even more up to date compared to a physical newspaper which is usually reporting yesterday’s news. For example I can’t believe anyone would buy a newspaper so they can get yesterday’s stock prices. For all the drawbacks, phones are simply too useful to not have one for reading and information. As for myself, I read the globe and mail every day on my phone, whereas I used to feel like something was missing until I picked up my copy of it. I’m ok with getting it on my phone. And it’s saving trees too isn’t it?

#53 Shawn Allen on 07.09.19 at 7:41 pm

Where did all these people go to whine and moan before the internet was invented?

#54 Cynthia Preston on 07.09.19 at 7:53 pm

I am 37 year old millennial and have rented all my life. I managed to sock away $385,000 with 50% in RRSP’s, 22% in TFSA’s and the 28% in non-registered money.

They are allocated as follows, 33% in GIC’s, 33% in equity ETF’s, 33% in REIT’s. I did this for the last 16 years and gained a 6.27% per annum so far before compounding. I work 2 jobs in restaurants 32, 28 hours respectively, great bosses and people to work for. They are very friendly and understanding and reliability and dependability on both our sides is what it is all about.

After my rent, utilities, food, clothing and all other expenses, I am able to save $425 a week. When I first started it was $300 a week that I was saving. My current net take home pay is $850 a week. I don’t own a car and just rent when I need it and I don’t want to own a house or condo, It just ties me down and costs alot to maintain. My lifestyle is not needing a house or condo at this point in my life.

I don’t have any debt for 13 years now and i’m not going back., no way, never again. Debt payments for 25 years scares the hell out of me. If I need to find a new job or jobs in a new city it will be easy to move. I think people are out of control with real estate and they think it is the be all end all of their financial, money lives.

#55 Lana on 07.09.19 at 7:53 pm

Its your blog, and I come for your opinion / education with flavours from your two portfolio fancy pants managers. Oh please create another blog for your dogs comments. Yes do it for them, make it easy for them to ‘write’. Un-curated mass verbal diarrehea, oh please its everywhere. They could all write their own blogs about their own opinions on the state of life and universe, and their financial health, but they don’t and you make it so easy. Bye bye

#56 NiceBeach on 07.09.19 at 7:57 pm

KC Jo, maybe it’s time for wage inflation after house price inflation. People want daily cash because they think the job sucks and want just a temporary fix.

#57 TalkingPie on 07.09.19 at 8:07 pm

Who pays $2,000 to paint a condo? I thought a friend of mine was nuts to spend $2,500 on her split level bungalow in Pierrefonds.

Then there’s the fact that notre ami Jean has $30k in credit card debt, no job, and feels he has enough better things to do that he’ll farm out a few days of physical labour to the tune of two grand! Does he need to rest up in preparation for the travels he plans to do?!

I really wonder what the value of this condo is that he thinks selling it will solve all his problems while being an unemployed vacationer.

Jean, you’re not just paying for past mistakes; unless you smarten up you’re going to continue to pay for your present ones, too.

#58 Nonplused on 07.09.19 at 8:13 pm

Poor Ed. Does he not understand that 80% of the world’s energy comes from fossil fuels? That means 80% of the world’s everything comes from fossil fuels? Everything is energy, one way or another.

As so much of everything we consume (80%) comes from fossil fuels, it is not necessary at this point to introduce complicated carbon pricing formulas to reduce demand; all you have to do is deprive people of their money. Raising the HST or income taxes would do just fine. We do not need a new complicated tax. The old taxes will work just fine if we raise them, especially the HST because it targets rich and poor alike. Most of the energy is used by the poor as the feed, clothe, shelter, and transport themselves.

Everything in this modern economy is energy, manipulated by a human at the controls. And 80% of all energy is fossil fuels. A tax isn’t going to change that. It’s just going to take more money out of your pocket.

The only “off the shelf” possibility we have to deal with CO2 emissions and at the same time deal with the eventual depletion of fossil fuels is nuclear power. But we need a lot of it and fast.

Wind won’t do it, right now we have windmills and solar panels everywhere and they generate less than 1.5% of world energy consumption. Actually this chart says it all:

https://s22.postimg.cc/j0b7kty69/Untitled.png

(Source: IEA, taken from this article: http://euanmearns.com/how-much-of-the-worlds-energy-is-supplied-by-renewables/)

There are only 3 ways forward; start investing in a massive nuclear roll out, return to the middle ages intentionally, or just keep doing what we’re doing until we return to the stone age all on our own due to resource depletion at some point in the future. At this point it appears we have chosen the latter.

The Greens and their carbon taxes remind me of a prepper who thinks he’s going to be able to run his fridge off an inverter and a car battery when the apocalypse comes. And he will be able to, for an hour or so.

The math and data required to do the analysis is now readily available to everyone with a few clicks on the internet. But the problem is the clickers don’t understand what they are looking at, they lack the education to make sense of it. That is why only engineers are allowed to design bridges and buildings, and even then they fall down from time to time (but are mostly safe). But yet when it comes to energy policy, people who don’t know the difference between a kWh and an mmbtu figure they should get a say. The arrogance is staggering really. The half of the people who are below average IQ seem to have no sense that they are below average IQ, other than some sort of deeply suppressed knowledge that they didn’t do very well in math and science in school, but that didn’t matter because they still got invited to parties with the cool kids.

#59 Blue angel on 07.09.19 at 8:14 pm

#13 JSS on 07.09.19 at 4:59 pm

“We’re 35 and 40 years old and make a combined $250k/year. We have $400k in retirement plans, $100k in investments and a mortgage free house worth $750k.”

Story of everyone these days…
I must admit, i feel jealousy when I read this

Don’t worry…. fake news …Or they don’t a life or have inherited

#60 Doug t on 07.09.19 at 8:20 pm

Julia it’s too late – according to think tank types and quantum physicists eventually AI will be the “new life form” and humans one day will be slaves – oops guess we are already on that path

#61 crowdedelevatorfartz on 07.09.19 at 8:23 pm

@#54 Cynthia

VERY well done.
You’re well on your way to retirement ( or that trip around the world)
:)

#62 crowdedelevatorfartz on 07.09.19 at 8:29 pm

@#55 lana
” They could all write their own blogs about their own opinions on the state of life and universe…”
******

But…..no one would visit!

#63 ci8594 at yahoo dot ca on 07.09.19 at 8:45 pm

KC Jo, I’m here and I’m ready for your gig! Just got out of an abusive caregiving situation and I need a fresh start.

#64 Blacksheep on 07.09.19 at 8:53 pm

millmech # 51,

“Julia do not think of them as zombies, look at them as being in the Matrix, smart people work outside the Matrix and use it to their advantage as you should too.”
———————————–
A bang on analogy that deserves resurrection.

Act like a sheep, think like a wolf.

My brother, was the ‘odd ball’ in the family….

#65 Ace Goodheart on 07.09.19 at 8:58 pm

RE: Ed on climate change:

“How can we possibly expect to reduce emissions when goods and services do not include the cost of polluting to influence our purchasing decisions?”

I have said this over and over and over again. And I will say it once more.

Carbon taxes target goods and services which are NOT discretionary.

Ie, people cannot chose whether or not to heat their house, take the bus to work, buy groceries or put gasoline in their cars.

Carbon taxes target the poor and lower middle classes, by making compulsory purchases unaffordable.

Tax natural gas used to heat houses. Who is going to not heat their house? It is minus 25 degrees in Toronto in the winter. People die of exposure. Your pipes will freeze. You won’t make it through the night. No matter how expensive they make it, you are going to heat your house.

Tax gasoline. Do they expect everyone to walk? Buy $65,000 Teslas? People are still going to drive their cars. Because, they have to. Outside of Toronto, public transit is a joke. In rural areas, you cannot walk because the distances are too far. People are still going to buy and use gasoline. They have to. Try walking 20 kilometers in the summer heat or the winter cold and you will understand why we use cars to get around in rural Ontario.

Carbon taxes raise property taxes (because municipalities have to pay more for their services, so they download that onto property owners). Property owners raise rents, to compensate. Tenants pay more. Once again, the poorest and most vulnerable of our society is targeted by carbon taxation.

Groceries cost more with carbon taxes. You have to transport them to the store using diesel powered trucks (carbon tax) you have to heat and air condition the store (carbon tax) you have to manufacture the goods sold (carbon tax) you have to farm them (carbon tax). Tax on top of tax on top of tax. All loaded onto the poor and lower middle classes, who can’t just decide not to eat anymore and go hungry.

Carbon taxes are not the answer to “climate change” (if such a thing even exists). If you want to stop people from putting gasoline in their cars, give them an alternative.

If you want to stop people from purchasing groceries which are produced in a high carbon way, then offer them something else.

If you want to stop people from using natural gas to heat their houses, then offer them another option.

Carbon taxation is basically wealthy governments, taking money from the poor, and transferring it to International organisations which have as their purpose “fighting climate change”. These taxes create an elite, funded off the backs of the poor. That is all they are.

And if you ever go to one of these climate change conferences, count the private jets that bring all the trust fund kids to the conference, and count the cars and limos and SUVs that take them to all their destinations during the day. They are the most high carbon emission events on the planet, fully funded off the backs of the poor.

That is why I cannot stand carbon taxes.

And Andrew Scheer is right. All they are is a tax on the poor and lower middle classes.

#66 ImGonnaBeSick on 07.09.19 at 9:10 pm

#53 Shawn Allen on 07.09.19 at 7:41 pm
Where did all these people go to whine and moan before the internet was invented?

————-

Tim Hortons… Moan about the government and drink terrible coffee. Remember when you could smoke in them?

#67 Hogtown Harry on 07.09.19 at 9:11 pm

#49 T on 07.09.19 at 7:19 pm

“Toronto is not the 3rd largest metropolis in North America (by population), it’s the 7th. The only reason it’s the 7th is due to amalgamation…”

You got it in reverse cowboy. Toronto is the 3rd if you exclude Mexico City. Behind only NY and LA. It falls to 7th only when you include amalgamation of other surrounding communities. You are also dead wrong on the greenbelt. It has severely restricted land supply.

