Prepare

Soon it will be two full years since Canada had a federal budget. When one comes, it will be shocking. Expect the date to be announced this week.

Recall there’s been no budget since the election. But events since have been numbing. Two years ago the finance minister (poor Bill) unveiled a $19 billion annual deficit and promised to get back into balance eventually. Now the new minister (Chrystia the Impaler) will unveil a $400 billion shortfall with zero plans to turn the red ink black. Our national debt in 2015 when the Libs took over was $612 billion. It took 148 years to accumulate that. Now it’s almost doubled in six years.

Covid, of course. Ottawa spent more money, per capita, on the virus than any other country. The CERB, rent subsidy, child pogey and payroll cheques flew so thick they blotted the sun. Lots of people suffered because of the virus, but there’s no denying over $100 billion landed in personal chequing accounts. Savings have exploded. Combined with cheap loans, real estate inflated as never before. Two-by-fours are seven bucks and puppies sell for up to six grand. All while the government sinks into a morass of borrowing.

Now what?

So the budget is coming soon. Maybe by the ides. The Trudeau government wants it delivered as spring arrives, the vaccine begins flowing freely, the economy reopens and prior to this summer’s federal election.

Will the feds recognize the spending/debt path they’re on leads to perdition?

Nah. Not a chance.

That’s boomer talk. Nobody cares anymore, since we have Modern Monetary Theory, central bank intervention and a mass of voters who want to WFH, flip houses and buy Teslas with Bitcoin. Fiscal restraint is so 2014. If the prime minister needs hundreds of millions for native fishers, black-led businesses, windmills, international maternal health or women’s initiatives, well, he can just print it. And he does. So here we are.

  The odds are that C’s maiden budget will keep the spigots open. Ottawa has promised to do pharmacare. More paid sick leave. Enhanced child care. Tons more to the provinces for health care. Money to revive small business. An airline bail out. Big green initiatives. Plus there’s pressure (from you-know-who) for a UBI. Given that the NDP has Mr. Socks by the shorts, the drift left – more government, more programs, more expenditures – will continue.

In short, your children’s grandchildren will still be impacted by what happened in 2020 and how politicians dealt with it.

Now what about taxes?

The meme is that people should be shielded from disease by a benevolent leader, and the rich should pay more. But we’re running out of them. Already 40% of households receive more than they contribute and the top tax bracket is 54%. Under 800,000 people in Canada have $1 million or more in investible assets. Fewer than 100,000 have five million. So, obviously, almost all of the spending must be funded by borrowing more, not taxing more. (Although there are a couple of bombs coming.)

So, our nation hangs on the bond market.

These days we’re paying about $30 billion a year in interest on federal debt at an average rate of 2.2%. We owe $165,000 per household. Gross debt equaled 52% of the economy when the Libs took office in 2015, and it’s 73% now. Provincial and other agency borrowing is in addition. About 12% of the federal government’s entire budget is spent on interest (it was 30% during Mulroney’s time) – and that’s with the cost of money at an historic low. So the big question is how we cope with (a) more spending, (b) more debt and (c) rising rates?

With difficulty.

There’ll be two inevitable outcomes after Trudeau wins a majority later this year: higher levels of tax (since the economy’s too fragile now for a big hit), and lots more inflation. Plus steadily increasing bond yields as CBs cut back stimulus and investors demand better returns.

So, it’s best to prepare.

Expect rising rates along with insane prices and some government intervention to cool real estate. If you’re buying now, prepare for a potential equity hit. No flipping. If you’re selling, this is nirvana, baby.

Investing? Forget cash, HISAs, investment certificates or anything else where returns will quickly fall below the inflation/tax threshold. Every portfolio needs broadly-diversified growth assets, preferably low-cost ETFs. And avoid home country bias – ensure exposure to the US and global markets. Own rate reset preferreds, providing real protection from rising rates and also paying you to own them. And make sure your TFSA, RRSP, RRIF, RESP or RPP accounts are brimming. Funds inside can grow tax-free. Also crucial are effective tax minimization strategies, like spousal retirement plans, family-funded TFSAs or income-splitting through a spousal loan.

In a country with out-of-control public spending and a voter base clamouring for more, where most people think a house is the only financial strategy and envy is the national pastime, govern yourself accordingly.

She’s coming for you.

199 comments ↓

#1 crowdedelevatorfartz on 03.07.21 at 11:18 am

Our Debt and extravagant spending is being noticed…..

https://www.reuters.com/article/us-canada-economy-housing-analysis/analysis-excessive-exuberance-canada-home-prices-boil-over-as-policymakers-sit-back-idUSKBN2AZ0FJ

It wont be Trudeau and his Social Justice Warriors that bring us back to fiscal reality kicking and screaming….
higher interest rates and a Canuck Buck in the sewer will do that.

Well done Liberals.
Kicking Canada back to the financial stone age.

#2 Paul on 03.07.21 at 11:21 am

I’m sitting on a large capital gain in my unregistered acc. If the inclusion rate were to raise I would sit tight. Would it be lowered for say a year or two I would realize these gains and I bet a lot of others would too. My accountant thinks it hilarious that I would even entertain the inclusion rate dropping…. here’s hoping.

Also a progressive capital gains rate for primary residence would bring in substantial tax revenue and hit flippers the most. If there was a window to this tax being implemented we would see inventories rise as home owners look to cash in tax free and prices drop to more reasonable levels.

On a side note For some entertainment google : NFTs

#3 Paddy on 03.07.21 at 11:25 am

Chrystia cometh for thou for sure. Me and wifey both have DB pension plans but plan on leaving both our jobs in 8 years, which puts us at 45 years old. Max out our RRSP’s and defer the tax break till we take out transfer values or leave the room for now and max out rrsps when we take the transfer value? Cheers

#4 CHERRY BLOSSOM on 03.07.21 at 11:28 am

And now Trudeau wants to raise the debt limit to one Trillion. Our Country is doomed. So ashamed to be Canadian.

#5 Alberta Nomad on 03.07.21 at 11:29 am

May we live in interesting times….

#6 ogdoad on 03.07.21 at 11:31 am

UBI, eh? Is there anything actually wrong with that? Governments print money anyway. We are going to be taxed thru the ying yang anyway. In this imagined first world system where people are raised to be little tax payers doesn’t it make sense to keep them happy ;)

Print, tax and repeat….roll, sip, repeat…life doesn’t get any better!

Og

#7 Sail Away on 03.07.21 at 11:33 am

Thanks for the fair warning, Garth.

Luckily, I’m barely even rich in Canada anymore since the majority of our assets have walked elsewhere. Still have the company, home and registered plans here, of course, but the company opens many avenues. Easy enough to become a wholly-owned subsidiary of an offshore corp if things get punitive.

I’ll watch Prem Watsa’s moves.

#8 Give a mortgage to anyone on 03.07.21 at 11:34 am

Good news! Soon everyone in Canada will be a millionaire.

Back in the nineties, I went on vacation to Turkey. I spoke with a local there and he said everyone in Turkey is a millionaire. The only catch was a cup of coffee cost a hundred thousand Turkish lira.

#9 Mdq on 03.07.21 at 11:37 am

How could anyone vote for this twat?
It’s been 6 years of lies and deceit accompanied with worst managent skills. Why would anyone want to see that face on TV avoiding to answer questions? And voters want 4 more years of that?

I don’t know anyone in my circle that can stand him… But what do I know. Perhaps I have smart friends

#10 mauri on 03.07.21 at 11:38 am

They never learn:
https://www.newyorker.com/magazine/2005/12/05/everybodys-an-expert

#11 Blessed_Canadian_Millenial on 03.07.21 at 11:43 am

What a sobering reminder that we get exactly what we deserve by electing a bunch of folks that have little understanding of how economics work, and are more concerned about the perception of helping than to actually help the little people.

Wealth grows by investments; not by taking from the rich and giving to the poor.

By taxing more, we are inevitably going down a path where future generations will enjoy a less overall level of wealth than we currently enjoy. Alas, the majority of the folks do not understand this.

#12 Dan on 03.07.21 at 11:48 am

Good advice, Garth, as always. It pains me to see where this is headed. High debt levels, rising rates, and increased spending combine to form a negative economic outlook for Canada. So aside from the prudent measures you suggest, are there ways we can take further action to bet against Canada in the interim? For instance, do you expect pain in store for Canada’s banks, or other sectors?

#13 Millenial Surrealist on 03.07.21 at 12:03 pm

Build back better boomers – yer time is up!

A dollar is a dollar is a dollar…….

#14 Apocalypse NOW on 03.07.21 at 12:09 pm

The illusory calm before the storm can be incredibly distracting. Do not be fooled.

Yes.

PREPARE

#15 PaulB on 03.07.21 at 12:09 pm

“unveil a $400 shortfall…”
Maybe ‘$400 billion shortfall’?

#16 Yukon Elvis on 03.07.21 at 12:09 pm

She’s coming for you.
………………………….

It is going to be like your auto mechanic giving you a root canal.

#17 Sail Away on 03.07.21 at 12:19 pm

An interesting pet encounter yesterday. Hiking with the 1yo pup and doodle on a popular rule-free trail, we met an exceptionally well-behaved GSP and owner. The dogs met, milled and sniffed… then my over-exuberant pup decided the situation required some humping so he jumped on the GSPs head.

I said something like, ‘well, that’s not getting you anywhere’, and chuckled while moving by… and the owner lost it beyond any reasonable measure- yelling, swearing, accusing me of having out of control animals, etc.. When I said sometimes dogs do things like that, she said ‘not MY dog’, and stomped off.

I explained to the dogs that some people are irrational and we proceeded to several other pleasant dog encounters on a beautiful day.

Sara, was that you?

#18 Peter McLean on 03.07.21 at 12:20 pm

Ok, so here’s my portfolio…

AMC (AMC)
GME (GAMESTOP)
ACB (AURORA CANNABIS)
BB (BLACKBERRY)
CHOO (CHOOM)

I have a feeling this portfolio is bulletproof, since I base it off the guy who sits beside me at work. He looks at all the graphs and stuff everyday, and told me those are awesome stocks to buy. I can’t wait to cash out!!

#19 greyhound on 03.07.21 at 12:22 pm

Nobody cares anymore, since we have Modern Monetary Theory, central bank intervention and a mass of voters who want to WFH, flip houses and buy Teslas with Bitcoin. Fiscal restraint is so 2014.

Genius summary of our current craziness.

Inflating away the national debt by devaluing the currency is a tried-and-true “solution” that to which governments have resorted for centuries. Why would this time be any different?

#20 red_falcon on 03.07.21 at 12:24 pm

The Sheeple have spoken! it’s all about WFH, cash in the accounts via UBI, and all things leftist! because it’s free for them now! Generations from now, people will say what where they thinking taking on this debt? The theme that’s always recurring is the lack of accountability of people, giving govt to spend as it does for even more lack of accountability. one begats another, for even bigger mess. they need to be held accountable somehow…. Follow Singapore’s lead and we should do better.

#21 Ian From Oshawa on 03.07.21 at 12:25 pm

I appreciate these writings of yours. The FOMO and temptation to jump on to cheap mortgages is very real. I’m probably the only one of my circle renting. I pay peanuts to live on a lot of land, and I love that.

We need more of a house as my family grows, but I cannot, WILL not put a $1,000,000 anchor around our necks. We value vacations, doing things together, and there will be none of that if I make myself house poor.

What the blazes are the poor souls who over-leverage themselves going to do when interest rates rise? That is going to be so ugly. I think it will remind us all why debt should be avoided, not embraced.

Thanks for advising us and giving everyone with sense enough to consider your words a fighting chance out there. What you do matters a great deal. Thank you so much.

#22 crowdedelevatorfartz on 03.07.21 at 12:26 pm

@#9 Mdq
” Why would anyone want to see that face on TV avoiding to answer questions?”

++++

Blackface Highschool photos aside.

https://time.com/5680759/justin-trudeau-brownface-photo/

He’s not as vomit inducing as O’Toole?

#23 crowdedelevatorfartz on 03.07.21 at 12:33 pm

@#6 ogdoad
“UBI, eh? Is there anything actually wrong with that? Governments print money anyway. We are going to be taxed thru the ying yang anyway. ”

$$$$$$

Apparently you missed the stats.
” Already 40% of households receive more than they contribute and the top tax bracket is 54%”

What would be acceptable in your mind?

