Enough about truckers. Enough angst. Enough protest. The utter pointlessness of the last few days is lamentable. Nobody’s life was made better for the confusion, partying and antisocial belligerent honkfest in Ottawa.
Today resolve to do something positive. For example, there’s but a single, short month left to mine the greatest tax shelter in Canadian history. So if you’re an indie dude with some contracts and a big belching Peterbilt who really wants to stick it to The Man (without going to jail or having a CBC mic up your nose) here’s your chance. So, gear down, pull over, shut up and focus.
Instead of railing against the government, work to make your own life and family finances better. Slash taxes. Work towards a secure future. Especially if you lack one of those public sector defined benefit pensions (like most working Canadians and, uh, MPs). In exactly four weeks the deadline for moving money into a registered account and deducting it from your working income for 2021 will be gone. What a shame that will be.
The rules are clear and hugely to your benefit. Almost a fifth (18%) of earnings in any one year can be deposited into a registered retirement account and with exactly that same amount erased from the taxable amount on your April 30th return. This is a gift. And not a fair one – like the TFSA, which everybody gets equally. Instead, the more earned, the less tax payable. Those making a lot (over $250,000, for example) end up paying at least ten thousand dollars less a year simply by doing this.
The facts are simple. Contribute by March 1 and deduct the amount from 2021 income. The maximum is $27,830 for last year and just over $29,000 for 2022. Actual cash is not needed, since a contribution in kind means assets already owned can be used for the contribution. Borrow to invest. The interest isn’t deductible, but it still makes sense when the refund can be used to repay a hunk of the loan. Of course, you can plop money into a spousal plan, get the full deduction from your income but the funds become his/her props after three years. If the squeeze earns less, the money comes out with reduced tax.
On the notice of assessment (NOA) the revenue people send you annually the available RRSP room is listed. It builds up when not utilized. It never goes away. So it may make sense to save it up in early-career, lower-income years to use as a tax-blaster in later life. Or if you commute a pension upon retirement and need RRSP room to lower the bite on a taxable portion. Or maybe sell a rental property where capital gains can be offset by using room.
Also know RRSPs can be raided to buy s house or go back to school. No tax on withdrawals but the funds must be paid back into the plan over time. Of course if you take a down payment, dump it into a RRSP for 60 days then take it out under the HBP, there’s a tax refund. Nice to cover closing costs, courtesy of the feds. Also remember RRSP contributions made routinely throughout the year can result in an employer reducing withholding tax. To pull that off, use form 1213. It’s like a tax refund every pay period. Cool.
The biggest advantage of this shelter (like the TFSA) is asset growth free of tax. The range of things possible to own is huge, including ETFs, stocks, bonds, options or even a mortgage on your house (that one is complicated, but interesting). No tax on interest, dividends or capital gains. But all withdrawals from an RRSP are taxable – so try to make them in a low-income year, like a layoff, sabbatical, mat leave or incarceration. As mentioned, withdrawals from a spousal plan are at your partner’s tax rate (not yours) and he/she can still contribute to his/her own plan.
Ultimately an RRSP morphs in a RRIF so after 71 a small amount must be removed and added to annual taxable income. As you wither, the percentage increases. That can affect OAS clawback, and push people with DB pensions into a higher bracket. If that’s you, spend years plumping up your TFSA instead since income flowing from that is not counted by the CRA with zero impact on government pogey.
Let’s summarize. Save some money, invest it for tax-free growth, reduce your taxable income and pay less to Justin/Chrystia. Or take assets you already have and use them. Or borrow the dough and let a refund pay part of it back. Or invest through a spouse who earns less and still reduce your taxes. Or use RRSP room to offset tax on an annual bonus, or capital gain or pension lump sum. Or if you’re an independent trucker with no pension, this allows faster growth of what you’ve got plus lower overhead now and the ability in retirement to control your own income and taxes.
Or, you can complain about Canada and call everyone else a sheep. B-a-a-a-a-d move.
About the picture: “Here’s our newest member of the family, Scarlett,” writes Jenn. “She is four months old and a Cavalier King Charles Spaniel. I met her breeder 3 years ago at a horse show and waited a long time for her. She joins my Golden x rescue and Hound x as part of the pack. We paid a pre-Covid price for her and I have been to the breeder’s house 3 times, met the puppy’s father and mother and the rest of the puppies. Your blog has taught me more than any other source about personal finance and that’s saying a lot given that I have read well over 50 books on the subject over the years. Thanks for all that you do.”
134 comments ↓
If Canada goes into a recession, will BOC continue to rates?
Not happening. – Garth
#110 WUL on 01.31.22 at 12:03 am
Hi Garth,
The original line was “Out with the truckers, and the kickers and the cowboy angels”.
From Gram Parsons’ “Grievous Angel”.
For me, things are just fine in Calgary and in Fort McMisery, but the weather is milder in Calgary.
Cheers,
WUL
P.S. FLOP, whassup?
///////////////////////
My Brother In Law threatened to kill me because he thinks his parents are going to leave me their house in their will.
He spent a couple of days in jail and the police placed a restraining order on him.
Apart from that, not much…
M47BC
I have looked into my crystal ball and here is what I have seen.
Trudeau will give in to the trucker/protesters- They will feel they have “Won”
The CBC will announce outrageous 100,000 deaths/cases -Does not matter if it is true or false
Trudeau will say “I tried it your way – It didn’t work – Now I am Mandating the vaccine for everyone”
Trudeau will implement Universal Basic Income – with a Central Bank Digital Currency which will be tied to agreeing to a vaccine regime (No shot –No dollars). Boosters for life.
These dollars will have an expiry date on them – use them or loose them.
People need to eat – people who have been forced out of business or lost their jobs due to the mandates will be forced to comply.
People with money will flee the country – if they stay they will be taxed until they bleed to fund the UBI
Trudeau gets a percentage of each shot- He will be thrilled.
The bear trap will be closed.
Wait a minute Garth.
Hadn’t paid too much attention to this whole trucker thing until your Blog yesterday & you got me all hot and bothered.
They have some strong feelings and some putting their money where their mouth is (and no, I did not expect the liar.com link to end up where it did):
https://twitter.com/TheRealKeean/status/1488011118345871360
[I don’t subscribe to him…Twitter figures since yesterday it was a safe bet I would look at it & wafted it my way – they were correct]
Trudeau does not look good in this video address about the truckers:
https://www.ctvnews.ca/video?clipId=2372616&jwsource=cl
What would it take to have a major correction in the Real Estate market i.e. 30% correction
What’s going on with Natural Gas
https://finviz.com/futures_charts.ashx?t=NG&p=d1
— Food Supply??
1. – The CBC reported that the Transport Minister for Canadian Prime Minister Justin Trudeau’s government stated that there was “working being done” to implement interprovincial vaccine mandates for truckers. (cbc.ca)
2. Leads maybe to the silly leaked email??
“- Projected supply chain break downs, inventory shortages, large economic instability. Expected late Q2 2021.
– Deployment of military personnel into major metropolitan areas as well as all major roadways to establish travel checkpoints. Restrict travel and movement. Provide logistical support to the area. Expected by Q3 2021.”
—
–Science in Kanada.
https://vancouversun.com/news/local-news/bc-excess-death-toll-remains-high-due-to-covid-19-opioid-crisis
“I will say that … if anything, we overcall deaths from COVID,” Henry said.