Duh, Toronto is not surrounded by mountains…
Further, any land that is out there that is not greenbelt is not anywhere near the core of the city. Folks don’t want to spend 3-4 hours a day commuting. The greenbelt is real and when Doug Ford said he wanted to reduce it pre election, he immediately retracted after the uproar he received. Those are the facts and as I stated in a previous post, the norm going forward is bungalows being torn down, 50ft lots split in two and new homes going up. There is no sign of slow down in Etobicoke or Port Credit. Check out the massive housing developments along the Lakeshore in Mississauga. No extremism here, just the facts.

#68 50 YEARS OF MAPLE LEAF INCOMPETENCE! on 07.09.19 at 9:15 pm

Messing with heads is right!!!!

OMG, I’ve just had a revelation :)))))))

Thanks in no small part to those commenters here who have shown just how fabulously ‘Toronto’ the City of Toronto really is!!

Thank you, thank you!!!!

Now I see the GTA in a whole new light!

I will share the truth that has been illuminated for me.

Stay tuned :) :) :)

#69 JacqueShellacque on 07.09.19 at 9:49 pm

“climate change”…
1. Humanity’s oldest trope – fear of apocalyptic weather.
2. The politics and science can’t be separated. The 21st century version of the emperor’s new clothes.
3. The existing models don’t actually predict anything. The error bands around any future temp predictions would be so huge that you could never tell if what you’re doing is effective anyway. What about the medieval warming or little ice age?
4. The alternatives suggested are unworkable. Windmills and solar panels to power trillions of modern economic activity is laughable. Also governments can barely run a DMV. Do you want to give them billions and billions to blow on ‘save the planet’ boondoggles?

#70 Bill Puffle on 07.09.19 at 9:57 pm

In response to Ed’s question on the deficit:

We operate in a debt based fiat monetary system. The system only really works when you have federal government debt increase over time. I don’t think we will ever run a surplus, nor should we.

If you keep running surpluses until the debt is paid off, then you destroy the entire money supply. So it doesn’t make sense to do that unless you want to transition to a different monetary system. The only reason for the federal government to run a surplus is to lower inflation (since budget surpluses reduce the supply of base money).

The crisis that Canada will face soon is deflationary in nature. Canadian consumers have borrowed way too much money and that has created an artificial inflationary boom with a massive housing bubble. When the debt bubble bursts, there will be massive deflation. Instead of people borrowing hundreds of thousands of dollars to buy houses (which creates new money), they will be repaying debt or defaulting (destroying money). Zero percent interest rates and massive federal government deficits will not be sufficient to prevent the deflation from occurring (but it will put a floor to the carnage).

Basically, just think of federal government debt as the outstanding money supply. That’s all it is. Provincial debt is a whole other story, but I expect the Federal Government or Bank of Canada to back stop some of that debt if it starts to go bad.

Warren Buffett even threw in the towel and finally realized that the federal government deficit isn’t anything to worry about. Here’s a quote from him:

“Those who regularly preach doom because of government budget deficits (as I regularly did myself for many years) might note that our country’s national debt has increased roughly 400-fold during the last of my 77-year periods,” Buffett writes… “That’s 40,000%!”

#71 Headhunter on 07.09.19 at 10:01 pm

todays youth are smart.. game is rigged and not in their favor. Us boomers had is way easier as I’ve stated many times here the ego is hard nut to crack. Most of us dont want to admit that we were “lucky” not smart at all but lucky

So may as well work a gig.. make some coin and do it again Live for today vs play an old stale game thats been played out. Simple logic really.

saved this post from the comment section and it makes people go apeshit.. why? cause its true

The problem with the Canadian housing market is simple: Collusion between interested parties and the civic governments. We have the second largest land mass on this planet earth, and only 36 million people. We have lots of trees to build houses out of. We have lots of concrete and steel to build high rise apartments. We have lots of our own energy to run the equipment. There is no way to explain using market theory why our housing prices are not the lowest in the world, no matter what interest rates are. What we are experiencing is one of the biggest cases of collusion the world has ever seen. Trump has nothing on your city counselor.

#72 kc on 07.09.19 at 10:09 pm

thanks for the shout out garth… this is pretty much the replies i was expecting from the steerage.

1st off, I have been coming here to read garth’s words every since he was selling survival seeds and preaching home gardening with survival tips.

if you were here back then, cheers to old doggies….

now more about what i was getting at. I am in the forest/lumber industry and we have jobs for starting out positions. I read over and answer craigslist resume section every few days and answer many of these guys that say “i need a job, hard worker” the replies i get back are whats the cash rate and you pay daily…. if they even reply at all.

wasn’t there a law against working full time jobs for cash? or any jobs for cash?

the positions if you actually comprehend what you read are for entry level jobs, yes that means grab a broom and shovel, yes you may get dirty, and yes you will get in shape… yes you might have to grunt it out for a while, work as you learn.

many of the young people we hire have never pushed a lawn mower in their lives and after a 2 day stint are looking for the door. the ones who tough it out do very well thank you.

so my major question is what is wrong here? cash gigs are more wanted by the next generation than real jobs?

when my oldest son turned 19 i told him to register with BC Medical Service Plan to pay his way… he didn’t and after 3 years they caught up to him and handed him a bill for back payment.

if you are 19-20 living at home and wanting a job… whats wrong with a starting wage of 19.00 an hour and can increase rapidly when you gain experience? what was your first real hourly wage for your labour? pay your dues and go forward young man.

SunShowers

was making a blanket statement of where the situation is going…. you use it as a supplement. i am gathering many are using it as a way to live their lives.

15 saskatoon on 07.09.19 at 5:01 pm

“How can these young’ins pay our pensions and
hospital bills…”

one of the funniest lines yet on your blog,

garth.

Ya let that set in for a minute…… who’s pension and medical bills are you supporting?

22 Linda

ok, point taken but there is no free lunch…. your taxes are increasing because of the free loaders.

24 Gulf Breeze

everyone has to start somewhere… skilled labour or uni brains don’t do muck sticks. (bring on the next recession)

27 X on 07.09.19 at 5:53 pm

KC Jo – Is it not the ‘workers’ of the gig
economy who want everything from the gov’t yet
want to pay no taxes? Ironic.

ya pretty funny isn’t it…..??

31 commentsforyou on 07.09.19 at 6:04 pm
first, $19 dollars an hour is not a living
wage in vancouver period. Unless you are parked in
an RV behind home depot. Start at $25 and I am
sure you would have people willing to fill those
10 positions, but its probably crap manual labor
work with no future when you inevitably get
injured.

let me know what you say when the mexicans take your job for half your wage….

48 Marcus Tatum

6 months in, prove to me you are not a pansie ass and can work you get 26 an hour full dental medical with rrsp benefits…. prime rib for peanuts?? where do you cash your welfare cheque?

#73 Yyz2yvr on 07.09.19 at 10:11 pm

To Ed:

Vote conservative! They are our only hope for a balanced budget. And if you’re worried about the environment and think a carbon tax will help, I say go Vegan! After you see how much you help the environment by being vegan, you won’t feel bad leaving all the lights on in your home of taking a daily 2 hour long shower.

#74 T on 07.09.19 at 10:18 pm

#67 Hogtown Harry on 07.09.19 at 9:11 pm
#49 T on 07.09.19 at 7:19 pm

“Toronto is not the 3rd largest metropolis in North America (by population), it’s the 7th. The only reason it’s the 7th is due to amalgamation…”

You got it in reverse cowboy. Toronto is the 3rd if you exclude Mexico City. Behind only NY and LA. It falls to 7th only when you include amalgamation of other surrounding communities. You are also dead wrong on the greenbelt. It has severely restricted land supply.

—–

You must be referring to cities for which Toronto does rank a few spots higher. As for metropolitan areas you are incorrect. https://en.wikipedia.org/wiki/List_of_North_American_metropolitan_areas_by_population

As for the greenbelt, you claimed it was larger than any other greenspace surrounding a metro area (incorrect) and was choking off land supply. I agree there are restrictions on land but the greenbelt isn’t some swath of land which can not be lived on; it’s more about density, maintaining heathy wildlife habitats, maintaining adequate agricultural lands, and providing some recreational use for the general population. Give it a read someday: http://www.mah.gov.on.ca/Page13783.aspx

#75 Headhunter on 07.09.19 at 10:19 pm

Why the anger from the younger cohort towards the generation that’s done well in real estate? People in their 20s and 30s have always had to work hard to set their path- this was no different when the Boomers were buying their houses.

_____________________________

this kind of tripe makes me shake my head.. I have multiple friends who left high school and just had 1 job for 35 years.. retired now with great pensions and still in the workforce… selfish lot.

TTC Fire/Police Teachers Auto GM Ford, Hydro GoTransit, Insurance sector. Im sure you are picking up what im putting down.

My father in law like Garths dad was a principle retired at 55.

I have a good bro VP of a big bank started in the “mail room” I have another bro whos dad worked at Stelco in the heyday.. been retired longer then he worked. Still collecting a pension.

Please stop the BS.

#76 50 YEARS OF MAPLE LEAF INCOMPETENCE! on 07.09.19 at 10:28 pm

Here it is – my head-messing Eureka moment!!!

OMGGGGGGGGGGG!!!!!

The Toronto Make Believes are EPIC!!

They have now gone………….

OVER 75 DAYS WITHOUT A LOSS!!!!!

What an incredible unbeaten streak for an incredible city!!

Woohoo!!

How could I have not seen this amazing revelation before!!??

UNBEATEN FOR 75 DAYS!

TORONTO YOU ARE AWESOME AND WORLD CLASS!

EVERYBODY, BUY PROPERTY THERE NOW, PRICES WILL ONLY GO UP!

THAT CITY IS SO SPECIAL!

Go Make Believes, Go!!!!!!!!!!!!!

#77 crowdedelevatorfartz on 07.09.19 at 10:29 pm

@#68 50 Years of Incompetance

“Thank you, thank you!!!!
Now I see the GTA in a whole new light!”
*******

Ummmm.
Glad i could …….. help?

Why do I feel like I’ve tossed a match on a pile of tinder dry, dead, coniferous trees…….

#78 meslippery on 07.09.19 at 10:37 pm

After reading your daily post Garth I like to read the dogs
that you give us please continue.
Now how do I find or qualify for subsidized beer?

#79 Remembrancer on 07.09.19 at 10:47 pm

#66 ImGonnaBeSick on 07.09.19 at 9:10 pm
#53 Shawn Allen on 07.09.19 at 7:41 pm
Where did all these people go to whine and moan before the internet was invented?