90% of households receive more than they pay and a 90% tax bracket?

Newsflash; If I’m taxed to death for working extra hours…..I’ll stop working and join you in the UBI line.

And if you dont believe me.
Take a look at the months long delays in seeing a doctor/specialist/ surgeon.
They have cut their hours to avoid the tax hit.
It will only get worse until these delusional, social experiment, financial midgets are kicked to the curb.

#24 NSNG on 03.07.21 at 12:35 pm

Justin Trudeau is passive-aggressive.

I guess all those nasty comments about his father when he was growing up really got to him.

Time to pay the piper, Canada. :(

#25 Ponzius Pilatus on 03.07.21 at 12:43 pm

I hope the budget also focuses on preserving our precious environment.
Jimmy Patterson agrees:
We have got to focus on the environment, the environment, the environment,” Pattison said. “Anything that is negative, in my opinion, to do with the environment is going out of business sooner or later.”

#26 TurnerNation on 03.07.21 at 12:50 pm

Why the supply chain shortages in the Former First World Countries? (So called as the bankers in this global WW3 have crushed us with unrepayable debt).
This article shows how our naval ports are under attack. Yep CV did that.

You’ll recall, in the last World War, II, naval shipping was the prime target. Could this be any clearer, in WW3?

(One thing missing from this article. Globe & Mail reported our major port as being controlled by the organized crime. As they all are I’m sure. You can bet that the ‘important’ shipments get through. I mean have we ever had a shortage of street drugs?)

https://www.nytimes.com/2021/03/06/business/global-shipping.html
‘I’ve Never Seen Anything Like This’: Chaos Strikes Global Shipping
The pandemic has disrupted international trade, driving up the cost of shipping goods and adding a fresh challenge to the global economic recovery.

Off the coast of Los Angeles, more than two dozen container ships filled with exercise bikes, electronics and other highly sought imports have been idling for as long as two weeks.
In Kansas City, farmers are struggling to ship soybeans to buyers in Asia. In China, furniture destined for North America piles up on factory floors.

#27 Prince Polo on 03.07.21 at 12:56 pm

Let’s not forget your tried and true advice to “live quietly amongst the masses”!

How could Chrystia possibly tax me more? I ain’t a rich home-owner with $1M+ mortgage balance….I’m a pathetic renter in need of debt-load.

#28 mike from mtl on 03.07.21 at 12:57 pm

So what are we supposed to do? My vote against the Libs is equivalent to farting into the wind.

That and we not only have an embarrassing PM to put it lightly but a finance minister who is on the board of the communist WEF.

A version of Cuba of the north is not out of possibility.

#29 Leftover on 03.07.21 at 12:57 pm

So even if the Liberals hit the fortunate 100,000 to the tune of $2.5 million each, for example, then we’d only cover 60% of the deficit. For one year. Yikes.

The rest of us will have to pay. Since our country has devolved into a houses and cannabis dependent economy, why not start there? Policy giveth the housing bubble, policy can taketh away.

#30 AB on 03.07.21 at 12:59 pm

#13 MS ( along with many other “names”)
Boomers and our well formed offspring will be just fine. We have not thrown away our dignity . We do not expect instant gratification. Your increasingly negative comments are indicative of your character. Very sad.

#31 Lefty on 03.07.21 at 1:03 pm

Bloomberg has done an article on Canada debt levels. Total public and private debt in Canada is now 352.6% of GDP which is second only to Japan at 433.4% and ahead of Greece at 343.9%.
Other major developed countries are as follows:
U.K. 303.1%
U.S. 281.7
Australia 256.6
Germany 200.2
One would assume that Canada’s massive debt load is fuelled to large degree by staggering mortgage debt.
Canada will pay dearly for this insanity.

https://www.bloomberg.com/news/articles/2021-03-02/trudeau-s-debt-binge-shows-limits-in-canada-s-sharp-contraction

#32 nick labixa on 03.07.21 at 1:05 pm

How can you conclude that he’ll get a majority on the next election? He’s not getting my vote. Am I in the minority?

He needs less than 35% for a majority. And 40% get more than they pay for. Figure it out. – Garth

#33 Debtslavecreator on 03.07.21 at 1:07 pm

After being cork-screwed by Carney, punished by Poloz and now Stiffed by Tiff, I’m ready to get freaked by Freeland
The CAD is overvalued
Borrow in a fixed rate
Prepare for a wildly aggressive CRA
And shock and sudden changes to registered plan rules
They will eventually come after any large gains in registered plans
Broke governments always confiscate “gains” that the deliberate currency devaluation creates in nominal terms
Good luck GIC and bond holders
Land, Blue chip global equities , royalty companies , and micro cap tech and maybe some pocket change in crypto for me thanks

#34 IHCTD9 on 03.07.21 at 1:13 pm

Trudeau has really pounded low wage earners into the dirt, while enriching high earning households. That’s what you get when you elect a guy who has no freaking idea what he’s doing.

I’m going to put a few new tax offsetting plans into motion this summer. I’m pretty much maxed out on avoidance strategies.

It would be hard to sleep at night knowing that I pay my fair share towards Liberal policies which make poor Canadians even poorer. I sleep great though, because I likely pay only half of my fair share, and it’s only gonna go down from there.

#35 mark on 03.07.21 at 1:14 pm

I thought tax cuts were the prediction….

#36 Sam on 03.07.21 at 1:14 pm

Garth couple things: you failed to mention that the printer money also inflated investment assets like ETFs. Also, you failed to mention what you’ve always said in the past – that diversified growth portfolio should actually be a balanced with bonds exposure. What gives?

ETFs are not directly inflated by monetary or fiscal policy as (in general) they reflect corporate valuations. Given the reopening of the economy, we are nowhere near the top. And the balanced approach to portfolio-building has not changed, as spelled out here in the past. A modest bond holding is for insurance. An equal pref weighting is to harness rates. Just invest and stay that way. – Garth

#37 SHANE GALLANT on 03.07.21 at 1:26 pm

DELETED

#38 FLHTK on 03.07.21 at 1:27 pm

All levels of government just want your hard earned dollars!

#39 Millennial 1%er on 03.07.21 at 1:34 pm

DELETED

#40 Capitalist on 03.07.21 at 1:43 pm

Prepare for civil unrest. The factory workers are being forced out of their slums to build condos funded by developers who have sons like anti-maskers Chris Sky. Prepare for war.

#41 cuke and tomato picker on 03.07.21 at 1:43 pm

There seem to be a lot of people down on our prime
minister so I guess they will be running in the next election and fix everything. Also Freeland has multiple
degrees and multiple languages.

#42 Do we have all the facts on 03.07.21 at 1:44 pm

How does it benefit expansion of the Canadian economy to “avoid home country bias”.

Why not encourage the Government of Canada to support domestic investment in Canadian based businesses that contribute exports to our balance of trade. If our government can guarantee rates of return on mortgage backed securities why not allow all income generated by
bonds issued by qualifying Canadian based companies to be received exempt from taxation or enhance tax credits associated with investment in Canadian companies.

Why not encourage the Government of Canada to purchase a range of bonds issued by Canadian corporations and package the bonds into a single bond where the rate of return is guaranteed. This approach appears to have worked for residential mortgages.

There is no shortage of investment capital in Canada and it seems like the right time to direct a significant portion of this capital into expansion of the Canadian economy before it is too late.

We desperately need to expand our role in the global economy and suggesting that investors avoid a home country bias seems counter productive to this need.

#43 Dolce Vita on 03.07.21 at 1:50 pm

Like everyone else, I agree it will not end well for Gov Canada.

The more debt you have, the less you have to spend.

Print money to fill the gap, it will have less value due to inflation.

A downward spiral, ever increasing debt, print more and money has less value. Lots of dollars that can purchase next to nothing.

I hate to say this but I hope it happens.

Then once and for all the “money grows on trees, UBI” crowd learns some basic economics.

A bitter pill but the only way they will learn as I see it.

———————–

So with that, spend away Chrysta and Justin.

You are young enough to be eventually hailed as pariahs and that you will be once financially illiterate Canadians get hit in the pocketbook…lots of dollars that buy nothing.

#44 NEVER GIVE UP on 03.07.21 at 1:52 pm

If all countries that count are also inflating at similar rates then the inflation matters not macroeconomically. The inflation or the adding of zeros on a printed note and the electronic equivalent is simply a hidden tax.

The reason countries like Zimbabwe and others have crashed their currencies is because their currencies cannot be swapped with other more fiscally responsible currencies. (meaning currencies that inflate together)
Zimbabwe went overboard with money printing and lost all confidence in the currency.

You can bet at the G7 and 20 meetings the top topic is how much to inflate their respective currencies in line with each other.

If Canada over inflates we gain an export advantage as our Currency falls in value with out trading partners. At the moment that does not seem to be happening.

When countries inflate their currency, Prices rise but wages lag. The people at the bottom are hardest hit. The people who have large debt are paying back debt with inflated dollars that become easier and easier to obtain. That gives borrowers a huge discount on the repayment of debt.

People who are creditworthy are the winners. Savers are crushed.

#45 Ballingsford on 03.07.21 at 1:52 pm

That seat belt doesnt look too comfortable. Pup must feel like he/she has a wedgie.

Like the millenials will feel for many years to come, or longer, being pulled up from the shorts, and squeezed to pay off our national debt. Not very comfortable.

#46 Tarot Card on 03.07.21 at 2:04 pm

Thanks for the blog Garth
Cute picture, I sure it’s not that comfortable but it got me thinking about what the dog is saying? I gotta pee!
My only criticism is it’s Sunday and I want a feel good post. Oh well reality is tough.

You’ve been right on your predictions, and there are always two sides to a debate. I personally agree with you that interest rates will go up, when not sure. But the other side of the debate is the federal reserve will step In with interest rate controls.

This impacts my investing, if rates go up, bank ETF will do well but utilities EtF will suffer. And I have seen this play out in he past few weeks. Balance is good and juicy monthly 7 percent dividends are nice.

I did follow your advice and locked in my mortgage in January 1.68 for five years. Also bought a preferred ETF and a cool bond fund that’s a little different in buying distressed assets.

Not sure what will happen, but like anything I am sure Canada will come back high debt and high taxes is the price to pay to be Canadian. Now if we could only tax those companies that hide their money offshore, all Canadians would benefit from that tax policy.
Have a great week.

#47 KNOW IT ALL on 03.07.21 at 2:04 pm

The HEN is in the fox-house.

Take cover!

#48 david prokop on 03.07.21 at 2:05 pm

Governments have chosen the easier path for now, which is MMT, debt monetization by central banks.
US just passed $1.9T stimulous, there is no way this huge amount of debt can be absorbed by the investors so Fed will have to print again. Same in Canada, BoC will have to step up and buy. Deficits don’t matter until they do, so stocks and the housing market can still party

#49 crowdedelevatorfartz on 03.07.21 at 2:09 pm

@#28 mike from mtl
“That and we not only have an embarrassing PM to put it lightly but a finance minister who is on the board of the communist WEF.

A version of Cuba of the north is not out of possibility.”

++++
yep,

Everyone has an income and the country is bankrupt.

While China eats our lunch….

#50 Ponzius Pilatus on 03.07.21 at 2:14 pm

#34 IHTC

I’m going to put a few new tax offsetting plans into motion this summer. I’m pretty much maxed out on avoidance strategies.
—————
So, what are you gonna do?
Use your dozer and your other heap of junk as a tax write-off?
Let us know.
I’m always come here for innovative ideas.

#51 Kiril Peev Ottawa Realtor on 03.07.21 at 2:21 pm

A graphic representation of how covid and the lockdowns effected new listings, average sale prices and sold properties in Ottawa.

2019 vs 2020 vs 2021.

https://www.kirilpeev.ca/ottawa-real-estate-the-lockdown-effect-2019-vs-2020-vs-2021/

#52 Stone on 03.07.21 at 2:24 pm

ETFs are not directly inflated by monetary or fiscal policy as (in general) they reflect corporate valuations. Given the reopening of the economy, we are nowhere near the top. And the balanced approach to portfolio-building has not changed, as spelled out here in the past. A modest bond holding is for insurance. An equal pref weighting is to harness rates. Just invest and stay that way. – Garth

———

And by tomorrow, or maybe even today, someone will add the following insightful question(s)/comment(s) through poetic prose:

Yo Garth, wassup! How much bonds should I hold? What about prefs? Hey…didn’t you say we should flush bonds? Why are you telling people to hold bonds? Yeah! Yeah! We should hold bonds for capital growth right now… especially long term bonds. Yeah! Hey Boomer! Be part of the change or be run over by it. GME to the moon! Sell low! Like correction low. Buy high! Like housing high. Variable rate all the way.