In long-term care homes, Henry said any death that is within 30 days of a positive test is counted as a COVID-19 death, even if the virus might have contributed little to the outcome.
—
— Ahh the hospital capacity.
“Eight-month deficit: Feds spent $73.7 billion more than they took in. $16.5 billion in federal spending April through November is on public debt charge alone
By: Canadian Press January 28, 2022”
Baa baa black sheep, have you any wool? Another way to reduce taxes to our dear Photo-op Minister’s grubby hand is to FIRE! Speaking of which, how could he have possibly passed up that golden photo-op in Ottawa this weekend?!
“Nobody’s life was made better for the confusion, partying and antisocial belligerent honkfest in Ottawa.”
True. And sad. Because Canadians deserve better.
#392 IHCTD9 on 01.31.22 at 4:13 pm
Yep. The dumbest thing of all though, is pointing to 4-5 flags or a 2-3 incidents, and then branding a hoard of 10,000 people as supporters of same. It just doesn’t get any dumber than that.
It always happens that way. Look at the millions who participated in BLM marches over the course of a summer. You are quick to brand them all terrorists when the few idiots among them went rogue. – Garth
—————-
I think you’re getting me mixed up with someone else. I may slip up a time or two, but I try to contain my knuckle dragging tendencies and be reasonable.
My post from the weekend:
“#93 IHCTD9 on 01.30.22 at 11:02 am
… Whether dancing on graves or toppling statues, Jan 6 or looting stores and burning cars. Idiots, every large group has them, it’ll never be any different.”
Look further back and you’ll find I even make some effort in not vilifying activists (in general) for the carnage caused by their fraction of twits – I referred to said twits as “extremist-activists” on multiple occasions. (Church burnings / statue toppling). I even cautioned against blaming aboriginals for these acts a couple times, which many defaulted to.
looking to continue my 5 year streak of paying under $2000 for annual taxes… this year, I might even get a refund!
god bless RRSPs & eligible dividends
#5 Dave
“What would it take to have a major correction in the Real Estate market i.e. 30% correction”
This one is the easiest question of all. The answer is to simply let interest rates rise to their natural levels without intervention. This would certainly cause short-term pain but alleviate many of the issues we’re currently facing.
With regards to the short-term pain-if you were smart, you wouldn’t be feeling any.
Hi Garth
Question my wife took out $35k from her rrsp when we bought our home and I understand it needs to be repaid 1/15 per year. My question is this.. my wife is taking a second year off for mat leave (teacher in Ontario) can I pay the taxes on the rrsp and not repay any of the home buyer loan?
Effectively she’ll have zero income in 2022 so if the 35k is taxed her taxes would be next to nothing and the rrsp loan would be repaid.
Agreed that it’s a much missed opportunity to make RRSP contributions, then when you get a tax refund, you can put that money in to your TFSA. Does it make sense to consider converting RRSP’s to RIF’s prior to turning 71 Garth?
Anyone know if they are doing the 400 dollar work from home credit again this year or do we have to do it the longer way and get the form signed by the employer and track all expenses?
Sorry Garth
Would I need to contribute the full amount to the rrsp to clear hbp then withdraw the amount to pay taxes? Or can I just pay the taxes?
The Olympics begin on friday. Can’t we all just feel happy about that and enjoy the games? The gold medal men’s hockey final will be on February 19th. With all the sabre rattling that has been going on how fun would it be if the final was Russia versus USA? Jaguar will be out of the country when it all takes place and who knows whose lap I might be curled up in. What a great time to be alive…..
“Slash taxes. Work towards a secure future.”
Ie. Leave Canada. On it.
#402 SunShowers on 01.31.22 at 4:58 pm
Even though the overwhelming majority of the truckers themselves were obviously not Nazis, it should go without saying that anybody who finds themselves standing beside someone waving a Nazi flag should be thinking long and hard about whether they’re on the correct side of that situation.
Sure, I totally believe they’re not Nazis and they harbor no actual Nazi beliefs, but I’m going to be very skeptical of people who happen to be on the same side as Nazis on an issue of public importance.
————-
Anyone waving a swastika around amongst thousands of people, in this day and age – just ain’t smart. They way I see it, graffiti and vandalism has more cred as to what’s in the mind of its author. They do their work in secret because they understand what the message is. But, a guy with a big Nazi flag at a public “freedom” rally? He doesn’t get it. They are unrefined folks that don’t think about what they’re doing. They exist.
I definitely would not lump some dude standing 20 feet away from said guy with having any association with him in any way shape or form.
Time for us all to stand up for what is right.
Enough about truckers. Enough angst. Enough protest. The utter pointlessness of the last few days is lamentable. Nobody’s life was made better for the confusion, partying and antisocial belligerent honkfest in Ottawa.
Blah, blah, blah..
The biggest story in Canada and a paid govt agent tells us to chill..
His name: Garth Turner
His goal: Manipulation
Losing is tough, isn’t it? – Garth
“Here’s our newest member of the family, Scarlett,” writes Jenn. ‘She is four months old and a Cavalier King Charles Spaniel.'”
——–
Nice pup! My wife is quite interested in a CKCS for a calm and lowkey home companion, as she oddly no longer believes claims that bird dogs can ‘turn off’ at home.
Enough angst. Enough protest. The utter pointlessness of the last few days is lamentable. Nobody’s life was made better for the confusion, partying and antisocial belligerent honkfest in Ottawa………..Nor in parts of the comments section
Yes! A column on what is really important – less stress, less moaning, less angst.
We are financially independent; lowered our spending, increased our savings and investment rate, followed the 60/40 portfolio, and no financial issues now.
FYI – my job disappeared with COVID, petered out about 15 months ago.
Ho-hum. I enjoyed working, now I enjoy doing other things.
Our kids have figured this secret out, too.
What’s the expression – “spend more than you make and you’ll be poor; spend less and you’ll be rich”.
Your choice; Garth and his team are giving you the keys to less stress, more enjoyable life.
Garth, could you clarify one RRSP point? It is in regards to contributing to a spousal plan. Your post states the spouse can also contribute to their plan. So the point I’m wondering is if this is potentially a way to double up a contribution. Say my spouse is allowed to contribute $10K to their RRSP. If I put $10K into their plan, can my spouse also contribute $10K to their RRSP for the same tax year in addition to my contribution? Or would that result in CRA disapproval & penalties for over contributing?
“B-a-a-a-a-d move”. Hilarious!
GreaterFools:
You can put your mortgage inside your TFSA? Interesting indeed.
Amen to your first paragraph! Thanks for the financial goodies! I’m off to spread some peace and love around!
One thing to remember for kids starting out is that RRSP room is based entirely on reported income, so it’s beneficial to file tax returns even if they earn less than the reportable amount in a year.
Also, an RRSP can be opened and accumulating room as soon as a kid starts earning, although opened by the guardian if the kids are under the age of majority.
“Instead of railing against the government, work to make your own life and family finances better.”
These are not mutually exclusive.
@#21 Sail Away
“she oddly no longer believes claims that bird dogs can ‘turn off’ at home.”
+++
Was she looking at you when she said that?
Thanks for the reminder sir. Epic opportunity to buy equities this week.
