Some people wonder how, in the midst of recession and pandemic, RV sales are surging. Boats, quads and hot tubs are flying off the shelves. Building supplies are scarce and precious as prices rip higher. Real estate is sizzling with sales and values inflating – as if the economy were on fire.
But it’s not.
And, incredibly, look at the chart below. This is the Canadian household savings rate. Remember when it was barely above 1% a while ago? Well, the rate just jumped to 28% – the same level as back when I had sequined bellbottoms and thick, curly chest hair.
Source: Statistics Canada, Turner Investments
But wait, there’s more news. Equally astonishing.
Direct deposits into Canadians’ bank accounts increased in the last three months by almost $94 billion. Billion. With a b. The most ever. Household net worth in the midst of the worst downturn since the 1930s was up by 5%. The value of investments increased by over $300 billion. Residential real estate was pushed higher $78 billion in just 90 days. Yikes.
There’s more. The ratio of debt payments to income dropped by the largest amount on record, partly because of all those mortgage deferrals. Debt as a percentage of income plunged from over 175% to 158% – the biggest quarterly plop ever.
This is a staggering jolt to personal finances. Historic. Unprecedented. And it’s 100% because of a torrent of government money coursing out of Ottawa into bank accounts across the nation – a response to a virus which infected far less than 1% of the entire population, but caused the economy to shut. The public cost was just as startling, new StatsCan numbers show, as the impact on consumers and the gush of spending on home renovations, quads and bungalows.
In a mere three months Ottawa was forced to borrow $301 billion. Of that, $234 billion came in short-term paper issued by the central bank and $66 billion in fresh bonds. More records. Nobody alive has ever seen this level of new public indebtedness. Says the agency: “The ratio of federal government net debt (book value of total financial liabilities less total financial assets) to gross domestic product (GDP) jumped to 32%, the largest quarterly increase in the life of the time series, as federal government net borrowing increased and GDP contracted sharply during the quarter.”
Okay, what does all this mean?
First, politicians deliberately turned off the economy, throwing eight million people out of work, shutting down entire industries and blowing an historic hole in the GDP. This was in reaction to Covid 19. It might have been wise and prudent. It might have been a hysterical over-reaction. History will tell us. Nonetheless, those who locked us out of employment, schools and routines had an obligation to compensate for their actions.
Second, we will be paying for this for a long, long, long time. When the government burns through $100 billion a month, every month, pushing the debt past $1 trillion (double that when provincial red ink is included) there’s no choice going forward but increased taxation, currency debasement, inflation, or all of the above. Oh, and Parliament’s been suspended or restricted the entire time. Most measures were announced under the powers of a state of emergency. So much for democratic protocol.
Third, did Canadians blow this? Handing over $94 billion in direct deposits made real estate less affordable, goosed motorcycle sales and drove the price of two-by-fours through the roof at the same time 25% of all homeowners with mortgages decided to stop making payments and unknown numbers of tenants welched on rent. There’s a growing sense we might come out of this in way worse shape thanks to the unregulated flow of CERB cash. More spending did not reduce debt. In fact, household borrowing just hit a new high of $2.33 trillion.
Covid really messed things up. The political response was extreme. Maybe that was the right response. Perhaps not. Obviously a lot of people needed income support when their livelihoods were erased. Others found CERB cash replaced the need to look for a job. Others quit work to collect it. Small businesses complained of a lack of willing employees. And the gush of cash, along with crashed interest rates, has inflated prices and increased personal obligation. Now we have an unfathomable shortfall in public finances, and a government unbothered by it.
The next few months will tell the tale. Throne Speech soon. Budget a few weeks after that. At some point in 2021, likely an election. Polls today show the spendiest government in history would win again. Our national appetite for caution, moderation, prudence, restraint went pffft. These are the days of quick gratification when people vex if a download takes more than five seconds.
Covid brought us to this crossroads. Pick your path.
167 comments ↓
Pay up boomers! You had yer run, were taking over Sept 23
The socks dude is just getting started! Go big or go home! T2 – TWO TRILLION is the goal.
The 20’s are going to be a lot like the 90’s.
1 MS – yep we’re giving your inheritance to the government!
Just heard last night from a friend who lives up in Wasaga Beach and he said the housing market is crazy up their. WTF? He says a house goes up for sale and its lucky if it lasts one week before its gone. I told him that’s hard to believe but he says that is his observation in his neighborhood. He said the word on the street its all GTA people purchasing. Prices are up too. Wasaga Beach? WTF Anyone have data on this? Love the place to visit but living there?
I bet the Alpha Dog in the pic is the scruffy little one!
Imagine getting paid in US dollars and having access to a real economy who actually wants to succeed. It’s the only way forward at this point. Don’t blame us for bailing, blame yourselves for voting in the drama teacher.
Vacation in Montana, who needs BC. Sask your welcome to come along.
MMT at work: https://www.advisor.ca/investments/modern-monetary-theory-and-pandemic-debt/
#1 Millenial Surrealist on 09.11.20 at 11:01 am
Pay up boomers! You had yer run, were taking over Sept 23
—————————————-
you are hooped … not the boomers.
Garth, excellent breakdown of what has been going on in Canada since all our lives changed with the dreaded Corona!
Yes we will continue to shake our heads at what is being purchased during a pandemic and Yes we will shake our heads wondering how people have no fear of being fiscally responsible when too busy being on a shopping spree for first world purchases…..
“….in life, a man only comes to a few crossroads that can shape his future for good or bad. Sometimes one recognized these crossroads, and could stop and think about the right decision.
But other times, the choice could only be seen with the clarity that came afterward.”
Morgan Rhodes,
Frozen Tides (Falling Kingdoms, #4)
Or, follow this wise Turner blog, and live quietly among them.
Some people wonder how, in the midst of recession and pandemic, RV sales are surging. Boats, quads and hot tubs are flying off the shelves.
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Going to be seeing a lot more ‘front yard decorations’ this coming fall. A few more of those gawd awful colored cover over tents in people’s driveways.
Be very frugal with your new found wealth, I’ve noticed over the years a lot of youngsters who inherent cash usually spend it on depreciating assets, toys, unnecessary furniture, extravagant home renovations, and divorces. Poooofff then sadness and depression, it’s predictable.
Everyday will be Christmas!
September 23 Will Rock!
https://www.youtube.com/watch?v=EDBMzGq1vhs
https://www.youtube.com/watch?v=JI_W8VEKvrc
#1 Millenial Surrealist on 09.11.20 at 11:01 am
Pay up boomers! You had yer run, were taking over Sept 23
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Yep us boomers had it really good alright but we actually had to work for it not like the lazy entitled millies. Our GenX children (the lost generation), also thought they had been screwed but it turned out that they did very well for themselves but they actually had to work for it too. Not like the lazy entitled millies.
You are getting to be quite monotonous millie. It must be very tiring for you. Maybe time for you to get a life and move out of the basement.
Speaking of driving the price of 2 x 4’s through the roof. I was into Home Depot and I check out the price of the 2 x 4’s x 8′ and it was an unbelievable $6.95.
In 2009 after the crash and the housing collapse in the USA and the lumber market with it, I was buying premium quality 2 x 4’s for $1.86 at Rona. How does it all make sense?
Usually buying into a frenzy is financial suicide ie. tech stocks 2020.
It doesn’t seem to apply to overvalued Canadian real estate lol.
#10 looking up on 09.11.20 at 12:07 pm
Usually buying into a frenzy is financial suicide ie. tech stocks 2020.
It doesn’t seem to apply to overvalued Canadian real estate lol.
———
Oops meant tech stocks 2000 not 2020
#1 Millenial unrealist
did your mom not cut your toast the way you like it for breakfast this morning
Hmmmm….let me get this straight.
GoC panics with CV-19, send population home and then sends a portion of the population money, the portion of the population who are also home owners in turn defer payments, then spend the money on RVs, bikes, and backyard porches and now the GoC wants me to pay more tax for these UtterlyStupiedDecisions?
Garth, you said pick your path….where is the path to opt out?
for every action, there is an equal and opposite reaction
this country is in a world of hurt and the body count is gonna be HUGE – cause paybacks a B*TCH
Good grief, Batman. What a mess………..
Garth, you said pick your path….where is the path to opt out?
Exactly.
There is no path to “choose”.
We are all holding hands with Dear Leader Justin. Except if you let go of his hand you will notice the chains.
This is forced. Save and be responsible all you like, you will just have a bigger target on your back in Daddy Justin’s newly remade Canada.
Oh also Garth your not fooling anyone. Your chest hair is still thick and curly.
Pick your Path? Various authorities pick your path for you
-wear a mask
-don’ work…. sorta work… now work- but don’t make too much…
-don’t gather in large groups
-here’s free money for 4-8 months
-Dont pay rent if you don’t want too
-This is the cost of money now
-pandemic 1st, climate 2nd, everything else after
Sunny ways my friends
As I said before the can kicking with continue.
Their trapped….. forever. Unless the bond market blows up but their buying with both hands.
https://www.bnnbloomberg.ca/bank-of-canada-drives-another-nail-in-the-coffin-for-savers-1.1492054
Quantitative easing (newspeak for printing money) makes anyone who doesn’t own assets more poor, while people who do own assets not more poor. Wealth gap is widening. Millennials opting to play league of legends in their mom’s basement rather than enter the work force & contend for a home & children. Debt is literally free, thanks
How is this sustainable? I don’t think it is. Thank god for my (unknown amount) of cryptocurrency & dual citizenship.
My main issue is that I didn’t get a cut of the money. It should have been like the US and gone out to ALL people. Instead workers got hit with paycuts, more work load, and no ’emergency benefits’.
Alberta the 51st State:
HERE HERE!
I’ve been saying here for months this is going to happen!
It is coming.
#8 Billy on 09.11.20 at 11:38 am
MMT at work: https://www.advisor.ca/investments/modern-monetary-theory-and-pandemic-debt/
___
“Government signals it won’t be restrained by fiscal orthodoxy as it vows to build the economy back ‘better'”
“It all suggests this government’s prescription for the post-COVID economic recovery will not be limited by the orthodoxy that deficits are bad”
“Liberal insiders say they are preparing to move beyond any fiscal anchors…”
https://www.cbc.ca/news/politics/trudeau-throne-speech-pandemic-budget-1.5709695
Trudeau believes fiscal restraint is bad religion. It’s pretty clear that some elements of MMT live in the LPC – so we can just forget about balanced budgets or reduced deficits. He’s outright saying “we don’t believe in that stuff”
So… hold on tight! He’s going to blow a hole in the dam and spend until inflation shows up – then (IMHO) he will be unable to reign it in. The attempt thereof will be killer though, taxes and rate hikes – right when we need them least.