Hey, how come I don’t have any money left? Dude!

Yo Garth! Did you say something?

And to end it off – under 800,000 people in Canada have $1 million or more in investible assets. I wonder why? I guess they don’t teach comprehension skills in school or dope is making people really, really, really dumb.

https://www.youtube.com/watch?v=ss2hULhXf04

#53 Linda on 03.07.21 at 2:27 pm

100 billion in bank accounts? Well, if our economy does open up due to vaccinations & the end to pandemic shutdowns as herd immunity comes to pass seems like that is plenty of tinder to set the economy on fire. Of course, an economy on fire probably will result in robust inflation.

Taxes. Well, if they do target RE related capital gains, there had better be both write off of mortgage interest etc. to offset the new tax plus a capital gains tax reduction related to length of ownership. So long term owners don’t get hosed by first not receiving any tax breaks & second having to hand over $ from what might be their only asset to a rapacious government.

#54 Ponzius Pilatus on 03.07.21 at 2:36 pm

#49 crowdedelevatorfartz on 03.07.21 at 2:09 pm
@#28 mike from mtl
“That and we not only have an embarrassing PM to put it lightly but a finance minister who is on the board of the communist WEF.

A version of Cuba of the north is not out of possibility.”

++++
yep,

Everyone has an income and the country is bankrupt.

While China eats our lunch….
————-
Chinese don’t eat baloney sandwiches.
So your lunch is safe.

#55 Dogman01 on 03.07.21 at 2:42 pm

#42 Do we have all the facts on 03.07.21 at 1:44 pm
How does it benefit expansion of the Canadian economy to “avoid home country bias”.

—————————-

There seems no way to build anything in Canada, regulations etc.
We have no comparative advantage in Tech or manufacturing. We do have Resource Extraction but due to Green wokeness that seems dead.

Was reading this article:
https://palladiummag.com/2019/09/19/how-not-to-build-a-country-canadas-late-soviet-pessimism/

Thinking about Wealth Generation in Canada. Came to a hypothesis.
Wealth in Canada;
– not generated by creating something new , manufacturing , Value Added
– becoming less so with extraction of resource, ie. killing of our O&G sector.

But instead it is generated by rent and extraction from people in Canada. Extracted from Canadians and of course immigrants.
Banking, Real Estate etc all create and extractor from other people.

#56 Sara on 03.07.21 at 3:08 pm

#17 Sail Away on 03.07.21 at 12:19 pm

“Sara, was that you?”

LOL. Quite the opposite. Just got back from walking my 3-year-old mixed breed rescue dog “Finn” on a beautiful sunny day here in Ottawa. Reading your comment, my first thought was that that was nothing compared to what my dog did today. As we walked by a man with two dogs – one smaller and one bigger on retractable leashes – the owner allowed them to come over and sniff my dog. Finn promptly peed on the bigger dog. I apologized of course, but the owner didn’t seem to care. Hopefully, there won’t be any repeats.

#57 Capital One on 03.07.21 at 3:17 pm

Hey Garth – how about deleting comment #39 from Millennial 1%er?

Done. Missed it. – Garth

#58 David S on 03.07.21 at 3:21 pm

Please educate yourself about MMT. A country that has sovereignty over their currency (i.e. they have the ability to create as much as they need) has the financial ability to fund the programs they deem important for the well-being of their people.

Consider reading “The Deficit Myth” by Stephanie Kelton for a very interesting view on government debts and deficits.

Currencies are valued against others, namely the US$. Continuous creation of new currency devalues what exists. Lethal to a trading naion. MMT would doom Canadians to a rapidly collapsing standard of living. Don’t fall for it. – Garth

#59 David S on 03.07.21 at 3:25 pm

Forgot to add that Canada, having its own currency, has sovereignty.

#60 Don Guillermo on 03.07.21 at 3:29 pm

#49 crowdedelevatorfartz on 03.07.21 at 2:09 pm
@#28 mike from mtl
“That and we not only have an embarrassing PM to put it lightly but a finance minister who is on the board of the communist WEF.

A version of Cuba of the north is not out of possibility.”

++++
yep,

Everyone has an income and the country is bankrupt.

While China eats our lunch….
***********************************
I recall being driven into Havana some years ago. The driver told me he was a medical doctor, When I asked why he wasn’t working in his profession he responded ” because everything including education is ‘so called free’ in Cuba, everyone is a doctor, engineer or some type of professional and the degrees become worthless”. He can make more money driving gringos around.

#61 Dan in Nanaimo on 03.07.21 at 3:31 pm

Economic distortions are now endemic, plainly visible, and are not going away. In fact, these distortions and subsequent social inequalities can only grow exponentially – like technological advancement. The herd is now all in and where it goes is anyone’s guess.

Keep a level head, embrace the distortions, and take what ever you can out of the system. That’s what it’s actually designed for.

So at the end of the day, all that matters is what is in your jeans pocket. Anybody out there finding 10 – 30% more spare change in those pockets after taxes?

Yeah, I thought so…

#62 S.Bby on 03.07.21 at 3:32 pm

This is all very concerning. Are there any responsible adults left in the room?

#63 Felix on 03.07.21 at 3:36 pm

The economy will be considered sane again when they pay you up to six grand to adopt a dogawful useless mutt, not the other way around.

#64 IHCTD9 on 03.07.21 at 3:40 pm

#50 Ponzius Pilatus on 03.07.21 at 2:14 pm
#34 IHTC

I’m going to put a few new tax offsetting plans into motion this summer. I’m pretty much maxed out on avoidance strategies.
—————
So, what are you gonna do?
Use your dozer and your other heap of junk as a tax write-off?
Let us know.
I’m always come here for innovative ideas.
— ———-

Well Ponzie, I was inches from building a wood powered truck a few years ago. Looking at the gas prices right now, maybe this is the year I’ll do it. Eliminating my transportation fuel bill would be a nice tax offset. Same for home heating via a wood supplement, I’ve already got this plan in the works since Christmas last year.

I have a couple of other ideas I’m toying with too, but I’ll hang on to them for now.

Beyond that, the dozers will indeed save me some taxes. My little baby dozer was bought used tax free, and does not need to be registered, plated, or insured. Last year alone, it pushed over and disposed of 3 trees including the stumps, dug out and replaced my entire driveway, and transplanted a 20’ tall Aspen. I figure that would have run me 6-7 grand (plus tax of course). Cash outlay on all this was about a grand, taxes paid about 125.00. Savings all in, no less than $5500.00.

You should get yourself one Ponzie, I recommend International Harvester and certain CASE models.

#65 TurnerNation on 03.07.21 at 3:42 pm

Why would anyone buy property in a Bankrupt totalitarian country, where the local prefecture ruling junta can Suspend the country’s Charter of Rights and Freedoms? That’s what the local Mayors have done. And those unelected Health Commandants with their diktats. For our health Comdrades!
Internet Cranks always said the New UN Global System would be rolled out at the City level. But I don’t know anything about that. Look the Old System was shut down. It ain’t coming back. The CV control system, with its QR codes, biometric tracking, A.I. and Movement Certificates is embedded and here to stay. We are cattle now. The Global Sate owns our bodies.

They currently control how we breath, how we stand (6-6-6) feet apart; What type of business you may open (Essential vs. Non essential AKA a competitor to Amazon); how we (don’t) socialize. “Illegal gatherings”. Umm yeah my grandparents fought for that. Nice try.

……
Why is Kanada late on getting jabs? It’s a BUSINESS decision. CONTRACTS are negotiated and signed. We are held hostage to the Big Corps. This is not a game this is business. If someone told me that The Big Pharma plays both sides of the game …That’s a reeeel nice country you got there. Would be a shame if something were to happen to it. Sign here.

WE are the product. Our DNA –> into the (cell)Blockchain. 23&Me is to go public and issue stock. Ancentry.com already is. The Internet of Things is…us. Our global tax farmers are going to extract max profit from us. Oh you’ll get a Serf’s UBI to live on. A corner of the King’s land to build a shack on. Everything old is new again.

https://www.legislation.gov.uk/uksi/2020/973/made?view=plain
The Coronavirus (Retention of Fingerprints and DNA Profiles in the Interests of National Security) (No. 2) Regulations 2020

#66 espressobob on 03.07.21 at 3:43 pm

Cash is king. Inflation is the adversary.

Bond returns, seriously…

Contrarians are patient and exploit opportunity when equity markets present them.

Anything missed?

#67 Vince on 03.07.21 at 3:59 pm

Someone’s wrong there:
GT: So, our nation hangs on the bond market
MMT: in truth ccy-issuing gov can safely spend wo borrowing (…) bonds are a gift to investors, not a sign of dependency on them (www.ft.com/content/53cb3f6a-895d-11ea-a109-483c62d17528)

A trillion in existing national debt is all financed. When rates rise, so will the servicing costs. Bond-holders will not want MMT-created dollarettes. – Garth

#68 crowdedelevatorfartz on 03.07.21 at 3:59 pm

@#41 cuke and tomato picker
“Also Freeland has multiple
degrees and multiple languages.”

++++
And with all that knowledge she became a ….journalist.

Unfortunately none of her degrees and languages has qualified her to actually balance a budget in the Ministry of Finance…
It does however, qualify her to write fiction…..

#69 crowdedelevatorfartz on 03.07.21 at 4:01 pm

@#64 IHCTD9
“You should get yourself one Ponzie, I recommend International Harvester and certain CASE models.”

++++
Alas.
There isnt a large enough Bulldozer made to allow Ponzie’s massive head inside the cab.

#70 NoName on 03.07.21 at 4:03 pm

#64 IHCTD9 on 03.07.21 at 3:40 pm

C’mon tractor dude; case, stayer traktoren would be better fit iam thinking.

Look at those beauties, they have one that looks like formula.

https://www.youtube.com/watch?v=3g82LvXGMgg

#71 Ardy on 03.07.21 at 4:09 pm

Conservatives are funny….

#72 Guacamole on 03.07.21 at 4:11 pm

Guess where UBIs will end up. “Oh, you have 1000$ extra per month? I am gonna increase your rent by just that amount since you can now afford it.”

#73 meslippery on 03.07.21 at 4:26 pm

#28 mike from mtl on 03.07.21 at 12:57 pm

So what are we supposed to do? My vote against the Libs is equivalent to farting into the wind.

That and we not only have an embarrassing PM to put it lightly but a finance minister who is on the board of the communist WEF.

A version of Cuba of the north is not out of possibility.

—————–
Better still T-2 loves Cuba maybe he should print enough money to buy the whole Country.
I could see myself retired in the Canadian Island of Cuba walking my dog on the beach.

#74 Danger Dan on 03.07.21 at 4:28 pm

“If the prime minister needs hundreds of millions for native fishers, black-led businesses, windmills, international maternal health or women’s initiatives, well, he can just print it.”

So… how good do those windmills have to be? I have some tools…

#75 Grateful in Victoria on 03.07.21 at 4:32 pm

You sound just like Donald Trump with his insulting name calling of successful women.

What insult? – Garth

#76 KLNR on 03.07.21 at 4:39 pm

@#17 Sail Away on 03.07.21 at 12:19 pm
An interesting pet encounter yesterday. Hiking with the 1yo pup and doodle on a popular rule-free trail, we met an exceptionally well-behaved GSP and owner. The dogs met, milled and sniffed… then my over-exuberant pup decided the situation required some humping so he jumped on the GSPs head.

I said something like, ‘well, that’s not getting you anywhere’, and chuckled while moving by… and the owner lost it beyond any reasonable measure- yelling, swearing, accusing me of having out of control animals, etc.. When I said sometimes dogs do things like that, she said ‘not MY dog’, and stomped off.

I explained to the dogs that some people are irrational and we proceeded to several other pleasant dog encounters on a beautiful day.

Sara, was that you?

lol, your dog wouldn’t do that if you trained it properly.
really doesn’t require a much effort to be a responsible dog owner.

#77 Jem on 03.07.21 at 4:51 pm

A lot of money has been created not only in Canada but around the globe this past year.