Garth I have to respectably ask what the Quid Pro Quo is for you backing the Liberal Governments handling of this protest?
Idiot comment. You are above that. – Garth
Work on better future?
Easy, move south.
Better income and purchasing power, far less taxes, way better health care and reasonably priced housing.
Bonus points for the weather.
The wave has already started, but you ain’t seen nothing yet.
Looking for a nurse? Good luck!
This cold weather and warm ups in the am are really making the 8.1 Vortec in my 6000 lb tank very thirsty. Got an oil change over the weekend, and while scrolling thru the screen menus to reset the oil life clock, I caught a glimpse of my current average fuel economy:
25.6L/100 km, or 9.2 mpg (us). What an abomination. No long distance truck convoys for me…
In the spring, she’ll be gone, and the “new” truck promises 1000+ km per tank instead of the 365 I’m getting right now. Hopefully.
Like I always say money isn’t everything, it’s the only thing.
Not sure what the trucker’s are talking about. I’m sure whatever it is it’s irrelevant.
Cash on the barrel head.
In God we trust, all others pay cash.
Never forget the golden rule. He who has the gold makes the rules.
#27 Sail —
my 5 y.o. actually made $5k this year… are you saying if I report the income I can open and contribute $900 this year after the return is assessed?? Is it not taxed in the guardians name?
curious… thanks!
I am a truck for 35 years now and am retired the end of December-2021. My wife stayed home and took care of our kids, household and now the household never worked at an actual paying job but helps me with all the tax, paperwork and other financial administration, management. I worked 60 to 80 hour weeks 24 of those years 35 years so our family have a decent life and for our decent retirement. My wife and I don’t need a DB plan or a pension.
We saved to the max in RRSPs, spousal RRSPs, TFSAs and non-registered money. We have $1.7 million in GICs, OSBs, long term, Canada, provincial bonds savings accounts and we are getting our $65,000 a year in yearly interest plus our $28,000 in yearly CPP, OAS mostly and she just received $120,000 from her mother. Canadians are giving up too much of their rights and freedoms to bureaucrats and unelected officials in the UN and other world organizations.
“#1 Dave on 01.31.22 at 5:06 pm
If Canada goes into a recession, will BOC continue to rates?”
“Not happening. – Garth”
Wow that is bold, and on record!
Last quarter of 2019 sure seemed to be going into that direction, but they Covid came along…….
#21 Sail Away on 01.31.22 at 6:05 pm
Nice pup! My wife is quite interested in a CKCS for a calm and lowkey home companion
________________________________
The orange fur will clash with the painting you bought her in Hawaii though.
#30 Bob’s your Uncle on 01.31.22 at 6:48 pm
Thanks for the reminder sir. Epic opportunity to buy equities this week.
+++++++++++++
Which ones ?
#36 Jake —
first – congrats and doing what it takes to secure your future, it’s clear you did a great job.
I have to ask – you said
Canadians are giving up too much of their rights and freedoms to bureaucrats and unelected officials in the UN and other world organizations.
can you name something we’ve given up to bureaucrats or UN officials?
I just don’t see where or how this has happened to say that. genuine question
I thought MPs in Canada all the other aristocrats get defined benefit pensions? Don’t they?
There is always the risk that a move into enemy territory can be pointless. Like a sacrifice in chess for position. The Go Fund me convoy donations (follow the money) were interesting. The bulk of donors came from Alberta (ok) & Ontario (surprising). Rural Canadians, small businesses in small towns. Many anonymous or using nom de plumes. Onside but scared. A healthy fear of a much stronger enemy is good & rational. The pawns will get eaten up in Ottawa. Much stronger back home than I imagined. It is a worthwhile sacrifice.
to #3 Crystal-Baller on 01.31.22 at 5:13 pm
I have looked into my crystal ball and here is what I have seen.
*************
I have looked through the my window and what I have seen…
Soon will be new election and will be finished Trudonomic. In one year everybody will forgot who he was.
Other my seeing – just yours conspiracy theory. They can’t solve simple problems in Canada – how they can do everything which you talking about?
“Instead of railing against the government, work to make your own life and family finances better. ”
For the many Canadians abandoned by the Bank of Canada and government, the only way to do that is in another country. Harder to save money when your rent goes up 40% in a year due to “transitory” inflation that your central bank refuses to acknowledge and act on.
I agree with the general sentiment that it’s healthy do be proactive and control what you can control. But at the same time, the fact remains that the deck has been stacked in favour of speculators and against young families. Unless and until we fix that as a society, it’s dark times ahead for many. I expect a lot of folks will be voting with their feet over the over the next couple years – we’re already seeing it in the stats and that’s with the pandemic still ongoing.
RRSP, TFSA, Qualified dividend income, interest deduction are the 4 horsemen you got use to the max if you are working stiff.
#30 Bob’s your Uncle on 01.31.22 at 6:48 pm
Thanks for the reminder sir. Epic opportunity to buy equities this week.
*****
I’m always amused by comments like this. Less than 2 years ago, the S&P 500 was trading for roughly half the price they are now. At the moment, U.S. stocks are more richly valued than just about any point in U.S. history.
Have we ever been spoiled by more than a decade of money printing and negative real interest rates. The central banks have convinced just about everyone that stocks can’t go down, and that ever garden variety correction is a “epic opportunity”.
I wonder what would happen if the central bankers ever stopped money printing and raised real rates to even just 0%. Of course that’s a hypothetical question, since they never will…
Food for thought, and I regress to the topic of yesterday.
If Omicron is still raging in Canada (possibly past the peak) as well as in the United States, what is the sense of imposing expensive molecular COVID tests for travellers that go across the border. In terms of Chemistry, there is a chemical equilibrium that has been established at this stage with omicron; rate of transfer into Canada from abroad = rate of transfer outside Canada to other jurisdictions. If on the other hand, there was something much more lethal outside Canada, then for sure we need to impose strict tests at our border to keep it out as long as possible.
As much as I think that Boris Johnson is an idiot, I think that they have made the right call at this point in time. What is the sense in imposing molecular tests for COVID at the UK border at this stage? T2 should relax this requirement at this time and the vaccine mandate on the truckers at this late stage looks more idiotic.
Full disclosure: for our family we are done with this. Going to Tulum over spring break in late March and praying that the required molecular test for the return journey is moot at this stage.
Wait for a low income year like incarceration… :)) Maybe a few truckers will take your advice…
Now the convoy is blocking beef from crossing the border.
Trudeau’s illegitimate regime of terror has collapsed. He has fled the capital (some witnesses say with a suitcase full of cash and diamonds). The truckers are now the legitimate government of Canada and they should seek international recognition.
British Columbia’s vaunted health care report
Part IV.
Royal Jubilee Hospital.
The hospital contacted the daughter of an 87 year old patient at 7:45AM that
“Due to staff shortages, a family member must attend the hospital to feed the patient for BREAKFAST, lunch and supper….”
The daughter immediately went to the hospital to attend to her mothers meals.
She asked the News media, “Is this what Health Care in Canada has come to? When family members are called in a a moments notice to feed patients? ”
No BC Govt official would come on tv but they gave the usual statement that Health Care is a right for all British Columbians and blah, blah, blah blah ….blah blah blah.
@#36 Jake
You were doing so well until you veered into the last paragraph…. conspiracy stuff.
