The pittance

This week we heard the official inflation rate is 4.7%. Big number. The fattest in almost three decades. But does this tell the story? Not even close. And now the feds are making matters worse.

Food is swelling in cost faster than you can eat it. Houses are up 20% to 30% in a year, depending on your hood. Insurance premiums and gas are ridiculous. Now with the once-in-a-lifetime (we hope) floods in BC the whole supply chain mess worsens. Container goods stranded. A grain crisis. Suddenly – almost everywhere – there are empty store shelves. Not just for made-in-China stuff gone from your local Wal-Mart, but also plumbing supplies at Home Depot and groceries in Kelowna.

Okay, so shortages, rising prices, shelter costs and an energy crunch could mean this has just started. You have two ways of dealing with it. Earn more income. Or invest better.

This week Ottawa unveiled its plan for coping. Here are the highlights:

  • Index rate for 2022: it’s 2.4% (the amount of inflation reflected in govy benefits, tax brackets)
  • RRSP max contribution limit: $29,210 (from $27,830)
  • TFSA contribution limit increase: 0%. Yet again, it’s $6,000.

Because the only egalitarian personal tax shelter we have is the TFSA – with contributions unrelated to income – this sucks. It’s unfair to people who make less and are more impacted when food, shelter and energy go squirrely. But it’s consistent with the long-standing and misguided Liberal war on the Jim Flaherty-created TFSA. It’s petty, political and myopic.

Remember: RRSPs benefit those who make a (relative) bundle. Someone earning over $160,000 a year can salt away the max and write it all off taxable income. That means they pay at least $13,000 less in tax. Moreover, almost thirty grand a year can go into growth-oriented assets and swell in value, tax-free. This contribution may also be whacked into a lower-earning spouse’s account, so the growth (and tax deduction) stay the same but the tax bite is less in retirement, or during a life event.

Meanwhile how about the schmuck working in a warehouse for twenty bucks an hour with a crappy, doomed DC pension plan, renting a 750-foot one-bedder in the burbs for $1,800 a month? Too bad. No tax break for you when investing. And no increase now for years in the amount that can be put into a TFSA. Inflation will just wash over folks like this, especially if they make poor choices – like eating.

Inflation is a tax. For those earning less, a TFSA is essential. RRSPs are a poor second choice when contribution room is thin and there’s little (or no) income tax to reduce. Plus, withdrawals later in life might jeopardize government benefits such as monthly OAS income. People in this circumstance are best to shovel any savings into their tax-free account, grow the money for years free of the CRA, then have income generated in retirement which won’t be counted when taxes are filed.

For example, $200 a month into a TFSA returning an average of 7% can make a meaningful difference to life. Start that at 30 and by 65 the account will hold $343,000 (of which $258,000 is growth). If left invested that would throw off $2,000 a month. Combine it with CPP and OAS (today the average is $1,426 a month, combined) and it creates an income of $41,000. Not great, but ten grand more a year than minimum wage jobs in Ontario or BC are paying. And somebody in that position would have over three hundred thousand in liquid assets tucked away for an uncertain future.

For those of us fortunate enough to use this vehicle to its fullest, the accumulated room for a TFSA in 2022 will soar past $80,000 for the first time. Remember that come January 1st, you can put back into a TFSA everything you might have taken out – including every dollar in growth – plus the new room of $6,000. It’s also possible to fully fund the TFSA of your squeeze, with no growth attributed back for tax purposes. Ditto for adult children.

If you lack cash, use existing financial assets to make a ‘contribution in kind’ to a TFSA. This will trigger tax on any capital gains scored, since the securities are deemed to have been sold then the transfer is made. But all future gains will be untaxed.

For the love of Dog, don’t stick a GIC in your tax-free account, or hold money in one of the banks’ mythical “high interest” vehicles. By choosing to collect ultra-low rates of interest instead of having higher-octane, equity-based ETFs you’re totally wasting an opportunity. In a balanced, diversified portfolio, the racy stuff should always go here. And leave it there. A TFSA is not a bank account to be used for financing holidays or hardwood.

Besides low-income folks, ironically, those next in line to benefit most from a TFSA are the deities among us with government defined-benefit pension plans. For them big RRSPs – which must turn into fat RRIFs – risk pushing them into a higher tax bracket in retirement. But TFSA income – even gobs of it – is available to finance that second Porsche.

What a world.

About the picture: “Here is a picture of our family dog, Colby,” writes Tim from Yaletown in YVR. “He is as charming and loved in his 15th year (16 in Feb) as he was in his first. Keep up the great work!”

106 comments ↓

#1 John on 11.19.21 at 3:58 pm

!st(?)

#2 TurnerNation on 11.19.21 at 4:02 pm

We pay high taxes in Kanada – for all the stuff we get! Life in a Former First Country. Say did they just fire a bunch of qualified staff or anything??

https://globalnews.ca/news/8383488/london-police-officers-redeployed-workload/
“Officers redeployed as London police deal with massive increase in demand
A number of police officers in London, Ont., working in proactive initiatives are being redeployed to the front lines as the police service deals with a workload the city’s top cop has described as “reaching a breaking point”


— Watch the USA. It is to fall during the #reset into 2030. Great, setting them up for a unelected (appointed) President.

” (Reuters) – President Joe Biden will transfer power to Vice President Kamala Harris on Friday for the period during which he will be under anesthesia for a routine colonoscopy ”


— Erm, because this is designed to take down the First World Countries?

https://apnews.com/article/coronavirus-pandemic-science-health-pandemics-united-nations-fcf28a83c9352a67e50aa2172eb01a2f
“Scientists mystified, wary, as Africa avoids COVID disaster”
“Even if you look at Africa’s second most populated country which is Ethiopia at 115 million. Less than 7,000 have died since March of 2020 and a little over 3 percent are vaccinated”

——–
— Bloomberg in agreement, with me. This New System is run by Big Tech. Governments exist only to bankrupt us, control minds, and roll out stuff for them (Blockchain based ID, E-currencies.

https://www.bloomberg.com/news/newsletters/2021-11-19/how-tech-firms-not-nations-can-save-humanity-new-economy-daily
“Here’s a thought: What if nation states, the organizing principle behind the international system for hundreds of years—and the cause of some of our biggest problems—were replaced by tech companies?”

#3 Polozified on 11.19.21 at 4:05 pm

Don’t be so modest, Garth, the TFSA isn’t Jim Flaherty’s (PBUH) creation.

It’s yours!

#4 yvr_lurker on 11.19.21 at 4:05 pm

I agree that the RRSP benefits those who are high earners and who can then possibly split with their spouse to reduce taxes… However, your statement below about the poor schmuck is a fiction as such a character is (due to inflation in rents, now food etc…) be hardpressed to even put food on the table and keep a roof over their heads, let alone invest 400.00 per month in a TFSA.

“Meanwhile how about the schmuck working in a warehouse for twenty bucks an hour with a crappy, doomed DC pension plan, renting a 750-foot one-bedder in the burbs for $1,800 a month? Too bad. No tax break for you when investing. And no increase now for years in the amount that can be put into a TFSA. Inflation will just wash over folks like this, especially if they make poor choices – like eating.”