————-

Tim Hortons… Moan about the government and drink terrible coffee. Remember when you could smoke in them?
———————————————–
Also see Letters to the Editor in local or national newspapers, some of those were a treat, public speakers corner or park box to stand on and rant, AM talk radio – whiners, crazies, losers & tin foil hatters are not new, the internet just amplifies them…

#80 Smartalox on 07.09.19 at 10:49 pm

Dolce Vita @36:

I figured that you might appreciate the difference between ‘Vox Canibus’ (Dogs’ voices) and ‘Vox Canabis’ (the voice of hemp). My point was that we seemed tobe getting much of both!

#81 Yyz2yvr on 07.09.19 at 11:07 pm

To Ed:

Vote conservative! They are our only hope for a balanced budget. And if you’re worried about the environment and think a carbon tax will help, I say go Vegan! After you see how much you help the environment by being vegan, you won’t feel bad leaving all the lights on in your home of taking a daily 2 hour long shower.

#82 Praveet Ulakja on 07.09.19 at 11:22 pm

My wife and I are both 23 years old and live in Moose Jaw and I make $375,000 a year in salary and $50,000 yearly in bonuses, she makes $400,000 in salary but no bonuses.

Between us we have $5,600,500 saved in a mix of TFSA, RRSP, cash and fine art.

Should we keep saving or should we look for a house? We are looking for a place to live not an investment. Her parents want us to buy ASAP. Not sure what to do. Any idea what the RE market in Moose Jaw will look like after the next election?

#83 John in Mtl on 07.09.19 at 11:29 pm

Re Julia’s Canibus:

Very often I dream of a time where a massive failure knocks out just about all satellite links, celltowers and internet access for about 2 weeks. Not quite enough time for the zombies to wake up to the reality around them but maybe just enough time to have them reflect upon the overreaching role this technology has on them and everything they are missing out on in the real world.

I stopped counting the numbr of people that pass by me every day with no consideration for the “here and now”. They don`t know what they’re missing, really, life goes on without their real participation.

I love tech, been in it all my long life, but it has gone too far; this isn’t “progress”, it is zombification.

#84 Notagreaterfool on 07.09.19 at 11:30 pm

Another condo project on the rocks. Interesting they will pay customers for 8 % to get out now.

https://www.theglobeandmail.com/real-estate/toronto/article-toronto-condo-company-asks-for-customer-co-operation-as-project/

#85 Ponzius Pilatus on 07.09.19 at 11:59 pm

#107 IHCTD9 on 07.09.19 at 11:55 am
#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
___

I did Google it – there’s jack squat other than that Russian paper that says 7 million died of starvation. It’s fake facts, and I told you not to cite it (but you did regardless as there is nothing else on the net that says millions starved during the GD – because it never happened). That paper was written just for folks like you who are lacking in evidence WRT your commie loving assertions.

100’s of millions were killed by communism AT A BARE MINIMUM.

Ain’t no propaganda son. You can’t believe it because the numbers are so high.

Same as how Ponzie can’t believe my On. Auto insurance rates because his commie BC rates are so high.

You have it too good/bad – so it can’t be true.

Here:

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

(warning – pictures of dead people)

Just 1 single Communist dictator, not even all of the graves have been found/tabulated, add them up. Oh yeah – 100 Million is believable when you add every other commie lunatic to the total.
———-
Completely agree.
Stalin was the worst mass murderer in history.
Still, Churchill and Roosevelt sucked up to him.

#86 Lizard Man on 07.10.19 at 12:09 am

DELETED

#87 Ponzius Pilatus on 07.10.19 at 12:13 am

#121 crowdedelevatorfartz on 07.09.19 at 2:05 pm
@#119 pfft
“Now you’re just being ignorant T.”
*****

Telling the brutal truth is “ignorant”?
————
Fartz,
There are 7.3 billion people on this planet.
And you claim to have the truth.
Let me tell you “You can’t handle the truth”.
Furthermore, you’re spending far too much time being stuck under the George Massey tunnel.
Tunnel vision is my diagnosis.

#88 Jon B on 07.10.19 at 12:15 am

Holy smokes, Jean, you need some serious help. You have no money and your solution is to borrow. This is the mindset about money that many people employ to get through life.

#89 Al on 07.10.19 at 12:28 am

KC Is offering them a whole 38k per year and wondering why they’re not lining up at the door?! Hahaha. I can think of 10 jobs/business one can start right now without a high school degree that ll pay more than that per year. You’re paying them too little given the job’s conditions for your market. Simple as that. I know it sucks for employers when the proletariat have choices.

#90 Ponzius Pilatus on 07.10.19 at 12:29 am

#21 Leo Trollstoy on 07.09.19 at 5:28 pm
These blog dog contributions aren’t wisdom. THIS is wisdom..

“Ticking away the moments that make up a dull day
Fritter and waste the hours in an offhand way
Kicking around on a piece of ground in your home town
Waiting for someone or something to show you the way”

“Tired of lying in the sunshine
Staying home to watch the rain
And you are young and life is long
And there is time to kill today
And then one day you find
Ten years have got behind you
No one told you when to run
You missed the starting gun”

“And you run and you run
To catch up with the sun, but it’s sinking
Racing around to come up behind you again
The sun is the same in a relative way, but you’re older
Shorter of breath, and one day closer to death”

“Every year is getting shorter; never seem to find the time.
Plans that either come to naught or half a page of scribbled lines
Hanging on in quiet desperation is the English way
The time is gone, the song is over,
Thought I’d something more to say.”
—————
Great song.
Got me at the right moment.
But hey, this is a financial blog.
Gotta make more money than the other guy.
Sad.

#91 Ponzius Pilatus on 07.10.19 at 12:36 am

DB is laying off 18k.
Irony is 7k in London, the rest in US and HongKong.
Very few Germans.
Going back to its roots.
Serving customers rather than shareholders and fat executives.
What a concept.

#92 Rargary on 07.10.19 at 1:09 am

#18 Calgary Rip Off… We have a 6 foot fence around our yard, not 4 foot. And a 6 foot fence around our deck. 8 feet between houses? In Toronto, you have to walk sideways to squeeze between some houses! Laneways behind most older Calgary neighbourhood homes. Not back to back yards, with zippo privacy!
Calgary will thrive again, as the population is set to go up by almost 40% in the next 5 or so years if current pace keeps up. Where are all these new cowboys and gals going to live? Calgary lacks rental housing as it is.
We bought a detached last year in an inner city up and coming neighbourhood, no regrets! Pay same in mortgage and prop tax as we used to in rent. HAPPY STAMPEDING EVERYONE!

#93 Nonplused on 07.10.19 at 1:31 am

#70 Bill Puffle

Nothing matters, until it does.

Buffet talks his book just like every other trader.

#94 Howard on 07.10.19 at 2:02 am

#39 Sail away on 07.09.19 at 6:37 pm
Why the anger from the younger cohort towards the generation that’s done well in real estate? People in their 20s and 30s have always had to work hard to set their path- this was no different when the Boomers were buying their houses.

If the Boomers, instead of buying a house, started a business or invested wisely 20 years ago, would Millenials also think they are entitled to that wealth? Is this only real estate envy, or just overall entitlement greed?

It is absolutely baffling to me that people like #11 Howard would disparage someone else’s good fortune. Either be happy for them or ignore it, but don’t whine. Get out and create your own way. Whining is not productive.

——————————————————-

Pointing out how easy your age group had it is not whining. It seems some older people become very defensive on this point, dare I say whiny. Not content to merely have all the wealth funnelled to them through government policy, they now demand accolades for it too.

#95 Smoking Man on 07.10.19 at 2:22 am

Dont matter what you try, so long as you tried it. That’s winning.
https://youtu.be/Za9YMxLKH-A

#96 n1tro on 07.10.19 at 3:09 am

Ed,

You should be abused for your blind belief in the climate change propaganda. But let’s say man made climate change is real and reducing emissions is the actual solution, ask yourself some serious questions before coming to conclusions. The carbon tax that being collected on everything that already has a tax on it, where is it going and what is it actually doing?

Is it set aside to plant trees?
Is it being put into modern recycling plants so that our garbage isn’t being shipped to the Philippines to be burnt?
Is it used to build new gen 4 nuclear reactors to wean us off fossil fuels?

Nope. Apparently, 90% of the money collected will be returned to the people paying for it with the remaining 10% given to the businesses that can’t pass off the cost of the tax onto consumers.

https://business.financialpost.com/commodities/energy/trudeau-says-will-be-cash-back-from-federal-carbon-tax-in-provinces-without-levy

So how exactly is that suppose to incentivize reduction of carbon emissions when consumers will get back what they paid? And where is the money that is suppose to be sent off to the UN to dole out to China and India who have no obligations to reduce their emissions going to come from?

Give your head a shake and stop being guilted for living a relatively low carbon lifestyle already. Your mentality of “we got to start somewhere” is about as logical as responding to someone who is asking you why you are peeing on the burning house….”well, you got to start somewhere” not realizing a) your contribution will do jack shit for the house or the emissions problem b) collectively we all (China and India included) have to pay to make a difference and c) the government’s handling of tax payer money is atrocious so most sane people would like to keep the government’s hands off of what little they have left after paying all the other taxes.

I’m sure I will be called a “climate change denier” even though my premise and points are made with the assumption man made climate change is real but whatever…as I wait for my carbon tax credits, I’m going to keep on burning the old fence and stumps of the 5 trees I just pulled out of my backyard this season.

#97 crazyfox on 07.10.19 at 3:32 am

I sympathize Ed.

Climate change is a global threat to everyone whether people recognize it or not and there are plenty who don’t… or won’t because they are too cheap or unimaginative to realize yet how facing climate change in any meaningful way could benefit them (our children reaching the end of their natural life cycle would be a good start). Basically there are plenty of people who don’t give a shit about world issues until it directly effects them. Its just how it is and it could be a majority. I thought it was a large minority but these days I’m not so sure.

Whether readers have picked up on it or not or care, I’ve been directing comments for many months on one major theme. People are choosing in their own self interests irrespective of the best interests of others or the environment and as a consequence indirectly or otherwise, their own best interests as well. Climate change and debt are perfect examples of this.