Garth, I hope this is ok to post, really want to get the word out.
Please use disposible masks, single use, when required to mask up.
I have decreased lung function, so in Ontario I’m mask exempt, except to visit my father for 30 minutes in nursing home. I’ve been using a washable mask. After each weekly visit, I develop bronchitis.
My cousin, early 50s, has just spent a few weeks in hospital, with pneumonia from MRSA. He was COVID negative, acquired MRSA years ago after surgery. After mentioning my problems after masking, he brought this up with his doctor in the hospital. Doctor does believe that he developed the pneumonia from his MRSA due to reusable/washable mask use, due to how deep into his lungs the infection was.
Please use extreme caution with any mask use, especially if you must breath heavily through the mouth when using, as I do.
#19 Doug t on 09.11.20 at 12:11 pm
#1 Millenial unrealist
did your mom not cut your toast the way you like it for breakfast this morning
—————————————————-
that’ll be avocado toast …
Re: Savings
Does not surprise me.
Our family only spends on essentials, no overseas trips, no new fancy tvs and iPhones and other crap.
At Costco, the isles with the big TVs are devoid of shoppers.
Pre-Covid there always used to be at least on cart with a big tv in the line-up.
Not any more.
Savings are also up because fewer people trust the stock markets. People are thinking more “return of assets than return on assets.
We’re going back to the way our parents and grandparents lived.
#23 Sunnyways on 09.11.20 at 12:42 pm
“Save and be responsible all you like, you will just have a bigger target on your back in Daddy Justin’s newly remade Canada.”
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Yep, as I said yesterday, they will be coming soon for your viagra, sorry TFSA and RRSP’s
Back in March, when Garth was warning all of the over indebted lost souls that the gig is up and payback is on their heels…i posted that the BOC and existing GOV would would lower rates to a big fat 0, and throw cash out there like Al Capon on Chicago streets.
This is the best thing that could have happened to Trudeau!!!!
He was desperately waiting for an opportunity like this to shine like the hero god he is!!! He will personally prove MMT can be a success!
Garth as i said before,…you actually think these politicians are anything like the politicos of even 20 years ago? There is no ethical people in politics anymore.
Honestly,…I have never feared more for my 10 year old sons future than now. Anyone with kids should be very concerned for their future in this country, or maybe even the entire western world!
RE: #1 Millenial Surrealist on 09.11.20 at 11:01 am
Pay up boomers! You had yer run, were taking over Sept 23
////////////////////////////////////
Awesome.
Combined Provincial and Federal Income tax and CPP on an income of $120,000 in Ontario (about the bare minimum per person, for a working couple to afford a detached house in Toronto) is just a hair under $37,000.00
It will soon be a hair over $40,000.00.
Yup, that is right Mils, to earn 80K you have to make 120K.
Meanwhile, in Boomer land, where you just bought my ridiculously over priced working class house, the 1.8 million the Boomer invested in dividend paying stocks throws off $90,000.00 per year + capital gains.
Combined Provincial and Federal taxes on 90K in dividend income in the Province of Ontario is $4395.00
So, my Millennial Friend, even though you make 30K more than Mr. Boomer, and even though Mr. Boomer does nothing for his money, and you work full time, and even though you actually transferred Mr. Boomer his 1.8 million dollars, by mortgaging yourself as a debt slave for 25 years, even with all of that…….
After taxes, the Boomer STILL makes more than you.
For doing nothing at all. With your money. That you borrowed to give to him.
Ain’t life strange?
Have fun taking over………..
Millenial Surrealist, Millenial Realist, I hope you like eating in garbage dumpsters because this is what you are cheering for. Liberalism, Communism, NDPism, Greenism, Democratism, Marxism, leftism is all crap wrapped in a candy wrapper. It will never work and never worked tried over and over many times throughout history.
Cuba just yesterday, had its massive currency devaluation biggest since 1959. Money becomes crap, you can’t buy crap. Reality bites hey bud there is no utopia, socialist paradise.
Since the pandemic the amount we save in our household each month has increased by around a third. I can certainly see how those who now work online have a better opportunity to save than before. No need for outside lunches, and going for drinks, and with the more time for us to be creative in the kitchen we are happy to eat in. Bike rides and hiking with dogs replacing going to movies or expensive entertainment (concerts, sport events). The list of savings ranges from taking on ourselves more complicated house maintenance projects to much less use of the car and no expensive plane tickets. We are in it for the long haul and it’s been okay so far.
#1 Millenial Surrealist
Please, please take over the…
$2T debt.
You with your doppelganger Realist Millennial buddy to the left as of now, on the right where you will both be, by then threadbare and still with no brains:
https://i.imgur.com/m6abV1x.jpg
—————————
“These are the days of quick gratification…Covid brought us to this crossroads. Pick your path.”
Good to read My Liege I am not the only one here that has the same thoughts about quick gratification.
They have already picked the path Garth…$2T, I’d say they’re running down that path full steam ahead.
As you say, it will take a long, long time…a year of Sundays to unwind that $2T debt.
Soon enough, threadbare Gov Canada…a page right out of threadbare Gov Italia’s playbook.
A sad day indeed.
#25 Bill on 09.11.20 at 12:44 pm
____________________________________
central banks are bluffing. they know there is a limit to how much they can print. the market decides. when you see the bond market blow up, it’s all over ….
When I get my UBI, I plan on maxing out my TFSA in every previous year that I possibly can. Hey-oh. Along with our defined benefit pensions, financial Independence at 50 here we come!
We might believe the part about the bell bottoms
Why does everyone forget the boomers had extra decades to build their wealth? I guess this is a symptom of the ‘instant gratification’ attitude eh? No wonder so many are stuck in their holes.
#1 Millenial Surrealist – for all here to understand your posts just read this article…then consider the your intent. As always, nothing to see here….move on
Horrifyingly absurd, the next generation….
Classical Liberal Millennial, good luck on that plan. It already failed before it got started.
#39 it’s all over on 09.11.20 at 2:05 pm
I agree….they will lose control at some point. Its amazing we made it this far.
What we know for sure is politician’s lie and it’s gotten WAY worse than the past decades.. I give it 2-3 years then some sort of disasterous reset.
Europe probably goes first. We are all boyond broke. I thought 2009 ish that reset was coming. Nothing was fixed after that and the powers that be just dug a way bigger hole. Extend and pretend. They hope the sheeple dont wake up. Thats the distraction of over blown covid i believe they are using… They will blame covid and not PP policies that have gone on and on.
People wishing more taxes on boomers, like wealth tax or on RE profits, probably don’t realize that once that money is gone into Ottawa’s coffers, it is forever gone. Not to be had as inheritance, gone forever!
People wishing lower RE are probably only hoping that the RE they “need” goes down, not the one they own. Since 70% of canadians own RE, lots of pain might be spread around.
Not looking good here in Europe with you know what. I mean to Canada, Europe is about $13B in exports vs. the US > $330B…still that trade keeps people employed:
https://i.imgur.com/Z1KQ5iz.png
France considering Regional lockdowns. The Germans have already restricted travel in France to: Corsica, Ile-de-France, Provence-Alpes-Cote-d’Azur and Nouvelle-Aquitaine.
The English adding Portugal to their quarantine list today. Germany and Italia holding the line barely, both skating on thin ice with Rt’s in the low to mid 0.90’s.
ISRAEL today went back to a 2nd lock down, incredible.
———————–
BACK TO SCHOOL will probably increase infections. The kids will be fine with a mortality rate of 1 (its spreading if > 1):
https://i.imgur.com/bWZ1T2P.png
Bad thing for the kids is that they present differently, SYMPTOMS, than adults. UK’s Dr. John Campbell on pretty extensive UK study on their Back to School so far, NOT GOOD (YouTube slow to find the timestamp):
https://youtu.be/V5OfP2_LisY?t=376
He reckons it will spread due to Back to School and increase infections.
Just a heads up PARENTS what’s already happening in Europe.
Yesterday in Italia (school opens Sept. 16 here) they tested 50% of all teachers and support staff and found 13,000 teachers and staff had been exposed to COVID-19. ALL are on a 2 wk quarantine to ensure they are negative.
DAMN that VIRUS.
I ‘dunno Garth, this apparent resurgence going to put a damper on economies…NOT GOOD. It’s become 1 crazy World Garth.
———————–
In the WTF Department, a German tourist tried to make off with 2 kilograms of beach sand from Sardegna, Italia.
As usual, our trusty Carabinieri nabbed the Deutscher at the airport in Cagliari. Got fined:
€1000.
Not the first time Sand Smugglers have tried to make off with our sand…LOL.
Nobody makes off with a piece of Italia without having to pay for it (thru the nose). Of course, Dutiful Deutschland not averse to the fine in fact support it:
https://www.express.de/news/panorama/sand-klau-mit-so-einer-heftigen-strafe-hat-der-italien-urlauber-nicht-gerechnet-37322036
Last year, a French couple tried to make off with 40 kilos of our sand.
I know, I know…this is starting to read like a Monty Python skit but apparently SAND SMUGGLING a big deal here in Europe…well, to the Germans & Italians anyway (and the French).
5 Ronaldo on 09.11.20 at 11:57 am
“Lazy entitled mills?”
Come on Ronaldo. Don’t get drawn in to that troll’s ramblings.
Garth has mentioned this a lot. The low interest rate environment has increased the wealth divide. Young people are generally more liberal always, but of course, if people feel hopeless (1.4 mil for a house my parents bought for 1/6 that lol just lol at this mess) they will keep
voting more liberal.
Don’t fall prey to that us vs them crap though.
MF
Many people seem quite complacent about their freedom right now with this CERB money being handed out like confetti and people spending it all like drunken sailors. A lot of these people obviously did not need the CERB so this was an absolute waste of money. CERB should have gone only to those who actually needed the income support.
But let’s see what happens when Corona quarantine camps start popping up to keep in those “uncooperative” citizens as is the case in Quebec right now. What other freedoms are you willing to trade for the ever flowing CERB and government handouts. I believe our freedoms are being slowing taken away by government response to this Corona virus. I weep for the Canada I once new and loved. I don’t see Canada getting back to normal for a long, long, long time — if ever.
I am J Trudeau I am concerned for the welfare of all Canadians.