#5 I'mshort_corpdebt on 11.19.21 at 4:07 pm

DELETED

#6 crowdedelevatorfartz on 11.19.21 at 4:08 pm

Hmmm
RRSP max jumping to 29k….
:)

#7 Prince Polo on 11.19.21 at 4:08 pm

Not to mention, scammer CRA doesn’t recognize losses when doing transfers-in-kind….I learned the hard way!

#8 Brett in Calgary on 11.19.21 at 4:13 pm

Too bad Justin doesn’t think about household financial policy either. The TFSA should be at least indexed to inflation. Just like my job… oh wait.

#9 Nonplused on 11.19.21 at 4:16 pm

Well, the main takeaway I had after reading today’s blog:

“All government government programs create winners and losers.”

We can add this tax free home down payment for those under 40 thingy. RRSP’s, TFSA’s, the whole of the CMHC, CERB, central banks manipulating interest rates, stimulus spending, all of it.

The game is very complicated. And it grows more so every time a politician opens their mouth. About the best one can do is try and stay on the right side of it as much as your situation allows.

#10 VladTor on 11.19.21 at 4:21 pm

Garth…. Food is swelling in cost faster than you can eat it.

*************

Garth, you told us so many times here that we in Canada never will have hyperinflation. But this sentence tell us that you changed your opinion b’s this can be only when hyperinflation. If it sarcasm better would be to use “****” … or tomorrow across the Canada will start panic!!!!

#11 cuke and tomato picker on 11.19.21 at 4:24 pm

Central Saanich on South Vancouver Island is back to
normal gas stations have gas and grocery stores are well stocked. The Malahat stayed open last night so we are all fine and it is also a bright sunny day LIFE IS GOOD. Pray the rest of B.C. gets back to normal soon we still have some serious problems to face.

#12 BlogDog123 on 11.19.21 at 4:25 pm

and for Dog’s sake don’t sign your kids up to those baby vulture group RESP scams where they ‘invest’ your money in lousy GICs and make you feel good about getting the 20% government grant… all the while whacking your kids’ education funds with usary fees.

Self directed RESP with catchup of missed years, max it out, one could argue put in the biggest contribution the first year (do the math on 2500/yr up to xxx CESG and how much over that you can contribute)… example:
10k first year, 2500 per year thereafter up until CESG or lifetime limit met…

#13 Dolce Vita on 11.19.21 at 4:29 pm

Another good state of the Federation Blog.

I liked it you used words like “schmuck”, phrases like “poor choices – like eating”.

Down to earth.

When reading it seemed like Mike Hammer was talking to me.

#14 Bezengy on 11.19.21 at 4:39 pm

Good on you for Garth for trying to help out the small time investor. I hope the hell they’re listening.

I’d love to see the banks hop on board with some kind of credit card that pays cashback directly into a TFSA or RRSP. Lock it in if possible like a LIRA too. Anything to help these low wage earners out.

#15 crowdedelevatorfartz on 11.19.21 at 4:40 pm

@#2 Turner Nation
“” (Reuters) – President Joe Biden will transfer power to Vice President Kamala Harris on Friday for the period during which he will be under anesthesia for a routine colonoscopy ”

+++

They will give you a “pain killing happy pill” before the colonoscopy?

#16 Editrix on 11.19.21 at 4:43 pm

When I started grade school in the very early 70s, candy bars were 10 cents (you could get smaller ones for 5 cents). By the time I was in high school at the end of the 70s, the gas crisis had blown inflation through the roof and a candy bar cost ten times as much – $1.

Will we see the same here over a decade? Will chocolate bars hit $10 and a $100000 salary hit a milliion?

#17 A01 on 11.19.21 at 4:44 pm

Garth, time to get back in politics. Maybe you can start the Canadian version of Andrew Yang’s Forward Party.

#18 Mr Fat pockets on 11.19.21 at 4:44 pm

Garth

Please don’t bring attention to the unfair advantage RRSPs offer high income earners. Its one of the last perks we have.

#19 Sail Away on 11.19.21 at 4:45 pm

Well, it’s a beautiful day all around. Sun shining, dividends arriving, juries reaching just verdicts.

And the weekend weather looks fine. Ah, life is good.

#20 MSM Strikes Again! on 11.19.21 at 4:58 pm

DELETED

#21 Freedom First on 11.19.21 at 5:01 pm

Looks like from what may be happening in Austria, the world is getting closer and closer to a total government takeover of citizens decision making.

#22 Wrk.dover on 11.19.21 at 5:02 pm

Lumber closed at $540.1 on the 12th, $796.6 today.

My summer rainy day time invested in designing and creating a superior fully automated bandsaw blade sharpener for myself will now be rewarded.

I have yet more fat to be shed, March/April rerun.

#23 Smokanagan on 11.19.21 at 5:03 pm

I guess the Smokanagan ain’t looking so bad about now. I’ll take a little smoke in the air in the middle of summer over a basement full of water in the winter any day.

Did the smart axes who commented earlier this year make it out alive?

P.S.> another glorious and mostly sunny day here

#24 T-Man on 11.19.21 at 5:09 pm

The illusion of freedom will continue as long as it’s profitable to continue the illusion. At the point where the illusion becomes too expensive to maintain, they will just take down the scenery, they will pull back the curtains, they will move the tables and chairs out of the way and you will see the brick wall at the back of the theater. Frank Zappa. Is covid 19 the brick wall?

#25 Drew on 11.19.21 at 5:10 pm

It’s really not that surprising. For a lot of people TFSAs are something rich people use because apparently only rich people can save $6000 a year.

Then some that only use it as a savings account because the stock market is also only for rich people.

#26 TurnerNation on 11.19.21 at 5:17 pm

— This is all about cancelling Christmas. All the old culture must be torn down Comrade.
Hey at least we got rid of the common flu.

.Germany: Bavarian goes back into lockdown (dw.com)

. @Thomas_Sparrow The German region of Bavaria announced it’s canceling all Christmas markets because of soaring #coronavirus infections. The state government has also imposed a #lockdown on all districts that have a #COVID19 incidence rate of over 1,000 per 100,000 people


— Control over our Feeding. Yup. CV was designed for this.

https://threadreaderapp.com/thread/1461517836120113159.html
“My family are currently in positions of plant manager and quality assurance manager in poultry plants. I can say for certain that the current situation is more dire than most people think- and we may see a near total collapse of the food supply.
Covid has thrown a wrench in every industry- especially food processing. Ranging from plant closures due to outbreaks and now government overreach with vaccine mandates.
Currently, there is a large shortage of inspectors. There are roughly 6,500 inspectors nationwide across all meat processing industries, with a roughly 500-700 inspector shortage. My family has been running into issues with these inspectors being stretched thin already. ”



– Blockchain – that’s what all this was about. To get every human into the Blockchain

.Sweden joins European trend, adopts COVID vaccination pass (washingtonpost.com)


— Wow what fun! Sign up for the paid floating medical hyegene camp. Almost back to normal guys.

https://disneycruise.disney.go.com/why-cruise-disney/experience-updates/on-the-ship-us/
New signs and ground markings have been installed to help Guests better navigate common areas and promote physical distancing between travel parties.
Physical barriers—like plexiglass—have been added at select onboard locations to help promote physical distancing
Face Coverings -All Guests (ages 2 and up, including those who are fully vaccinated against COVID-19) are required to wear appropriate face coverings indoors, except when in their staterooms or actively eating, drinking or taking a photo

#27 Concerned Citizen on 11.19.21 at 5:23 pm

It’s an all-out war on the poor, middle class, and young people. What, you didn’t think the central bankers would work in society’s best interests, did you? The priority is to make the wealthy wealthier. It couldn’t be more clear.