On media discernment:
Here’s a source and a few examples. The important stats are bias and credibility. As long as the credibility is high, then the bias doesn’t matter much. But strong bias and low credibility scores mean mis-/dis-information.
The New Yorker:
https://mediabiasfactcheck.com/new-yorker/
Gets a left leaning bias score (no surprise) but a rating of high credibility and high in factual reporting.
Bizpacreview:
https://mediabiasfactcheck.com/bizpac-review/
Gets a right leaning score but a medium credibility and medium score in factual reporting.
The National Post:
https://mediabiasfactcheck.com/national-post/
Gets a center-right lean, but highly credible and factual reporting.
Discernment, if you lack it, you have no excuse for not improving it. If you get cozy feelings reading your news of choice, it’s probably got a biased slant in your political direction. If you get riled up by the headlines then there may be something else at play.
#35 Yorkville Renter on 01.31.22 at 7:27 pm
#27 Sail —
my 5 y.o. actually made $5k this year… are you saying if I report the income I can open and contribute $900 this year after the return is assessed?? Is it not taxed in the guardians name?
curious… thanks!
———
Correct. Your 5yo will need to file a tax return and it’s probably best to just stockpile the rrsp room until they are earning enough to yield a tax benefit upon contribution.
@#49 Don
“Now the convoy is blocking beef from crossing the border.”
+++
Conspiracy to Cattle rustlin’
Must be the Albertan Brokeback Mountain contingent.
Fun to watch Australian TV (with their severe restrictive rules) laughing at Canadians and their (Liberal media) handling of the truck protesters reporting (actually non-reporting).
‘Do not rock the boat’ is the real reason we are in this deep doodoo, and yes, the sheeple is really that stupid, and yes, the best way to minimize taxes is to actually leave this place.
It amuses me, all this gains, investment talks when the economy is in the sewer and inflation roars, of ho you will have 2 millions at retirement time, conveniently missing the details that home at that time will eb worth 10 millions and you will need similar amount in order to retire safely.
They say it is insanity to keep doing the same thing adn expect different results but hey, keep trying.
“Instead of railing against the government, work to make yo-”
“HONK! HHHHHHHHHOOOOOOOOONKK HONK HONK! HOOOOOOOOOOOOOOOOOOOOOOOONK! HOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOONK!”
#408 Donna Amato on 01.31.22 at 6:56 pm
Excellent post. Thank you, Garth. Terry Fox has always been my hero. To see his likeness maligned in such a way by members of this misguided mob was truly disgusting and something I will not soon forget.
———————
Agree.
Messing with one true Canadian hero was not a good move by the Trucksters.
Everyone of the protesters is adding nothing to the Country, while Terry and his legacy is adding millions to cancer research and treatment.
Time for the protesters to pack up and leave in shame.
DELETED
Many pleasures have been taken from us in the past two years. Working for our future isn’t working.
You couldn’t even sit in the sunshine as park benches were taped off . The only pretty girls you could see were dogs.
The government wants more ,especially they want you to agree with them , and be too busy to protest ,”just keep working or we’ll give you something to do.
What they don’t understand is that when people lose everything “they lose it “.
@#43 Vlad the Debt Impaler
“Soon will be new election and will be finished Trudonomic. In one year everybody will forgot who he was.”
+++
Wishful thinking Count Vlad.
As much as we all want to forget Little Potato as soon as possible.
(He’s started the cottage Press scrums again….God help us all)
The 1 TRILLION dollar debt will continue to suck on taxpayers wallets like a vampire at a preschool naptime.
Helpless, undeserving of their fate, completely oblivious to what is contributing to their demise…..the taxpayers will stagger to and fro until tripping over an unexpected govt user fee ….like a strategically placed toy on the floor.
We are doomed to suffer the purgatory of Trudeau and Freeland’s largesse for decades to come.
Millennials will suffer the worst for they have much longer to give financial blood to the Govt succubus’s that demand to be fed.
Cute and funny blog tonight, Garth. I especially like how you dropped the “incarceration” reference and the “B-a-a-a-a-d move” line. Priceless!
Not buying a home anytime soon (even if I wanted to, there’s nothing to buy and no available agents even when something decent comes down the line). But still, if ever it floats your goat, I’d love a feature on how, when and why to put a mortgage in an RRSP, plus the best way to go about setting it up. I think you’ve hinted at this option in the past, but said rates had to be north of 5?% to even consider it as an option? So obviously, it’s pretty much been a no-go for the last 20 or so years? I seriously can’t remember the last time rates were 5% or above.
Thanks for all you do, and for doing it so well ;-)
It’s no wonder all the talking heads on Twitter and parliament hill waste all their breath trading in outrage. 53 comments vs some 300+ yesterday. Anger sells I guess, and you can sell it to both sides at once. I suppose only a fraction of us find personal finance as stimulating as trucker convoys.
Anyhow, two great pieces of advice from today’s article that can’t be stressed enough: first, RRSPs are not for specifically for retirement. They’re to shift income from higher earning years to lower. Finance mat leaves, mid life crisis where you take off to Mexico with the secretary on the back of your Harley, go back to school, or try a new career. If you make it to retirement with uninterrupted income, good for you, but don’t be afraid to use them before then.
Second: I like the advice to save the room until you’ve maxed out your TFSAs if you’re young with five figure income. That contribution room is much better preserved for when your income gets into the six figures. This comes with the caveat that (waaaay) more important than which one you choose to invest in is that you invest starting young. Do not wait until you’re 30, or 40. Start putting money in when you get your first paycheck, even if it’s $20/month. And you’ll either need to find a discount brokerage with free trades, or buy the lowest cost, no load mutual funds you can find to avoid trading fees killing you.
In fact Gartho, if you want to do another great article that generates only 20 comments, advice for how to invest on a budget is one I don’t think I’ve seen you touch for a long time. Advise the masses on which brokerages and products offer the lowest trading fees if you’re making small, frequent contributions.
My apologies, Faron: rereading yesterday’s exchange, I see I did instigate unecessarily.
Uh oh.
Looks like I’m about to get punted, and then Mad Max will split the conservative vote for good.
https://www.theglobeandmail.com/politics/article-otoole-faces-caucus-revolt-as-35-mps-sign-letter-calling-for/
Garth, okay if I shelter in place here with the steerage section?
“he/she can still contribute to his/her own plan.”
The pronoun you’re looking for is “they”. Stop reinforcing the gender binary myth. It’s harmful.
#51 crowdedelevatorfartz on 01.31.22 at 9:20 pm
British Columbia’s vaunted health care report
Part IV.
Royal Jubilee Hospital.
The hospital contacted the daughter of an 87 year old patient at 7:45AM that
“Due to staff shortages, a family member must attend the hospital to feed the patient for BREAKFAST, lunch and supper….”
The daughter immediately went to the hospital to attend to her mothers meals.
She asked the News media, “Is this what Health Care in Canada has come to? When family members are called in a a moments notice to feed patients? ”
No BC Govt official would come on tv but they gave the usual statement that Health Care is a right for all British Columbians and blah, blah, blah blah ….blah b
-++-+——————-
Leave it to CEF to dig deep and find a person who’s not happy with the Health care system.
I’m sure there are more in a system that’s not perfect.
Dig harder and uncover them all.
Leave no stone unturned in your quest to find perfection.