Unfortunately, until people go broke or their currency goes to hell and they can’t buy anything and/or they go hungry or jobless from systems and environments falling apart, until that happens, they won’t care. Unfortunately for most, then it will be too late.

It’s always the same, a million and one excuses for not getting proactive or concerned but in the final analysis, people are selfish and it really comes out when it comes to money. (of course, I speak generally)

Even if some of us recognize our major global problems as some have, far too few will step up and take on the problems we face. Self interests… selfishness… cheap, call it whatever we want but basically we lack the morality or willingness to sacrifice for what it takes to do what’s right (again, generalizing).

Some of us will but it won’t be enough to stop what’s coming. “We’re all in the same boat together” doesn’t work for us all. Its by no means a reason to stop making an effort to face our global challenges, I didn’t say that. I didn’t say there won’t be survivors… there will be survivors, just not many and this means that the tech we come up with for the most part has the potential to be saved and used for the greater good when populations recover over time so what we discover and invest in still counts tremendously in the long game. On a personal level, everything we do still matters come the day of our judgment.

But… if we think most of our children in their 20’s or younger will know what it will be like to become seniors, we can start giving up on that notion right now (this includes Canada). For some, reading this will sound absurd but, in 10 years time it won’t sound nutty at all. What will be nutty is that until we get desperate, a good number of people will still still be and react the same way as they are today even as things get much worse.

Refusing to acknowledge reality, refusing to be honest, to step up, to sacrifice, to help, look out for others, its the same old story. Lack of morality. We are headed for a mass extinction event within a few decades, I fear and not all that many have even imagined the possibility yet (how can we in Canada right?) although everything points to it, much sooner than most could imagine.

#98 Howard on 07.10.19 at 5:51 am

#115 MF on 07.09.19 at 1:16 pm
#106 Howard on 07.09.19 at 11

I enjoy most of your comments. But the “hell” that Canada has become?

You seem smarter than the average delusional failed Canadian expat complainer we have on here (notwithstanding you being in France). Let’s continue to keep it classy like you always do.

MF

———————————————

You seem to be a stand-up fellow, MF.

But I don’t get the need to constantly be Toronto’s cheerleader.

In my view Canada today combines the worst of the US and Europe without the benefits of either. That’s what makes it “hell”. My salary in France is about the same as it was in Canada, taxes are indeed slightly higher at my income level, but I have 3x the paid vacation and believe it or not my cost of living in Paris is actually lower than it was in Toronto. There is a stark lack of options for young people in Canada. Either you go into debt to try and realize your ambitions in Toronto or Vancouver where the high level white collar jobs are located, or you settle for less in a smaller city with dodgy job prospects. Perhaps Calgary and Montreal offer the best balance but really everywhere in Canada is overpriced for very limited rewards.

#99 Ace Goodheart on 07.10.19 at 7:01 am

RE: #97 crazyfox on 07.10.19 at 3:32 am

Very eloquent.

What are your solutions?

Rather than burning natural gas, how would you heat the millions of homes around the world located in temperate climate zones?

Rather than gasoline or diesel, how would you power cars and trucks?

If the idea is that all vehicles are going to be electric, how are you going to generate all that electricity (the existing grid cannot handle an all-electric car and truck universe, it would have to be expanded by thousands of times its current capacity).

What are your ideas for providing daily life staples to people such as transportation and food, without doing so in a high carbon way?

It is easy to talk about change and why it is necessary.

It is hard to actually plan things.

#100 James on 07.10.19 at 7:16 am

I would respectfully suggest not continuing on with the guest posts. I look forward to reading your blog for your individual thoughts and insight (Doug and Ryan included). This is your secret sauce and would suggest not changing the recipe.

#101 crowdedelevatorfartz on 07.10.19 at 8:11 am

@#82 Praveet
“Not sure what to do. Any idea what the RE market in Moose Jaw will look like after the next election?”

+++++

More rainbow cross walks, higher gas carbon taxes, less jobs…..
Essentially the economy melting like the tundra around you.
Dont buy, Invest.

#102 crowdedelevatorfartz on 07.10.19 at 8:29 am

@#87 Pontificating Psychologist
” Tunnel vision is my diagnosis….”
++++

1st Ms Freud (MF)….now Dr. Ponzie.(PP)
Never knew there were so many students with their 1st year in Psychology on the blog.

Some amateur observations of my own.
“PP” has latent feelings of inadequacy.
The George Massey Tunnel….lets not go there.
Fartz…. I’m now past the oral phase of my development and working down….

#103 The Great Gordonski on 07.10.19 at 8:35 am

DELETED

#104 Renter's Revenge! on 07.10.19 at 8:52 am

#82 Praveet Ulakja on 07.09.19 at 11:22 pm
My wife and I are both 23 years old and live in Moose Jaw and I make $375,000 a year in salary and $50,000 yearly in bonuses, she makes $400,000 in salary but no bonuses.
Between us we have $5,600,500 saved in a mix of TFSA, RRSP, cash and fine art.
Should we keep saving or should we look for a house? We are looking for a place to live not an investment. Her parents want us to buy ASAP. Not sure what to do. Any idea what the RE market in Moose Jaw will look like after the next election?

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

No bonuses for the wife? Hypergamy!

#105 NoName on 07.10.19 at 9:12 am

#97 crazyfox on 07.10.19 at 3:32 am

I think you should take up drinking, and if you are not in to those stuf maybe hot yoga, it woud definitely take edge off and and help you cope with knowing that only hords of deplorables will survive climagedon.

Every post of yours smels like fear and despair, i wonder why is that, probably because you already figured it out that tesla can only give you 1day worth of ac if grid goes down. Assuming that local war lord doesnt take before.

Funny thing how poor people are lot more organized and “robust” and industrious and create fumctional products with next to nothing in resources. Look at this dude, genius.

Meet solar Jim, or what ever his name is, bringer of the lights, with tinsnips, discarted plastic bottle and silicon gun.

https://youtu.be/kDL52lTri5c

And on a side note, i wonder what meal those people will skip to pay for carbon tax…

#106 Penny Henny on 07.10.19 at 9:16 am

#23 Homeless in Niagara on 07.09.19 at 5:29 pm
Seems like Niagara’s June housing stats have switched to the Home Price Index (HPI) rather than the average or median price. Any thoughts on why the change in reporting?

https://www.niagararealtor.ca/sites/default/files/Media%20Release%20%20-%20June%202019%20Stats.pdf

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

What I have been seeing the last couple of years is that older homes are being bought up and a quick reno being done and placed back on the market.
This practice would artificially inflate the sales price as the home is no longer a comparable to it’s previous self.
The HPI should negate this to a certain extent.

#107 Ace Goodheart on 07.10.19 at 9:39 am

RE: #96 n1tro on 07.10.19 at 3:09 am

It’s scary how the general public has been “sold” on taxation as a cure for climate change.

Carbon taxes are consumption taxes. They are applied to goods and services, that everyone needs and that people cannot live without.

We already have consumption taxes. In Ontario our consumption tax is the HST.

HST is not applied to residential rent, groceries, prescription drugs, and various other basic necessities. This was done on purpose. Governments knew that you cannot put consumption taxes on basic needs. Doing so has a catastrophic effect on poor and low income people, who will no longer be able to afford to live.

The Liberal’s carbon tax, which as I indicated above, is just another consumption tax, changes all this. This tax IS applied to groceries, home heating, residential rents, public transportation, basically all of our basic needs are going up in price, as they are all going to be effected by the carbon tax.

The Liberals’ solution to this problem was to refund back what they think will be the approximate effect of this consumption tax, to people on their tax returns. This, they figure, will negate the otherwise catastrophic and life changing results of taxing basic needs at source, and will allow poor and low income people to continue to afford to pay their rent, buy groceries and pay for their transportation.

This has never been attempted before in Canada. They tried it in the UK (called a “poll tax” or “head tax”) and it caused riots in the streets. They tried it in France with similar results. Basically, the vast majority of low income people cannot wait until tax return time to apply for a rebate, to get them through the entire year’s worth of higher prices.

Poor folk can’t just go and get a line of credit from their bank of choice. They can’t get credit cards. Most of them bridge any monthly gap between spending and income by use of various loan sharking services including Ontario’s notorious payday loan industry, racking up huge amounts of interest and fees just to keep on top of their monthly bills.

This has all been studied to death, and this is why we do not pay HST on groceries and residential rent.

You simply cannot apply consumption taxes to basic goods. It has a massive negative and life changing effect on the working poor.

#108 Ponzius Pilatus on 07.10.19 at 9:40 am

#102 crowdedelevatorfartz on 07.10.19 at 8:29 am
@#87 Pontificating Psychologist
” Tunnel vision is my diagnosis….”
++++

1st Ms Freud (MF)….now Dr. Ponzie.(PP)
Never knew there were so many students with their 1st year in Psychology on the blog.

Some amateur observations of my own.
“PP” has latent feelings of inadequacy.
The George Massey Tunnel….lets not go there.
Fartz…. I’m now past the oral phase of my development and working down….
———-
I have a little bit of Freud in me. Like all Austrians.
Suggestion: if you’re afraid of the tunnel, you should take the Alex Fraser bridge.
Or are you afraid of heights, too?
And the Patulla will collapse any day now.

#109 NoName on 07.10.19 at 9:48 am

Interesting read

Funny thing as we keep closing coal powers plants and remove airborne particulants from air, we do increase solar radiation on a planet, and it gets worer.

Good thing is that solar panels will work better, be more efficient, only thing its that they wont be able to keep up with load…

https://bit.ly/2XDXhmq

#110 NoName on 07.10.19 at 9:52 am

#108 Ponzius Pilatus on 07.10.19 at 9:40 am
#102 crowdedelevatorfartz on 07.10.19 at 8:29 am
@#87 Pontificating Psychologist
” Tunnel vision is my diagnosis….”
++++

1st Ms Freud (MF)….now Dr. Ponzie.(PP)
Never knew there were so many students with their 1st year in Psychology on the blog.

Some amateur observations of my own.
“PP” has latent feelings of inadequacy.
The George Massey Tunnel….lets not go there.
Fartz…. I’m now past the oral phase of my development and working down….
———-
I have a little bit of Freud in me. Like all Austrians.
Suggestion: if you’re afraid of the tunnel, you should take the Alex Fraser bridge.
Or are you afraid of heights, too?
And the Patulla will collapse any day now.