Is it true that about 30% of currency has been created since the pandemic?

Isn’t it fun to create facts? – Garth

#78 Faron on 03.07.21 at 5:00 pm

#76 KLNR on 03.07.21 at 4:39 pm

@#17 Sail Away on 03.07.21 at 12:19 pm

Sara, was that you?

lol, your dog wouldn’t do that if you trained it properly.
really doesn’t require a much effort to be a responsible dog owner.

Some dogs learn by watching their owners.

#79 Bob in Hamilton on 03.07.21 at 5:01 pm

“He needs less than 35% for a majority. And 40% get more than they pay for. Figure it out. – Garth”

That statement says it all about our democracy here in Canada….

#80 Bob in Hamilton on 03.07.21 at 5:05 pm

Makes one wonder if we are heading back to the inflation era of the 1970’s….

..yes, I’m old enough to remember that period. There was a Trudeau in charge then too….

#81 Just Read it on 03.07.21 at 5:05 pm

The Psychology of Money – Morgan Housel…some good perspective.

#82 WTF on 03.07.21 at 5:15 pm

#41 “There seem to be a lot of people down on our prime minister so I guess they will be running in the next election and fix everything. Also Freeland has multiple degrees and multiple languages.”
—————————————————————
Well you are partially correct in a flippant and inconsequential way.

Yes, you need to be elected as MP. However, the PM is chosen by HIS party, the unwashed have no say in this.

Newly minted Finance Minister Freeland has many degrees, just NONE in anything remotely attached to finance. Or Science, or math. Lets just say she isn’t Angela Merkel

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

We are soooo Screwed……..

#83 Sail Away on 03.07.21 at 5:16 pm

#76 KLNR on 03.07.21 at 4:39 pm

lol, your dog wouldn’t do that if you trained it properly.
really doesn’t require a much effort to be a responsible dog owner.

—————

Rome wasn’t built in a day, K. Kids can be erratic.

#84 Sara on 03.07.21 at 5:25 pm

#78 Faron on 03.07.21 at 5:00 pm
#76 KLNR on 03.07.21 at 4:39 pm

@#17 Sail Away on 03.07.21 at 12:19 pm

Sara, was that you?

lol, your dog wouldn’t do that if you trained it properly.
really doesn’t require a much effort to be a responsible dog owner.

Some dogs learn by watching their owners.

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

I’ve never peed on anyone. Not even when asked.

#85 Fiscal Restraint? on 03.07.21 at 5:25 pm

There was fiscal restraint in 2014? Where?

#86 Real Estate will be taxed on 03.07.21 at 5:32 pm

Garth, they will one-time tax every house a set % value. Say 2% of value.

They’ll be like…would you rather have lost 10x that in value to your house? Done.

Libs are tax and spend, so clearly they will come after housing for a one time tax. Makes sense.

#87 Keen Reader on 03.07.21 at 5:40 pm

@ TurnerNation – although you do occasionally bring up *some* good info, you quickly lose credibility in my eyes with references to astrological mumbo-jumbo such as 6-6-6, 2-8, etc. Sticking to facts and reasonable analysis, would help. Just friendly advice!

Lots of good zingers in comments today, I should probably keep my own head (that fits in my cockpit) down!

Cheers all, and hopefully things will only be half as bad as they are shaping up to be… B&D with more cash and gold in reserve, waiting for redeployment opportunities.

#88 Erin O'Stoole on 03.07.21 at 5:41 pm

Thank you, Garth, for proving why Conservatives are the only alternative for Canadians.

The Libs are full of crap.

#89 IHCTD9 on 03.07.21 at 5:43 pm

#70 NoName on 03.07.21 at 4:03 pm
#64 IHCTD9 on 03.07.21 at 3:40 pm

C’mon tractor dude; case, stayer traktoren would be better fit iam thinking.

Look at those beauties, they have one that looks like formula.

https://www.youtube.com/watch?v=3g82LvXGMgg
——-

Beautiful stuff, probably cost more than my house did. They look like fun though.

I see they’re owned by CNH, that keeps me happy (CaseIH), Ponzie Happy (Steyr), and Loonie Doctor happy (New Holland).

#90 Stone on 03.07.21 at 5:46 pm

#83 Sail Away on 03.07.21 at 5:16 pm
#76 KLNR on 03.07.21 at 4:39 pm

lol, your dog wouldn’t do that if you trained it properly.
really doesn’t require a much effort to be a responsible dog owner.

—————

Rome wasn’t built in a day, K. Kids can be erratic.

———

Nope. Sounds more like you’re just a jerk. Or a predator. Your loser 69 comment earlier clinched it for me.

#91 Holey Moley on 03.07.21 at 5:48 pm

What wrong with native fishers?

In other news the US wants to let loose 1.9 trillion in stimulus. About $5800 per person.

#92 steadyplank on 03.07.21 at 5:49 pm

Thanks for this take Garth.Prepare indeed. As Buffet once famously said, predict that many gullible , yet well intentioned, folk to be caught swimming naked once this tide (of FOMO frenzied, government subsidized spending) goes out.

I still can’t get my head around why people are so intent to go deep in debt so heavily in RE at this stage …and most having a speculative rationale. I know the reasoning, but just find it difficult to see how many see it all as a “no~brainer” to buy a so~so 1500 sq ft house in Halifax for 7~800,000 .There are no more deals to be had for houses in my province now anyhow (NS) .Perhaps some chances of deals in lake lots just outside peripherals of the city , but this is only if cities are set to grow with rargeted immigration #s unaffected over the next few years.
All this WFH hype, and the supposed final downfall of big cities. This year has more surprises in store I feel…

Enjoying this blog and its commentary always…

#93 tkid on 03.07.21 at 5:56 pm

Thank you, Garth. How low do you see the Cdn $ falling?

#94 Rinse and Repeat on 03.07.21 at 6:04 pm

This is becoming farcical after so many years of failed provincial and federal intervention. Please someone, anyone, point to a federal measure that had ANY impact whatsoever?

Crickets…..

Changes to down payments, amortization rates, stress tests, withdrawals of equity, and so on, have had zero impact. The ever present threat of federal intervention has yielded nothing but price increases after 10 years of policy initiatives.

There is only one thing you need to know – which is that there is only one sector generating revenue during the pandemic, and that sector constitutes 25% of the economy.

Every other sector has been pinched with pandemic restrictions, creating a loss of revenue for the feds on top of their conscious attempts to bailout every Canadian with hundreds of billions in payouts.

It takes a certain type of naivety to think that this government will touch the market that is paying its weight in gold into the economy.

It will, instead, announce a grandiose policy change that will be nothing but window dressing – as all have been in the past – and this ‘change’ will then be put on a pedestal as heralding the end of the market.

Of course, that announcement will not take place until AFTER the election in the fall and the pandemic waters have full receded – since you don’t want to take away people’s bailout funding and rain on an economic recovery parade.

Rinse, and repeat…..since 2010.

I think that picture and ‘wow factor’ behind a POS in the GTA selling has been used a half dozen times in the last 10 years to show how ridiculous the housing bubble has been for a decade…and yet prices keep going up!

Next stop – Brazil – and the complete decimation of the middle class and the entrenchment of a class divide forever…..unless some effective measures are brought in.

#95 Tulips on 03.07.21 at 6:08 pm

If you’re buying now, prepare for a potential equity hit.

—————————————————————-

True. And if you’re staying on the sidelines, prepare for a potential further melt-up in prices. Potential for equity hit and potential for affordability erosion are both real. Place your bets accordingly.

#96 YVR Renter on 03.07.21 at 6:08 pm

Where’s the biggest pile of wealth sitting amongst the majority of Canadians that the gov must be eyeing to tax and pay down their debt? Homes. Just saying.

#97 joblo on 03.07.21 at 6:29 pm

“There’ll be two inevitable outcomes after Trudeau wins a majority later this year: higher levels of tax (since the economy’s too fragile now for a big hit), and lots more inflation. Plus steadily increasing bond yields as CBs cut back stimulus and investors demand better returns.”

Lemme guess, the 40% freeloaders who vote a majority with 35% mostly are from Quebec, Atlantic and Owetario?

Well then, for me MAVERICK party it is. (Otool is seemingly weaker than Shear).

Let’s get on with burning down the Circus for the 40%.

#98 The Woosh on 03.07.21 at 6:35 pm

The odds are that C’s maiden budget will keep the spigots open. Ottawa has promised to do pharmacare. More paid sick leave. Enhanced child care. Tons more to the provinces for health care. Money to revive small business. An airline bail out. Big green initiatives. Plus there’s pressure (from you-know-who) for a UBI. Given that the NDP has Mr. Socks by the shorts, the drift left – more government, more programs, more expenditures – will continue.

————————————

I’ve got no problem with all of this except the airline bailout. They’re sitting on $7 billion in cash and have enough to purchase Air Transat. The feds should get an equity stake so they eventually get the bail out money back.

#99 Faron on 03.07.21 at 6:39 pm

#79 Bob in Hamilton on 03.07.21 at 5:01 pm

“He needs less than 35% for a majority. And 40% get more than they pay for. Figure it out. – Garth”

That statement says it all about our democracy here in Canada….

Cool, yeah, we should have a tax system that radically decreases tax rate the more you make. That would make sense and be utterly humane.

#100 Faron on 03.07.21 at 6:41 pm

#84 Sara on 03.07.21 at 5:25 pm

#78 Faron on 03.07.21 at 5:00 pm
#76 KLNR on 03.07.21 at 4:39 pm

@#17 Sail Away on 03.07.21 at 12:19 pm

Sara, was that you?

lol, your dog wouldn’t do that if you trained it properly.
really doesn’t require a much effort to be a responsible dog owner.

Some dogs learn by watching their owners.

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

I’ve never peed on anyone. Not even when asked

Ha. Noted.

#101 Steven Rowlandson on 03.07.21 at 6:46 pm

Given the system that we have there are two chances of saving Canada and cleaning up the mess. No how and no way. Best pray for an ice age so that the government can declare force majuere on its debt and obligations because corrective action will not be tolerated.

#102 Sail Away on 03.07.21 at 6:49 pm

#90 Stone on 03.07.21 at 5:46 pm
#83 Sail Away on 03.07.21 at 5:16 pm
#76 KLNR on 03.07.21 at 4:39 pm

lol, your dog wouldn’t do that if you trained it properly.
really doesn’t require a much effort to be a responsible dog owner.

———–

Rome wasn’t built in a day, K. Kids can be erratic.

———–

Nope. Sounds more like you’re just a jerk. Or a predator. Your loser 69 comment earlier clinched it for me.

———–

Geez. Sorry my portfolio beat yours so definitively the other day, S. Didn’t expect you to take such a low road, though.

#103 Brian Ripley on 03.07.21 at 7:00 pm

“Going forward, the three big things that make this (2021-2022) recovery so different from 2010 are:

1) Output was mostly idled, but not destroyed.
2) Aggregate demand is likely to rebound much faster due to far larger stimulus.
3) A series of supply side constraints arising from all of the uncertainty of the pandemic will make it harder to meet that surging demand.”

SOURCE:Cullen Roche, PRAGMATIC CAPITALISM https://www.pragcap.com/how-worrisome-is-the-rise-in-interest-rates/

Cullen Roche’s work is definitely worth a read, a recent blog post of his is: “Stop Saying MMT Describes Reality – It Doesn’t.” Cullen Roche – 01/08/2020 https://www.pragcap.com/stop-saying-mmt-describes-reality-it-doesnt/

#104 Stone on 03.07.21 at 7:00 pm

#102 Sail Away on 03.07.21 at 6:49 pm
#90 Stone on 03.07.21 at 5:46 pm
#83 Sail Away on 03.07.21 at 5:16 pm
#76 KLNR on 03.07.21 at 4:39 pm

lol, your dog wouldn’t do that if you trained it properly.
really doesn’t require a much effort to be a responsible dog owner.

———–

Rome wasn’t built in a day, K. Kids can be erratic.

———–

Nope. Sounds more like you’re just a jerk. Or a predator. Your loser 69 comment earlier clinched it for me.

———–

Geez. Sorry my portfolio beat yours so definitively the other day, S. Didn’t expect you to take such a low road, though.

———

Nope. Couldn’t care less about that. I do care though about your predatory behaviour. I remember when you first appeared here and made your disgusting Vietnamese brothel comments. There’s a pattern with you. From that point, you were a nothing.