Don Quixote fighting the windmill.
Looks the the Tool is gone. Massive convoy support out west. Propaganda failing. What a spectacular success. And to think that the leaders could have played this into winning hand. How about we give all three the Coward 19 award.
DELETED
I wonder if UBI payments will be adjusted in the future when people start drawing down their RRSP’s. Perhaps the tax deferment concept backfires when social credit underpins government savings program rules.
Blockade out west.
Just heard trucks lined up at Coutts border crossing waiting to deliver supplies into Canada, can’t help but wonder what the condition of those fruits and vegetables will look like once delivered. Worst of all is the load or loads of live cattle standing in trucks in freezing temperatures. Oh yeah those “freedom fighters” accomplished a lot, sickening.
“…or incarceration.”
Thank gawd you haven’t lost your sense of humour during the last few days!
@#57 Mr Honk
Reading your comment…
I feel as if I’ve accidently walked in on two geese in a cheap, tawdry, motel room…
“Or maybe sell a rental property where capital gains can be offset by using room.”
Requiring some clarification here. Is not RRSP contribution deducted from earned income? So what you require is a job to generate that earned income. It is this income and related tax that is actually reduced, not the
cap gain. Of course, this could then lower the marginal
rate on the cap gain.
If a person only has investment income, I dont believe they can use the RRSP contribution to lower the tax.
Have I got this right?
358 Ponz
“Always the voice of reason and calm in times of chaos.
But the truth is, in the Lower Mainland, if you’ve got 100 k lying around, it goes straight into a down payment for a rental condo.”
———————–
Well, I had considered suggesting that it go to a trucker “Go fund me” page but I thought better of it.
#64 Sail Away on 01.31.22 at 10:29 pm
My apologies, Faron: rereading yesterday’s exchange, I see I did instigate unecessarily.
—
Thank you. I apologize for the aggression in my initial response. It was heavy-handed and influenced by my frustration about this issue.
Trucker dude/dudettes lay siege to Ottawa trying to take out T2 and hit O’toole instead… hilarious…as the reformacons implode…. giving T2 and the gang free reign for years…
Garth, what if I have a DBPP, maxed TFSA, and a plump non-reg? Should I still contribute to RRSP? Would love to retire early!
Tax rates have risen so much that some of the money contributed to my rrsp will end up being taxed more on withdrawal then if it hadn’t been contributed way back when…
Sadly, there was no tfsa prior to 2009…. the tax man will get you coming or going.
62 – I have been using my RSP for 30 years to invest in mortgages. Not complicated, you need a smart lawyer and be able to analyze loan to value. Stick to 416 or 905 and principal residences only. No lending on stuff outside your sandbox. Garth is not a fan.
Your post is, I think about using your RSP to give yourself a mortgage. Must be CMHC insured so that’s a cost but easy to do. You can effectively pay yourself tax deferred interest forever. I think for the right situation it’s a smart play.
I have a client who did this with their own home and used the proceeds to buy a condo in Florida. But, you must have equity to begin with . Not sure anymore if for your own home it must be a first mortgage. On arms length mortgages you can give first or second mortgages up to 90% LTV.
Oh. I see. They didn’t want to ‘look bad’.
“Last week’s interest-rate decision was clearly a close call. The scales appear to have been tipped in favour of leaving interest rates unchanged by two factors: uncertainty about the Omicron wave of COVID-19 infections, and worries at the central bank over how it would look if they raised interest rates months sooner than they initially indicated they would.
The prices of financial assets tied to short-term interest rates implied that most traders had assumed the Bank of Canada would raise interest rates last week. Instead, Macklem ended forward guidance, deciding a January increase would have been too abrupt after signaling in December that there would be no change until the spring.
“It would have been a somewhat messy exit from that forward guidance if they had hiked having just reiterated in December that they probably wouldn’t be doing so until the middle quarters of 2022,” Josh Nye, an economist at Royal Bank of Canada, said in an interview with Financial Post’s Larysa Harapyn. “That communication strategy had a lot to do with the bank’s decision to hold steady.”
We have the Charter of Rights and Freedoms in this country. If government edicts can override it at will and in perpetuity then the Charter has zero substance and the paper document is full of empty words and Canadians have nothing. Jab or job, jab or no participation in society is not freedom. Lock down, waking around with mask (what’s cdc said about that lately????), destroying people s businesses, is no way to live in a democracy.
The power seized by government over the last two years is atrocious. Every-time something comes along that kills a few thousand, yes what is it, in two years ~30,000, is this what we are going to do? Really?
More people die every year from poor diet and lack of exercise and the laundry list of disease and illness thar results in. Locker down, force diet upon people ,BMI targets, Body fat % targets, it’s for you health right ? How selfish? What if someones lack of control and discipline means they get sick and take a hospital bed and there isn’t one for grandma or me. – see how this plays out . There’s a lot of personal choices we tolerate, that have serious consequences.
All this talk of selfish becuase people don’t want their rights trampled on. I have seen more people with zero responsibilities in life, whom sit on large sums sums of money, or who have guaranteed cheques coming from some layer of government be the most likely to be happy with the status quo. The affect is hardly felt by then and they could care lessZ. Yes truly selfless people indeed .
There is no charter violation in a public health emergency. Your trivialization of the death of over 30,000 people is heartless. – Garth
85th? Slow day on the blog.
For those afraid of flying, why not ask the pros- the fight crews – who’ve never stopped their flying. The airports never closed. No complaints from them. No strikes. No work action. Stuck in a confined space with hundreds, hours at a time.
Our public sector unions however…teachers…are crying non-stop.
–War on Small Business
https://www.blogto.com/city/2022/01/struggling-toronto-businesses-urgent-plea-government-help/
— Control over Travel? Check. And those electric cars, software controlled, kill switches being mandated in all car in a few years. Hope that your social credit score remains high Comrade.
Yep the New System is being run by the A.I.
You are free to leave at any time…try it
https://www.zerohedge.com/political/buttigieg-usher-speed-camera-nightmare-across-us
“The U.S. Transportation Secretary Pete Buttigieg’s plan to roll out a sprawling network of speed and surveillance cameras across America’s highways raises troubling questions of mass surveillance, according to DailyMail.
Buttigieg’s 42-page plan to improve highway safety will receive a whopping $17 billion from President Biden’s $1.2 trillion infrastructure bill, which would be used to install speed and surveillance cameras on highways. The plan says the use of automated speed cameras is a more “equitable” way to patrol highways than the police.”
@#75 Faron/ #64 Sail Away
Has a plagiarizer hijacked both your names
OR
Has the C.I.A. started a high altitude chem trail experiment over Vancouver Island?
@#67 Ponzies Paramedical Perfection.
Just pointing out a few flaws in our (your?) perfect Health Care system.
I dont think a recovering cancer patient would be to unreasonable to expect three meals a day served to them by a hospital worker as opposed to a family member summoned in a t the last minute.
Apparently other people think its note worthy as well.
As reported on the 6pm Evening News
There is no charter violation in a public health emergency. Your trivialization of the death of over 30,000 people is heartless. – Garth
Who decides what the emergency is? So far, Covid has been far from a true pandemic.
There you go again, disrespecting the afflicted and the perished. How selfish. – Garth
Is this an inflation site?