Apparently the new immigration minister just said recently that he’s open to more than 400,000 immigrants a year. But hey, don’t worry, I’m sure all that extra demand will have no impact whatsoever on our existing national housing crisis.

How tone deaf can you possibly be? Housing is already unaffordable, millions can’t find a family doctor, and so on. How the hell is ramping up immigration to infinity and beyond going to solve this mess? Of course, it won’t. The goal isn’t to solve the mess. The goal is to make the wealthy wealthier – more consumers and all that. To hell with everyone else.

What a disaster Canada has turned into. I never thought the country of my youth could go so far downhill so fast.

#28 Linda on 11.19.21 at 5:41 pm

So let me get this straight. Despite inflation being around 3%+ YTD, our government has decreed that the index rate will be 2.4%. So those who receive CPP, OAS, GIS will see their benefits increase by 2.4%, correct? Can we presume that is the reason why the contribution amount for a TFSA in 2022 remains at $6,000? Have to say I find it very interesting that the government is so quick off the mark to declare what the increases will be – last year they waited until December if I recall correctly before declaring what the index would be for 2021. So are they trying to do an end run here, with the hope that the currently higher than expected inflation numbers will regulate themselves to a lower number in 2022?

And absolutely yes, avoid placing TFSA in a HISA. Far better to do the B&D portfolio, low cost ETF etc. Your rate of return is going to be much more than the pathetic amount paid in HISA interest. Anyone who falls within the lower end of the economic earning scale & who can manage to set aside $ for a TFSA contribution should definitely do their utmost to maximize their contributions. Your future self will thank you!

#29 Your Hypothetical Warehouse Worker on 11.19.21 at 5:51 pm

Garth,

You describe the following hypothetical warehouse worker:

“Meanwhile how about the schmuck working in a warehouse for twenty bucks an hour with a crappy, doomed DC pension plan, renting a 750-foot one-bedder in the burbs for $1,800 a month? Too bad. No tax break for you when investing. And no increase now for years in the amount that can be put into a TFSA.”

Can you please show the math on how this person could possibly max out their TFSA at $6000, let alone take an advantage of an increase in annual contribution?

My back of the envelope math shows that this individual would have roughly $1000 per month left after paying rent. Annualizing that, they would have $12,000 to spend after paying rent per year.

Maxing out their TFSA contribution at $6000 would take up fully half of their after-tax, after-rent income. Does it seem realistic that this warehouse worker could live on $500 per month for food, transportation, utilities, etc.?

In summary, please stop acting like a warehouse worker making $20/hour is getting disproportionately hurt by no increase to the TFSA contribution limit. You and I both know that it is very unlikely that this individual could afford to max out their TFSA contribution each year.

TFSA contribution limit might not be tied to income, but I would be willing to bet that almost every individual who maximizes their contribution is at least moderately high income.

My example was a saving rate of $200 per month (coffee money), not maximizing the annual contribution room. Read, then flummox. – Garth

#30 Morbidly Obese Jar Lady on 11.19.21 at 5:54 pm

Garth, you’re being dramatic and making things sound way too difficult.

All that the poor schmuck working in a warehouse has to do is buy a few nice jars from Ikea and follow my instructions. Put the bills and coins into each jar every month, spend only what you need to, and voila! The budget will balance itself and life will be great.

#31 Sail Away on 11.19.21 at 6:06 pm

#22 Wrk.dover on 11.19.21 at 5:02 pm

Lumber closed at $540.1 on the 12th, $796.6 today.

My summer rainy day time invested in designing and creating a superior fully automated bandsaw blade sharpener for myself will now be rewarded.

——–

Does the automated blade sharpener modulate power with a dimmer switch?

#32 DON on 11.19.21 at 6:25 pm

#11 cuke and tomato picker on 11.19.21 at 4:24 pm
Central Saanich on South Vancouver Island is back to
normal gas stations have gas and grocery stores are well stocked. The Malahat stayed open last night so we are all fine and it is also a bright sunny day LIFE IS GOOD. Pray the rest of B.C. gets back to normal soon we still have some serious problems to face.

***************

Not back to normal in Victoria, still lines at most gas stations as people panic. The northbound Malahat lane should be open by Monday pm.

Fun Fact as per Dan M at Gas buddy.com

‘Van Isle gets its gas from Washington State refineries 40 – 50 km away by ocean. The problem is that the Island storage terminals are north of the Malahat which is down to one lane in one small area.

There is a BC Ferry from Mill Bay to Brentwood Bay for the tanker trucks which are again using the Malahat. But people are still hoarding in Victoria. Did I mention we have the Canadian Navy in Victoria and their supply ships.

And there is the circle route logging road that can be used to get into Victoria…but heard it had some damage…you bet the logging companies will be out fixing them in order to move product.

Well, the next real test is an ‘unexpected’ earth quake that jams supply routes and transportation etc. Dog help us. We have incite into how people will react.

#33 Faron on 11.19.21 at 6:25 pm

#19 Sail Away on 11.19.21 at 4:45 pm

Zero self-control. Amazing.

@BillyBob:

cute that you think I need to fill up on gas more than once every couple of months. LOL.

#34 Sail Away on 11.19.21 at 6:30 pm

#33 Faron on 11.19.21 at 6:25 pm
#19 Sail Away on 11.19.21 at 4:45 pm

Zero self-control. Amazing.

——–

Haha, joyful exuberance is hard to quell. My people.

#35 The West on 11.19.21 at 6:32 pm

“Meanwhile how about the schmuck working in a warehouse for twenty bucks an hour with a crappy, doomed DC pension plan, renting a 750-foot one-bedder in the burbs for $1,800 a month? Too bad. No tax break for you when investing. And no increase now for years in the amount that can be put into a TFSA. Inflation will just wash over folks like this, especially if they make poor choices – like eating.”

How much does cake cost? :)

#36 Habitt on 11.19.21 at 6:37 pm

Perhaps we should pay a little more and produce things here. Fighter jets included. Sheesh

#37 DON on 11.19.21 at 6:38 pm

#22 Wrk.dover on 11.19.21 at 5:02 pm
Lumber closed at $540.1 on the 12th, $796.6 today.

My summer rainy day time invested in designing and creating a superior fully automated bandsaw blade sharpener for myself will now be rewarded.

******

Now that’s cool…be neat to see. How about a blade setter?

#38 wallflower on 11.19.21 at 6:38 pm

#11 cuke and tomato picker on 11.19.21 at 4:24 pm
yes, you ain’t seen nothin’ yet

my understanding is a great deal of food originates via Calgary
which means now a USA route
which means route delays (border gonna be crazy for months)
much higher costs

but, it’s, like, all transitory

#39 Soviet Capitalist on 11.19.21 at 6:40 pm

Hmm, Garth, didn’t you used to say that lower income families pay almost no tax. Perhaps that is the reason they get no TFSA limit increase?!