Its okay its alright now I am here for you.
If you are a renter…no need to pay…its ok that’s quite alright.
If you have a mortgage…don’t worry, I got your backs I’m up for it. No need to make another payment.
If you need a house to live in…have no more worries, I will make it easy for you to get what you need. If you wish to forego making monthly payments afterward…rest easy, keep those payments as gift from me. I got your backs.
If you need a little money to purchase that new boat or dirt bike or new barbecue, just ask…there’s lots and lots sweet forever lots more cash to go around for free stuff and more and more and more… just for the asking.
Whatever your cash needs may be…anything, just anything at all no matter what…please – pick up the phone and call day or night. We’ll even offer an extra cash prize as a bonus gift to every 10th caller because we care and want to keep it exciting as can be.
In fact… just to show all Canadians how much we really truly and sincerely care…I’ll go out on a limb for you and guarantee no one ever need worry about paying for anything ever again. If you need cash for anything no matter what – no matter what for… the more the merrier…you got it. …Its all all alright now …I have arrived and am here for you always.
I am JT …thank you for coming out…thank you for listening.
…end of speech)
A little bit of CERB everyday……
Keeps the 9 to 5 away.
“RV sales are surging. Boats, quads and hot tubs are flying off the shelves.”
The problem with those CERB payments is a lot of it didn’t go to those who actually need it. I know people who are retired with a pretty decent pension who worked part time for something to do and are collecting it as well. Someone’s going to pay for this greed. Which will likely be all of us.
#1 Millenial Surrealist:
I’m a late Gen Xer, and my wife is an early Millenial, and I’m always baffled at the anger directed at the ‘Boomers’ for somehow ripping off the generation that represents their children. Yes, Millenials are for the most part children of the Boomers. The lifestyle afforded those children is FAR above that experienced by the Boomer generation. The life provided to my wife and I by our parents has no resemblance to the simpler existence experienced by our parents when they were children. We, and especially the Millenials, benefited immensely by the successes of our parents in their working years. We as children were adorned and coddled like no other generation before us, including the Boomers. So I find this phenomenon breathtaking, and perhaps understandable.
The BC government is talking about a 6.7% economic decline. While that is a tragedy, people need to consider that the BC economy is still at 93.7% of where it was before the crisis hit.
As long as people aren’t living on the edge, why shouldn’t most of them do well?
@ #5 JB CONDO DEATH
I don’t have any stats but can confirm based on what I’ve seen in Collingwood. Same thing is happening here as Wasaga. Two houses on my quiet street listed and sold within 2 weeks. Bungalow and split level listed for $650K and $750K. Haven’t seen the sold stats but would assume they received close to asking.
The bungalow is similar in size to ours that we bought last summer for $430K with ours having a bigger lot and more updates inside. It’s absolute insanity here. If I had a place to move I’d list in a heart beat. The problem is any decent rentals are being shown and leased same day.
I don’t see how this ” great economic reset” will not lead to inflation. As stated before I lived through inflation than hyperinflation and the only asset that maintained its value was Real Estate.
Hence it would be prudent to shelter 40%-60% of net worth in RE.
As far as the “millennium activists” they are in for the kicks and I have fun reading their “rallying posts” or have been cut out of the family inheritance tree so they have an axe to grind.
Read a comment somewhere.
“Politicians sacrificed our jobs to save theirs.”
Not denying seriousness of the virus, i think this comment sums up the political response to it.
But yes unusual times. People are spending like there is no tomorrow. Pun intended.
#40 Classical Liberal Millennial on 09.11.20 at 2:09 pm
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People like you are the reason why I shut my one company down. Why feed the pig (gov) if their just going to hand out free bees to those that never earned it? Free money on corp bailouts.
That was $500k year…poof don’t care.
My RE biz I will keep as its does about $400k yr.
I can push a lot of my bills through it and manage the money in the company tax efficiently….so less for the pig.
I guess the crazy a$$ pig doesn’t realize they will never get back to the level of taxes they take in… Massive deficits for ever. Back in war time we dug out for various reasons..people were productive is one. Lots of dead beats now.
I’m looking for another country…if they let me fly. I think the music just stopped.
When is the budget?
Yesterday:
“And now that we’re just twelve sleeps away from the Throne Speech. But the real hit could come with the first Chrystia budget a few months later.”
Today:
“Throne Speech soon. Budget a few weeks after that.”
Not announced. By the way a few weeks equals a month or two. – Garth
While I agree that government spending (CERB) helped Canadians to save more money however, what really did it was elimination of expenses associated to commuting, eating out, buying clothes etc. at least for those who continue to WFH and receive their full pay. This too will end one day and for those who made big purchases may realize in a year (when those expenses return) they maybe cash strapped. Only time (a lot of time) will tell!
Some people wonder how, in the midst of recession and pandemic, RV sales are surging. Boats, quads and hot tubs are flying off the shelves… – Garth
**********************
I bet a lot of other stuff too, like TVs, furniture etc.
There are loads of people who take 1 or 2 yearly vacations and can’t help but spend that money elsewhere.
#54 NSNG on 09.11.20 at 3:10 pm
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Not sure where you get the 93.7%? Most are stretched out paycheck to paycheck that why CERB…
We had near zero growth prior to the pandemic maybe 1%. We were heading for recession anyway and I personally got cashed up in early Feb.
This is more like it:
https://omny.fm/shows/money-talks-with-michael-campbell/the-last-20-30-will-be-the-hardest
#180 millmech on 09.11.20 at 9:51 am
#135 Cici
My family physician has said you should only worry about this virus if you are in a care home, over the age of 80, with multiple medical issues.
*********************
You should get a new doc.
My 16y old cousin is(was) a competitive MMA fighter, caught covid and had pretty bad flu-like symptoms for 10 days. Then at his yearly physical 2 months later they found a pretty serious heart condition that they can only explain as a side effect.
It’s possible that he may recover due to being very young and otherwise fit, but he can’t compete and might live with this forever.
There is a very wide range of outcomes between “totally fine” and “dead”
They had this thingy in the former socialist countries – it was called coupons that you use to purchase goods, coupons created and handed over by government.
The stuff you perceive as ‘money’ today is precisely that. Coupons with an expiration date. Use it or lose it.
No past labour behind it. No resources or assets behind it.
Just made up at will stuff that dilutes your past labour.
The last step in the destruction of currency is free print at will and UBI and we just entered it.
The worse part of the whole farce/charade is that we are going down by incentivzing wrong behavior – borrowing and spending, not saving and investing.
There is no graceful way out of this mess and no amount of lies will restore the trust in a broken monetary system.
Cheers,
As long as the USD stays the global currency we are all good. We send paper to the east and south and back comes wonderful goods and food and all the things we are too lazy to manufacture.
Pray that the yuan continues to be pegged to the USD. If the yuan breaks the peg …. .
Mills, Boomers, Gen X, Z, Y.
We all have been or will be one of them.
We all bleed when we cut ourselves, don’t we.
Just take your place on the Great Mandella.
And chill.
Right Dharma Bum?
Last post for a while thanks Garth
Here’s another reason to replace your Gov.
The medical system is rigged and you ain’t allowed to seek and pay for private treatment. Just die I guess. All the money in the world for whatever but denied healthcare…
https://omny.fm/shows/money-talks-with-michael-campbell/supreme-court-rules-against-private-medical-care
#62 Bill on 09.11.20 at 3:51 pm
#54 NSNG on 09.11.20 at 3:10 pm
———————————–
Not sure where you get the 93.7%? Most are stretched out paycheck to paycheck that why CERB…
We had near zero growth prior to the pandemic maybe 1%. We were heading for recession anyway and I personally got cashed up in early Feb.
This is more like it:
https://omny.fm/shows/money-talks-with-michael-campbell/the-last-20-30-will-be-the-hardest
————–
Michael Campbell?
I think he’s Turner Nation.
My chart with plots of Average Prices of VANCOUVER and TORONTO Single Family Detached Houses, BITCOIN and GOLD all Denominated in USD is up with August data.
http://www.chpc.biz/bitcoin-gold–re.html
FOMO 2.0 animal spirits are fully engaged.
As my December 2012 post
http://www.chpc.biz/history-readings/what-to-do-during-a-housing-bust
showed using Japanese Household Cash & Deposits charts
and:
Now in 2020, CPI has crashed and that moves real rates up… so far marginally, but as they rise, savers have more incentive to save.
The last 6 Total CPI prints have been:
+2.2%
+0.9%
-0.2%
-0.4%
+0.7%
+0.1%
#9 ‘Looks’ I agree:) Millennial must have forgotten the part about all the Boomers popping their clogs long before the tax bill comes due. If Covid has its way, sooner than you think. Plus if Millennial happens to inherit from Boomers, that smile of joy at finally being ‘rich’ will quickly turn to tears as the tax man lands on the doorstep looking to collect the government cut! Even better from a karma viewpoint, it will be something Millennial & cohort cheerfully voted for. ‘It’s only fair!’.
Government over spent 30 billion on the CERB with money going too people who didn’t need it, some including wealthy families and their kids, and how long will it take to pay it back,???? Britain made its final world war 2 payment in 2006.
#48 MF on 09.11.20 at 2:55 pm
5 Ronaldo on 09.11.20 at 11:57 am
“Lazy entitled mills?”
Come on Ronaldo. Don’t get drawn in to that troll’s ramblings.
Garth has mentioned this a lot. The low interest rate environment has increased the wealth divide. Young people are generally more liberal always, but of course, if people feel hopeless (1.4 mil for a house my parents bought for 1/6 that lol just lol at this mess) they will keep
voting more liberal.
Don’t fall prey to that us vs them crap though.
MF
—————————————————————
Actually MF, I don’t fall that easy for anything. Just giving Millie a hard time and by no means believe that all the Millies are like him/her. Been around the block many times in my lifetime and have experienced a lot of things. As for the millies, coming from a very large family, I have many millies as nieces and nephews and for the most part they are mostly hard working and pretty successful individuals. None live in the bubbly cities where they could not afford a home. There are always those in whatever group who think they have been done hard by and always blaming others for their failure to launch. I suspect, as you do, that the Millennial Surrealist is just a Troll and looking for attention. Probably was the same as a child.
Lumber prices are crazy because the Giants of the forestry sector (Canfor, West Fraser, etc) have closed the bulk of their sawmills. Driving up prices – this is rigging the supply and demand model. Its not quiet a monopoly but they know how to control prices
“– a response to a virus which infected far less than 1% of the entire population, but caused the economy to shut.”