Home Hardware store this morning, I saw the 12V battery for trailer brakes or home security, the size of a pound of butter. $125.00!!!
What happened to $45.00?
#58 Ponzie
Time for the protesters to pack up and leave in shame.
——————————————————————————————————–
ATTENTION Ponzie’s Caregiver:
Please make sure he gets back on his meds ASAP.
We don’t need any more mental patients contradicting themselves all over the comments section.
I find it hard to fathom the permission to blockade the public that seems implicitly accepted in Canada.
At least in many US states, you’re allowed to run over protesters, a ruling I find wholly right, meet and seemly, since no random group gets to restrict one’s right to free movement on public thoroughfares. Quite an effective technique:
https://www.google.com/amp/s/amp.cnn.com/cnn/2017/08/18/us/legislation-protects-drivers-injure-protesters/index.html
“he/she can still contribute to his/her own plan.”
The pronoun you’re looking for is “they”. Stop reinforcing the gender binary myth. It’s harmful.
#66 Enby blogger
———————
the right pronoun should be used in insane canada is:
canadian “hermaphrodite”
#87 Wrk.dover on 02.01.22 at 10:20 am
Is this an inflation site?
Home Hardware store this morning, I saw the 12V battery for trailer brakes or home security, the size of a pound of butter. $125.00!!!
What happened to $45.00?
——–
Well W., this might be your next self-sufficiency item. Build your own Lithium batteries.
You’ll need a soldering iron with good thermal mass since the cells’ outer sheath is a large heat sink so you need to get the connection point hot fast. Just use the proper tool.
Now the rechargeable world is your oyster. Rebuild or create custom rechargeable batteries for anything from a power tool to a Tesla.
#84 crowdedelevatorfartz on 02.01.22 at 9:05 am
Legit from me.
#89 Sail Away on 02.01.22 at 10:59 am
I find it hard to fathom the permission to blockade the public that seems implicitly accepted in Canada.
—————
They don’t have permission. Their actions are illegal.
Why we tolerate folks illegally blocking seaways, railways, highways, streets, etc. is a travesty. Yes, Justin should have someone meet with them and try to settle this thing in a reasonable manner, but if they can’t, it’s time to call in the military. Anything less is a failure to lead and promotes anarchy.
#84 crowdedelevatorfartz on 02.01.22 at 9:05 am
Then I see #89 and SMH. Like, WTF.
“Enough about truckers. Enough angst. Enough protest. The utter pointlessness of the last few days is lamentable. Nobody’s life was made better for the confusion, partying and antisocial belligerent honkfest in Ottawa.”
Hahaha, speak for yourself, Garth.
This protest has brought the issue of mandates front and centre to the point that the protest has become household conversation in more than just Canada. American news media is all over this, and similar protests have spawned in the EU and the southern hemisphere as well. Talk about Canada being a leader!
There may be some kind of national spirit worth saving in this country after all. It is honestly heart warming to see people from all walks of life descend on the capital from across the country to make a point in -25 degree weather.
Watching the NDP, Lib, and Red Tory factions absolutely seethe over this is just the cherry on top.
Most people are living their lives, doing their jobs, working cooperatively, being vaccinated, wearing masks and complying with rational public health measures so we can end this ordeal. They are not being selfish nor putting their own interests above those of society. You are a rump. – Garth
152.9 for gas in the hinterland. I’m starting to feel like I’ve passed thru a rift in the space-time continuum and ended up in BC. That is the highest price I’ve ever seen locally, higher than the pre-GFC runup when oil was 140 bbl.
Funny thing is, Oil is only ~90.00 right now..
Dear blog dogs,
I have to add to this: having a defined contribution plan, I just upped it to 18% this year. No forgetting to contribute. No form 1213. There’s a risk of this getting stuck in a LIRA, but you know what? I figure they’ll let me take $$ out if I destitute so I accept that risk.
They don’t have permission. Their actions are illegal.
Why we tolerate folks illegally blocking seaways, railways, highways, streets, etc. is a travesty. Yes, Justin should have someone meet with them and try to settle this thing in a reasonable manner, but if they can’t, it’s time to call in the military. Anything less is a failure to lead and promotes anarchy.
_____________________
I know it is hard for the Liberals on this board to understand but the majority of Canadians are thankful for the truckers standing up. Keep your eyes and ears closed like your great leader and let humanity balance itself.
Wow, I wish I didn’t read the comments. Sorry you had to moderate all this garbage, Garth. A lot of selfish people walk among us, they exclaim “freedom” but what they really want is to have the right to be above everyone else (specially above the immuno-compromised and the elderly). Shameful. Seems like compassion and caring for others is a lost trait in 2022.
Most people are living their lives, doing their jobs, working cooperatively, being vaccinated, wearing masks and complying with rational public health measures so we can end this ordeal. They are not being selfish nor putting their own interests above those of society. You are a rump. – Garth
This is BREZHNEV speak, did u study at the Frunze Military Academy COMRADE??
The more gullible can fall for the words coming out of your sweet bifurcated tongue but for us you are BUTT NAKED…
UGHHHH, what a sight..
#93 Bezengy on 02.01.22 at 12:06 pm
#89 Sail Away on 02.01.22 at 10:59 am
I find it hard to fathom the permission to blockade the public that seems implicitly accepted in Canada.
——–
They don’t have permission. Their actions are illegal.
——–
The US don’t play that. If it causes their border crossing any trouble at all, they may very likely just shut down.
Remember the 1997 Prince Rupert fisherman blockade of the Alaskan ferry? The response: immediate cancelation of the Prince Rupert stopover. Oh, the hand-wringing, haha.
#93 Bezengy on 02.01.22 at 12:06 pm
Yeah, a FULL MILITARY CRACKDOWN otta do it. Right after the PM sends an envoy to address every nutjob that yells loud enough.
True leadership comes from restraint, not reflexive action.
Protest is legal, trucks are legal on roads as are cars, bikes and sometimes foot traffic. Start trying to legally differentiate this from a traffic jam and things get murky fast. “Oops, myself and my friends got flat tires in the middle of the highway”.
You are a rump. – Garth++
Holy mother of Dog! A rump! Even Sail Away and Faron haven’t gone that far!
https://www.youtube.com/watch?v=LF1BYU94NvE
#95 Selfish Renter
Yeah.
FoxNews and “Trucker” Carlson are all over it.
The Media and/or Trudeau ate my country?
#361 KLNR on 01.31.22 at 2:18 pm responded to me
@#344 Shawn on 01.31.22 at 1:13 pm
Anyone using the term “main stream media” loses my respect and my estimate of their intelligence drops by a lot.
–
deep state, Qanon, new world order, great reset and the like do it for me.
*** And Faron agreed times 100….
We could add “Laurentian Elite” as a recently popular complaint and insult. As if all the people in that so-called class are some giant team arrayed against others…lol.
It reminds me of the lower half of the class in school that always had an excuse for their poor results. The dog ate my homework. “Honestly mom, everyone failed that test”. The teacher can’t teach…
This blaming attitude is not a great recipe for success in life.
I am never all-in on anything (diversified), but I have started picking up some bonds and utilities lately to get back closer to a 60-40.
In other words, I think things are better than Rosenberg says, but I am also NOT all-in on this roaring 20’s idea. I think that is hyperbole.