That made utterly no sense. – Garth

#40 Linda on 11.19.21 at 6:40 pm

So did some checking. Looks like the government announced the index amount for 2021 in November 2020. Regardless of that, if the government is basing the index on 12 months of data, then 2.4% is still undercutting the official number – which is 2.75% based on data from November 2020 to October 2021. Further we all are aware that the official inflation numbers are not reflecting reality at the cash register.

#41 BillyBob on 11.19.21 at 6:57 pm

Dunno about a second Porsche, but we’re doing our part to support Italia in the bike stable, Dolce. Ms. BB’s dad just picked up a Moto Guzzi and the column marked “Unrlz” in my IB app is getting so embarrassing I decided to carve a tiny slice for own piece of Italy as well for next summer.

Funny, for all of Nonplused’s talk of wealth being notional the Ducati dealer was quite happy to take some of my fictitious money for a Multistrada that seems quite real. A few button pushes on the phone and voila it was mine.

What an amazing world we live in. When it’s not flooded, at least. Motorbiking is more fun in places where the roads aren’t all washed out.

Say Faron, won’t you be burning a little more gas when you head out to panic-buy some groceries? Or have you moved on to filling sandbags now, I hear another 100mm next week.

#42 Unpinned on 11.19.21 at 7:07 pm

Thursday is Senior Discount day at Shopper’s Drug Mart with 20% off but it’s not much help when Starbuck’s Christmas Blend goes for almost $15.00 for 12 oz. compared to last year’s price of $8.00 and a 10 oz. tin of Tim Horton’s chili is just shy of $5.00.

#43 dosouth on 11.19.21 at 7:08 pm

I know this might be not investment related but how about being on pain meds as part of a chronic work injury pain management plan. Doctor closed her practice on Van Isle with very little notice to us and other docs would not take on new patients. No doctors available, even hired a company to help in search.

Try to got to walk-in clinic, 2 1/2 hours wait, only one in the city. Nope don’t fill T-3 prescriptions, 5 hours at Emerg, 20 pills and good luck. Veterans affairs had no options and thought more exercise might help. Opioid crisis they say. Local addicts get free meds, accommodation and access to medical care. Heck my dog had a pancreas attack and prescribed Tramadol.

Still looking and trying but I am the Greater Fool for paying taxes, serving my country and being the wrong species…..

#44 Wrk.dover on 11.19.21 at 7:09 pm

#31 Sail Away on 11.19.21 at 6:06 pm
Does the automated blade sharpener modulate power with a dimmer switch?
_____________________________
I can’t remember the refence to that, if it is a punch line.

The feed motor is an old Ford truck wiper motor, run by an old electric train variable speed transformer which I inherited with a bunch of N guage rolling stock.

The adjustments are made with some nice SS turnbuckles, in stock from my sailing days, over 50 years back in time.

If you keep the same RE for life, you get to keep everything with a replacement value for life too.

#45 crowdedelevatorfartz on 11.19.21 at 7:15 pm

Did I just hear news on the radio correctly.

All Lower brainlanders and Vancouver islanders are rationed to 30liters of fuel PER gas up…..?

When is Tesla going to make a real truck and not that Cyber punk sh!t?

#46 Heath Slee on 11.19.21 at 7:32 pm

I recently volunteered to join a fire department and I understand there is a tax reduction for this type of service. Is this benefit also available for other types of volunteer activities?

#47 VladTor on 11.19.21 at 7:36 pm

Garth ….returning an average of 7%

*************
It was! I’m not sure that we can use this number for next at least 5 years.

Look at this interview – On the line, Mohamed Ali El-Erian, chief economic advisor to Allianz, is the largest insurance company on the planet (more than a trillion euro ):

El-Erian Warns Investors “Stop Worrying About Return On Capital, Start Worrying About Return Of Capital”

https://www.zerohedge.com/markets/el-erian-warns-investors-stop-worrying-about-return-capital-start-worrying-about-return

From…. “So the Fed’s delayed and slow reaction to inflationary pressures has unfortunately increased the probability that it will have to slam on the brakes by raising rates very quickly after tapering and at a more aggressive pace than it would have if it had started to tighten policy earlier. ”

I had same opinion in this blog one year ago – i was sure that will be suddenly overnight increasing rates on 1% – 2% and totally in one year up to 4-5%. Frankly speaking I regard other reasons for that.

#48 MaggieB on 11.19.21 at 7:47 pm

Definitely not back to normal on Vancouver Island. Government just put a limit of 30 litres of gas per trip to the gas station until at least December 1st!

#49 crossbordershopper on 11.19.21 at 7:55 pm

poor choices like eating. honestly, its not a joke, I see people eating weird food, that is not only expensive but not good for you.
I know people want to indulge in sugar based, salt base, and fatty food, it makes us feel good.
IF anyone works for like 18 or 20 bucks an hour, why would they care of what a TFSA is anyway, sacrafice for who and for what, just eat and drink what you want, your never going to have money, or own anything unless its given thats why poor people generally just waste there money, its hard to find that 90 year old lady who has squirled away her lifes income and made wise investments, i am sure there are a few, but very very few, self sacrafice is a noble goal , but you have to have a reason for doing it, kids, etc. otherwise, wine women and song is what most people just spend there few precious dollars on all there life.
human nature, ya most people can save 115 a week(15 a day) for there entire life , invest, compound and your fine, people arent disciplined like that.

#50 Steven Rowlandson on 11.19.21 at 7:59 pm

“The pittance”
The pittance indeed Garth. Based on your teaching if working people ever got raises that did them any good we would have an inflationary spiral that would raise interest rates on the government and the rest of the economy and it would all come crashing down all because the working class got raises that were equal to or better than a pittance. What goes around comes around Garth. Think about it. Depressions happen because the money does not flow. Work both physical and mental is the foundation of the economy and if it does not pay you get less of it and more get rich quick schemes like real estate, lotteries and other financial scams posing as investments. Good for salespeople but not very productive. Real inflation is caused by lending the official currency into existence. Inflation is expunged by debt repayment or default. Mortgages, other debt and treasury debt cause inflation.

#51 uncle dave on 11.19.21 at 8:03 pm

where else in this great country can you get such great advice for free other than this pathetic blog?

#52 Sail Away on 11.19.21 at 8:04 pm

#44 Wrk.dover on 11.19.21 at 7:09 pm
#31 Sail Away on 11.19.21 at 6:06 pm

Does the automated blade sharpener modulate power with a dimmer switch?

——–

I can’t remember the refence to that, if it is a punch line.

The feed motor is an old Ford truck wiper motor, run by an old electric train variable speed transformer which I inherited with a bunch of N guage rolling stock.

The adjustments are made with some nice SS turnbuckles, in stock from my sailing days, over 50 years back in time.

If you keep the same RE for life, you get to keep everything with a replacement value for life too.

——–

Haha, perfect! You never disappoint. Perfect.

The dimmer is in reference to your long-ago power tool variable-speed hack.

#53 Ponzius Pilatus on 11.19.21 at 8:06 pm

#11 cuke and tomato picker on 11.19.21 at 4:24 pm
Central Saanich on South Vancouver Island is back to
normal gas stations have gas and grocery stores are well stocked. The Malahat stayed open last night so we are all fine and it is also a bright sunny day LIFE IS GOOD. Pray the rest of B.C. gets back to normal soon we stills have some serious problems to face.
——–
Cool cucki.
You  are living in  God’s Country.
Billy Bob wishes he was there.