Enjoy your organic water.

#105 Nonplused on 03.07.21 at 7:03 pm

“In a country with out-of-control public spending and a voter base clamouring for more, where most people think a house is the only financial strategy and envy is the national pastime, govern yourself accordingly.”

That sums the country we live in up nicely. Envy has replaced hockey as the national sport. That can be seen clearly in this comments section, especially when the youngsters chime in. And this is probably a fairly well-to-do segment of the larger population, center- right leaning and well educated for the most part. If you were to go onto a university campus and interview those kids oh boy. Trudeau and Chrystia are likely to be with us for a long time, perhaps right until the collapse of the confederacy.

——————————-

My big prediction for taxes this budget is that they will convert RRSP contributions from an income deduction to a tax credit at 17.5%. They’ll simply move the line from the income page where it is now to the tax credit page. Boom! Equity. No more 54% deductions for the “rich”. Everybody gets the same. And only a small percentage of the voters will actually be affected and they mostly vote conservative anyway.

I base this bit of mind reading and prognostication on Trudeau’s stated reason for slashing the TFSA limit. “It is a tool that only the rich can use to its’ fullest” and “equity”.

—————————————–

I’ve noticed that the definition of many words has been evolving very quickly in recent years to reflect “woke” theology. Almost in a “rightspeak” type way.

For example, the word “rich”. Even Garth used the threshold of $1 million for some reason. Now, 50 years ago a person with $1 million was actually “rich”. Today that person is a retiree who doesn’t have a government pension. It’s all in his/her RRSP (well most of it anyway) and is meant to provide income in retirement. They aren’t “rich”, at least not by old standards.

“Privilege” is another word that has evolved. You can no longer use it in this form: “It is my honor and privilege to be Master of Ceremonies for this reception” as you might have at a wedding or other event in the past. It doesn’t mean that anymore. A “privilege” is now strictly an unearned advantage. The proper usage now is that if your parents worked hard and paid for your university tuition or ski lessons you are “privileged”. If you inherit any money you are “privileged”. Etc. There is “privilege” everywhere now that there isn’t “equity”, another word that has taken on a new meaning. Before we had “equal opportunity”, now we strive for equal outcomes. Thus “equity” has replaced “equality”.

We are getting a bunch of new words too. Who new what “cross-sectionality” was just a few years ago? Now we are all defined by what groups we can be placed in.

#106 Stuck in NB on 03.07.21 at 7:04 pm

In a normal world, lower debt at a higher rate is better than the opposite. But since the Liberal government strategy is likely to give rise to Weimar Republic -like inflation, even 1M borrowed today at 2.5% for 10 years fixed might not be much by the end of the term – that is, if you are able to maintain cash flow.

#107 Stuck in NB on 03.07.21 at 7:12 pm

@#101 “…so that the government can declare force majuere on its debt and obligations …”

I vividly remember 1998 when Russia defaulted on its government debt. What a feast it was! The average Ivan suffered badly for several years though, and they ended up electing a Tsar to rule them for the next quarter century or maybe longer.

#108 Bezengy on 03.07.21 at 7:13 pm

No mention of the 2021 Iditarod? It is “The last great race” after-all.

https://iditarod.com/race/2021/mushers/

Dallas Seavey for the win.

#109 Nonplused on 03.07.21 at 7:16 pm

#41 cuke and tomato picker on 03.07.21 at 1:43 pm
There seem to be a lot of people down on our prime
minister so I guess they will be running in the next election and fix everything. Also Freeland has multiple
degrees and multiple languages.

—————————————-

If one of those degrees was in math or finance she might qualify for her current role. But sadly, her scholarly work is Ukrainian something or another that nobody cares about.

Lots of people can speak a language but not do math. So far as I can tell, our current government only consists of people with no math credentials.

#110 Comments! on 03.07.21 at 7:25 pm

#77 Jem on 03.07.21 at 4:51 pm
A lot of money has been created not only in Canada but around the globe this past year.

Is it true that about 30% of currency has been created since the pandemic?

Isn’t it fun to create facts? – Garth

https://www.google.com/amp/s/www.cityam.com/almost-a-fifth-of-all-us-dollars-were-created-this-year/amp/

#111 Nonplused on 03.07.21 at 7:27 pm

#58 David S on 03.07.21 at 3:21 pm
Please educate yourself about MMT. A country that has sovereignty over their currency (i.e. they have the ability to create as much as they need) has the financial ability to fund the programs they deem important for the well-being of their people.

Consider reading “The Deficit Myth” by Stephanie Kelton for a very interesting view on government debts and deficits.

Currencies are valued against others, namely the US$. Continuous creation of new currency devalues what exists. Lethal to a trading naion. MMT would doom Canadians to a rapidly collapsing standard of living. Don’t fall for it. – Garth

#59 David S on 03.07.21 at 3:25 pm
Forgot to add that Canada, having its own currency, has sovereignty.

—————————————-

No government has “sovereignty” over its’ currency unless it either has the assets or the guns to back it up. Canada has neither. Whether our printing presses go “brrrr” or “ka-ching” doesn’t really matter, all excess printing will make the price of a Dodge 3500 go up and up and up, until finally the farmers can’t farm anymore.

#112 Nonplused on 03.07.21 at 7:34 pm

#75 Grateful in Victoria on 03.07.21 at 4:32 pm
You sound just like Donald Trump with his insulting name calling of successful women.

What insult? – Garth

———————————-

Trump insults everybody. This alone proves he is not sexist or racist. Deranged, perhaps.

#113 Gotta Get Out of Calgary on 03.07.21 at 7:34 pm

#41 cuke and tomato picker on 03.07.21 at 1:43 pm
….Also Freeland has multiple degrees and multiple languages.

———————————————–

Being book smart does not mean being street savvy.

Multiple degrees won’t help if they are in areas of knowledge that have nothing to do with her current job.

#114 Nonplused on 03.07.21 at 7:36 pm

#86 Real Estate will be taxed on 03.07.21 at 5:32 pm
Garth, they will one-time tax every house a set % value. Say 2% of value.

They’ll be like…would you rather have lost 10x that in value to your house? Done.

Libs are tax and spend, so clearly they will come after housing for a one time tax. Makes sense.

———————————–

#86, you’ve never owned real estate, have you? “They” tax it every year.

#115 So do I ... on 03.07.21 at 7:38 pm

#80 Bob in Hamilton on 03.07.21 at 5:05 pm
Makes one wonder if we are heading back to the inflation era of the 1970’s….
..yes, I’m old enough to remember that period. There was a Trudeau in charge then too….
———————————————-
was working for a Crown Corporation out here in 604 at the time (union job) and remember getting a 2 year contract for 17% the first year and 14% the second. Was in my twenties. Wage and price controls came next …

#116 Billy Buoy on 03.07.21 at 7:45 pm

The debts will never be paid back. NEVER.

So borrow what they give you and party like it’s the end.

Everything is broken and there is no turning back.

Period.

#117 Drill Baby Drill on 03.07.21 at 7:45 pm

“(a) more spending, (b) more debt and (c) rising rates”
The 3 horsemen of the econocolapse.

#118 Drill Baby Drill on 03.07.21 at 7:48 pm

I have said it before on this doggy blog Canadians will not learn unless there is an economic colapse. Also I have become very very upset by the blog God’s statement that Justin will have a majority. I need a drink no make that several !!!

#119 Flop... on 03.07.21 at 7:51 pm

Woke up this morning and was waiting for my morning bagel to appear in front of me, because 18 years of marriage has made me forget how to use a toaster, started thumbing through some online articles.

The Most Underrated Towns In America article, I thought was worth a peruse.

https://www.msn.com/en-ca/lifestyle/travel/tripideas/the-most-underrated-towns-in-america/ss-BB1cZv76?li=AAggFp5

Been to a few of them, never enough, but the one that caught my eye was Shreveport, Louisiana.

Dunno why, thought it was on the coast maybe Gulfport, Mississippi had me going down the wrong path.

After looking at what is downtown and the cost of hotels, which is pretty decent, well if I’m gonna write about it on here, let’s look at the real estate angle.

Metropolitan population 443,000

Median Home Price according to Forbes…$169,000

Median Household Income $38,142

https://www.forbes.com/places/la/shreveport/

Was just looking to see where the better neighbourhoods were and was already getting the real estate listings shoved in the pipe.

This one was the first one that caught my eye mainly because of the street name.

420 Homalot Dr.

Well yeah, of course if you are working from home during a pandemic and are a pot smoker, then you’re probably gonna be Homalot.

Priced at $150,000

https://www.realtor.com/realestateandhomes-detail/420-Homalot-Dr_Shreveport_LA_71106_M89147-81604

Kinda like the pricing where I’m from.

The only thing left to real estate wise was, not find the nicest house on the market but maybe one just above the median price that could probably be beaten down to the Forbes number.

Settled on this one for 185,000, just for an example.

https://www.realtor.com/realestateandhomes-detail/1016-Manor-Pl_Shreveport_LA_71118_M87446-77098

O.k so I don’t get to get on a plane as usual for Spring Break, that is now 3 lost flying trips and one camping trip, but it gets me out of the house in my mind while I rest up for the weekend.

Gotta get creative and find new places to visit when this bug blows over.

Still recovering from a strenuous hiking trip last Sunday in the foothills near Pasadena, California, in my mind.

Onwards…

M46BC

#120 Ponzius Pilatus on 03.07.21 at 7:58 pm

#64 IHTCD10

You should get yourself one Ponzie, I recommend International Harvester and certain CASE models.
————-
No thanks.
As a kid, in beautiful Austria, I helped out on my uncle’s farm in summer.
They had this tractor that had to be cranked on the front by hand.
This thing had a nasty kickback, almost lost my hand a few times.
If you’ve got one of those, I might just come by and crank it up for old times sake.
And then finish off a bottle of Jaegermeister.

#121 Barb on 03.07.21 at 8:12 pm

#53 Linda

“Taxes. Well, if they do target RE related capital gains, there had better be both write off of mortgage interest etc. to offset the new tax plus a capital gains tax reduction related to length of ownership. So long term owners don’t get hosed …”

——————————–
Exactly.
Practicing our CRA defense: “You can’t have it both ways.”

#122 Dr V on 03.07.21 at 8:17 pm

58 David S – I recently completed reading that book.

I found the perspective and accounting of the deficit
interesting, and perhaps more truthful than how many of us view it. As far as our sovereign currency, the key is that others will accept it for debt payment.

While I do not necessarily agree with all of the outcomes of its application, the author does acknowledge that inflation is the limiter.

I do not agree with some of her other visions for the
economy.

still recommend reading the book.

#123 Ustabe on 03.07.21 at 8:17 pm

#71 Ardy on 03.07.21 at 4:09 pm

Conservatives are funny….

Not really. They just think they are.

#124 Faron on 03.07.21 at 8:18 pm

When a market reaches a level of bubbly froth, the only way the froth can be sustained is through adding new buyers until the greatest fool is found. Some aspects of equities/crypto are froth^10. Low rates have been driving demand in tech and the bubbliest parts of tech for years now, but perhaps the # of new buyers was dwindling as things reached late 2019.

It occurred to me today that Robinhood couldn’t have been more perfectly timed to fill that niche to bring the bubble to its climax. Then, in the last week of January, confidence in Robinhood was deeply shaken. If we see a continued drop in the crapcos (essentially everything held by ARK or hyped on r/wallstreetbets) I wonder if it can be attributed to that week. Enough hell in Robinhood to scare away the next greater fool and down the house of cards goes.

It also occurred to me why Tesla’s models are the 3, Y, X and S. But maybe that was broadly known already.

#125 The Woosh on 03.07.21 at 8:22 pm

#118 Drill Baby Drill on 03.07.21 at 7:48 pm
I have said it before on this doggy blog Canadians will not learn unless there is an economic colapse. Also I have become very very upset by the blog God’s statement that Justin will have a majority. I need a drink no make that several !!!

——————————————

Shouldn’t we just have gone through one? For some reason, it was averted. I wonder why? Hmmmm…think, think, think, brain. Maybe you haven’t learned yet.

#126 Faron on 03.07.21 at 8:30 pm

#105 Nonplused on 03.07.21 at 7:03 pm

“Privilege”

Huh, that’s funny. Last week I began a public lecture stating that I felt it was a privilege to speak before the crowd and no one batted an eye. I thought the island was pretty woke. But maybe the territorial acknowledgement and the incantation by a local W̱SÁNEĆ man had people in such a state of bliss that they missed my error.