—-

Me think that you got that part wrong, you have more f that other austrian in you.

#111 crowdedelevatorfartz on 07.10.19 at 9:55 am

@#94 Howard
“Pointing out how easy your age group had it….”
+++++

Please.
You’ve have had the lowest interest rates in the history of Canada.
Unlike the 19% mortgage rates of the early 1980’s.

You’ve had the lowest unemployment rate(5%) since the 1960’s.
Unlike the recession of the 1970’s and 1980’s when you couldnt beg borrow or steal a job.

Now? When your starting to hit your stride in jobs and careers?
Employers are begging to find people.

Newsflash!
Not all Boomers had “jobs for life”, inflation indexed pensions, or 3 homes to rent to the peons.
That’s just in your jealous imagination.
And if the Boomers hold onto their jobs for dear life its possible because they didnt get started until later and also have to house, clothe and feed “boomerang brats” returning to the nest….penniless?

Denial is not just a river of Millennial tears.

And yet with all these advantages you still have;
Managed to rack up hideous, historical levels of debt…..
Quit your jobs at the first sign of “work”.
Learned to game the Human Resources “stress leave” paid vacation racket.

I cant wait to hear the next generation blame you for “having it all” and squandering it….

Because they too….will be right.

#112 Jesse on 07.10.19 at 10:01 am

#18 Calgary Rip Off on 07.09.19 at 5:15 pm

The solution? Eject from Calgary. Its Siberia without the Russian culture and without the money. No oil and gas equals a dying city with no money.
*********************************

I’ve been saying this since the oil crash of 2014, Calgary is a dying city. Downtown vacancy rates are clipping 40%, and locals still think it’s the best place in the world because you can see the mountains. If you want live in a place with an over-priced view, move to Vancouver, at least you can avoid winter.

The big question is: where do you go if you’re only a Canadian citizen?

I have no real roots or ties here, and can’t wait to leave.

#113 Sail Away on 07.10.19 at 10:06 am

#94 Howard on 07.10.19 at 2:02 am

#39 Sail away on 07.09.19 at 6:37 pm
Why the anger from the younger cohort towards the generation that’s done well in real estate?

——————————————————-

Pointing out how easy your age group had it is not whining. It seems some older people become very defensive on this point, dare I say whiny. Not content to merely have all the wealth funnelled to them through government policy, they now demand accolades for it too.

————————————–

Howard, pointing out how easy somebody else had it is dismissive and condescending. It’s a victim mentality. Nobody had it easy.

Suggest you check out the Financial Uproar blog where a young guy has done very well for himself investing. He rented and sacrificed and in early 30s is now very well set.

There are hundreds of similar stories. Opportunities come at stages in our long life.

#114 Steven Rowlandson on 07.10.19 at 10:06 am

When work delivers the goods on one income and provides the official currency in quantities sufficient to buy a home using the 3 years pay rule and supports a wife and 3 to 4 children then men will take getting and doing a job seriously. Until then it is just a genocidal joke played on humanity. If it pays you will get more of it.

#115 IHCTD9 on 07.10.19 at 10:08 am

#134 T on 07.09.19 at 4:41 pm

__

Imagine a Metropolis packed to the gunwales (even worse than now), but with mostly seniors and immigrants from the Middle East, and Africa.

—–

Though your comment does come off somewhat racist, I do agree with your premise. Anyone with any sense is packing up as fast as they can and headed towards greener pastures.

___

The ME/African future outlook is right from StatsCan.

It’s hard to discuss the “quality” of economic immigrants without sounding racist. I could give a rip about their skin colour, but I do care about their compatibility with a 1st World Economy. Folks from some countries are better suited than others, that’s just the way it is.

Top notch would be a Western born and cultured English/French speaker with a suitable education and compatible work experience. Bottom of the barrel would be a tribesmen from an un-contacted village deep in the Amazonian jungle who speaks an unknown language, and eats raw meat for dinner.

Remember when Trudeau left all the Male Syrian refugees over there to get bombed, and only took the Women and Children back to Canada? There will be more decisions made that will be debated out of earshot of the Canadian public, for sure. Few would disagree though, that you can’t get much further away from a Western 1st World economy than the societies in many African and Middle Eastern countries. Debate needs to happen on this front – even if some folks just can’t handle it.

SC points out that Canada is expected to be less able to attract top quality economic immigrants in the future. Right now, countries like Africa and most of the ME are more associated with producing refugees as opposed to working immigrants. These will congregate in the GTA like always.

IMHO, There is no good news for Toronto here. As conditions in China and India improve – immigration numbers will start dropping from same. These groups have been quite successful. No immigration at all is not an option – so Canada will need to accept whoever is willing to move here – no matter how poorly suited to work in a 1st world economy they may be…

#116 kc on 07.10.19 at 10:10 am

#89 Al on 07.10.19 at 12:28 am
KC Is offering them a whole 38k per year and wondering why they’re not lining up at the door?! Hahaha. I can think of 10 jobs/business one can start right now without a high school degree that ll pay more than that per year. You’re paying them too little given the job’s conditions for your market. Simple as that. I know it sucks for employers when the proletariat have choices.

prove your point… where can you beat that wage for starting out? … most entry level jobs i see around here start at 14-15 an hour… with pittances for increases.

even at “CAT” surrey bc the top wage for the guy filling orders caps at 26 an hour and you need to be there years to get that wage….

back to your paper route young man…..

#117 kc on 07.10.19 at 10:14 am

111 crowdedelevatorfartz on 07.10.19 at 9:55 am

bang on, i been in same industry over 35 years, on and off…. you don’t get that respect by starting out on day 1 in any job/industry….

cheers

#118 Jesse on 07.10.19 at 10:14 am

#98 Howard on 07.10.19 at 5:51 am

You seem to be a stand-up fellow, MF.

But I don’t get the need to constantly be Toronto’s cheerleader.

In my view Canada today combines the worst of the US and Europe without the benefits of either. That’s what makes it “hell”. My salary in France is about the same as it was in Canada, taxes are indeed slightly higher at my income level, but I have 3x the paid vacation and believe it or not my cost of living in Paris is actually lower than it was in Toronto. There is a stark lack of options for young people in Canada. Either you go into debt to try and realize your ambitions in Toronto or Vancouver where the high level white collar jobs are located, or you settle for less in a smaller city with dodgy job prospects. Perhaps Calgary and Montreal offer the best balance but really everywhere in Canada is overpriced for very limited rewards.
******************************************

I can’t agree more. Millennial here, 30s, I haven’t had a raise in 5 years, salaries are stagnant, and companies are looking to cut wages. Watching the complete destruction of Alberta’s oil and gas sector (while hearing cheers from Liberal Canada) from inside has turned me into a nihilist. Even after having spent most of my life in Vancouver and Calgary I dream of leaving, the opportunities and weather aren’t worth staying.

There aren’t many places in Canada that offer good, livable wages anymore. My friends that packed up and moved to Toronto found (predictably) insane cost of living, lower salaries and worse quality of life…but hey, there’s nightlife and Drake (just what a 30 year old needs lol). People think millennial’s are stunted, a bunch of kids that don’t want to grow up – and I agree, we are…but what do you expect when most mid-level jobs still pay starting salaries and family formation is hindered by Tinder/Instagram?? Canada has lost it’s luster, I can’t wait to leave.

#119 ci8594 at yahoo dot ca on 07.10.19 at 10:34 am

#72 kc

I think the responses you get are a reflection of Craigslist itself. Isn’t that where the sketchier jobs are? So you get the sketchy people. The ones who reply back asking to be paid in cash – I don’t think they’re “lazy” kids. I think they’re kids on student visas looking to work illegally. LOTS of those nowadays.

I’m not a kid, though, but I am desperate to keep a roof over my head.

#120 Sail Away on 07.10.19 at 10:35 am

#94 Howard on 07.10.19 at 2:02 am

Pointing out how easy your age group had it is not whining. It seems some older people become very defensive on this point, dare I say whiny.

————————————-

Howard, one of my interests is ultrarunning. At the end of a race, I could point out to the winner that they had it easy because they were younger, lighter, and fitter..

They might point out we both had to complete the same journey.

#121 The GTA on 07.10.19 at 10:39 am

Can you imagine graduates with degrees and diplomas with professional or skilled accomplishments moving to Toronto? They could be located in all parts of Canada, and financially could never move there. Our government stated all are welcome, and look what’s coming to Toronto now on the taxpayer’s dime. Its all out of control with crime that will never end, and this is what we voted for?

#122 Shawn Allen on 07.10.19 at 10:45 am

Debt and Money Creation

The following comment from above seemed worthy of response and to ask for claification

#70 Bill Puffle on 07.09.19 at 9:57 pm
In response to Ed’s question on the deficit:

We operate in a debt based fiat monetary system.

Response: And it works great, right? Rephrase. We operate in a system that offers ample credit and a monetary system based on trust. That’s a good thing?

The system only really works when you have federal government debt increase over time. I don’t think we will ever run a surplus, nor should we.

Response: Not sure federal debt MUST increase but it does tend to and so far so good. It does not need to be reduced and likely never will be.

If you keep running surpluses until the debt is paid off, then you destroy the entire money supply. So it doesn’t make sense to do that unless you want to transition to a different monetary system. The only reason for the federal government to run a surplus is to lower inflation (since budget surpluses reduce the supply of base money).
Response: Okay

The crisis that Canada will face soon is deflationary in nature. Canadian consumers have borrowed way too much money and that has created an artificial inflationary boom with a massive housing bubble. When the debt bubble bursts, there will be massive deflation.

Response: There is no evidence that tat aggregate consumer debt is “too” high. In fact default rates suggest no problems. It is not a sure thing that there is any debt bubble, much less that it will burst.

Instead of people borrowing hundreds of thousands of dollars to buy houses (which creates new money), they will be repaying debt or defaulting (destroying money).

Response: That agrees with what I have been saying about money creation.

Zero percent interest rates and massive federal government deficits will not be sufficient to prevent the deflation from occurring (but it will put a floor to the carnage).