You really do want more dead people don’t you? More permanently maimed and impaired.
It’s not a good look Garth. I’d suggest you shelve it.
Why do you need more people to experience what is detailed here: https://www.sciencemag.org/news/2020/07/brain-fog-heart-damage-covid-19-s-lingering-problems-alarm-scientists#:~:text=The%20list%20of%20lingering%20maladies,lungs%2C%20kidneys%2C%20and%20brain. before accepting that maybe, applying the precautionary principle was the right thing to do?
It sure doesn’t sound like it, despite your prior protestations to the contrary.
My statement was factual. You are being emotional. Get a grip. – Garth
#181 Dr V on 09.11.20 at 10:03 am
150 good morning soggy
That would be called a “guaranteed minimum income”. The biggest problem with it is the disincentive to work.
The “universal basic income” would go to everyone and would be paid back through taxes. The trick is finding the right level of UBI and setting the tax rate so that the majority of workers find no net change in take home pay.
There is also ” negative income tax” which appears to be more of a form of UBI.
Beware which system (if any) will be offered
*****************
Good afternoon Doc.
I see the difference between the two now, and I still don’t like either one.
I just don’t believe it’s that hard to get a job if you aren’t disabled.
Perhaps not a great job, or even a good one, but one that pays the bills is certainly possible. I see nothing wrong with working a hard/physical/crappy job for a little while to gain experience or education or contacts or time to find a better one.
The
kidsgrown men who (pre-covid) were unsuccessfully sending out loads of resumes to try and find a job “in their field” should have also been swinging a hammer/flipping burgers while doing so.Perhaps I’m biased living in Alberta, but the border is open so if someone couldn’t find a job paying 1.5x min wage in another province they did have the option to come out here and get that on virtually any construction crew in at least the last 2 decades.
Months back there was speculation that the c-virus led to more deadly complications the longer one is exposed to an infectious source. Those who picked up the infection from a single passing of the source were thought to experience lighter to no symptoms generally leading to the the conclusion – length of exposure to a source of infection is more the factor to susceptibility rather than age, except for the most aged.
Something to consider when being around others in close quarters for extended periods.
Worry more over the winter months where this nasty bug will take us. This is the big unknown giving many stress.
Wear a mask, practise social distancing and hope this situation doesn’t go to the next level like the Spanish flu.
Wouldn’t that be fun?
The problem only comes when it’s time to roll over the bonds…or re-finance a mortgage.
There should be a moral obligation on the govt. to only issue 30 year paper from here on in. Get rid of all of the masters of the universe who try to control the yield curve.
This amount of debt cannot be paid back, and will not be paid back, but the pain only comes when interest rates go up. Take advantage of the markets now and issue long dated bonds such that the young people have a chance 10 years from now and don’t have their lives completely destroyed by the “now” generation.
No need for tax increases when you can print money like this. Don’t kill the wealth producers!
Make today’s generation take some of the hit with the additional interest on longer dated debt and the currency devaluation that will come on the asset owners.
Who cares about the national debt! Let’s take it to 5 trillion! It’s just a a few strokes on the keyboard and mouse!
Unemployment numbers are historic.
I have never seen so many Help Wanted ads pasted on store windows, ever, in my life. (1960).
Messed up.
#63 SoggyShorts on 09.11.20 at 3:55 pm
#180 millmech on 09.11.20 at 9:51 am
#135 Cici
My family physician has said you should only worry about this virus if you are in a care home, over the age of 80, with multiple medical issues.
*********************
You should get a new doc.
My 16y old cousin is(was) a competitive MMA fighter, caught covid and had pretty bad flu-like symptoms for 10 days. Then at his yearly physical 2 months later they found a pretty serious heart condition that they can only explain as a side effect.
It’s possible that he may recover due to being very young and otherwise fit, but he can’t compete and might live with this forever.
There is a very wide range of outcomes between “totally fine” and “dead”
________________
In a study published this year in the New England Journal of Medicine (NEJM), Canadian researchers found that the risk of having a heart attack was six times higher during the week after being diagnosed with the flu, compared to the year before or after a flu infection.
https://www.nejm.org/doi/full/10.1056/NEJMoa1702090
And in 2008, researchers reported in the European Heart Journal that the risk of stroke after a flu diagnosis remained elevated up to three months.
https://pubmed.ncbi.nlm.nih.gov/18063596/
And pneumonia is always a serious risk too.
There are deadly consequences to the old-fashioned flu too, in case you forgot.
Sucks about your cousin, but colds and flu have always had the potential for serious and long lasting side effects, this is not unique to C-19.
I don’t understand the alleged connection between the jump in savings and CERB. To my knowledge CERB is for those unemployed because of Covid, and 2k per month is probably less than the poverty threshold, and likely less than the regular paycheck. Am I missing something ?
I can only see the reduction in household consumption as the main driver of this jump in savings.
sensor to detect virus in air – good idea !
influential voice on the economic impacts of climate change,
October 7, 2020 – 12:00pm
2020 SIEPR Prize for Contributions to Economic Policy: Nicholas Stern
Nicholas Stern, the prominent British economist and an influential voice on the economic impacts of climate change, is this year’s recipient of the SIEPR Prize. He will receive the award during a virtual event recognizing his work and impact on Wednesday, October 7, 2020.
The Stanford Institute for Economic Policy Research (SIEPR) gives the award every other year to a scholar or policymaker who has deeply influenced economic policy.
https://siepr.stanford.edu/events/2020-siepr-prize-contributions-economic-policy-nicholas-stern
#1 Millenial Surrealist
is it all millenials who are so frustrated at not being born in mankind’s best time?
From RFD. These silly condo speculators. When they can’t sell their box, “what do I do? what do I do?”.
I’m no economist but I think lowering the price might help.
https://forums.redflagdeals.com/cant-sell-my-missisauga-condo-its-been-60-days-now-2402429/
#72 Ronaldo on 09.11.20 at 4:32
Well put. The most radical of any group are always the loudest, even though they are also a minority.
The situation we are in started 40 years ago, and accelerated in 2008. When corporations were bailed out with public money in 2008, many millennials were upset and took to the street (anyone remember occupy Wall Street?).
This isn’t a millennial created mess, like this blog seems to portray it as.
The memories of 2008 live on, and with continued QE and low interest rates, it you can see why many young people still vote leftward.
MF
#76 willworkforpickles on 09.11.20 at 4:45 pm
Months back there was speculation that the c-virus led to more deadly complications the longer one is exposed to an infectious source. Those who picked up the infection from a single passing of the source were thought to experience lighter to no symptoms generally leading to the the conclusion – length of exposure to a source of infection is more the factor to susceptibility rather than age, except for the most aged.
Something to consider when being around others in close quarters for extended periods.
….
The term is viral load. Less is better. Same idea with radiation, toxins, apple jack, and squirrels in the attic.
ps. Plucked a 5 kg zucchini this year. If the dog will pose next to it, I will send a pic to Garth.
Dear: #67 Bill :
The medical system is rigged and you ain’t allowed to seek and pay for private treatment. Just die I guess. All the money in the world for whatever but denied healthcare…
——————-
Universal health care system in Canada isn’t perfect but it’s way ahead of US style for profit health care system.
Those with excessive amounts in their bank accounts are welcome to go to USA and have private clinics look at their issues.
#81 Lambchop on 09.11.20 at 4
Yes it is unique to covid.
The human race has been exposed to the flu for 2000 years. It’s been exposed to covid for 7 months.
We are only beginning to learn what the long lasting effects are from covid. Similar symptoms don’t always mean similar underlying causes and risks.
MF
58 Bill on 09.11.20 at 3:27 pm
400k/year? Ha
And then you woke up.
Never heard of a “successful” person being so miserable.
MF
Long time listener, first time caller. Mr. Turner you’re blog is a good one. Always worth the look from the insider. Over the course of the covid destruction of our economy it seems unreal to me up and down these comments that the boomers don’t understand what their “I’ve earned it” greed has done to their own children. Its crazy they thought the votes they bought by building a bigger and bigger government (with future taxpayers) would never run out. Indeed we are at the crossroads. I don’t see how the current regime can maintain this into the future. What are your thoughts?
“…the Canadian household savings rate. Remember when it was barely above 1% a while ago? Well, the rate just jumped to 28%”
I wonder if that correlates to the hit on the restaurant/hospitality industry. I know finding a pressure canner is near impossible now.
September report is out on rentals.ca.
Toronto (old city) 1-bdrm rents down nearly 14% year over year. Modest drops in the rest of the 416.
Meanwhile an hour away in Hamilton, 1-bdrm rents are +10% yoy.
https://rentals.ca/national-rent-report
PS5 and Xbox Series X is coming out in a few months.
Watch the savings rate plummet then.
#20 UtterlyConfusedCanadian on 09.11.20 at 12:17 pm
Garth, you said pick your path….where is the path to opt out?
———
BUY A HOUSE, ASAP!
What’s that? You have one? Buy one in Wasaga Beach. ASAP!
If you have a pension paying 55,000 per year you can kiss your OAS goodbye.
Those who made reckless choices need to be compensated in retirement.
Socialism does not reward prudence.
It’s thievery.
Voting for socialism makes you complicit.
Nothing but a two bit con.
Hope you sleep well at night.
#3 Jeff on 09.11.20 at 11:21 am
The 20’s are going to be a lot like the 90’s.
———————————
You’re a few decades off on that analogy.
The 2020s will be like the 1970s.
#trudeau will extend CERB yet again folks!! “Just watch me” he was quoted as saying.
Until people truly have to suffer, nothing will change. I said this years ago on this blog that nobody needs to be, you know, responsible, because Gov’t will always bail out the irresponsible financial illiterates.
The pandemic proves it.
“Nonetheless, those who locked us out of employment, schools and routines had an obligation to compensate for their actions.”
Well, except that they won’t. The government doesn’t have any money, so we will all pay for their actions, either through increased taxation or inflation. That’s the way it always works. This time it’s just larger. Much larger. So we will all pay more, one way or another.
You can’t create wealth by simply printing money. If that worked, somebody ought to have discovered it by now. It boggles my mind how the supposedly well educated proponents of MMT don’t understand this simple principle. Money only holds value based on its supply relative to demand, and that demand takes the form of goods and services available, not the fact that people want more money. So money must be kept “scarce”.