When in casual conversation middle-class people talking about changing their spending habits on groceries and driving only 1 car, I pay attention. Anyone of: raising interest rates, high energy prices, or high taxes could tip us into recession. Our debt levels are incredible.
The central bankers not raising rates last week is the scariest thing to happen in the past 12 months IMO. But I stay diversified in case I am wrong. Perhaps they raise a half point in March… perhaps.
================================
#37 Quintilian on 01.31.22 at 7:37 pm
“#1 Dave on 01.31.22 at 5:06 pm
If Canada goes into a recession, will BOC continue to rates?”
“Not happening. – Garth”
Wow that is bold, and on record!
Last quarter of 2019 sure seemed to be going into that direction, but they Covid came along…….
Here is Garth giving all of us a wealth of FREE and GREAT tax advice and the half cocked lawyer wanna be(s) in the comments rant on and on about “oh the indignities” of my rights violations. It’s pathetic but why should I care … the rants will move on to the next “best thing” in cyberspace and I’ll be left richer because I paid attention to his advice.
No emergency lasts more than 2 years Garth. After 1 year, you are just living life – or not. End the emergency act, and let people adjust to their own desired level of risk. We all know what we’re in for, it’s not a secrete. This is life now, let’s live it.
There is no charter violation in a public health emergency. Your trivialization of the death of over 30,000 people is heartless. – Garth
———
This is the crux of the divide. The people who believe in respecting the charter and those who don’t. The idea that this is the emergency that causes us to throw our rights away is sad. We are not in war times. When I walk down the street, the majority of houses still have people in them: the plague did not wipe them out.
Every COVID death is sad. When people die of obesity related issues, that is also sad. But grounds to violate the charter? Absolutely not. The truckers get it; Garth does not. If you really think the charter should be violated, then advocate to have it updated. Put a clause that says if there is a bad virus going around, it doesn’t count. Then at least you will be being honest about it.
No charter right is absolute (as it states clearly) and thus none have been violated. This is a myth. – Garth
No charter right is absolute (as it states clearly) and thus none have been violated. This is a myth. – Garth
—–**–**********
You can bark all day (pun intended)…the freedom ship has sailed, 54% of Canadian lemmings are done with this shit. From now on its all downhill for all imbeci,le politicians that think the electoral platform is about locking down people, masks, and FORCED MANDATES..
That is why u see slime and sleaze balls like del Duca lying through their saying that they never supported lockdowns.loooool
It is quite clear that omicron is weaker and that covid restrictions need to be lifted. Countries are starting to do this (England, Denmark, US states) and 54% of Canadians want them lifted.
I know dozens of truckers and they are not far right, fringe, hateful people like the Liberals and the MSM likes to portray them. Blue collar Canadians are some of the nicest Canadians.
I can’t believe how selfish some people are that they want people locked down so they can feel a little safer. With omicron and 90% vaccinated this is not justifiable. This is why I support the truckers and donated to them.
Being Free is a relative word.
Going south at the Peace Arch NP at all.
Go ahead and try to return to Kanada without Passport, Proof of Vax, Signing up for return Kanada Return, answering a pile of questions, and doing a PCR test costing $140 that you can barely even buy.
Jesus if your double Vaxxed and its so god dam effective so it sure is hell not…..Wow its a crap ton of work. So near $300 just for 2 test for a 3 day visit. Make sure you don’t bring too many beers back and don’t bring to much loot they will cease that. $10k nothing now.
Your Monitored to the hilt at every level, taxed to the moon a…you call that freedom?!
How about roll back 30-40 years when ya didn’t need to go through the body scanners.
Its all about control at every level. That’s why people are pissed.
Gotta keep you safe in the nanny state.
Now I gotta pay a lawyer to register all my land holdings make sure I’m not laundering money. New law of control…WTF
Meanwhile back in Ottawa printing money like never before.
#109 James on 02.01.22 at 2:00 pm
There is no charter violation in a public health emergency. Your trivialization of the death of over 30,000 people is heartless. – Garth
————————
Mr. Turner I understand the point you’re making. However, see below
https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1310039401
Total covid deaths since 2020 33,722 to present
Total deaths 2020 only, of Heart Diseases 53,704
Total deaths 2020 only, of cancer 80,973
Total deaths of ALL 2020 307,205
And I will add that quite a few of those covid deaths were likely the result of another reason but they happened to also test positive prior to death.
Those number do not justify putting aside the Charter of Rights.
Nothing is set aside. Heart disease and cancer are not contagious. And shame on you for politicizing the deaths of 33,722 of your fellow Canadians. – Garth
Here’s an even better idea, let’s machine gun the domestic terrorists assembled in Ottawa!
They’re clearly members of the National Socialist Worker’s Party (Hitlerites) under direct orders from Putin himself.
Oh ya almost FORGOT! Randomly selected to do another PCR test at the boarder.
Now we need to sign up with a different company to have someone online watch us stick another Qtip up our noses.
Because you cant rely on anything. The goverments all over the deck like a loose canon as usual. Differnt rules and policies at every boarder. Jesus. Alot of moneys being made off this deal.
@110. I can kinda understand why you people are scared of needles. I used to be when I was 5 years old.. I get it. But never figured out why you’re scared of masks.
Nor have I figured out why you can’t see that if people wore masks and everyone was vaccinated, we wouldn’t need so many restrictions. The restrictions are just there to protect us from selfish people who are scared of needles and wearing a piece of cloth on their face.
But you are right, most Canadians are “done with this shit”, by which i mean, people whining about having to wear a mask or get a shot like children.
@ the Jaguar, GT
‘Legault My Eggo’
The aforementioned Premier of Quebec May have the courage of his convictions, and a titan of industry but that doesn’t mean that additional rules on top of rules don’t result in a complete farce.
Apparently the Big Box rule (unvaccinated people cannot enter places such as Costco, Walmart) has to be applied with8n the context of exceptions for necessities, such as food and medications). The result being each unvaccinated person must have a personal minder on their trip thru Costco, for example so that they do not loiter, touch, or otherwise ogle any non-food or medication items)
Absurd, non? Kafka would approve.
Related news- Legault backing down on the special health tax on ‘unvaxed’
“The charter isn’t worth the paper it’s written on.” (Mulroney, regarding the notwithstanding clause) We have rights, until we don’t.
Plus, I thought we Canadians are a versatile bunch. We can protest and avoid the tax man too with RRSPs and the like. It doesn’t have to be one or the other.
And as a bonus: When the media comes out slashing a group like the current protest by characterizing the whole group by the activities of a “small fringe minority” it has to cause some suspicion, unless you have your head in the sand. Raising 10M only happens with broad support.
Here’s a fun clip. Ah, Tucker:
https://www.foxnews.com/transcript/tucker-trudeau-used-covid-to-short-circuit-democracy-in-canada
Nothing is set aside. Heart disease and cancer are not contagious. And shame on you for politicizing the deaths of 33,722 of your fellow Canadians. – Garth
—-I’m not ashamed because I care about this country and my fellow Canadians. The shame falls squarely on our PM and his divisive government.
DELETED
@119 : At least he isnt complaining he can no longer pleasure himself to chocolate.
#114, tongue in cheek or not, not appropriate at all in a tense climate.
Oops!
Did I do a bad thing?
Canada is the best country in the world. Tonight is another blog post that’s spot on.