Basically, just think of federal government debt as the outstanding money supply. That’s all it is. Provincial debt is a whole other story, but I expect the Federal Government or Bank of Canada to back stop some of that debt if it starts to go bad.

Response: But provincial, personal and corporate debt is also adds to the money supply, no? As you said above borrowing creates money.

Warren Buffett even threw in the towel and finally realized that the federal government deficit isn’t anything to worry about. Here’s a quote from him:

“Those who regularly preach doom because of government budget deficits (as I regularly did myself for many years) might note that our country’s national debt has increased roughly 400-fold during the last of my 77-year periods,” Buffett writes… “That’s 40,000%!”

Response: Remember my rule number one: “Always assume that Buffett is correct”. Also ignore his many detractors who usually know so little about him that they think his last name is Buffet.

#123 The Great Gordonski on 07.10.19 at 11:15 am

BANNED

#124 crowdedelevatorfartz on 07.10.19 at 11:19 am

@#108 Dr Ponzie
“Or are you afraid of heights, too?”
+++++
Actually no.
I worked in the 1980’s as a High rise window cleaner because…..that was the only work during the economic and housing meltdown that was Vancouver from 1981 to 1987
Swing Stage, Bosun’s Chair, you name it. We cleaned it.
We did the 1st clean on Park Place after it was built.
( There was a private loo on the top floor that was in the Presidents office that over looked downtown. Quite shocked when we dropped down in front of him. Good thing he was sitting on the toilet.). Scotia Tower, all the Bentall Towers, Royal Center, on and on and on.
Got bored with that and moved on to a bigger salary and easier work.
There’s always work if your willing.

#125 JB on 07.10.19 at 11:23 am

First, paint the damn place yourself. You’re unemployed, remember? Second, sell it. Pronto, while mortgage rates are below 3%. Pay off all your debts, forget the vacation (spend the time looking for a job), stuff your TFSA and a non-reg account with nice ETFs (no stocks, no mutuals) and, for the love of Allah, do not buy another condo. Obviously you need to rent and start getting serious about saving and investing (you’re now in your 40s. Grow up). And did I mention getting a job?
………………………………………………………………….
He is just a little over leveraged. First thing he should do is ditch the credit card.
I hear Starbucks is hiring?

#126 Robert on 07.10.19 at 11:29 am

https://www.cnn.com/2019/07/10/asia/vancouver-tax-china-he-yiju-intl-hnk/index.html Vancouver real estate made CNN.. lol

#127 TurrnerNation on 07.10.19 at 11:30 am

No interest rate cut today by Bank of Canada. There will be none. Repeat, central banks are out of bullets.

#128 PastThePeak on 07.10.19 at 11:37 am

#70 Bill Puffle on 07.09.19 at 9:57 pm

Basically, just think of federal government debt as the outstanding money supply.
+++++++++++++++++++++++++++++++++++++

Ummm…not even close. While any borrowing is “creating money”, the notion that it is only federal spending that does so is completely wrong. The notion that the money supply is the federal debt is completely wrong. The notion that eliminating the federal debt would destroy the Canadian money supply is completely wrong.

Perhaps you should do a bit more research…

#129 kc on 07.10.19 at 11:40 am

#119 ci8594 at yahoo dot ca on 07.10.19 at 10:34 am
#72 kc

I think the responses you get are a reflection of Craigslist itself. Isn’t that where the sketchier jobs are? So you get the sketchy people. The ones who reply back asking to be paid in cash – I don’t think they’re “lazy” kids. I think they’re kids on student visas looking to work illegally. LOTS of those nowadays.

I’m not a kid, though, but I am desperate to keep a roof over my head.

not all are from CL, come on over and read through the stacks of resumes we get… many people don’t call back when you ask them to come in for interviews. HR figures they are just going through the motions of “looking for a job” to keep the free ride and gov. cheques coming.

another harsh reality is that many young people don’t drive nor own transportation. we are not on a bus route…. strike 2

cheers

#130 so it continues on 07.10.19 at 11:42 am

https://www.blogto.com/real-estate-toronto/2019/07/condo-price-rose-over-past-year-toronto/

#131 NoName on 07.10.19 at 11:44 am

#119 ci8594 at yahoo dot ca on 07.10.19 at 10:34 am

Studendsrhis and that and carbon tax rebate.

Lets leve those students alone, you would be punishing non lazy, non entiteled kids with good attitude.

There was a lady that i worked with, very nice lady.

She was a teacher in one of those private schools and she told me stories abot them. Some of thos kids were so poor that on a nice day walk in exces of 10km to save a bus ticket.

She always mentioned one girl super bright that came as a forign student from Cambodia, who was sponsored by whole vilage, so when she finishes and start workig she can for other few and cycl repits so others are lifted from poverty.

She told me that she could not handle it, so her quit well paying job, so can find serenety and tranquility in puling a bixex on a skid and confinding some of her toughts and experience with me. Imagine that.

Than you have stories about those other kids…

—-

And someone mentioned rebate on carbon tax. I did.posted this frew months back, but it is worth of repeating.

Coworker of mine and his family almost equal imcome, similat family situation.

His daugter 19 yrs old works after school, and manages to earns 5500cad, she gets well over 500cad in carbon tac rebate.

My daughter 16 old works after school, and manages to earns 5500cad, she gets 0cad in carbon tac rebate.

So in my infinite wisdom i called and asked whi is that, i was told because my child is getting ccb of 11.55¢. What adds up to 122cad for the year.

That exact moment one more deplorable was “born”.

You can print this, and put it on a fridge so you it can serve you as reminder not to complain about hart wotking poor students.

#132 Howard on 07.10.19 at 11:45 am

#120 Sail Away on 07.10.19 at 10:35 am
#94 Howard on 07.10.19 at 2:02 am

Howard, one of my interests is ultrarunning. At the end of a race, I could point out to the winner that they had it easy because they were younger, lighter, and fitter..

They might point out we both had to complete the same journey.

—————————————

Ah but when the young runner castigates you for not finishing as quickly, you could rightly point that the younger runner’s body eliminates lactic acid more quuickly, that he has higher bone density, more knee cartilege, and increased cardiac capacity. In other words, the young runner has significant, indisputable advantages and it wouldn’t be “whining” to point them out.

Moreover, to beat this analogy to death, you might be slightly annoyed if the young runner, with all his inherent advantages, STILL insists on hogging the water stations and the best footwear to ensure an even more massive advantage over you. Now imagine if you got paid according to your running performance how much more annoyed you’d be….

#133 Humour on 07.10.19 at 11:45 am

I got me a Mill the other day to make a delivery for $150 that he prepaid. He knocks at the door, and says good afternoon with a smile wanting my credit card. I said we may have a problem, because have two with the same date of July, and neither might not work. He asked for another credit card, but said its not in the cards, because its not activated too as cannot find it. I held out the other two, and requested that he pick one, and lets see what happens. This Mill is becoming real nervous on me. I laughed and said no problem, and if all else fails will give you an IOU for a better day.

#134 Ubul on 07.10.19 at 11:47 am

#122 Shawn Allen on 07.10.19 at 10:45 am

Warren Buffett even threw in the towel and finally realized that the federal government deficit isn’t anything to worry about. Here’s a quote from him:

“Those who regularly preach doom because of government budget deficits (as I regularly did myself for many years) might note that our country’s national debt has increased roughly 400-fold during the last of my 77-year periods,” Buffett writes… “That’s 40,000%!”

Response: Remember my rule number one: “Always assume that Buffett is correct”.

—-

OK, Buffett “threw in the towel” and you have a blanket rule about accepting anything he says, as if it was the 11th commandment – because he is a billionaire.

In Buffett’s position nobody would have a reason to care about it. But you are more like in the shoes of her secretary, who can’t avoid to pay more taxes than Buffett G himself, big part of her tax dollars servicing the government debt.

You know what they say about assumptions.

#135 Howard on 07.10.19 at 11:57 am

#118 Jesse on 07.10.19 at 10:14 am

Not sure if you saw my post to you yesterday about the Working Holiday Visa programs. If not, please go to the comments from yesterday’s blog.

Assuming you are under 35, you can easily get a 1-2 year visa to many different countries. Even if it doesn’t end up in a permanent residency situation, it at least gives you the chance to get the hell out of Canada for an extended period of time while allowing you to earn money. Living abroad is so much different from merely travelling.

Some countries (UK, Australia) have a WHV cutoff age of 30, so if that’s your current age, better get to it. If you’re 31-35, you can still apply to France, Germany, New Zealand, Ireland, and some others. I moved to France a few years ago at 34 because I knew it was now or never.

#136 IHCTD9 on 07.10.19 at 12:00 pm

#118 Jesse on 07.10.19 at 10:14 am

I can’t agree more. Millennial here, 30s, I haven’t had a raise in 5 years, salaries are stagnant, and companies are looking to cut wages. Watching the complete destruction of Alberta’s oil and gas sector (while hearing cheers from Liberal Canada) from inside has turned me into a nihilist. Even after having spent most of my life in Vancouver and Calgary I dream of leaving, the opportunities and weather aren’t worth staying.

There aren’t many places in Canada that offer good, livable wages anymore. My friends that packed up and moved to Toronto found (predictably) insane cost of living, lower salaries and worse quality of life…but hey, there’s nightlife and Drake (just what a 30 year old needs lol). People think millennial’s are stunted, a bunch of kids that don’t want to grow up – and I agree, we are…but what do you expect when most mid-level jobs still pay starting salaries and family formation is hindered by Tinder/Instagram?? Canada has lost it’s luster, I can’t wait to leave.
___

You could try your luck in a smaller town, or near a medium city. It’s totally possible to make 50-60K/yr/head – but you’ll need to put in the time to get there. You may also need to WORK (ie. construction/machining, welder/fitter.) and put in the OT.

Life will be tough for the single income households, so find a GF that makes the same or more than you, and keep her happy with an eye towards marriage. Dual incomes make the voodoo happen out in the black-fly infested spruce bogs of southern Ontario.

If you decide to get your hands dirty, and are taking in about 60K, and have also married a similarly compensated better-half – you are off to the races.

This is what happened to Ms. IH and I – the bottom line requirement is not so much big incomes as it is DUAL incomes, plus skills (work on house/car/whatever yourself), and reasonable RE prices.