#82 Gomisan
I don’t understand the alleged connection between the jump in savings and CERB. To my knowledge CERB is for those unemployed because of Covid, and 2k per month is probably less than the poverty threshold, and likely less than the regular paycheck. Am I missing something ?
I can only see the reduction in household consumption as the main driver of this jump in savings.
================================
People like my daughter got CERB .. living at home with no expenses. Also had our(rich) friends from Oakville over for dinner .. friends of their 2 kids work part-time at Metro and Loblaws etc. Still at high school but got CERB.
My neighbours on one side of us have property in Arizona. Neighbours on the other have a place in Florida. Each couple got $600 .. although neither needed it. But I suspect most of it got spent at the LCBO so the govt recouped some of it
That may account for some of the increase in savings
Okay, what does all this mean?
Contracting debt increases the official currency supply causing inflation. Paying down debt or defaulting on it reduces the currency supply causing deflation and gold and silver is not part of the equation. How does government get out of debt? Either it practice austerity for real or they break from established practice and print currency without issuing treasury bonds and buy back existing bonds and burn them. They will get high inflation but their debt and interest charges can be expunged. Then again a new government with some balls could simply repudiate the government debts and issue new currency and ban government debt. Perhaps they could decide that the new Canadian dollar is worth one hour of work since there is little or no gold or silver to act as collateral for the new currency.
This should be interesting to those thinking about moving to the States:
According to Reuters, the wildfires are “among sparks from climate change” that could set off another financial crisis in the U.S. The damage to home values, local and state-wide tourism, and local government budgets could lead to devastating effects on a grander scale including defaults and market disruptions, which would cause further dips in the economy.
#64 Stan Brooks on 09.11.20 at 4:00 pm
They had this thingy in the former socialist countries – it was called coupons that you use to purchase goods, coupons created and handed over by government.
================
Not quite. The coupons gave you the “right” to purchase a defined amount of something ( oil,sugar…) .You still had to pay cash for it.
Think of it as a reservation system so the state could determine demand.
On the other hand you could buy anything you wanted on the black market at notably different prices.
By a house and invest in the stock market. They both just keep going up no matter what happens. You’ll be rich. :)
Yes, pick your path indeed.
I must say, I’m happy that I have a full-time job that I love and the means to pay my rent BUT: looking around at the great indebted who are skipping rent or mortgage payments to buy toys, renovations, new digs, stocks and boost their savings rate kind of makes me feel like a SUCKER.
I’d say the federal government better get its act together soon before all the suckers decide to join the party and leave them with a stinking hole for a tax base.
Every year I cancel the newspaper for the summer and start getting it again after the Sept. long weekend. During the summer we are often at a remote location and get our “news” from CBC AM radio. (and the internet for what it is worth) A lot seems to have been going on.
I read the whole paper every morning except for the sports blather. What I noticed is that there is some fuss coming up about Canada’s government proclaiming that they are going to try and meet their Paris Accord commitments. It has been overshadowed by all the C19 news and the American political mess but I think it is going to all of a sudden come out of nowhere to become a very big item that may way overshadow C19.
I would be very interested in seeing your take on what it might do to our way of life and the economy, especially now that we are going to have to somehow recover and eventually bring the finances of the country back into some sort of sensible balance from the C19 spending. Sending the country back into the stone age may not be the greatest idea. Especially when everyone else in the world is treating the Paris Accord like some sort of silly joke.
#81 Lambchop on 09.11.20 at 4:54 pm
#63 SoggyShorts on 09.11.20 at 3:55 pm
#180 millmech on 09.11.20 at 9:51 am
#135 Cici
Sucks about your cousin, but colds and flu have always had the potential for serious and long lasting side effects, this is not unique to C-19
‐————
Agree with this. my youngest developed HSP after strong flu a two years ago. Two years later she is still being followed by children’s hospital pediatrician for possibility of kidney failure. So serious side effects are known to happen even with flu. C19 is new so its hard to say what percentage of people who got it do develop serious long lasting issues. Time will tell.
The Millennial Creed:
I want what you have.
If I cannot get what you have I will take yours.
If I cannot take yours I will burn it down.
Give me what I want or we shall both have nothing.
(You’ll note it looks a lot like the preschool creed.)
History is not going to be kind to Justin Trudeau. Do you think he cares?
Rainman, rich until we end like in Venezuela, Zimbabwe, U.S.S.R., Chile, Argentina, Germany, Italy etc. and many others countries throughout time.
@ Crowded
1980s … i can see that scenario playing out in those less regulated days.
On another non related note, I miss being able to swap plates from one vehicle to the next and simply driving away.
Pick your path.
——————————————-
Well, … I just asked a very good RE-friend in Comox Valley, BC, for an advise, … since I have been watching the market there for better than the last three years. Here is what he just answered:
“Yes you have seen the market over the last 3 years and the question is: it the right time for You to buy.
We still have 10 years of the baby boomers coming over buying, and the real estate board is estimating we will see steady business at least to the end of the baby boomer generation. Combine that with people still cashing out in Vancouver plus we dont have the Fires, the Covid, the traffic and prices are still fairly reasonable compared to other parts of BC
You have already been waiting for 3 years to housing to settle, the question would be if you wait another 3 years are you going to be wishing you bight this year,
I will re quote you ‘time will tell”
… in real estate board we place our trust!
Anyway, … such is a life on the beach. My screen saver on my MacBook Pro:
http://www.pointholmesrecreation.ca/rampcam/
Best,
F.S. – Calgary, Alberta. (Path intact!)
82 Gomisan on 09.11.20 at 4:59 pm
I don’t understand the alleged connection between the jump in savings and CERB. To my knowledge CERB is for those unemployed because of Covid, and 2k per month is probably less than the poverty threshold, and likely less than the regular paycheck. Am I missing something ?
I can only see the reduction in household consumption as the main driver of this jump in savings.
**************
Some of the CERB recipients may have been defering their mortgages with one spouse still working. Other recipients who got more with CERB and not paying rent or living with parentshome have more cash on hand. There was no means testing. Groups of people took the initial layoffs and never went back to work for fear of COVID but are still doing side jobs as othet people are sitting at home doing renovations and most likely some are using their Helocs to do so…no doubt many more scenarios right up to outright fraud.
In August both American and Canadian consumer spending dropped. More people saving for a rainy day?
@Ronaldo
Gen X is the lost generation.
Where did we go? and how did we find our way back? lol
If you need good lumber – specialty cuts i have a family member in your neck of the woods.
a response to a virus which infected far less than 1% of the entire population, but caused the economy to shut.
I’m getting tired of statements like these, from people who don’t understand the difference between ‘probability’ and ‘statistics’.
In this statement, the reference to an infection rate of less than 1% is a STATISTIC. It is based on events that have already happened. Now 2020 might be the year of hindsight, but the data observed are the result of series of events with each having the possibility of multiple outcomes each with its own mathematical probability.
If you know (with some degree of confidence) all of the events in the sequence, the correct order in which they occur, and know the probabilities for each outcome of each event, then you can estimate the rate at which an infection may spread. Even then, when you think that you have the sequence, or the probabilities figured out, a result occurs that may not fit the model, and suddenly your predictions are bunk.
The virus behind this pandemic was NEW. Nobody had ever seen it before, there may have been theoretical models – frameworks – that suggested ways to predict the spread, but those took time, and data (occurrences) to validate.
Remember, at the beginning, when we were all told to ‘Wash our Hands’? At that time, the assumption from the predictive model was that touching infected surfaces, and touching one’s body were the key transmission vectors – an event in the sequence that could easily be defeated by cleaning surfaces and hands, much the way that outbreaks of Salmonella, or Rhinovirus, or Flu are often contained.
So that happened, but infection rates from Covid-19 didn’t decrease like they do for Rhinovirus, or Flu. Testing and experimentation started to indicate that droplet transmission was a more effective way for the virus to transmit itself.
So the policies changed to promote Social Distancing, and later, mandatory mask use, and avoiding sharing closed spaces with strangers.
Suddenly nobody wanted to ride transit anymore. People bought bikes, and cars, and electronics for home offices.
But I bet that you don’t wash your hands as frequently in September as you did back in March, do you?
Other aspects of the probability model are changing too: The initial assumption was that if someone had Covid, the probability that they would die from it was high. And from a public safety perspective, a 1 in 1000 chance (0.1%) is absurdly high: before Covid-19, woudl YOU have flown on an airplane if 1 flight in 1000 (i.e.: 1 flight per day) crashed, killing everyone on board?
No, you wouldn’t – and in this day and age, neither would anybody else.
Yet commercial air travel is a vital economic tool, so would you mock, or chastize citizens for demanding that regulators do MORE to keep airline passengers safe? That planes be grounded, and air travel suspended until the threat was neutralized?
A quick glance at Wikipedia states that before they were grounded, Boeing 737Max planes flew 8600 flights per week, for 59 airlines, around the world.
In the 19-week period between the Lion Air crash (29 Oct 2018) and the Ethiopian Air crash (10 Mar 2019) this means that 737Max aircraft flew over 160,000 flights. Only two flight during that time ended in crashes, killing all aboard. At that point the probability of a flight crashing was (2 in 160,000+) or at least 0.00125%.
Factor in the large number of flights made successfully by 737Max aircraft before the first crash, and the STATISTICS suggest that the number would be orders of magnitude lower. But at that point in time, the PROBABILITY was enough that people howling for governments to ground all 737Max flights altogether – (hammering the value of Boeing stock, laying off workers, shuttering industries) regardless of how any one traveler (let alone airline executive or worker) felt personally about their chances of surviving a 737Max flight.
The probability of a 737Max flight crashing was 0.00125%, government orders that all planes be grounded, leading to a factory being shut down, thousands out of work.
Canada’s Covid-19 death rate (to date) is 0.024% or TWENTY times the rate of 737Max crashes that led to public outcry and government demands to DO SOMETHING to protect our safety.
Shouldn’t a 20x threat merit a 20x response for the same level of safety?
And Canadians got lucky: per capita death rates for Italy (remember April?) and the US (virtually tied right now) are around 0.6%, or almost FIFTY TIMES the rate of 737Max crashes.
Maybe, in the end, the statistics will show that Canada’s Covid response has all been ‘too much’.
Maybe CERB and shutdowns should have been tied to regional infection rates, instead of imposed nationally. But by that same token, does anyone believe that banning the 737Max on ONLY the routes where crashes occurred would have been a satisfactory response?
The statement is correct. You wasted 800 words. – Garth
How did the debt to income ratio plunge when the household debt increased? Did the CERB pay better than their jobs?