Timelines Timelines Timelines…rarely can they ever be accurately projected … and as such with the case of toughest of all economic measures to ever come about being particularly … the historically normalizing of interest rates, the changeable Fed can and will consistently throw a wrench into those workings.
Never before has there been a need greater to fix the mind boggling destruction created by gravely skewed far too prolonged monetary policy than with the normalizing of interest rates regardless of the economic pain they would bring. Nevermore than the time we are in right now before even those measures get past the point of having any effect before our economies and society ultimately implode.
Spiking… not artificial, but real inflation, will put us in recession by 2023.
Rising interest rates much later perhaps out of fear of ending up drowning in outright and total economic implosion will keep us there.
Or…
The alternate result for not raising rates… A much devalued dollar as a result of unchecked inflation eventually leading to a dumping of US treasury bonds globally. National default on the debt. And the dollar upended as the world’s primary reserve currency.
That would lead straight to (near) hyper-inflationary cost and price absurdity throughout our already beleaguered economy, all becoming a reality many could never handle.
It really is too late for a fix without the bloodletting nonetheless. And the Fed let it get this far.
The much higher GDP recorded in the fourth quarter of 2021 over the third quarter as it turns out did not come as a result of increased production and a healthy economy, but to the contrary. The GDP surge came as a result of big companies buying up and stockpiling reserves from producers in anticipation of future shortfalls creating even bigger shortages.
Anticipation borne out heightened concern of running out of goods and supplies, and/or having to pay much more for them later, happened by and large in purchases of diminishing, already limited supplies of goods that were previously sold at lower prices, then were and are now being re-packaged and sold at higher inflated prices… while in turn, anticipating/fearing future shortages driving prices steadily upward.
It wasn’t a presupposed growing economy in the 4th qtr of 2021, but a bubble economy forming instead that came right out of industry awareness in catching on to the lies about transitory inflation that wasn’t at all transitory.
Blame the Fed for that.
Remember I told you about forward looking monetary policy by 8 quarters and such. When the Fed first said inflation was transitory over a year ago, I said it right here and long before the Fed admitted it publicly, that there was no way the inflation at the time then and to come, could possibly be transitory. The Fed knew it. They know all about monetary policy and they lied about it.
I mentioned in this comment section they were lying about it long before any of it ever came out.
Once the lie of transitory inflation became common knowledge throughout the industry, massive stockpiling began when the realization materialized that inflation was here to stay.
It was all an understatement by a large proportion to say the least.
Another matter materializing with the Fed is their utter aversion to increasing interest rates beyond the paltry ones they have planned for 2022.
And so the historic normalizing of rates will be pushed further off into 2024…25 and beyond. Projected earlier timelines very likely now notwithstanding.
As we edge toward a market downturn later this year, the Fed will opt out for killer skyrocketing inflation instead. With rising unemployment, stagflation and a recession, then renewed stimulus spending again on into 2023.
Garth, thumbs up from our household, and, from what I read on the CBC of all places, the residents in downtown Ottawa are getting fed up – one story of three “Grannies” stopping a belligerent truck on Cooper street. Go ladies!! Reclaim your ‘hood.
From Mayor Watson, the city is looking into claiming costs at $800k per day from the GoFundMe fund for this “Convoy”.
You are doing fine in our books. We wish you health and happiness.
ok: If I may gather a few points from the Cleveland clinic about NPD:
—
From: https://my.clevelandclinic.org/health/diseases/9742-narcissistic-personality-disorder
How common is narcissistic personality disorder?
Experts estimate that up to 5% of people have NPD….
Healthcare providers diagnose NPD when you have at least five of the following characteristics:
– Overinflated sense of self-importance.
– Constant thoughts about being more successful, powerful, smart, loved or attractive than others.
– Feelings of superiority and desire to only associate with high-status people.
– Need for excessive admiration.
– Sense of entitlement.
– Willingness to take advantage of others to achieve goals.
-Lack of understanding and consideration for other people’s feelings and needs.
-Arrogant or snobby behaviors and attitudes.
—
5% of the population? Yeah, makes sense from some of the negative comments here, and from what I read of reactions downtown Ottawa.
You can’t change these people, you can only give them love, sympathy and understanding. Unfortunately, you can not expect the same in return.
Garth I have enjoyed reading your views on the markets and real estate; however, you comments about the trucker and Canadian standing up for freedom after 2 years of government control people are done.
People have a right protest and you must be funded by the CBC and Trudeau.
Freedom not free. Fight war and then speak.
Garth,
I regret the total BS you have taken from the “Trumpers” and this BS “HonkFest”. I, myself am triple vaxxed and I got Covid. I was sick for two days. I got vaxxed because a great friend of mine 100x healthier than me (antivaxxer) got Covid and passed… My message, waken the f up aholes!. Get vaxxed. Its your duty to do so!
And, if you want to get rich, Buy oil and gas stocks on this side of the border.
91% of truckers vaxxed. US requires. So lame. Idiots, 8% of food comming across the border. You make it sound like 100%. We are not ging to starve. iPhones, 4K TVs, oh F ya, keep them coming with vaxxed truckers.
This protest is so lame, and now its racists. Enough. Eff off.
The Canadian right (which used to include me until it went completely nuts) used to hate the Charter. In 2004 the Liberals were wearing badges that said “It’s the Charter, stupid!” Conservatives spoofed the badge with one of their own: “It’s the stupid Charter.” . They were handed out at riding association meetings. A deep mistrust of the Charter, and a desire to stem the tide of judicial activism that had resulted from it, was one of the unifying forces that brought conservatives back together under a single banner.
I still don’t like the Charter or what it’s done to this country. We got along just fine without it for 115 years before Trudeau senior upended the careful balance between the common law and Parliament with that foul document. Now the right wing anti-vax “muh freedoms” gang is howling about charter rights? If anything, this demonstrates the damage the charter had done. It has created a mindset that rights are absolute; that they can exist in a vacuum without responsibility, and without regard to anyone else’s well being. That idiotic and destructive belief used to be the exclusive folly of the left. Pierre must be smiling in his grave tonight. Right wing libertarian zealots have turned into Charter lovers.
I think some people need to realize that you are giving the masses free food for thought and they are not being held at gunpoint to read this blog.
You are the only Canadian that hold relevance to me in a shitshow market that mostly American and sponsored advice.
Thanks Garth.
Garth, I respect your courage to publicly and clearly express your insights and views on the divisive issues arising from Covid-stress. You do a masterful job expressing the issues and attempting to clear the confusion.
Unfortunately, many cannot hear [or read properly].
Thank you for keeping the perspective clear for most of us.
The posting in the comment sections these past few days… no surprising that it’s the anti-vaxers who are the mean and threatening ones.
Why because they motivated by feeling superior and expanding their power, and so the only things that matter when helping others are receiving adulation, fame, influence, opportunities, and notoriety.
I’d really like them to work on a covid-postive unit, just one day… seeing what nurses are doing, at times unable to go home, having to stay in hotels because are afraid to infect there families. Who pays for that hotel stay, not the tax payer.
The only thing that is really important to these anti-vaxers is their mouth flapping.
Tiff Macklem should be fired!
https://www.reddit.com/r/halifax/comments/siba4a/460k_for_this_the_market_is_even_worse_than_i/