#137 Headhunter on 07.10.19 at 12:15 pm

#114 Steven Rowlandson on 07.10.19 at 10:06 am

When work delivers the goods on one income and provides the official currency in quantities sufficient to buy a home using the 3 years pay rule and supports a wife and 3 to 4 children then men will take getting and doing a job seriously. Until then it is just a genocidal joke played on humanity. If it pays you will get more of it.

___________________________

100% correct and well said. Kids today are smart and “the soup aint worth the peas” “juice aint worth the squeeze”

who’s gonna buy your million dollar home again?

#138 Mattl on 07.10.19 at 12:22 pm

#89 Al on 07.10.19 at 12:28 am
KC Is offering them a whole 38k per year and wondering why they’re not lining up at the door?! Hahaha. I can think of 10 jobs/business one can start right now without a high school degree that ll pay more than that per year. You’re paying them too little given the job’s conditions for your market. Simple as that. I know it sucks for employers when the proletariat have choices.

—————————————————————-

38K to mow a lawn, pull weeds, move rocks is not enough? What do you think unskilled labour should be paid? How much are you willing to pay a contractor when you need some work done?

That’s the problem, everyone wants a “living” wage – which really means an easy job @ 75K per – cheap rent in kits, cheap transit, free education, free and easily accessible health care, clean and safe streets, etc etc.

I suspect the better options you are talking about don’t make 40K a year with benefits.

Care to share these ten easy startups that pre tax net 40k+. I’ll go first – an Uber driver at 30 hours per week will gross around 30K a year BEFORE expenses.

#139 Remembrancer on 07.10.19 at 12:37 pm

#137 Headhunter on 07.10.19 at 12:15 pm
#114 Steven Rowlandson on 07.10.19 at 10:06 am
When work delivers the goods on one income and provides the official currency in quantities sufficient to buy a home using the 3 years pay rule and supports a wife and 3 to 4 children then men will take getting and doing a job seriously. Until then it is just a genocidal joke played on humanity. If it pays you will get more of it.
————————————————-
100% bunk.

These (what you idealize) trappings of the 1950s are gone, get over it and adapt or continue to shuffle along. Your terms for “doing a job seriously” is your problem, own it and do something constructive about it, how about?

Otherwise, you’re self-selecting: look in the mirror for the source, not some group of economic overlords taking the time out of their day to make you personally miserable…

#140 Sail Away on 07.10.19 at 12:50 pm

#132 Howard on 07.10.19 at 11:45 am
#120 Sail Away on 07.10.19 at 10:35 am
#94 Howard on 07.10.19 at 2:02 am

—————————————

Ah but when the young runner castigates you for not finishing as quickly, you could rightly point that the younger runner’s body eliminates lactic acid more quuickly, that he has higher bone density, more knee cartilege, and increased cardiac capacity. In other words, the young runner has significant, indisputable advantages and it wouldn’t be “whining” to point them out.

Moreover, to beat this analogy to death, you might be slightly annoyed if the young runner, with all his inherent advantages, STILL insists on hogging the water stations and the best footwear to ensure an even more massive advantage over you. Now imagine if you got paid according to your running performance how much more annoyed you’d be….

————————————–

It’s only about using your own talents and advantages, never blaming others. You’ve already won the global lottery by chance birth location, now use it to your advantage. Acting the victim is immature behaviour.

#141 Headhunter on 07.10.19 at 12:57 pm

100% bunk.

These (what you idealize) trappings of the 1950s are gone, get over it and adapt or continue to shuffle along. Your terms for “doing a job seriously” is your problem, own it and do something constructive about it, how about?

________________________

is it really 100% bunk? All time low birth rate, marriage rate, young lads are not going to University like they once were. All verifiable factoids. Why are young men dropping out of society in these #’s?

These are just effects what is the cause? I love looking in the mirror thank you. I took the risks and run my own show. I eat what I kill thats it and thats all amigo

I have compassion… “ever heard of it?”

Its the generation behind me I lament for. Not everyone can be a doctor, engineer, of scientist.

You all scream just work harder! Well what happens when hard work dont work anymore?

#142 Gravy Train on 07.10.19 at 1:19 pm

#58 Nonplused on 07.09.19 at 8:13 pm
“The only […] possibility we have to deal with CO2 emissions and at the same time deal with the eventual depletion of fossil fuels is nuclear power.[…]” Do I need to remind you of the 1979 Three Mile Island accident, the 1986 Chernobyl disaster and the 2011 Fukushima nuclear accident? There are also issues with disposing of radioactive waste.
https://en.wikipedia.org/wiki/Nuclear_power_plant
https://en.wikipedia.org/wiki/Radioactive_waste

The reason I find solar and wind power so attractive is that the sun and the wind are public goods; they are freely abundant and are literally a free lunch.
https://en.wikipedia.org/wiki/Public_good

#96 n1tro on 07.10.19 at 3:09 am
“The carbon tax that being collected on everything that already has a tax on it, where is it going and what is it actually doing?” The whole point of the carbon tax is to encourage good behaviour and discourage bad behaviour. If you use solar panels and wind turbines, you get rebates; if you use oil, gas or coal, you get taxes. Get it? No? Maybe I should just give up! :)

#97 crazyfox on 07.10.19 at 3:32 am
“Climate change is a global threat to everyone […] people […] are too cheap or unimaginative to realize yet how facing climate change in any meaningful way could benefit them[…]. […] Refusing […] to sacrifice […].” I’ve pointed out ad nauseam here in the steerage section that there’s no need to sacrifice in order to benefit from ‘facing climate change.’ I bought a 20-panel 8kW solar power array in March this year (here in Canada) returning an estimated 12.81% per year after tax on my investment for each of the next 25 years. How is that a sacrifice?

#107 Ace Goodheart on 07.10.19 at 9:39 am
“[…]Carbon taxes are consumption taxes. They are applied to goods and services, that everyone needs and that people cannot live without.[…]” Goods get gifted with rebates; bads get slapped with taxes. Overall, the carbon tax is designed to be revenue-neutral. Why is this so hard to understand?

#143 Shawn Allen on 07.10.19 at 1:21 pm

Life was so easy 60 years ago?

#114 Steven Rowlandson on 07.10.19 at 10:06 am whined:

When work delivers the goods on one income and provides the official currency in quantities sufficient to buy a home using the 3 years pay rule and supports a wife and 3 to 4 children then men will take getting and doing a job seriously. Until then it is just a genocidal joke played on humanity. If it pays you will get more of it.

*****************************
Even if such a three times rule ever existed and even if your grand mother was idle looking after 3 or 4 kids with no dish washer, perhaps a wringer washer and cloths line, constant cooking, cleaning and mending etc, whining for the allegedly easy past would not help.

You must play the hand you were dealt and get on with it. Wisdom to change what you can in your own life and accept what you can’t etc.

#144 Trading Naked on 07.10.19 at 1:36 pm

The Boomers did have it “easier”. How do I know? I’m the one admonishing my Boomer mother to “suck it up and deal” when she starts whining about how unfair it is when she puts in a certain amount of effort/labour and she gets back less in return than she would have 30 years ago. She has an aversion to “difficult” and won’t let me pursue “difficult” just because she didn’t have to. We live in a world of diminishing returns. The Boomers aren’t to “blame”. They didn’t do anything wrong. They acted in the same self-interest as all humans do. The world has changed (as a result of different types of self-interest colliding worldwide), and we must adapt.

#145 Howard on 07.10.19 at 1:44 pm

#140 Sail Away on 07.10.19 at 12:50 pm

It’s only about using your own talents and advantages, never blaming others. You’ve already won the global lottery by chance birth location, now use it to your advantage. Acting the victim is immature behaviour.

——————————————

Quite right. Everyone must make the most of one’s situation. The Boomers’ situation was dirt cheap housing, cheap or free education, no credential inflation, gold-plated pensions, low immigration (therefore healthy wage inflation), government effectively up the drawbridge on younger competing generations.

The Millennials’ situation is significantly less favourable. This isn’t a whine it’s simply an undeniable fact. To make the most of their situation, I believe Canadian Millennials have no choice but to leave the country unless they are born to wealth.

#146 NoName on 07.10.19 at 1:52 pm

Interesting read

This explains why all those Hollywood celebratz all of the sudden want to activists…

https://mattstoller.substack.com/p/the-slow-death-of-hollywood

#147 NoName on 07.10.19 at 2:02 pm

#142 Gravy Train on 07.10.19 at 1:19 pm

Overall, the carbon tax is designed to be revenue-neutral. Why is this so hard to understand?

That is so miss leading, worst that laying mayby is ravenue neutral for gov, but definitely its not ravenue neutral for me.

Just on a gas for my car alone I over paid from what i got back as a credit (yes i did a math), that is just one car, same for my wife’s car, now start adding other carbon tax that is attached to other good and service that we are paying for the year.

#148 n1tro on 07.10.19 at 2:19 pm

#142 Gravy Train on 07.10.19 at 1:19 pm

The whole point of the carbon tax is to encourage good behaviour and discourage bad behaviour. If you use solar panels and wind turbines, you get rebates; if you use oil, gas or coal, you get taxes. Get it? No? Maybe I should just give up! :)
——————————-
Oh I get it now. Like the $15K rebate to buy +$100K Tesla Model S? What was thinking?!

So what if I told you my carbon footprint is already lower than the average Canadian? Still bad and must be guilted/punished until I go completely off fossil fuels and hook onto a fossil fuel supported grid which is subsidized by others?

Revenue neutral you say? Other posters have already linked to this experiment being done and failing miserably. This time it will be different right?

But let’s say that the bureaucrats do somehow make things “neutral”….where is the money coming from to fund the UN to subsidize China and India? Turn on the printing press?

I’d support the carbon tax if the government said they were going to do something like put all the money into building a hydrogen fuel cell infrastructure and subsidize normal vehicles that would use it. If I keep using my gas guzzling Mustang, well that’s on me then. <— That's what I consider as revenue neutral options.

Also rewarding good behaviour like granting $500 of carbon rebates to one summer student while giving another $0 because I get $1xx of CCTB? Does that sound "fair" or "neutral"?