#127 Sail Away on 03.07.21 at 8:35 pm

#104 Stone on 03.07.21 at 7:00 pm

I remember when you first appeared here and made your disgusting Vietnamese brothel comments.

————–

False. I can’t remember if it’s libel or slander when someone lies to damage a person’s reputation, but you’re doing it right now.

Prove what you just wrote.

#128 Nonplused on 03.07.21 at 8:36 pm

#120 Ponzius Pilatus on 03.07.21 at 7:58 pm
#64 IHTCD10

You should get yourself one Ponzie, I recommend International Harvester and certain CASE models.
————-
No thanks.
As a kid, in beautiful Austria, I helped out on my uncle’s farm in summer.
They had this tractor that had to be cranked on the front by hand.
This thing had a nasty kickback, almost lost my hand a few times.
If you’ve got one of those, I might just come by and crank it up for old times sake.
And then finish off a bottle of Jaegermeister.

——————————————

I’ve got a garden tractor! Whew, does that thing go through the gas when mowing. There is no way there is going to be a lithium-ion solution to that problem. At least not until the StarLink satellite network can beam the power directly to my tractor without melting me and any passing birds and bees. If it melts the mosquitoes and wasps I am ok with that.

How is it that a garden tractor uses so much fuel? It only has 20 hp. The difference is that it is running 75-100% all the time when mowing (most of the fuel is spent mowing not driving around). The throttle is like that on a boat, set it at full and forget it. (There is a speed limiter, but you set it at full.) Your car only really goes through the fuel when accelerating. Put a snow plow on the front and see what happens to your mileage. You’ll find there isn’t any such thing as mileage when you have a tool working. Imagine driving a car where you held the gas peddle all the way down all the time. That is how tractors be, even the little ones.

#129 baloney Sandwitch on 03.07.21 at 8:42 pm

There was article in NY times yesterday that the revolution in AI is starting to decimate the professional classes. AI is doing tasks like accounting reconciliations, routine contract drafting, transferring data from one system to another, reading radiographs, etc. Don’t think your jobs are safe. You might be UBI soon enough.

#130 meslippery on 03.07.21 at 8:43 pm

#121Barb on 03.07.21 at 8:12 pm

#53 Linda

“Taxes. Well, if they do target RE related capital gains, there had better be both write off of mortgage interest etc. to offset the new tax plus a capital gains tax reduction related to length of ownership. So long term owners don’t get hosed …”

——————————–
Exactly.
Practicing our CRA defense: “You can’t have it both ways.”
——————-
Yes they can…TFSA (Tax Free Savings Account) unless you do really well then its TUBT (Tax you big time)

#131 KaleyCat on 03.07.21 at 8:59 pm

#58 David S on 03.07.21 at 3:21 pm
Please educate yourself about MMT.

Yes, educate yourself on MMT. Kelton was the mastermind behind Bernie Sanders demise. She doesn’t interview well – check out NPR-planet money interview with her. I prefer Paul Krugmans (Nobel Prize – economics) statement. He claims he doesn’t understand it; I am going to presume that he understands it very well and feels that it doesn’t make sense. Lots out there – keep reading….

#132 Russ on 03.07.21 at 8:59 pm

Sara on 03.07.21 at 5:25 pm

Some dogs learn by watching their owners.

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

I’ve never peed on anyone. Not even when asked.

————————————————-

Hi Sara,

Umm, delicate question here. Maybe too much for the sensibilities of this blog….

but, umm, ahh, “What do you want as your rate?”

Cheers, R

Okay, that’s it. This convo is kaput. – Garth

#133 Kevin on 03.07.21 at 9:02 pm

Garth, can you advise this millennial moister what to with potential down payment money? We have about $50K right now, and it should be about $200K in 3-5 years. What do I do with it in this environment? Thanks

Slam it into TFSAs in diversified ETFs. Five years is a long time. Then flip some into RRSPs a year before buying to goose the down payment with the refund. After you come here for permission, of course. – Garth

#134 Sara on 03.07.21 at 9:15 pm

#104 Stone on 03.07.21 at 7:00 pm
#102 Sail Away on 03.07.21 at 6:49 pm

I do care though about your predatory behaviour. I remember when you first appeared here and made your disgusting Vietnamese brothel comments. There’s a pattern with you. From that point, you were a nothing.
—————-

Don’t forget the disgusting comments promoting the eating of our canine friends. I must say though, that since being allowed back after being banned, and since his true identity was revealed recently, SA has been behaving less sociopathically. I wonder if he has found another blog to let the real SA come out.

#135 Sara on 03.07.21 at 9:22 pm

#112 Nonplused on 03.07.21 at 7:34 pm
#75 Grateful in Victoria on 03.07.21 at 4:32 pm
You sound just like Donald Trump with his insulting name calling of successful women.

What insult? – Garth

———————————-

Trump insults everybody. This alone proves he is not sexist or racist. Deranged, perhaps.

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

I think Garth was referring to himself when he wrote “what insult?”

And how does it logically follow that Trump’s propensity to insult precludes him from being racist and sexist?

#136 crowdedelevatorfartz on 03.07.21 at 9:26 pm

@#123 Ustabe
“Conservatives are funny….
Not really. They just think they are.”

++++
Judging by Socks and Freecash smirking and nodding …
I’m thinking the Liberal Budget will be quite amusing….

#137 Enigma on 03.07.21 at 9:36 pm

Residential real estate is in many locations in a bubble but I wonder how and if it will spill over to REITS. Some have been recovering nicely, others seem to lack. I looked at some options and wonder how would you go about evaluating the choices? There is so many articles out there but many read more like marketing articles or other forms of promotion. Where can you go to get a better insight into such investments? What are red flags?

#138 Sail Away on 03.07.21 at 9:40 pm

#134 Sara on 03.07.21 at 9:15 pm
#104 Stone on 03.07.21 at 7:00 pm
#102 Sail Away on 03.07.21 at 6:49 pm

Don’t forget the disgusting comments promoting the eating of our canine friends. I must say though, that since being allowed back after being banned, and since his true identity was revealed recently, SA has been behaving less sociopathically. I wonder if he has found another blog to let the real SA come out.

————

Nothing disgusting about it. I sampled local cuisine with the locals. That’s known as respecting the culture.

#139 Greg on 03.07.21 at 9:40 pm

#3 Paddy

I am 45 and just left work (severance) and am commuting my DB pension. I have always maxed my RRSP but now wish I had some room as I have 200k taxable portion of the commuted DB pension.

But if I didn’t max my RRSP it would be smaller and I would have missed out on the growth and tax breaks over the years.

Pay me now or pay me later.

Oh by the way, in 8 years the commuting calculations will probably be such that you won’t get a big taxable benefit anyway. I got the old rules that weren’t designed for 1.3% discount rates!

#140 Stone on 03.07.21 at 9:41 pm

#127 Sail Away on 03.07.21 at 8:35 pm
#104 Stone on 03.07.21 at 7:00 pm

I remember when you first appeared here and made your disgusting Vietnamese brothel comments.

————–

False. I can’t remember if it’s libel or slander when someone lies to damage a person’s reputation, but you’re doing it right now.

Prove what you just wrote.

———

Sad. Nice to see you on the defensive for once. It suits you.

#141 crowdedelevatorfartz on 03.07.21 at 9:45 pm

@#140 Stone

Easy to toss unsubstantiated, slanderous allegations….. No proof?

Or are you just stirring the pot?

#142 crowdedelevatorfartz on 03.07.21 at 9:52 pm

@#134 Sara.
Go to India and try to order beef.
Go to Saudi Arabia and try to order pork.
OR
Go to Europe and order horsemeat
One culture’s “disgusting” is another culture’s meal.
If you’re hungry enough and the situation is dire enough………
You could probably even eat a human.

#143 Linda on 03.07.21 at 10:04 pm

#86 ‘RE’ – a ‘one time tax’? In what universe do you reside? Keep in mind that income tax was originally a ‘temporary measure’ meant to pay off the cost of the war – WW1, that is. I’ve yet to hear of any tax that was implemented that was fully rescinded. At best it is replaced with a new ‘improved’ tax. A tax by any other name is still a tax. No lipstick ever invented will change that pig for the better.

#144 IHCTD9 on 03.07.21 at 10:18 pm

#128 Nonplused on 03.07.21 at 8:36 pm

How is it that a garden tractor uses so much fuel? It only has 20 hp. The difference is that it is running 75-100% all the time when mowing (most of the fuel is spent mowing not driving around). The throttle is like that on a boat, set it at full and forget it. (There is a speed limiter, but you set it at full.)
————-

Mowers are notorious power mongers. Mine has a 28 hp gas v-twin. It drives 3 high lift blades, one hydraulic pump, two hydraulic trans axles, pushes around a 1300 lb machine, and does so all at the same time. I have a hill I mow up, and occasionally when the grass is thick I hear the tell-tale moan of the carb going wide open throttle as the governor loses its battle trying to maintain its set rpm. It turns out mowing 61” of grass at a decent clip (no pun intended) just takes a ton of power. Like you said too – it’s full on work at full throttle 99% of the time it’s running. Mowers don’t really get recognized for hellish life they live.

Compare that to my baby dozer, where 20.00 worth of fuel does a ridiculous amount of work. 6500 lbs, all mechanical, and every working gear is straight cut. Everything is pretty efficient up till the tracks. It’s only got 30 hp (at 800 rpm) but pushes its own weight with ease, lifts about 3/4’s its own weight, and runs all day long and then some on one tank.

There actually are electric zero turns on the market. They do eliminate a ton of complexity and parasitic losses. No belts, pulleys, pumps, hydros etc… but yeah, it’s all battery, and big bucks. Most would not finish my lawn without going full upgrade on the battery packs. Lots of potential upsides to these, but too expensive to roll the dice on them yet.

#145 Ponzius Pilatus on 03.07.21 at 10:22 pm

#134 Sara on 03.07.21 at 9:15 pm
#104 Stone on 03.07.21 at 7:00 pm
#102 Sail Away on 03.07.21 at 6:49 pm

I do care though about your predatory behaviour. I remember when you first appeared here and made your disgusting Vietnamese brothel comments. There’s a pattern with you. From that point, you were a nothing.
—————-

Don’t forget the disgusting comments promoting the eating of our canine friends. I must say though, that since being allowed back after being banned, and since his true identity was revealed recently, SA has been behaving less sociopathically. I wonder if he has found another blog to let the real SA come out..
———-
Sailo came out of the closet?
I must have missed it.
Can someone clue me in?
Thanks

#146 Sail Away on 03.07.21 at 10:36 pm

#140 Stone on 03.07.21 at 9:41 pm
#127 Sail Away on 03.07.21 at 8:35 pm
#104 Stone on 03.07.21 at 7:00 pm

I remember when you first appeared here and made your disgusting Vietnamese brothel comments.

———-

False. I can’t remember if it’s libel or slander when someone lies to damage a person’s reputation, but you’re doing it right now.

Prove what you just wrote.

———–

Sad. Nice to see you on the defensive for once. It suits you.

———–

You made a claim. I say untrue. Hardly defensive.

Contemptible behaviour, though.

#147 Nonplused on 03.07.21 at 10:44 pm

#135 Sara on 03.07.21 at 9:22 pm
#112 Nonplused on 03.07.21 at 7:34 pm
#75 Grateful in Victoria on 03.07.21 at 4:32 pm
You sound just like Donald Trump with his insulting name calling of successful women.

What insult? – Garth

———————————-

Trump insults everybody. This alone proves he is not sexist or racist. Deranged, perhaps.

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

I think Garth was referring to himself when he wrote “what insult?”

And how does it logically follow that Trump’s propensity to insult precludes him from being racist and sexist?

————————————

I was trying to be funny but humor is an acquired taste, sort of like McDonald’s. Well at least in my case.

#148 LeeBee on 03.07.21 at 10:47 pm

Sad to see the healthcare waitlist just keeps getting longer. My Doc has cut his hours way back .Waiting times for an MRI in Durham region now approaching 3 months. Then when the results are in another 2-4 months to see a specialist. Gotta hope the pain can be managed for that long. Lousy system we have. I know lots of people who would pay for private healthcare if it was available.