———-

#54 Garth's Son Drake on 11.19.21 at 8:07 pm

Just trying to catch up with the blog posts.

I have been busy looking for food.

Still no meat, eggs, lettuce or bread to be found anywhere (Saveon, Super Store, Costco, Urban Fare). I bet Jim Pattison has lots of food at his place.

I am down to my last bag of donuts in the freezer, but the nice thing is they are chocolate filled and at least I am not wading around in water.

If I can’t secure any food by Sunday I will be completely out at which time I might go to a food bank or just start eating cardboard or something – maybe dig to find some dandelion leaf.

That post about Poloz is unreal – tells a lot.

#55 Faron on 11.19.21 at 8:10 pm

#41 BillyBob on 11.19.21 at 6:57 pm

Say Faron, won’t you be burning a little more gas when you head out to panic-buy some groceries? Or have you moved on to filling sandbags now, I hear another 100mm next week.

???

Your tryharding is really tiresome. One can only assume and hope for your sake that you are celebrating Friday with some beers and are currently drunk. If this is sober BillyBob, god help the toasters you usher over the Pacific.

#56 Ponzius Pilatus on 11.19.21 at 8:11 pm

#45 crowdedelevatorfartz on 11.19.21 at 7:15 pm
Did I just hear news on the radio correctly.

All Lower brainlanders and Vancouver islanders are rationed to 30liters of fuel PER gas up…..?

When is Tesla going to make a real truck and not that Cyber punk sh!t?
————
I’m happy as can be.
My 53 $ a month bus pass gets me past all the gas station line ups.
Time to liquidate the F-150 dinosaur.

#57 Faron on 11.19.21 at 8:12 pm

#34 Sail Away on 11.19.21 at 6:30 pm

#33 Faron on 11.19.21 at 6:25 pm

Haha, joyful exuberance is hard to quell. My people.

What are your expectations of the long-term impacts of this case’s outcome?

#58 Nonplused on 11.19.21 at 8:24 pm

#41 BillyBob on 11.19.21 at 6:57 pm

Funny, for all of Nonplused’s talk of wealth being notional the Ducati dealer was quite happy to take some of my fictitious money for a Multistrada that seems quite real. A few button pushes on the phone and voila it was mine.

————————————-

Why you got to misrepresent something and then not even really make a point?

Mark to market wealth is notional. There is real wealth as well, physical stuff like a motorcycle. Money is made up but it serves quite well as a unit of exchange, just not as a store of value in these times. I doubt your Ducati dealer is going to hold on to your cash for long.

Congrats on the new bike though! These days it seems like inflation has drastically reduced the apparent deflation on such things so you will probably get most of your money out if/when you sell. Of course that money won’t buy what it will today which is already not as much as yesterday.

#59 Flop... on 11.19.21 at 8:36 pm

Only 30 bucks a fill up at the gas station allowed.

That won’t even wet the metal on my gas guzzler gas tank.

I’ve got 3 gas stations near my house.

A visit to each, and 90 bucks for gas, and I’ll be back in business.

I’m not going to let the Chinese and Indians take all the credit for global warming…

M47BC

#60 Soviet Capitalist on 11.19.21 at 9:09 pm

Hmm, Garth, didn’t you used to say that lower income families pay almost no tax. Perhaps that is the reason they get no TFSA limit increase?!

That made utterly no sense. – Garth

Hmm, yes, you are correct. Sorry for that. It has been a busy week and the beer at the end of the day does not help improving my thinking.

What I was thinking about is that since most of Canadian’s savings are tied in their homes and not in liquidity; and since the lower income part of the crowd doesn’t pay much taxes anyways, they are doing well without needing the TFSA. Their networth is on its way to the moon and home equity is tax free anyways. TFSA is more useful for people with more fiscal conservative way of thinking, but that is a species on its way to extinction.

If at any point RE equity stops being a good vehicle for savings, then yes, most of the Canadians will be in a difficult situation. It’s more that the last 10-20 years RE has shown incredible resilience. I am also hearing of a big wave of immigrants coming and all hungry to buy RE.

You will be proven correct in the long term, but how long will that long term be?

If you feel that my thinking is still mumbo jumbo, then I’ll shut up and finish my beer. :)

#61 Wrk.dover on 11.19.21 at 9:15 pm

#37 DON on 11.19.21 at 6:38 pm
Now that’s cool…be neat to see. How about a blade setter?
______________________

That came 1st. Made a prototype with 1X1 wood, 1st.
Two pieces running away from me with a 1/4″ spline between them to guide the notched moving block on top pushed by a lever hinged between them my end. All on a 3/8 plate bed with 3/8 thick angle iron backstop. I put a heavy 1.25″ X 18″ shaft horizontally away on the lever for grunt assist. (That had been my winch shaft, it twisted a full 360 degrees before it sheared, operator error, oops.)

Cheapest one I could find is $600 CDN.
All of the labour is drilling holes. Takes a day.
Mine is way better too.

Resetting a half dull blade wakes it back up.

If I was as knowledgeable at linking photos, as I am at shooting my mouth off, I’d let you see it.

#62 Sheesh on 11.19.21 at 9:15 pm

#48 MaggieB on 11.19.21 at 7:47 pm
Definitely not back to normal on Vancouver Island. Government just put a limit of 30 litres of gas per trip to the gas station until at least December 1st!
…..

#63 Vstrom rider on 11.19.21 at 9:34 pm

There are too many people who have no savings and think that those of us who do must have stolen it from them somehow. These people vote, and guess what, they’re coming for your tfsa. I would be very surprised if the government doesn’t take away the tfsa or severely cripple it in some way. Perhaps by setting a max total contribution amount of 100k. Or a max tax-free amount for interest gains.

#64 Ponzius Pilatus on 11.19.21 at 9:36 pm

#57 Faron on 11.19.21 at 8:12 pm
#34 Sail Away on 11.19.21 at 6:30 pm

#33 Faron on 11.19.21 at 6:25 pm

Haha, joyful exuberance is hard to quell. My people.

What are your expectations of the long-term impacts of this case’s outcome?
———–
Simple answer.
Every kid in America is gonna wear an assault rifle to school, and when another kid just as much as looks at him in a funny way, kaboom.
Stil don’t get it how a an underaged kid got a license to carry an uber lethal weapon in public.
Walking by a police car, who waved him on and even gave him a water bottle.
Any rational person would say, he was looking for trouble.
And when he got into trouble, he chickend out.

#65 DON on 11.19.21 at 9:39 pm

Just saw the news. Calgary pizza shop closes due to lack of supply from Vancouver port.

Essential travel in parts of BC. Companies asked to keep office staff at home.

#66 DON on 11.19.21 at 9:41 pm

#59 Flop… on 11.19.21 at 8:36 pm
Only 30 bucks a fill up at the gas station allowed.

That won’t even wet the metal on my gas guzzler gas tank.

I’ve got 3 gas stations near my house.

A visit to each, and 90 bucks for gas, and I’ll be back in business.

I’m not going to let the Chinese and Indians take all the credit for global warming…

M47BC

********

Assuming you won’t burn mucho gas getting in line and waiting at the next gas station.