#149 mike from mtl on 07.10.19 at 2:23 pm

#142 Gravy Train on 07.10.19 at 1:19 pm
….The reason I find solar and wind power so attractive is that the sun and the wind are public goods; they are freely abundant and are literally a free lunch…
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While true that solar (you know that hugeass nuclear exposion for billions of years) could be a very decent solution for say residential energy at aprox. 1kW/m2 ground-level we are not even close to say 50% efficiency at getting those numbers. Again that is at best case, real world efficiencies are in the 1-10% range obviously depending on weather and storage.

Probably would be best to collect sunlight high above the thick atmosphere, but then the problem is how to get it back down 100+km? Not to mention how smart (dumb) would it be to have massive structures in LEO that block out sunlight and without management are a hazard in waiting?

That’s the other technical problem regardless of source, storage. For the time being, electrical energy is stored on not so great chemical means. To obtain near constant say 10kWh on solar/wind/hansterwheel you’re most likely looking at battery + AC transformation, also not lossless.

But no let’s ignore all this as it does not concern to selfish masses who feel entitled with personal transport and over the top accommodation.

#150 Bill Puffle on 07.10.19 at 2:39 pm

#128 PastThePeak on 07.10.19 at 11:37 am

Ummm…not even close. While any borrowing is “creating money”, the notion that it is only federal spending that does so is completely wrong. The notion that the money supply is the federal debt is completely wrong. The notion that eliminating the federal debt would destroy the Canadian money supply is completely wrong.

Perhaps you should do a bit more research…

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The Bank of Canada provides the base money to the system by exchanging primarily federal government debt for currency that is spent into circulation.

Once the base money is deposited into the commercial banking system, then the money supply expands through fractional reserve lending. This fractional reserve lending is what creates the majority of our money.

It really all depends on what you define as money. Federal Government debt could be defined as “near money” and it’s one of the closest things to money that you can own.

Let’s use a simple example to illustrate what happens when the Federal Government repays debt. Let’s pretend there are two Canadian citizens and the Federal Government. Garth has $5 million in a chequing account. Ed has $3 million in a chequing account, but also $1 million in Federal Government bonds. So combined, they have a net worth of $9 million. If the government implements a “Garth Tax” and takes $1 million in taxes from Garth, it can then repay the debt it owes to Ed. So now Garth has $4 million in a chequing account. Ed now also has $4 million in a chequing account. So combined, they have a net worth of $8 million. So by paying off the federal debt, we are taking away money from the private sector (since Federal Government debt is the closest things to money that you can own).

Now let’s pretend that the Federal Government implements a $2 million “Garth & Ed Tax” where they take $2 million from each of them to repay $4 million of debt held by the Bank of Canada. Now they each have $2 million in their chequing accounts ($4 million total) and the bank has to call in loans to fund the withdrawals. So as the debt to the Bank of Canada is repaid, money is taken out of the system and the fractional reserve lending process goes in reverse. Once all the debt is repaid to the Bank of Canada, the whole debt pyramid collapses back to zero and there is no money left in circulation.

#151 Brett in Calgary on 07.10.19 at 2:50 pm

#136 IHCTD9 on 07.10.19 at 12:00 pm

” the bottom line requirement is not so much big incomes as it is DUAL incomes”
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Yes – soon we will pull our junior high kids out of school and put them to work for a third income. Housing in Canada is just ridiculous – even in dying cities like Calgary.

I smile at the thought that a 750K single detached in Calgary is reasonable. Are you crazy? My wife and I are two professionals in healthcare and make a combined $150K… so 5X income (10X for a single income) for us. Now imagine a fresh grad making 50K/year…

#152 Bill Puffle on 07.10.19 at 3:29 pm

#122 Shawn Allen

Response: And it works great, right? Rephrase. We operate in a system that offers ample credit and a monetary system based on trust. That’s a good thing?

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I’m not really saying whether the current system is good or bad. I’m just trying to describe how it functions and pointing out that you don’t really need to worry about repaying the national debt (especially the debt owed to the Bank of Canada since this the base of the entire monetary system).

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Response: There is no evidence that tat aggregate consumer debt is “too” high. In fact default rates suggest no problems. It is not a sure thing that there is any debt bubble, much less that it will burst.

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Defaults will be low when assets (especially housing) are increasing in value and you can keep borrowing more. As long as you can borrow more and your house keeps going up, you never need to default. If you can borrow money to repay old debt, you can go deeper into debt instead of defaulting. When housing prices go down and equity is destroyed, home owners can no longer borrow any more and are forced to cut spending and attempt to repay debt. That’s when the defaults come because the lower spending causes a recession which causes job losses which causes the defaults.

> Response: But provincial, personal and corporate debt is also adds to the money supply, no? As you said above borrowing creates money.

Correct. But it all depends on how you define “money”. I like to divide it up into different categories: 1) Base Money; 2) Money; 3) Near Money

Base Money is physical cash plus money held on deposit at the Bank of Canada. Only the Bank of Canada can create Base Money.

Money is Base Money + anything held in a demand deposit at a commercial bank. Sometimes called “checkbook money”.

Near Money is debt instruments (basically, any IOU for money). Federal Government debt is the “nearest money” or “near base money” whereas junk corporate bonds might be considered “far money”.

Basically, anything in your chequing account would be considered money. If you can directly use it to purchase goods and services, that’s money. So anything that you would use to buy something at Walmart (not including credit cards which obviously isn’t money). You can’t buy stuff at Walmart with a 3 month T-bill or an Ontario Government bond for example, so they are not money. You have to convert your Near Money into Money before you can purchase goods or services. Also, a deposit at a commercial bank is essentially an IOU from your bank. So ultimately, we use commercial bank IOUs as money in our current system, which is backed by loans (mainly residential mortgages, which are backed by the CMHC which we assume is also backed by the Federal Government which is backed by the Bank of Canada).

#153 Ace Goodheart on 07.10.19 at 8:59 pm

“#142 Gravy Train on 07.10.19 at 1:19 pm

The whole point of the carbon tax is to encourage good behaviour and discourage bad behaviour. If you use solar panels and wind turbines, you get rebates; if you use oil, gas or coal, you get taxes. Get it? No? Maybe I should just give up! :)”

Riiiiight….so we have to go and buy some wind turbines and solar panels, to power our house. In the winter. When there is no sun…

I can’t wait to hear what the neighbours have to say about the 40 foot wind turbines in the front yard.

And how are either of these things going to lower my property taxes (raised when the City has to foot a larger bill because of carbon taxation) or my grocery bill (again, higher due to carbon taxation) or my gasoline bill (do the math and see how much gasoline you’d have to burn before a $65,000 Tesla would be a better deal than a $22,000 VW golf).

““[…]Carbon taxes are consumption taxes. They are applied to goods and services, that everyone needs and that people cannot live without.[…]” Goods get gifted with rebates; bads get slapped with taxes. Overall, the carbon tax is designed to be revenue-neutral. Why is this so hard to understand?”

This is just completely untrue. How is a low income person supposed to put up wind turbines and solar panels, and go out and buy an expensive (and mostly unavailable) electric car? This is pie in the sky Liberal garbage. There is nothing practical about this type of taxation. It’s a consumption tax, targeted at basic goods.

#154 Gravy Train on 07.11.19 at 12:19 am

#153 Ace Goodheart on 07.10.19 at 8:59 pm
“Riiiiight….so we have to go and buy some wind turbines and solar panels, to power our house. In the winter. When there is no sun…” In the past 105 days, my solar panels have produced 3,360 kWh and at $0.16684/kWh my cost savings are $560.58. I’ll give you a full report in another 260 days. :)

“I can’t wait to hear what the neighbours have to say about the 40-foot wind turbines in the front yard.” Is this your idea of a joke? Have you not heard of small rooftop wind turbines? Do some research, genius!

“And how are either of these things going to lower my property taxes (raised when the City has to foot a larger bill because of carbon taxation)?” You can wallow in self-pity, or take proactive measures to benefit from the carbon tax regime. Arm yourself with information. Here, read this:
https://www.theglobeandmail.com/canada/article-canadas-carbon-tax-a-guide/

“or my grocery bill (again, higher due to carbon taxation)?” In our household we grow a garden! There’s an expression: Adapt or die! :)

“or my gasoline bill (do the math and see how much gasoline you’d have to burn before a $65,000 Tesla would be a better deal than a $22,000 VW golf)?” I take the bus! :)

“This is just completely untrue. How is a low income person supposed to put up wind turbines and solar panels, and go out and buy an expensive (and mostly unavailable) electric car?” In my province, my power company offers low-interest loans on solar panels and wind turbines. I never said you had to go out and buy an EV.

“This is pie in the sky Liberal garbage. There is nothing practical about this type of taxation. It’s a consumption tax, targeted at basic goods.” Suit yourself. While you’re wallowing in self-pity, I’ll continue to make my estimated nominal 12.81% return after tax on my investment in solar panels for each of the next 25 years. The panels have a annual degradation rate of 0.8%, so even after 25 years the panels will still be 80% efficient. They just might outlive me! :)

#155 Ace Goodheart on 07.11.19 at 1:40 pm

#154 Gravy Train:

I can see where you’re coming from. Power your house with wind turbines and solar. Grow all your own food in your garden. Eat vegetables rather than meat.

However in Southern Ontario this just isn’t going to work.

Our growing season is June to Sept. By October, even if it is still warm, vegetables won’t grow anymore because the sun is too weak. So from Oct to May you have to buy your food.

Our garden is nowhere near big enough to support our family, even in the summertime. And we have a fairly large lot. Every so often the neighbourhood raccoons raid us and we lose our tomatoes, peppers, potatoes and carrots (and whatever else they decide to dig up).

I have experimented with solar power and found it is not enough to power a house in the summertime. Wind turbines need wind. Trying to heat your home with wind and solar does not work. The snow falls on the solar panels. The sun in December only shines from about 9am to 4pm abd is very weak.

I get it. Force people through massive taxation to go “off grid” grow their own food, walk everywhere and use wind and solar for power.

However that sort of brutal existence is not going to work for most people in Canada.

Most of us will just end up paying the massive new consumption taxes and gearing up to vote out the government that imposed them.

That is what will really happen.

T2 will tell us “we are going to punish you all with heavy consumption taxes ”

Maybe 1% of the people will go off grid and try to comply with a zero carbon lifestyle.

The other 99% will say “throw the bums out” and will get rid of high taxes at the ballot box.