#104 ElGatoNerodeYVR on 09.11.20 at 7:01 pm
Cooperative and some other coupons were actually equivalent to cash, i.e. you needed no additional cash in order to get goods.
You still buy limited amount of goods for your ‘cash’ today. Unless you have unlimited cash which you don’t.
And today your access to real services, not phony coverage for the general public for stuff like education, health care is mush more expensive.
This is one of the characteristics of socialism – you get substandard stuff like services, housing, education etc. and count it as the real deal (as it is in Europe for example). It is not. Let’s not forget: this is in reality a cheap labour camp owned by stingy elite and the goal is for you to work until you die and never to retire.
Labour vs. capital, read Marx.
The funny part is that a labour utility like housing has somehow actually turned into the main asset these days that defines ‘wealth’… it is also scare as it is an indication that the real economy is actually not existent… so we need to pretend that it is. Measuring funny services and goods with funny arbitrary measure.
Cheers,
I’ve tried really hard through this pandemic to take everything in stride and to trust our government to make the right decisions for us as a country. It’s become clear that the CERB has been completely botched. They opened the flood gates for anyone to just reach their grubby hands in and take the money whether they needed it or not. No consequences. I have heard from one person who was on EI already also collected the CERB at the same time. Another person who was retired collected it even though they are a millionaire. And young people could collect it, even while living at home with no bills. This is absolutely insane. We as a society will now be paying for this spending for decades, all because people with their insatiable greed couldn’t resist the temptation of free money. You can see it on the shelves of every store. Everything is pillaged. People spending like no tomorrow. Have you been to an Ikea lately? They are out of everything. I was there this week. Needed a couch as ours is busted. NO loveseats left. Line ups out each door. No parking spaces. There’s also no bikes to buy anywhere. RVS are being bought at record rates. I saw this headline the other day “Fender on Track for Biggest Sales Year Ever in 2020”. What we basically did as a society was give everyone a payment break so they could, essentially, buy stuff.
It reminds me of when I went to University. I was given an enormous bank loan that I’m still paying off. At 19 I had “more money” than I’d ever had in my life. I went to the mall and spent $500 on new clothes. Clothes I’m still paying for today. This is what the CERB and mortgage payment deferrals have done. They’ve given everyone a chance to spend to their hearts content. All with DEBT. Debt we’ll all be paying back for the rest of our lives. The greed and selfishness of many Canadians does not surprise me. But it’s super, super disappointing. Everyone needs to grow up.
55 Days to Global Catastrophe.
PREPARE
#82 Gomisan on 09.11.20 at 4:59 pm
I don’t understand the alleged connection between the jump in savings and CERB. To my knowledge CERB is for those unemployed because of Covid, and 2k per month is probably less than the poverty threshold, and likely less than the regular paycheck. Am I missing something ?
I can only see the reduction in household consumption as the main driver of this jump in savings
——+
You are missing the fact that a 15 year old who made $5000 previous year living at home has collected $14,000 this year, living at home. Also, part timers who made the minimum last year are collecting more for sitting at home than working. I’m sure there are some full timers that were at minimum wage where the CERB doesn’t do anything for them but those people don’t make the majority of the population or the majority of the people collecting CERB.
#117 HH on 09.11.20 at 7:57 pm
How did the debt to income ratio plunge when the household debt increased? Did the CERB pay better than their jobs?
Cut in real consumption where 17 % more money (M2 yearly increase) chases 40 % less goods and services (the actual economy decline in Q2 2020) resulting in some significant real inflation + significant leftover due to the excessive money printing counted as ‘savings’ with the notable exception that it is really made up money that do not represent past labour or asset sale at normal market conditions, i.e it is not savings.
Similar to the made up artificial deposits during a house sale that idiots count as ‘savings’.
All those diluting real labor or asset sales at market prices.
—————————————-
#106 cici on 09.11.20 at 7:17 pm
I hate to break it to you but there are not many suckers left in your situation that can sustain the illusion of an ‘economy’. Shuffling some phony stuff around does not make an artificial economy real.
Do you really believe that earning the equivalent of 100 average haircuts a month before taxes (averaging man and women haircuts and including the tip) or 200 bricks in a substandard crack shack is a high standard of living?
Cheers,
Two things we have to do to start to get things back on the right path:
1) Evict the deadbeats tenants who refused to pay rent in spite of getting CERB.
2) Prod the greedy, lazy teachers back into the class room! No more strikes, no more whining, get back to work!!
With the Fed’s back- stopping bonds with billions each week being bought to keep the market liquid, is this not a ticking time bomb waiting for the bond market to implode?
With there yield almost negative with inflation taken into account there useless for fix income and there zero payout. Sure they add stability to the portfolio, but at a huge cost……pension plans, cpp, personnel portfolio’s etc can not meet there pension obligations when there fix income yields big fat zero??
My guess there is/will be a shift to ANY asset that pay a zero yield with upside potential. If everyone is buying a asset and Government printing money none stop, the value in the future will be less because of severe oversupply??
#108 Comrade on 09.11.20 at 7:19 pm
#81 Lambchop on 09.11.20 at 4:54 pm
#63 SoggyShorts on 09.11.20 at 3:55 pm
#180 millmech on 09.11.20 at 9:51 am
#135 Cici
Sucks about your cousin, but colds and flu have always had the potential for serious and long lasting side effects, this is not unique to C-19
‐————
Agree with this. my youngest developed HSP after strong flu a two years ago. Two years later she is still being followed by children’s hospital pediatrician for possibility of kidney failure. So serious side effects are known to happen even with flu. C19 is new so its hard to say what percentage of people who got it do develop serious long lasting issues. Time will tell.
**************************
You both missed the point entirely.
If a punch in the face hurts, pointing out that a kick in the face hurts too doesn’t help.
The point is that covid can cause very serious damage that isn’t death even in very healthy people.
Whether it causes these in more cases than other viruses is largely irrelevant.
Tell me you didn’t just ‘vanish’ a link to 23-second video Garth!
At the very least, you could have shown my post as ‘DELETED’!
C’mon – and we were getting along so nicely lately! TCC
#87 belly rubs
I don’t follow news or talk on the virus much, but yes -viral load- that is correct and i have heard the term before.
I believe it to be a factor strongly to consider and be aware of always.
You can bet it hasn’t registered with many in the general public but it could be a pivotal point making everyone aware of it in preventing the worst of infections.
exxonmobil gets the boot….no money tree for them!
https://theenergymix.com/2020/09/10/fossils-keep-paying-shareholders-despite-epic-financial-losses-declining-business-prospects/
#116 Smartalox on 09.11.20 at 7:54 pm
The U.S. with a pop of 330 million has 6.6 million cases, while Canada, with a pop of 35 ish million has 135,626 cases. in the U.S. 2% of their pop tested positive, while in Canada, .387% have been infected, with close to half of these cases in concentrated in the province of Quebec. Stats provided below:
https://www.worldometers.info/coronavirus/
https://www.ctvnews.ca/health/coronavirus/tracking-every-case-of-covid-19-in-canada-1.4852102
One can argue that the government response in Canada has been much better here and rightly so. However, the government reaction of spending has in my mind been a large over reaction.
Case in point. A recent clinical trial with Vitamin D was given to 100 patients who were all given the same treatments, (antivirals, hospital care etc.) only 50 patients were given a dose of Vitamin D plus Calcifediol used to rapidly increase the absorption of Vitamin D. Of the 50 patients that were given Vitamin D and Calcifediol, 2 were admitted to the hospital and released. Of the other 50 patients that did not get Vitamin D and Calcifediol, 26 were admitted to the hospital and 2 died. This was a randomized double blind trial, the kind of trial that gives the unvarnished result.
Certainly science would like to add some zeros to the next clinical trial but if the results prove the same thing, what would the world wide government response be? Y’know, with corporations literally writing food and drug regulations through lobby pressure and campaign contributions? Would food manufacturers sign up to dose the masses?
In Canada, Vitamin D is cheap enough that you can dose the entire population of Canucks for 1 billion annually (or less) and turn a killer virus into a benign common cold. This is turning into a hard to argue against fact. Best choice to do it is through the food supply. Does anyone think there’s enough leadership out there to make that happen in North America, in particular the U.S.? We’ve seen how difficult it is to get the general public to wear a mask, especially when a political cult decides to rail against it. Temp guns and cel apps? Too technical, why we don’t even have the market share it takes to pull off cel apps a’ la China, not even close. Is it even more difficult to sway a government to regulate food manufacturers to add Vitamin D to the food supply when these same governments allow the unbridled use of sugar by food manufacturers in the wake of 40% obesity in adults and double digit diabetes?
This is the conversation no self serving politician or capitalist cheerleader wants to have but the facts are piling up. I will repeat. Covid19 is a virus preying on compromised immune systems. Sure, not enough sleep, stress, toxic loads, 2 or more diseases, these are all factors that compromise immune systems but at the top of the list is deficiencies which diseases in their own right create.
Covid19 is exploiting from most to least, these 4 deficiencies: Vitamin D, Zinc (excess use of sugar creates Zinc deficiencies), Zinc Ionophores and Vitamin C (blood clotting, thrombosis). The science is stacking up with past and present scientific studies and trials, with demographics (the darker the skin, the greater the death rate and severity of Covid19 effects, right in line with higher Vitamin D deficiencies with more skin pigmentation related to this sunshine vitamin (more of a hormone really). 42% of the world population is estimated to be sub clinically or clinically deficient of Vitamin D (rising to +80% among blacks). With Zinc, 25% of the world population is thought to be deficient or sub-clinically deficient. Both are critical to healthy immune systems.
https://www.youtube.com/watch?v=V8Ks9fUh2k8
The question we should be asking ourselves is, what is it going to take for governments to take control of food and drug regs for the greater good of healthy populations, over the corporations profiteering at the consequence of shortening the lifespans of the majority of us, corporations that clearly write these government regs? Its an abhorrent demonstration of avarice and extreme abuse of power everyone suffers from and will unlikely to end any time soon. In this context in particular, (and it will come) I cannot wait for this old world to end.
#35 Ace Goodheart on 09.11.20 at 1:55 pm
RE: #1 Millenial Surrealist on 09.11.20 at 11:01 am
Pay up boomers! You had yer run, were taking over Sept 23
////////////////////////////////////
Awesome.