#67 Ballingsford on 11.19.21 at 9:50 pm

Nice post on TFSA’s Garth. Glad you have more favor for them now than RRSPs. RRSPs just defer tax.

Thank you for bringing them in! My TFSA has helped me pay off unexpected expenses like vehicle repairs and things like large screen TVs with them going unpaid after the month and me paying interest on my credit card.

#68 Phylis on 11.19.21 at 9:52 pm

#45 crowdedelevatorfartz on 11.19.21 at 7:15 pm
Did I just hear news on the radio correctly.

All Lower brainlanders and Vancouver islanders are rationed to 30liters of fuel PER gas up…..?

When is Tesla going to make a real truck and not that Cyber punk sh!t?
Xxxxxx
Joe took a ride in one, although it wasn’t a Tesla.
https://www.youtube.com/watch?v=2N7FYhKt4Kw&feature=emb_imp_woyt

#69 Love_The_Cottage on 11.19.21 at 10:00 pm

Someone earning over $160,000 a year can salt away the max and write it all off taxable income. That means they pay at least $13,000 less in tax. Moreover, almost thirty grand a year can go into growth-oriented assets and swell in value, tax-free.
____________
It’s not tax-free, it’s tax deferred. Probably removed at a lower rate but not tax-free.

#70 Yukon Elvis on 11.19.21 at 10:48 pm

#57 Faron on 11.19.21 at 8:12 pm
#34 Sail Away on 11.19.21 at 6:30 pm

#33 Faron on 11.19.21 at 6:25 pm

Haha, joyful exuberance is hard to quell. My people.

What are your expectations of the long-term impacts of this case’s outcome?
++++++++++++++++++++
Kyle Rittenhouse is going to be richer than God when he is done suing the msm such CNN and MSNBC etc for libel, slander, and defamation.

#71 Ponzius Pilatus on 11.19.21 at 10:59 pm

#64 DON on 11.19.21 at 9:39 pm
Just saw the news. Calgary pizza shop closes due to lack of supply from Vancouver port.

Essential travel in parts of BC. Companies asked to keep office staff at home.
————–
What do you need to make a pizza?
Flour, Cheese, cold cuts, tomato sauce, yeast.
I have all these ingredients in my pantry and fridge.

#72 yvr_lurker on 11.19.21 at 11:02 pm

#60 Soviet Capitalist
What I was thinking about is that since most of Canadian’s savings are tied in their homes and not in liquidity; and since the lower income part of the crowd doesn’t pay much taxes anyways, they are doing well without needing the TFSA. Their networth is on its way to the moon and home equity is tax free anyways.
—-

What about those starting out who make $30.00 bucks an hour and who, without family help, can’t even get onto the baby rung of the property ladder due to price escalation. May not pay much tax yet but are screwed as compared to their similar cohorts over 20 years ago.

My suggestion is to have another beer and do a re-think.

#73 Changeemall on 11.19.21 at 11:11 pm

Inflation is 4.2%… Fuel up 50% since last year. Housing up 20-30%. Food is up 20-40%. All the stuff the working class buys is on average up 20 percent but inflation is 4.2%. Wonderful.

#74 BillyBob on 11.19.21 at 11:23 pm

@Nonplused – relax, just teasing you a bit. I actually agree with you 100% on your explanations of notional wealth as it applies to company-owning billionaires.

@faron – you do realize BillyBob isn’t a real person, right? He’s a caricature. (I think about 99% of the people who bother to read the comments realize this.) You on the other hand actually seem to BE the things you write, which is extremely amusing.

But, thanks for never disappointing and failing to engage with a fictional character. There are few things funnier than people who genuinely take themselves seriously. :-)

“Anyone who takes himself too seriously always runs the risk of looking ridiculous; anyone who can consistently laugh at himself does not. ” ― Václav Havel

Now go and make sure your electric bike is charged.

#75 crowdedelevatorfartz on 11.19.21 at 11:29 pm

@#56 Prehistoric Ponzie Petroleum
“Time to liquidate the F-150 dinosaur.”

++++

Not when I can still run the F-150 on liquid dinosaur…..

#76 DON on 11.19.21 at 11:33 pm

#70 Ponzius Pilatus on 11.19.21 at 10:59 pm
#64 DON on 11.19.21 at 9:39 pm
Just saw the news. Calgary pizza shop closes due to lack of supply from Vancouver port.

Essential travel in parts of BC. Companies asked to keep office staff at home.
————–
What do you need to make a pizza?
Flour, Cheese, cold cuts, tomato sauce, yeast.
I have all these ingredients in my pantry and fridge.

******

Just in time supply chain…running out of sauce.

Restaurants also.

#77 crowdedelevatorfartz on 11.19.21 at 11:41 pm

Gee.
It just seems like yesterday we were talking about how we could put the brakes on Trudeaus out of control spending sprees.

https://www.msn.com/en-ca/money/topstories/livio-di-matteo-modest-fiscal-rules-could-have-saved-billions-in-federal-spending/ar-AAQTATy?ocid=winp1taskbar

TEL’s
Tax and Expenditure Limitations….

Ya cant spend what ya dont have Mr Prime Minister.

1 TRILLION dollars in debt and the sky’s the limit in Liberal land.

#78 the Jaguar on 11.19.21 at 11:48 pm

@#64 DON on 11.19.21 at 9:39 pm
Just saw the news. Calgary pizza shop closes due to lack of supply from Vancouver port.++

Yes, just saw the news clip. Supplies like dough, sauce, cheese that this particular company uses come from Vancouver. Pretty sure all those items required to make pizza are readily available locally, but it once again it highlights the issue of buying local and why we should care about the ‘supply chain issue’.

Here in Alberta we have seen the price of meat go up as it has everywhere in Canada, yet we produce it our own backyard and supply a significant portion to the rest of the country. The big conglomerates like Cargill control the prices. Whether it’s beef or any other product brought in from a distance one’s vulnerability to supply chain issues arrive unexpectedly whenever a crisis emerges. Like this recent one.

I think one of the big changes that will come to pass as a result of Covid will be a desire to source food locally as much as possible. For supply safety. For food safety (product integrity). And maybe get some of these big rigs off the road. Rail is the real solution anyway.
Despite the ‘Canadian winter climate’ our commercial greenhouses still grow a lot of vegetables year round. Pretty sure my grandparents didn’t rely on the ‘2000 mile Ceasar salad from California’. It must have been a seasonal ‘treat’. It may renew interest in preserving foods, etc. I love those pickled carrots. My Okanagan grandmother canned all kinds of peaches, apricots, etc.

The most rewarding things in life always require sacrifice. Or, romantically, as Shakespeare once said ” The course of true love never did run smooth’. We should all give it a try anyway… Dive in.

#79 AB on 11.20.21 at 12:03 am

#72 Changeemall
Please do not be discouraged. The working class can have an excellent life in the prairies, at least right now. Don’t believe the cliches. Do your own research. Real estate is fickle. The whole country truly is beautiful and there are lots of opportunities. Don’t follow the sheeple to overpriced over rated locations. I will say no more. Sometimes it is good to think outside the box. All the best.