#149 Nonplused on 03.07.21 at 10:49 pm

#126 Faron on 03.07.21 at 8:30 pm
#105 Nonplused on 03.07.21 at 7:03 pm

“Privilege”

Huh, that’s funny. Last week I began a public lecture stating that I felt it was a privilege to speak before the crowd and no one batted an eye. I thought the island was pretty woke. But maybe the territorial acknowledgement and the incantation by a local W̱SÁNEĆ man had people in such a state of bliss that they missed my error.

———————————

The usage of the word as you used it isn’t completely dead yet, in the same way “gay” can still mean cheerful. But it is fading away.

#150 Sara on 03.07.21 at 11:09 pm

#140 Stone on 03.07.21 at 9:41 pm
#127 Sail Away on 03.07.21 at 8:35 pm
#104 Stone on 03.07.21 at 7:00 pm

I remember when you first appeared here and made your disgusting Vietnamese brothel comments.

————–

False. I can’t remember if it’s libel or slander when someone lies to damage a person’s reputation, but you’re doing it right now.

———

Sad. Nice to see you on the defensive for once. It suits you.

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

Can one be slanderous or libelous when referring to an anonymous commenter?

Ooops, I almost forgot that SA mistakenly revealed his true identity. Of course, he himself would never slander a fellow blog dog. No way.

#151 Nonplused on 03.08.21 at 12:35 am

I am going to post a chart tomorrow where on one axis I plot ex’s and the other whys. Ok not original.

#152 Wrk.dover on 03.08.21 at 7:56 am

My two single cylinder ride on mowers are not penis compensating sized, at only 12hp for the ’90 and 15hp for the ’10.

Either one will cut for 40 minutes on about 2 litres.

Down time isn’t panic time, when b&d’d with two.

#153 Prince Polo on 03.08.21 at 8:09 am

“Liberals rule out March budget as Ottawa assesses economic impact of recent shutdowns, new vaccine timelines”

https://www.theglobeandmail.com/politics/article-liberals-rule-out-march-budget-as-ottawa-assesses-economic-impact-of/

Now what?

#154 crowdedelevatorfartz on 03.08.21 at 8:11 am

@#150 Sara
Have you tried eating horsemeat yet?
450 million Europeans cant be wrong.

#155 Sail Away on 03.08.21 at 8:21 am

#150 Sara on 03.07.21 at 11:09 pm
#140 Stone on 03.07.21 at 9:41 pm
#127 Sail Away on 03.07.21 at 8:35 pm
#104 Stone on 03.07.21 at 7:00 pm

I remember when you first appeared here and made your disgusting Vietnamese brothel comments.

———-

False. I can’t remember if it’s libel or slander when someone lies to damage a person’s reputation, but you’re doing it right now.

———–

Sad. Nice to see you on the defensive for once. It suits you.

————

Can one be slanderous or libelous when referring to an anonymous commenter?

Ooops, I almost forgot that SA mistakenly revealed his true identity. Of course, he himself would never slander a fellow blog dog. No way.

————

Sara, you are correct. Of course, same as with Stone, I welcome you to find an example of a time I slandered someone.

And regarding identity, I posted my email and shared my portfolio on this site years ago and am in regular contact with quite a few of the blogdogs.

I am who I say I am and if you’ve visited my Linkedin, sailing blog or company site, you know that. It’s hardly a coup for you to continue jumping up and down acting as if you know some big secret.

The main issue with being non-anonymous is the restriction this places on speaking candidly about the company or the workings of boards/associations I sit.

Now we get plain vanilla bland potato posts where I can only allude to ‘things that could happen’, or ‘this is the way deals are struck’. The truly interesting details can no longer really be discussed.

Stop by the office to say hi. Just remember to genuflect to the statue.

#156 Ray Skunk on 03.08.21 at 8:23 am

G&M this morning: “Budget NOT coming soon”.

Garth, I love, admire and respect you – I’ve never wished you wrong on anything. But I sincerely, for the future of my kids and this country, hope your prediction of a majority is incorrect.

Politics is math. Right now it is predicting exactly that. Vote strategically. – Garth

#157 crowdedelevatorfartz on 03.08.21 at 8:24 am

Just when the decade of gossiping Kardashian drivel was finally winding down ….

Can we expect a decade of Megxit gossip?

https://www.reuters.com/article/us-britain-royals-meghan/meghan-accuses-uk-royals-of-racism-says-didnt-want-to-be-alive-idUSKBN2B003M

Harry and Megs should be careful.

Hell hath no fury like the British Press scorned….

#158 Sail Away on 03.08.21 at 8:51 am

#157 crowdedelevatorfartz on 03.08.21 at 8:24 am

Just when the decade of gossiping Kardashian drivel was finally winding down ….

Can we expect a decade of Megxit gossip?

Harry and Megs should be careful.

Hell hath no fury like the British Press scorned….

————-

Don’t worry about Meghan and Harry. Americans have never taken the royals seriously and the interview felt very authentic. Any aspersions cast will appear as petty smallmindedness and Meghan will be defended to the hilt by her countrypeople. How dare those presumptuous second-rate foreigners treat one of ours like that!

Harry’s an awkwardly endearing fella. His future probably now depends on Meghan. They seem happy.

#159 IHCTD9 on 03.08.21 at 9:05 am

#41 cuke and tomato picker on 03.07.21 at 1:43 pm
There seem to be a lot of people down on our prime
minister so I guess they will be running in the next election and fix everything.
— ——-

We had a pile of debt before Trudeau showed up, but all you can do is laugh now. It’s an unholy combination of Mt. Everest and Mt. St. Helens. There’s no fixing it after Trudeau, doesn’t matter who’s in charge.

In post-Trudeau Canada, we will see the slow but irreversible erosion of the Canadian safety net. 10’s of billions immolated every year to satisfy our lenders instead of Canadians in need. One program after another shut down in the face of budget cuts. Forced austerity or currency destruction, take your pick – and then thank the Trudeau Liberals.

Canada under Trudeau has become an upside down country where the government enriches the wealthy, and oppresses the poor. Wealthy Canadians have seen their real estate values go thru the roof, and their portfolios skyrocket. Never have we seen the rich get so much richer under just one PM.

Trudeau has never heard the expression “means tested”, so if you are a well off high earning professional, you can expect all kinds of support you don’t actually need. But, if you’re working a minimum wage job, you can plan on losing it at some point, and cross your fingers for a 1500.00/mo. UBI cheque.

TLDR: Post-Trudeau Canada will never again be the great Country it once was. The damage done is just too great.

#160 IHCTD9 on 03.08.21 at 9:27 am

#152 Wrk.dover on 03.08.21 at 7:56 am
My two single cylinder ride on mowers are not penis compensating sized, at only 12hp for the ’90 and 15hp for the ’10.

Either one will cut for 40 minutes on about 2 litres.

Down time isn’t panic time, when b&d’d with two.
— —

Nothing wrong with a basic lawn tractor. I mowed for years with a $500.00 1980’s 12 hp Craftsman. It did do a lot better on fuel based on time mowing. My current mower eats fuel like a 747, but it does cut the lawn in under 1/3rd the time the Craftsman took, so not sure if I’m actually using more fuel or not. I’m definitely saving time.

My current mower was bought with the hope it’ll be the last one I ever buy. My yard kills mowers fast, there is a ton of turning and reversing, some very rough and steep areas, and close to 3 acres that might soon be upped to near 4.

It was a pile of cash for a mower, but was bought used albeit like new, for half the price as new, and tax free. It’s a race car, and is a joy to run.

#161 crowdedelevatorfartz on 03.08.21 at 9:42 am

@#158 Sail Away
“Harry’s an awkwardly endearing fella. His future probably now depends on Meghan. They seem happy.”
+++

Yep. Their future earnings potential could be in the billions.
After Queen Elizbeth is gone….I’m thinking Chuck may want to sit this one out and hand the reigns to Willie.
But the idea of a grand coronation and the obligatory “golden Horse and Carriage tour through the streets of London ” spectacle seems way out of touch in 2021.

Although the tourists lap it up to the tune of millions of visits per year…

Perhaps the Queen could have a few royals tossed in the Tower and a few public beheadings to spice things up.

#162 crowdedelevatorfartz on 03.08.21 at 9:45 am

@#159 IHCTD9

“We had a pile of debt before Trudeau showed up, but all you can do is laugh now. It’s an unholy combination of Mt. Everest and Mt. St. Helens. There’s no fixing it after Trudeau, doesn’t matter who’s in charge.”

++++

No further comment required.

#163 Dharma Bum on 03.08.21 at 9:49 am

#64 IHCTD9

Last year alone, it pushed over and disposed of 3 trees including the stumps, dug out and replaced my entire driveway, and transplanted a 20’ tall Aspen. I figure that would have run me 6-7 grand (plus tax of course).
———————————————————————–

Cool!

Can I borrow that sucker?

Better still, can I hire you to clear my lot and construct my driveway?

I’m having problems pinning down an excavation contractor for the spring.

They are very arrogant, independent, and indifferent.

Especially, those guys up in Hicksville country.

They rule the roost, seems like.

#164 Sara on 03.08.21 at 10:04 am

“So, obviously, almost all of the spending must be funded by borrowing more, not taxing more. (Although there are a couple of bombs coming.)”

Hmmm….any hints as to what kind of bombs? I’m guessing some sort of new tax relating to home ownership.

#165 NSNG on 03.08.21 at 10:19 am

If we ever do get UBI, I think it will run two ways. I think only 20% of the population will actually need it so what happens to the other 80%?

The other 80% will be made up of those who still have jobs and those who are living at home, underemployed/in university, and were the same ones that collected CERB and its variants.

Both groups of the 80% will probably have no faith in the government to keep this printing press scam going

The people that are working are in no way going to drop their jobs to collect UBI. They will spend some of it but I suspect most of it will be hoarded into savings and thus be economically useless.

The other crowd will not expect it to last either but since they don’t need the money they will probably blow it as fast as it comes in on Robinhood gambling and other frivolous adventures. So we will probably see a lot of money go to waste.

From an economic perspective, this will be a disaster. The government will have no realistic data to prove the benefits of the UBI when only 20% probably need it and the other 80% don’t need or don’t trust it.

Thus, when they finally do throw in the towel on this experiment, they will have nothing to show for it benefit-wise.

That is my opinion.

#166 Bdwy on 03.08.21 at 10:19 am

All this mower talk is stressing me out. Its been a year since i cut the grass at our American property. I imagine its a tad overgrown by now. The poor JD wont be happy when the time comes to tackle it.

#167 leebow on 03.08.21 at 10:20 am

#159 IHCTD9

You attribute too much power to Trudeau. Like mighty villain Justin single-handedly destroyed this beautiful Canada thing that is no more and here our own IHCTD9 rips the mask off his face. Oh, what are we gonna leave to our children…

Things started before him and Canadians gladly got themselves into financial mess. A little inflation could help pay off all those crazy mortgages. Those who were prudent up to this point have nothing to worry about.

The US of A ran a 4 trillion deficit in 2020. About the same as Canada per capita. All under the wise leadership.

#168 slick on 03.08.21 at 10:40 am

news scroll on BNN says no budget from Christia in march.
Oh well, maybe next year.

#169 crowdedelevatorfartz on 03.08.21 at 10:41 am

@#167 leebow

“Things started before him and Canadians gladly got themselves into financial mess. A little inflation could help pay off all those crazy mortgages. Those who were prudent up to this point have nothing to worry about.”

++++
Nothing to worry about?
Canada’s debt has almost doubled in the past 4 years.

Repeat after me,
“User fees and higher taxes….”

#170 Ponzius Pilatus on 03.08.21 at 10:43 am

#166 Bdwy on 03.08.21 at 10:19 am
All this mower talk is stressing me out. Its been a year since i cut the grass at our American property. I imagine its a tad overgrown by now. The poor JD wont be happy when the time comes to tackle it.
———————-
In any civilized country (other then the US), the city would wave expropriated your property, no questions asked.
Show some respect to your neighbours!

#171 Ponzius Pilatus on 03.08.21 at 10:49 am

167 leebow on 03.08.21 at 10:20 am
#159 IHCTD9

You attribute too much power to Trudeau. Like mighty villain Justin single-handedly destroyed this beautiful Canada thing that is no more and here our own IHCTD9 rips the mask off his face. Oh, what are we gonna leave to our children…

Things started before him and Canadians gladly got themselves into financial mess. A little inflation could help pay off all those crazy mortgages. Those who were prudent up to this point have nothing to worry about.