Combined Provincial and Federal Income tax and CPP on an income of $120,000 in Ontario (about the bare minimum per person, for a working couple to afford a detached house in Toronto) is just a hair under $37,000.00
It will soon be a hair over $40,000.00.
Yup, that is right Mils, to earn 80K you have to make 120K.
Meanwhile, in Boomer land, where you just bought my ridiculously over priced working class house, the 1.8 million the Boomer invested in dividend paying stocks throws off $90,000.00 per year + capital gains.
Combined Provincial and Federal taxes on 90K in dividend income in the Province of Ontario is $4395.00
So, my Millennial Friend, even though you make 30K more than Mr. Boomer, and even though Mr. Boomer does nothing for his money, and you work full time, and even though you actually transferred Mr. Boomer his 1.8 million dollars, by mortgaging yourself as a debt slave for 25 years, even with all of that…….
After taxes, the Boomer STILL makes more than you.
For doing nothing at all. With your money. That you borrowed to give to him.
Ain’t life strange?
Have fun taking over………..
———
Debt slave for 25 years? You’re being generous. He’ll never throw off the weight of that yoke. Realistically, he’ll be a debt slave for the rest of his life and will never again feel the lightness of no debt ever again.
From the look of things inflation and currency debasement have already arrived, we’re just waiting on the increased taxation now.
I just can’t figure out how with inflation in necessities and an increased tax load how stagnant incomes will not have to curtail spending.
There are limits to credit and interest rates can’t go any lower, so the spending has to be redirected or reduced.
And, incredibly, look at the chart below. This is the Canadian household savings rate. Remember when it was barely above 1% a while ago? Well, the rate just jumped to 28% – the same level as back when I had sequined bellbottoms and thick, curly chest hair.
———
1% to 28%? I don’t believe it. There is no way people change their habits that drastically to do that, just like that. I’m calling BS. Maybe it’s time for a fact check.
As for the thick, curly chest hair, where did it go?
Why are we even still talking about this barely visible, old people’s disease? I’ve only ever heard of it in the press.
If it wasn’t for the Bat flu, it would have been another flavour of influenza to claim these people. What is it with this absolute terror in the face of a fate that awaits everyone. Death is the only outcome to life.
Very interesting statistics on the debt issuance however. What do your guys, and Mr. Fluenza specifically think of this method of financing the deficit?
@#112 DON
“1980s … i can see that scenario playing out in those less regulated days.”
+++
And it wasnt just Alberta.
Anecdote time Ponzie and MF!
In 1985 I hiked the West Coast Trail by myself and after a few days came upon a crew of guys cutting trail, building stairs and bridges.
I hadn’t seen anyone for a day and a half (pouring rain does that to hikers) so I stopped to talk.
The gist of the conversation was, “did I have any cigarettes?” which alas, most hikers…. don’t.
I asked how much they were being paid to be living in tents and working in the pouring rain, “$5/day, we’re prisoners on work release”
All of their heads were bobbing up and down when I asked if they were all prisoners.
“So where are the guards?”
No guards, Forestry would check on their trail progress once a week.
I looked around at the mud, the soggy tents, the excellent stairs, and decided……….
I broke out my stash of joints, handed them around and wished them well.
I was a rock star for about the 2 minutes it took to hike out of site…..
#129 crazyfox on 09.11.20 at 9:00 pm
#116 Smartalox on 09.11.20 at 7:54 pm
The U.S. with a pop of 330 million has 6.6 million cases, while Canada, with a pop of 35 ish million has 135,626 cases. in the U.S. 2% of their pop tested positive, while in Canada, .387% have been infected, with close to half of these cases in concentrated in the province of Quebec. Stats provided below:
https://www.worldometers.info/coronavirus/
https://www.ctvnews.ca/health/coronavirus/tracking-every-case-of-covid-19-in-canada-1.4852102
One can argue that the government response in Canada has been much better here and rightly so. However, the government reaction of spending has in my mind been a large over reaction.
Case in point. A recent clinical trial with Vitamin D was given to 100 patients who were all given the same treatments, (antivirals, hospital care etc.) only 50 patients were given a dose of Vitamin D plus Calcifediol used to rapidly increase the absorption of Vitamin D. Of the 50 patients that were given Vitamin D and Calcifediol, 2 were admitted to the hospital and released. Of the other 50 patients that did not get Vitamin D and Calcifediol, 26 were admitted to the hospital and 2 died. This was a randomized double blind trial, the kind of trial that gives the unvarnished result.
Certainly science would like to add some zeros to the next clinical trial but if the results prove the same thing, what would the world wide government response be? Y’know, with corporations literally writing food and drug regulations through lobby pressure and campaign contributions? Would food manufacturers sign up to dose the masses?
In Canada, Vitamin D is cheap enough that you can dose the entire population of Canucks for 1 billion annually (or less) and turn a killer virus into a benign common cold. This is turning into a hard to argue against fact. Best choice to do it is through the food supply. Does anyone think there’s enough leadership out there to make that happen in North America, in particular the U.S.? We’ve seen how difficult it is to get the general public to wear a mask, especially when a political cult decides to rail against it. Temp guns and cel apps? Too technical, why we don’t even have the market share it takes to pull off cel apps a’ la China, not even close. Is it even more difficult to sway a government to regulate food manufacturers to add Vitamin D to the food supply when these same governments allow the unbridled use of sugar by food manufacturers in the wake of 40% obesity in adults and double digit diabetes?
This is the conversation no self serving politician or capitalist cheerleader wants to have but the facts are piling up. I will repeat. Covid19 is a virus preying on compromised immune systems. Sure, not enough sleep, stress, toxic loads, 2 or more diseases, these are all factors that compromise immune systems but at the top of the list is deficiencies which diseases in their own right create.
Covid19 is exploiting from most to least, these 4 deficiencies: Vitamin D, Zinc (excess use of sugar creates Zinc deficiencies), Zinc Ionophores and Vitamin C (blood clotting, thrombosis). The science is stacking up with past and present scientific studies and trials, with demographics (the darker the skin, the greater the death rate and severity of Covid19 effects, right in line with higher Vitamin D deficiencies with more skin pigmentation related to this sunshine vitamin (more of a hormone really). 42% of the world population is estimated to be sub clinically or clinically deficient of Vitamin D (rising to +80% among blacks). With Zinc, 25% of the world population is thought to be deficient or sub-clinically deficient. Both are critical to healthy immune systems.
https://www.youtube.com/watch?v=V8Ks9fUh2k8
The question we should be asking ourselves is, what is it going to take for governments to take control of food and drug regs for the greater good of healthy populations, over the corporations profiteering at the consequence of shortening the lifespans of the majority of us, corporations that clearly write these government regs? Its an abhorrent demonstration of avarice and extreme abuse of power everyone suffers from and will unlikely to end any time soon. In this context in particular, (and it will come) I cannot wait for this old world to end.
#120 Apocalypse2020 on 09.11.20 at 8:08 pm
55 Days to Global Catastrophe.
PREPARE
.
Nope it’s 12 days til TWO TRILLION in debt
History will be the ultimate judge but it looks like the JT way was superior to the Trump way. Canada looks like it is on to their second wave, and America is still wallowing in their first wave. America could be pooched by Covid.
No one knows. If it is not pooched it is definitely spending trillions more in lock downs expenses etc.
Just curious, is this specific to Canada? What about the other G7 nations…same issue? Or is this an attack on JT?
Hey Boomers, I hope you like the camper van life…. Change is coming Sept 23.
https://youtu.be/Qy9jziYFP3A
Need to see the Canadian response in the context of the full G7 response.
Maybe the path was set – and not left to chose.
Dan Rickards and Bill,
I was being facetious. Although if there is a UBI,
and it’s truly universal, everyone gets it. I’m not in favour of it, but if I get some handout I don’t really need, why NOT invest it?
#134 CEF
Gotta say, that anecdote actually touched me.
You have or had a heart after all.
Something I would have done, too.
In my crazy days in the Austrian woods.
The federal and provincial governments may have saved you from immediate financial disaster, but what are you going to do once all the handouts disappear?
Scott Terrio with Hoyes & Michalos predicts that insolvencies are going to come back “with a vengeance ” in the coming months.
“Once the courts open (they’ve been closed for months making it hard for debtors to take legal action to get their money back) you’ll find out how much your bank loves you,” he said.
https://www.hoyes.com/blog/forget-credit-score-did-you-know-you-have-a-bankruptcy-score/
“In addition to government stimulus, roughly one out of every six Canadian homeowners with a mortgage applied for programs that banks offered to defer all or part of payments for up to six months this spring. But those programs are slated to end in the coming weeks, and those bills have to be paid.”
Yup , time to pay up and is it going to be tough.
Think that the information gathered regarding your ‘dire financial straits’ hasn’t been filed away for future reference? Think again. Never heard of the BNI (Bankruptcy Navigator Index)?
Check it out here:
https://www.consumer.equifax.ca/business/bankruptcy-navigator-index/
Equifax has been providing such a bankruptcy score to lenders for several years now. Called the Bankruptcy Navigator Index (BNI) this model “Predicts the likelihood of a consumer becoming bankrupt within the next 24 months”. However this is just one such model and there are many out there. Unlike the traditional credit score, there is not necessarily a similarity between rankings and they are not something that the average consumer can easily understand, let alone access.
https://www.cbc.ca/news/business/consumer-debt-statscan-1.5720402
@Crowded
West Coast Trail story 1985
I went on the West coast trail in 1986 and they were still building parts of it. Fresh new walkways and ladders and the crews were still there. Went back 10 years ago…walkways turning back to muddy root riddled paths. Missing runs on the ladders.
I plan on going back in the next 5 years.
#82 Gomisan
The main driver is probably the deferral of mortgage payments or the non-payment of rent. That will free up a lot of money for the typical household…anywhere from $800 to $4000 per month.
Of course, some are collecting CERB while working under the table for cash.
Also, a lot less is being spent on restaurants, bars, work lunches, gasoline, parking expenses and foreign travel.
Somebody asked where you can get the mask with the dog face on it. From previous post.
Telus has them.
All kinds of cute animal faces
Unless the gusher if free cash continues to spew the economy will crash almost immediately. It would have crashed already if not for the sloppy fine cashola. Can you imagine young Canadians , 52% of whom are already living at home out of pocket? It’s too horrible to imagine. What’s so hard to figure out? Trudeau is an idiot not to call an election now while Canadians are flush.
This was in reaction to Covid 19. It might have been wise and prudent. It might have been a hysterical over-reaction. History will tell us.