#80 Albertaguy in AB - where the inflation is low low low on 11.20.21 at 12:06 am

You people are so gullible…don’t you know that inflation is only 1% this year ??…it says so right here…

Indexation increase per year

https://www.canada.ca/en/revenue-agency/services/tax/individuals/frequently-asked-questions-individuals/adjustment-personal-income-tax-benefit-amounts.html

#81 Biodime on 11.20.21 at 12:32 am

The question is what will that 343K buy our warehouse schmuck in 35 years form now? And no, I don’t foresee hyperinflation in Canada over the next 3 decades so I’m not talking about complete loss of purchasing power here. But I wouldn’t be surprised to see inflation in the 4-7% range for at least the next 2-5 years depending on what Mr. Socks and his non-finance finance minister do.

And sure, main holdings should be in a B&D portfolio but why not also have a small allocation… say 5% of that allocated to some bluechip cryptos like Bitcoin and Ethereum?

Garth, I know you’re not a fan of crypto and I agree that 99% of the 14K+ tradable cryptos out there will eventually go to 0 but it seems that Bitcoin at least is getting more and more demand from institutional investors. Goldman Sachs, Fidelity, BlackRock, and many more have had very positive reports on crypto, and especially on Bitcoin in the past few months.

What are these major institutional investors and investment banks missing that still has you convinced that Bitcoin is not worth the risk?

Not trolling, I’d just like your take on it; thanks.

#82 Jane24 on 11.20.21 at 12:45 am

A TFSA in Britain is called an ISA and it works the same. It allows you to put taxed money into a tax free shelter as either cash or stocks and bonds and then take it all out without any restrictions in the future, tax free. The difference is that our 2020/21 limit per person is £20,000 or $34,000 Cdn. Yes that is per year. One assumes that our govt sees trouble funding seniors down the road and would prefer to make us self-funded. I use our ISA allowances to buy equity funds from companies such as Vanguard although I could set up my own self-managed ISA if I could be bothered.

It is none of the govt’s business what I have in there. The fund mangers have the responsibility of limiting my deposits to £20,000 as unless you are self employed there are no tax returns either in Britain. If you have close family that are resident in the UK maybe you can do a deal with them!

In other news the govt here has announced that 3 Covid shots are now required to be fully vaccinated and this change will be reflected in the NHS travel passports on Monday. My son who is in Portugal is returning to Britain tomorrow to wait for the 30 plus years to be called in January and then he can go traveling again. What a world. A plague that returns every 6 months for the rest of my life.

#83 THE DANDADA on 11.20.21 at 1:19 am

The R**H get R**HER…… you don’t say!

#84 Miss Boomer on 11.20.21 at 1:20 am

Trudeau Liberals take an axe to ethical Alberta while Quebec doesn’t question brutal Saudi Arabia? What’s with that? With resource revenue at an all time low, and with direct foreign investment at negative zero, what is the option for the Liberals except 100% taxation and expropriation ?

#85 Dr V on 11.20.21 at 1:33 am

56 ponzie

“Time to liquidate the F-150 dinosaur.”

Not so fast Ponz! I was going to try to get thru the credit card billing cycle with less than a half tank top-up but after the rain, I did put another $75 in. Then yesterday, after hearing about Victoria, I filled it for under $50. I think my driving will be just over 4000k in 8 months, so 500-600k per mo. Maybe i’m good til 2022.

A few years ago i was at the local tank farm. Asked the super how much inventory they keep. Was told the island only has a week or so supply. Brought by barge
from Van. Years ago, we had a bad patch of fog that lasted days. Apparently other vessels cannot be within 1km of the barge. So when the island supply was getting low, the harbourmaster actually shut down the port for a half hour to get the barge out.

The 30 litre limit is kinda small. I mean the Civic is fine, but a 50 litre limit makes more sense. Too many separate trips to the pumps. Congestion and emissions.

#86 DON on 11.20.21 at 1:40 am

https://www.cbc.ca/archives/why-homeowners-ran-the-marathon-of-despair-in-1981-1.5342739

#87 David Salmon on 11.20.21 at 3:17 am

“Why countries like Canada fail”.

CBC.ca: U.S. congressman: Here’s why America is more successful than Canada.
https://www.cbc.ca/news/world/speech-congress-canada-1.6253849

I think so he’s right. Tribal Quebec and Multicultural tribalism where every religion and tribe is encouraged to isolate is what will destroy Canada in time.

Politicians thrive in these ghetto ridings like the 57 seats in GTA . Voting a special interest ticket is not voting for Canada. A good example is Trudeau supporting the Sikh farm lobby in India on the pressure tribal votes put on him in Brampton and Fraser Valley Gurdwara. We should be pressuring India because Canada Sikhs can change their votes for and against a PM depending on Indian politics.

The Wheat Board was abolished in Canada and privatized. It’s thriving. So why is Trudeau speaking for a lobby wanting to retain a policy Canada has already evolved away from? Answer: Tribal votes in Liberal ridings.

The Americans will always win if they stick together. Canada will fail as it’s increasingly Balkanized by weaponized immigration.

#88 Toronto_CA on 11.20.21 at 6:04 am

The UK version of a TFSA is so much much much more generous. The annual ISA allowance here is 20,000 GBP per person (that’s $68k CAD a year per couple!).

Also – If you’re under 40, you can get 1,000 GBP a year added by the taxpayer (Government) to your contributions if you put in at least 4,000 GBP through a Lifetime ISA.

Canada has a long way to go. Weird that Justin thinks the $10,000 limit the Cons put in was so offensive he had to claw it back and now won’t increase the limits.

#89 Wrk.dover on 11.20.21 at 7:28 am

Totally on topic, I well remember when everything I owned fit in the boot of my financed mini. I quickly needed to own some basics like a stash of food, a few appliances, basic furniture, more than a change of clothing, tools…even a hose to wash the car with was a week of disposable income.

I had a car to get to work, and a job to have a car.

It was extremely discouraging to sit and list the hard assets I needed in order to become established enough to where I could start to hoard some money on paper.

Dental care and eye glasses is enough to drain the pocket for a year for the working stiff. There were plenty of suits around, trying to rope young fellows into a life insurance plan which would grow to a few hundred grand in forty years from only four hours pay/week.

Four hours pay/week would have been easy if a week was twice as long, for a guy in his 20’s, back in the days before earnings stagnated to todays horrid levels of purchasing power.

Sometimes a certain investment blog’s advice for beginners smacks of Marie Antoinette’s cake comment.

M68NS

#90 crowdedelevatorfartz on 11.20.21 at 8:01 am

@#88 Wrk.dvr
“Four hours pay/week would have been easy if a week was twice as long, for a guy in his 20’s, back in the days before earnings stagnated to todays horrid levels of purchasing power.”

+++

Yes and no.
When you were in your 20’s did you give two sh!ts about pensions and dental plans?
Hell, I know people in their 50’s that spend their last dime on vacations, down payments on new car leases, kitchen renos, etc.

Discipline and time.
Even $50-$100 a month is impossible for some…. as they buy a coffee and muffin from Tim’s…daily.
Or a pack of smokes….daily….or they buy lunch…daily.

Make a few sacrifices and you will be amazed at the extra money there is to save, invest, or hold for a rainy day unexpected bill.