The US of A ran a 4 trillion deficit in 2020. About the same as Canada per capita. All under the wise leadership.
———————-
Scapegoatism is a disease.
Widespread in the steering section.

#172 Bdwy on 03.08.21 at 11:06 am

city would wave expropriated your property…
……

Well thanks for your concern ponzie, but i think im ok there.

City? Bad assumption. Its rural.
Neighbours? There is one human about a quater mile away. 80 % of his 15 acres is not mowed. About 70% of my 12 acres is never mowed. The coyotes, hawks,deer and rabbits feel no disrespect.
The part i mow has been pasture/hay for about 100 years before i got there. The surronding acreages are never mowed, some is cut once per year for hay. The 15 foot hedge along the road means nobody can see the grass anyway unless thay are snooping. Are you one of those types?

Maybe you can call the county to register a complaint.;)

#173 leebow on 03.08.21 at 11:10 am

#169 crowdedelevatorfartz

If you kept your eyes on the ball, you redirected part of the government spending into your pocket. Now you have to pay a little and may be make some more money. You gotta pay to play. Taxes are a good problem to have. If you really want to make things better for yourself, start drinking your coffee black no sugar and have one or two vegetarian days a week.

#171 Ponzius Pilatus
That’s normal human reaction. Diverts attention away from real reasons though.

#174 Doug in London on 03.08.21 at 11:11 am

Where’s Paul Martin when you need him? We could use some of his sensibility and sobriety about public finance right now.

#175 Dr V on 03.08.21 at 11:28 am

165 NSNG – UBI will simply be taxed back and will have no or little net effect on Canadians who continue to
work in all but the lowest paying jobs.

A recent study in BC rejected UBI in favour of enhanced social programs, but the study used the word ‘justice’ so many times that it was clearly obvious the writers had a very strong bias.

Other proponents of a UBI consider it only in an
economic sense, replacing many government programs and modifying others. As I like to say to people who respond favourably to my statement that I would consider a UBI, is “oh, you may not like my UBI”.

#176 crowdedelevatorfartz on 03.08.21 at 11:30 am

@#171 Plithy Ponderings
“Scapegoatism is a disease.
Widespread in the steering section”

++++
Scapegoatism?!?!?!

I prefer Cynicism to your Austrian bastardization of the King’s English.

Look it up in the dictionary.
I think your picture is there.
:)

#177 crowdedelevatorfartz on 03.08.21 at 11:33 am

@#168 slick
“news scroll on BNN says no budget from Christia in march.
Oh well, maybe next year.”

+++++

Hahahaha.
They’re trying to figure out where the chimp is that tosses the darts at the Economic dartboard.

#178 Faron on 03.08.21 at 11:48 am

If you are into sector ETFs, probably not a terrible time to buy HACK (cyber security ETF). Didn’t make too many headlines, but Chinese or North Korean hackers exploited vulnerabilities in microsoft email servers worldwide likely giving themselves a backdoor into networks that run an exchange server (like UVic).

HACK has been sold off recently in concert with the NASDAQ and is correlated, but this is one tech sector that has massive and almost assured growth in coming years likely including corporations with US Gov’t contract business.

Tensions between the US and China/Russia/PRK/Iran don’t seem to be going down and given that open warfare is unpalatable at best, it’s likely this battle will be fought over the internet.

Neither here nor there. I don’t have a position in HACK, but it looks pretty choice to me. I haven’t dug into the underlying holdings or their valuations, this is based on the technical low point and likely macro demand for the sector. If you want interest rate protected tech, this might be it.

#179 Sandy Saragato on 03.08.21 at 12:13 pm

Don’t worry, when we are all on the streets starving and the government rounds us up you can beg for more UBI, useless begging intervention.

#180 VGRO and chill on 03.08.21 at 12:22 pm

In 1953, the top tax bracket in Canada was 83%.

In 2021, people are concerned about…. 54%?

Spare me of this fantasy that taxes on the rich cannot go higher.

https://financialpost.com/personal-finance/taxes/it-was-a-very-simple-thing-this-tax-return-from-1953-shows-just-how-complex-our-tax-system-has-become

#181 Dave Stockbridge on 03.08.21 at 12:37 pm

VRGO and chill take 100% in taxes, fees, levies etc. and see what happens. Do it today.

#182 Randy Timmerton on 03.08.21 at 12:43 pm

What will happen Dave is people will be like Venezuela, drinking and washing with sewer water and eating what they can find because they will be starving.

It took on 12 years after the destructive socialism, progressive, left, communist, marxist policies, ideas put in full measure.

#183 NSNG on 03.08.21 at 12:47 pm

My two recovery stocks are T.US and BCE. My thinking is that they are going to do well when business recovers. They are more than telecom stocks. They are basically diversified enough to be their own mini communication ETFs.

They are both the biggest in their sectors. T in the US is a $200 billion conglomerate. BCE is the same at $50 billion in Canada. They both pay around 7 for the divvy.

Telecom/internet is basically the nervous system of business (and everything else we do these days) and when business turns around these elephants will benefit.

#184 BlogDog123 on 03.08.21 at 12:55 pm

Mr. Socks line of thinking:

“Debt is an abstract concept that makes my head spin. So spend, spend, spend and voila gosh darn people love me. Not worried about budgety things I just don’t understand. Let the next PM worry about that debt stuff. Now off to hear what Katie and Gerald tell me what to regulate, obfuscate and spend on next.”

#185 Planetgoofy on 03.08.21 at 12:58 pm

Hi Garth. Scary stuff
Why will people vote for socks? Are they that ignoratant and easily bought off?
Its a vote for the demise of Kanada.

#186 VGRO and chill on 03.08.21 at 1:13 pm

#181 Dave Stockbridge on 03.08.21 at 12:37 pm
VRGO and chill take 100% in taxes, fees, levies etc. and see what happens. Do it today.

—–

Why not 110%? Just as realistic as your number.

#187 IHCTD9 on 03.08.21 at 1:38 pm

#167 leebow on 03.08.21 at 10:20 am
#159 IHCTD9

You attribute too much power to Trudeau. Like mighty villain Justin single-handedly destroyed this beautiful Canada thing that is no more and here our own IHCTD9 rips the mask off his face. Oh, what are we gonna leave to our children…
—- –

So it’s not Trudeau’s fault is what your saying?

Thanks bro, you’ve totally changed my perspective.

#188 Michael in-north-york on 03.08.21 at 1:38 pm

The MMT pushers need to stop acting like they are more educated than the rest of us. All their “education” is theoretical concepts never put to a practical test.

Show me one country that ran the deficit of our current level for 50 years, and didn’t end up with hyperinflation. Until then, I am not interested in reading their constructs.

The Covid-related deficit financing may be a necessity, but once done with that, the federal government must come up with an exit plan and return to the balanced budget. Failing that, we will go down the hyperinflation cliff eventually. Forget the children’s grandchildren; the fallout can happen in the next 20 or 30 years, although the exact timing is hard to predict.

#189 crowdedelevatorfartz on 03.08.21 at 1:43 pm

@#173 Leebowitz
“If you really want to make things better for yourself, start drinking your coffee black no sugar and have one or two vegetarian days a week.”
++++

Oddly enough.
That’s exactly what I do!

#190 leebow on 03.08.21 at 1:44 pm

#182 Randy Timmerton

You are full of it. The problem with Venezuela was not the slogans they used, but plain old theft and corruption.

We have what we have thanks to socialist policies as well. Unionization, the New Deal are socialist policies. Whole post-WW2 boom was fuelled by crazy government spending on war production.

There is a 40% chance that you personally receive more cash than you pay, and an even higher chance that you receive more in services than you pay. Even if you pay more than you receive, it’s very likely that you owe part of your success to the system.

On internets everyone is a self-made man (or woman) who is always at odds with and earned success despite the big bad government. But if you dig deeper, you find that the person had subsidized education, or the business risks were mitigated by government, or the government provided a monopoly, or employee compensation was subsidized by the government.

Of course nobody becomes successful without hard work and some good decisions. But please spare us of this Client Eastwood bullcrap.

#191 Sail Away on 03.08.21 at 1:50 pm

He has spoken:

[email protected]

I’m not sure how much longer I can save the Queen after this.

#HarryandMeghanonOprah”

#192 crowdedelevatorfartz on 03.08.21 at 1:54 pm

@#180 VGRO
“Spare me of this fantasy that taxes on the rich cannot go higher.”

+++

Of course taxes WILL go higher….thats the Liberal way.

But don’t be surprised when your doctor says,
“You’ll have to wait in line at the clinic. I’m not working 5 days a week anymore because my taxes don’t make it worth while……”

Its hard enough to get qualified people.
Good luck trying to get staff to work OT when most of it is taxed to the govt.

Taxes up, productivity down.

#193 crowdedelevatorfartz on 03.08.21 at 1:57 pm

190 Leebowitz
“But please spare us of this Client Eastwood bullcrap.”

++++

Client?

You just “made my day”.

#194 leebow on 03.08.21 at 1:58 pm

#189 crowdedelevatorfartz
Why the fartz then?

#187 IHCTD9
Are you being sarcastic or something?

#195 IHCTD9 on 03.08.21 at 2:12 pm

#173 leebow on 03.08.21 at 11:10 am
#169 crowdedelevatorfartz

If you kept your eyes on the ball, you redirected part of the government spending into your pocket. Now you have to pay a little and may be make some more money. You gotta pay to play. Taxes are a good problem to have. If you really want to make things better for yourself, start drinking your coffee black no sugar and have one or two vegetarian days a week.
—- –

I’m glad we’ve got a PM like Trudeau to make sure wealthy Canadians can redirect a ton of spending into their pockets, you know; so we don’t starve or anything like that.

A bro and I have redirected over a quarter million back into our pockets since Trudeau took power – and that’s just our tax returns and CCB payments. We’re not really rich, but we didn’t need a penny of it. I don’t want to even think how much more Trudeau pile-drove into our bank accounts thru his fiscal and housing policies, but you could start by doubling that number. I don’t know how we made it through, but we hung on with Trudeau’s help. Things would have been darn near impossible if the Liberals had means tested things a little bit…

Oh well, it’s all gone now – I ain’t giving any back.

I mean hey, you’re probably right – it’s a good problem to have. That’s what the local YAMAHA dealership keeps telling me every time I stop in too.

#196 IHCTD9 on 03.08.21 at 2:15 pm

#194 leebow on 03.08.21 at 1:58

#187 IHCTD9
Are you being sarcastic or something?
——

Keep reading, I’m sure you’ll figure it out.

#197 IHCTD9 on 03.08.21 at 2:30 pm

#180 VGRO and chill on 03.08.21 at 12:22 pm

In 1953, the top tax bracket in Canada was 83%.

In 2021, people are concerned about…. 54%?

Spare me of this fantasy that taxes on the rich cannot go higher.
——-

Not even a discussion worth having if we’re talking about patching up a post-Trudeau Canada.

We could round up the top 10% richest folks in Canada, take *ALL* their money, and we still wouldn’t barely make a dent in the debt abomination the Liberals have created.

But, the Liberals are doing a great job trying to make rich Canadians even richer though, so maybe someday taxing the rich may make a difference:

“Canada’s top billionaires are $37 billion richer since start of the pandemic, CCPA report finds”

https://www.policyalternatives.ca/newsroom/news-releases/billionaires-wealth-pandemic

#198 Shortymac on 03.08.21 at 3:03 pm

While I am not anti-UBI (there’s loads of different types of UBI, some of pretty interesting), but I have a sinking suspicion that UBI has gotten popular as a way for big business to off-set the cost of wages unto the government.

You can’t have massive asset inflation while suppressing wages for 20+ years without major consequences for society as a whole.

#199 CanUK on 03.10.21 at 2:53 pm

… and what about the growth of federal government debt from 1984 to 1993 Gareth? https://en.wikipedia.org/wiki/Canadian_public_debt#/media/File:Cdn_gov_debt_securities_2021_02.jpg

That said, the increase in money supply, globally, is without precident and an experiment I think that is doomed to fail in a very bad way for most individuals, including myself.

Where do we put our cash pile today to protect from inflation but also from an impending crash in real estste and the stock market? … Bitcoin?