…….
Not really…cause we really do not know what would have occurred if we did not shutdown.
#1 Millenial Surrealist on 09.11.20 at 11:01 am
Pay up boomers! You had yer run, were taking over Sept 23.
*********
Other than my rich Uncle’s birthday, what’s so special about September 23rd?
M56BC
#62 Bill on 09.11.20 at 3:51 pm
#54 NSNG on 09.11.20 at 3:10 pm
———————————–
Not sure where you get the 93.7%? Most are stretched out paycheck to paycheck that why CERB…
==================================
First off, I had a typo there (some day I may stop being lazy and proofread).
The BC government said that the economy will decline by 6.7%. If you turn it around, then that means that the economy is still running at 93.3% of the capacity that it had before the crisis. On an individual basis, if your income fell by 6.7%, you would most likely easily survive. I do understand that when an entire economy falls by 6.7% that many individuals will suffer 100% but that number is not as big a crisis as the financial media always makes it out to be. If the government was not borrowing (stealing) from the future to spend today, the consequences of this crisis would probably be greatly mitigated.
The desperate spin of the spin doctors is spinning out of control. After $11 million was spent by Trudeau on opinion polls in the last few months, there is a startling revelation, pollsters favor Trudeau, hands down !!
http://www.bnnbloomberg.ca/trudeau-could-play-electoral-split-on-red-ink-to-his-advantage-1.1491828
Amazing !! Now where can I buy one of this stamps showing John A. McDonalds severed head? I want to send Justin a postcard picture of something I can’t send on the internet. Which in itself surprises me because Netflix can show a documentary ( Cuties) of 11 years old girls flashing boobs and crotch shots, but I can’t send ‘my love’ to the PM. So confusing in a country with a PM who legalized beast lovin.
It’s not just Canada where building and home improvement are booming due to free govt cash. Here in England I have ordered a new front door and windows. It will take them 3 months to get the door from the supplier and they are suggesting that I may get some windows in Feb. My daughter is in the midst of a big home reno and she is waiting for suppliers. Apparently plaster is sold out in the whole country.
Maybe Western govts did know what they were doing Garth?
You lot are pretty parochial. Pretty much every country with an economy of consequence is burning through the deficit cash like Canada. With every country of consequence doing it, including the US, UK, most EU members, Japan etc, the net result is that our currency won’t be debased. We will get inflation, possibly, eventually, if we don’t all turn Japanese, but obviously that’s the plan to inflate away the debt. If you don’t believe me then watch the ForEx. C$ won’t move much against USD, Euro and Yen as long as everyone is printing at more or less the same rate and of course CBs talk about and coordinate so when the printing stops it will happen is unison. Hard assets and commodities will likely rise against USD and thus all other currencies but if you think Canada is a lone wolf heading in the direction of Venezuela, then you aren’t looking at the global picture.
#26 Millennial 1%er on 09.11.20 at 12:44 pm
No wonder you are a 1%er. You’ve got maturity, sense and brains. You deserve honorary blog status.
You’ve got other assets such as dual citizenship, assets and youth. In short, you’ve essentially got it made.
All you need do is take the opposite path of that paramount loser Millennial Surrealist and you’re set for life. It believes boomers owe it everything. That’s what rolls around in what passes for a mind as it waits in line for its pot purchase.
Careful, though. In a decade or so, when you’re well established and have everything it doesn’t, it will set it’s envious sights on you.
@#142 Ponzie Platitudes
“Gotta say, that anecdote actually touched me.”
++++
Sentimental ponzie…who knew.
I’m sorry to say that those that believe will be given to everyone is incorrect. There is already a means testing as the more you make, the more you will lose and so just like welfare, guaranteed income supplement(GIS), GST HST credits and all other social benefits and payments for the low incomers, you have to be poor to get it.
Most Canadians don’t get it. It is not about the money, it is about the control and power over people and thier lives that the Liberals, Marxists, Socialists, Communists, NDP, Green Party, Democrats, Labour Party, the whole left thinking policies, ideologies and parties is about.
Everything from the environment to your money to your freedom and mobility to the economy to procreation etc. They are control and power freaks and get leave people alone. They are the evil social engineering power, control hungry masters ruling over us.
@#144 DON
“Fresh new walkways and ladders and the crews were still there. Went back 10 years ago…walkways turning back to muddy root riddled paths. Missing runs on the ladders.”
+++
Yeah I did it about 15 years later and it was in very rough shape. Same thing, rotten boardwalks, missing ladder rungs, cable car broken.
Which was weird because in the ealry 80’s you just showed up, signed in, and hiked. In the 90’s you had to pre-register and take a little info talk before hiking.
After the orientation talk they asked if there were any questions.
I asked, “Are prisoners still doing the Trail maintenance?” ( Horrified glances from the female hikers!)
The Parks gal laughed and said, “Wow! Its been a while since you’ve been here. No, we do the maintenance.”
The status of the trail certainly attested to that.
When I finished the hike and got to Bamfield I stayed in the local “hotel”/pub for the night and met ( and drank with) some Parks employees and asked them about it.
Apparently in the late 70’s and early 80’s “Papa” Trudeau pumped millions in maintenance, trail building, etc in Canada’s Parks…… by the late 80’s the funds, like the Liberals……were gone.
Hopefully history will repeat with the money burning Libs and Trudeau
@#149 VicPaul
“Other than my rich Uncle’s birthday, what’s so special about September 23rd?”
++++
Trudeau announces money DOES grow on trees and he plans to burn great piles of it in his quest to become the savior of the poor and the planet.
In decades to come socialists will sing songs about him.
In a century, mobs will rip down his statues and beat the metal into plows to feed their starving, tri-gendered, university educated, children
Considering 40% of Canadians don’t pay any net income tax, it looks like the rest of us are now financing their saving and spending through future tax increases for the rest of us. Makes me wonder who the stupid people really are.
Schools have opened but thanks to CERB many students can’t get there.
https://www.facebook.com/permalink.php?story_fbid=1197696390601228&id=100010826356103&comment_id=1197710900599777&reply_comment_id=1197715027266031¬if_id=1599873012237563¬if_t=feed_comment
#88 Puzni
Those with excessive amounts in their bank accounts are welcome to go to USA and have private clinics look at their issues.
——————————————————————–
That is the saving grace.
Those with the monetary means to bypass the communist healthcare system can do so outside of the border.
In many situations, it’s money well spent…if one values their health.
The Canadian government doesn’t value your health. They are more concerned about the appearance of “fairness”, while those with serious health conditions languish endlessly.
Thank goodness for the U.S.A.
Sucker, everything catches up eventually. If people think that this sustainable and that it will go for a long time, they are really mistaken.
The bottom line is when they make the richer, well off, financially responsible people weaker by stealing their money and giving it the less responsible or irresponsible people, it destroys the whole society, country. It is game over after that. We are all screwed.
If you don’t believe me look at past, historic countries, societies have failed by the cancer of socialism, taking away from others for the fake sake of fairness. Look at Venezuela, Argentina, Zimbabwe, U.S.S.R., Germany, Chile, Bolivia, Cuba etc. etc. For example, global warming now they call it climate change was such a threat and we were all going to die by 2030, they would all their carbon taxes, enviro wacko policies all right away, say 3-6 months but they do all these things over years, decades etc.
It is all BS and the ones that believe in all this social engineering are on the take, government workers, make a living from it or work for the UN, foundations, charities which are really not real charities, WE charities sound familiar and other NGO’s etc.
@ #129
Excellent commentary.
Ahhh, the industrial diet. Scares the daylights out of me. I’m glad it does.
Just for $hits and giggles, grab a few supermarket flyers and circle the “food products” that are questionable with respect to nutritional content with a big, fat marker and then find the package ingredients online. Most of it is engineered glop, which I consider “anti-food”.
How in dog’s name can people’s poor bodies deal with any type of illness when they are constantly on their nutritional back foot? Overweight? How many chronic illnesses can be eliminated with better food?
About 5 years ago, I peeled the onion of processed/inorganic/adulterated “food” in our pantry. It took a long time to push out the junk and to fully understand why many so-called food items are not simply not good, they’re bad. Some very bad.
We substituted whole, organic items for processed. Right down to the spices. We have never felt better.
Some say that fresh, organic food is crazy expensive. It can be, however when you net out all of the processed crap, there’s not much difference. Where, when and what you buy also makes a difference. Like anything else. What’s expensive is processed junk food, ready meals, takeouts, meal kits and restaurants.
What does this have to do with RE and finance? Everything. All flows better from good health.
I’ll never go back to food that doesn’t leave me feeling good. You can feel it -eat a crappy meal and you feel it. Every single time. Same deal for first-class nutrition: you feel great.
#148 Lorne on 09.12.20 at 12:15 am
This was in reaction to Covid 19. It might have been wise and prudent. It might have been a hysterical over-reaction. History will tell us.
…….
Not really…cause we really do not know what would have occurred if we did not shutdown.
————————————————————–
And we really don’t know that what has occurred is a result of the shutdown. We really just don’t know.
In a mere three months Ottawa was forced to borrow $301 billion. Of that, $234 billion came in short-term paper issued by the central bank and $66 billion in fresh bonds. More records. Nobody alive has ever seen this level of new public indebtedness.
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Garth, got to disagree with you on this one. The BoC unlike the US Fed Reserve is a public institution. Hence, we’re not borrowing from anyone: we, the public, are both the BoC and the Federal government issuing dollars and bonds.
If you look at US debt levels pre and post WW2 you’ll see a marked similarity to our current situation. Give it a few years and all of that “debt” you mention will have been eradicated by growth in GDP.
‘Nuff said. Got to get back to the bunker in advance of the second wave!
#164 Ronaldo
And we really don’t know that what has occurred is a result of the shutdown. We really just don’t know.
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For many of us all we need to do is to look at what is going on in the United States now with COVID to have
a strong sense that we did the right thing in Canada (same for New Zealand and Austrailia). However, now we must get back to work step-by-step and implement as rigorously as we can contact tracing. They are nowhere at that stage in most of the U.S.
#165 OMR
The Fed and BoC are two different beasts but one and the same where the Fed overshadows the BoC. So too linked are both economies that what the Fed dictates – the BoC generally follows or will suffer later.
Two different animals but forever joined at the hip.
The CAD is not a reserve currency and can suffer from its own excess money printing in times of high
unemployment (highest of the G-7 countries)…do they then let inflation run wild as a result or curb it down the line with higher rates.