#91 crowdedelevatorfartz on 11.20.21 at 8:10 am

@#84 Dr V
“The 30 litre limit is kinda small. I mean the Civic is fine, but a 50 litre limit makes more sense. Too many separate trips to the pumps. Congestion and emissions.”
++
Yep, typical govt bureaucrats that cant think two minutes from now.
My company trucks are 125 liters and 100 liters.
30 liters barely shows on the guage when the tank is empty.
Ask me how many large F-350s truck owners will be willing to sit in (hours?) long lineups day after day to put $50 worth of fuel in their truck.

Or they just reduce their driving…
Another spike in the economic / work slowdown as tons of trades with work trucks and vans….. just…..stop…..

#92 crowdedelevatorfartz on 11.20.21 at 8:13 am

@#81 jane24
“A TFSA in Britain is called an ISA and it works the same. It allows you to put taxed money into a tax free shelter as either cash or stocks and bonds and then take it all out without any restrictions in the future, tax free.”

+++

Thats fab but we all live in colonial Canada so that info is somewhat ( completely?) useless for readers of a Canadian financial blog…..or were you just bragging again?

#93 crowdedelevatorfartz on 11.20.21 at 8:20 am

@#73 Billybob.
“you do realize BillyBob isn’t a real person, right? He’s a caricature. ”

++++

I’m very very disappointed that Capt Billybob, Red Neck of the Skies, isn’t a real person.
Next thing you’re going to tell me is….
The North Pole is in China and Santa flies air cargo jets, because that’s what all my presents say……
Never mind.

Hey.
That would make a great country and western song.
“Santa is my co pilot.”

#94 Sail Away on 11.20.21 at 8:34 am

#69 Yukon Elvis on 11.19.21 at 10:48 pm
#57 Faron on 11.19.21 at 8:12 pm
#34 Sail Away on 11.19.21 at 6:30

Haha, joyful exuberance is hard to quell. My people.

———

What are your expectations of the long-term impacts of this case’s outcome?

———

Kyle Rittenhouse is going to be richer than God when he is done suing the msm such CNN and MSNBC etc for libel, slander, and defamation.

———

Yep. They (the msm) should have learned from the Nick Sandman settlement, but nope. Why does the msm print blatantly false hogswallop, and why do people swallow it?

I see good things coming from this case. Of course, the crazies might still have a temper tantrum riot or two. It would be wise for them not to molest their fellow citizen this time.

#95 Dharma Bum on 11.20.21 at 10:05 am

#24 T-Man

The illusion of freedom will continue as long as it’s profitable to continue the illusion. At the point where the illusion becomes too expensive to maintain, they will just take down the scenery, they will pull back the curtains, they will move the tables and chairs out of the way and you will see the brick wall at the back of the theatre.
– Frank Zappa.
—————————————————————————-

Man, I really miss Frank. He was (and is) my all time fave.

Come to think of it, I also miss the Elfin Deity. In hindsight, he wasn’t such a bad operator. Beats what we have now.

#96 Satori on 11.20.21 at 11:14 am

#26 TurnerNation on 11.19.21 at 5:17 pm

Thank you for all the world news updates, condensed, perfectly.

#97 Satori on 11.20.21 at 11:38 am

#89 crowdedelevatorfartz on 11.20.21 at 8:01 am

That’s the truth!! We have a ton of restaurant closures near the hospital, it looks like people are now forced to get that message. Many are making coffee at work. Could that be why so many Starbucks are closing?

And why no eggnog lattes? The US has them, why not us?!!

#98 Gravy Train on 11.20.21 at 12:06 pm

#93 Sail Away on 11.20.21 at 8:34 am
“I see good things coming from this case.” Do you suppose Rifleboy shows up with his AR-15 at one of the upcoming demonstrations protesting the verdict in his own trial, or has he learned his lesson? Would you have condemned Rifleboy if he had black or brown skin?

“It would be wise for them not to molest their fellow citizen this time.” Do you mean like how Travis McMichael molested, shot and killed unarmed jogger Ahmaud Arbery? Before you answer that question, first read chapter 12 ‘Us Versus Them’ in Robert M. Sapolsky’s book Behave. Better yet, read the whole book; you’ll get a much better understanding of human biology and behaviour (including yours). The book should be required reading in all high schools. :)

#99 Sail Away on 11.20.21 at 2:34 pm

#97 Gravy Train on 11.20.21 at 12:06 pm

——-

Completely unfair insinuation, GT.

You are the only one who brought race up. Nothing to do with me.

#100 Gravy Train on 11.20.21 at 3:24 pm

#98 Sail Away on 11.20.21 at 2:34 pm
“Completely unfair insinuation, GT. You are the only one who brought race up. Nothing to do with me.” What do you think the demonstrations are all about?

#101 Sail Away on 11.20.21 at 3:50 pm

#99 Gravy Train on 11.20.21 at 3:24 pm
#98 Sail Away on 11.20.21 at 2:34 pm

“Completely unfair insinuation, GT. You are the only one who brought race up. Nothing to do with me.”

——–

What do you think the demonstrations are all about?

——–

The riots, you mean? Well, the current Portland riot is about a white teenager who shot three white men in legal self defense.

#102 George S on 11.20.21 at 5:01 pm

#2 Turner Nation said:
“Scientists mystified, wary, as Africa avoids COVID disaster”
“Even if you look at Africa’s second most populated country which is Ethiopia at 115 million. Less than 7,000 have died since March of 2020 and a little over 3 percent are vaccinated”

————————
The age distribution in Ethiopia is different than developed countries. There is a much higher proportion of people younger than 65 years old and in particular under 20 years old. Plus the medical system and disease reporting system is completely different and far less accurate.
Also the people are tougher with very strong immune systems, the weaker people with chronic disease have died of other causes long ago.

#103 Gravy Train on 11.20.21 at 5:01 pm

#100 Sail Away on 11.20.21 at 3:50 pm
“The riots, you mean? Well, the current Portland riot is about a white teenager who shot three white men in legal self-defense.” The protests, riots and civil unrest in Kenosha, Wisconsin, occurred after the police shooting of Jacob Blake, a 29-year-old black man.

Do read the book. It’ll expand your mind. :)

#104 George S on 11.20.21 at 5:08 pm

a comment:
“Garth, I know you’re not a fan of crypto and I agree that 99% of the 14K+ tradable cryptos out there will eventually go to 0 but it seems that Bitcoin at least is getting more and more demand from institutional investors. Goldman Sachs, Fidelity, BlackRock, and many more have had very positive reports on crypto, and especially on Bitcoin in the past few months.

What are these major institutional investors and investment banks missing that still has you convinced that Bitcoin is not worth the risk?”

_______________________

All pump and dump just like Musk did. You have to know when to fold ’em and to do that you need big bucks and inside information.

#105 Midnights on 11.20.21 at 7:26 pm

Where’s that guy, Italia?

https://apnews.com/article/europe-protests-virus-restrictions-netherlands-austria-italy-bea60fffc55590d0b956752274ddfb88

Are you sure you’re in Italy?
Plus didn’t the Italian Gov’t just drop their numbers of C-19 deaths from over 100 thousand to 5 thousand? Maybe a typo.

#106 Shawn allen on 11.21.21 at 12:30 am

Stop lying that old age security is only going up 2.4%. In fact it gets asjusted up every three months and January 1 is up more than 2.4% on the on the year. If CPP is only up 2.4% it’s because that the average of the 12 inflation prints in the last 12 months.no conspiracy. Stop the lies and outrage.