It looks like our neighbours south of the border will get something “special” this holiday season; like an interest rate hike. After almost nine years the U.S Federal Reserve rate is about to be increased.  Chairwoman, Janet Yellen, has been itching to raise rates for a while now, and the latest economic data from the U.S. gives her an opportunity scratch that itch. A rate hike is a signal to Americans, and the global economy, that worst is behind them, and the need for government to stimulate the economy is in the rear view mirror.

Or is it? The U.S. November job report indicated that over 200k jobs were added to the work force, their dollar is soaring, the unemployment rate has been cut almost in half to where it stood in 2008, so what’s not to be giddy about? Well, there is data to support that consumer spending, housing starts, and job creation have flattened. So the question is what happens if their economy has flattened, while at the same time the overnight lending rate is going up? Some pundits are actually suggesting that raising the rates now gives the Fed some wiggle room if they have to lower rate, yet again, to stimulate the economy. It’s not as if this hasn’t happened before.  Like back in 1930′s, a rate hike, followed by a quick rate drop, all the while knee deep in the Great Depression. Yeah – that little historical nuisance.

So what does the Fed’s move to increase rates mean for us here in Canada? For the time being, not much. We normally walk in lockstep with the U.S. Fed, but we’re about to decouple from that standard practice, and continue on the path we are on today. The reality is that our economy is still too fragile to mimic the Fed’s move. The oil sector in this country has been hammered, and the fallout has been far reaching. Some are suggesting (more…)

We clearly don’t care – and yet we should. Not only should we care but we should be very concerned about the direction and mandate we gave our governments. Ontario’s Auditor General, Bonnie Lysyk, just delivered a scathing report on the Ontario Liberal parties attempt to better the environment, and more to the point, manage electrical power in the province of Ontario; as well as their handling of all government agencies. The Auditor General took the Ontario Liberal government to the verbal woodshed, and gave them a spanking that was rightly deserved. There was no sugar-coating the truth or leaving room for spin.

Most of us are accustomed to hearing about government waste. Regrettably, government waste has become like death and taxes. Fight it all you want, rile against it, but you’ll always finish in second. But when an audit is released, which rivals that of FIFA’s (international governing body of football), all of us should be very worried about finishing second. Here’s an excerpt from today’s National Post:

“By ignoring their own energy planning legislation, the Liberal government has cost consumers billions on their hydro bills. The average electricity bill rose 70% between 2006 and 2014, at least in part because the government ignored its own expert advice, the report notes. That has already cost consumers $37 billion in payments to power generators under what the government calls Global Adjustment.  By 2032 they will pay another $133 billion or $170 billion over 26 years”. 

It’s almost impossible to square those numbers, and to rationalize it because it’s so outlandish.  To make matters worse, when your own experts have been telling you not to do this and that your plan is horribly flawed, but you chose to ignore the council for ideological reasons, it is the highest form of tax payer contempt. (more…)

On October 19th, Canadians will choose who will lead this this country going forward. Assuming there’s a majority, a rather large assumption given current polls, Canadians will have to live with their decision for four years. Irrespective of the choice Canadians make the world will not come to an end the day after the election. The leaders of the three major parties would try to have believe otherwise, but the truth is there is very little truth in politics, and even less so during a campaign.

I was eligible to vote for the first time in 1978, and since then I have never missed the right to exercise my franchise. I never understand when people say, “What’s the point of voting, it’s not going to make any difference”. To me the point is that we have the right to vote, and that never should be taken for granted. To illustrate how precious the right is; take a moment to take stock of the oppression and brutal disregard for basic human rights around the world today. In parts of the world the oppressors will allow access to Facebook, but allowing an election which will determine who the leader of their country will be?  Well, that’s just a notion too far. Technological advancement is a by-product of society’s enlightenment, and nothing contributes to that more than the simple act of marking an X on a ballot. 

I do understand why voter cynicism and apathy exists. We all know, or least came to expect that politicians are less than truthful. They will say whatever is necessary to get a vote. Therefore, many voters to decide who to vote for based on whom they dislike the least. I must confess, (more…)

This is the time of year when people start to think about vacations, children going to camp, enjoying a beverage on a patio, late evening strolls and a bunch of other activities that one associates with summer. It’s a great time to shut out the real world, for a little while at least, but the noise level may be so high it may be difficult to do so. It’s so much easier to suspend reality when it’s someone else’s reality. It’s hard to point fingers when you have your own troublesome issues to deal with.

Firstly, there’s a country in Europe that’s in a deep mess, and we’ve become so accustomed to hearing about their “challenges” that we’ve learned to ignore Greece.  Well, Greece is back in the news, with all its drama, twists and turns. This time stakes are little higher. There’s a referendum this weekend in Greece, one which is ill timed and could be political suicide for the Greece’s reigning president, Alexis Tsipras. In nutshell, Greeks are going to vote on the most recent austerity package being offered by the European Union. The Greek president doesn’t think much of the terms that the Euro Zone is attaching to handout, so he wants his people to decide. And if Greeks vote yes, he’s promised to resign. If one doesn’t learn from history, then one is doomed to repeat it. History has taught many European leaders that upsetting German Chancellor, Angela Merkel, is detrimental to one’s political career. So to Greek president, Mr. Tsipras, we barely knew you. (more…)

I think we’ve all heard the term “To Big to Fail”. The term became fashionable at the onset of the sub-prime crisis in 2008. Some financial institutions were deemed too vital and important to the global economy, therefore, they would be provided with a safety net by governments. Other institutions which were deemed NOT to be “Too Big to Fail”, Darwin’s theory applied – it was survival of the fittest.  We could debate the fairness of the “Too Big to Fail” classification, but that will have to wait for a future post. Based on what has transpired over the last two weeks I really do believe there’s another subset of characterization for handful of organizations, like FIFA.

FIFIA has been in the news for last few weeks, and even non-soccer fans can’t help but be drawn to all the stories off corruption, bribery, kickbacks and basic flaunting of international law. To be fair, FIFA, the world’s governing soccer authority, is not alone. My definition of “Too Big To Care” is fairly simple; “no action is so abhorrent that it will impact us financially”. What other entity fits that category? How about the NFL? Before you suggest that I should take a saliva test, here’s the simple truth. The NFL – National Felons League is not impacted financially even though it employs murderers, drug dealers, drug addicts, wife beaters and child beaters. The NFL has demonstrated that it is bullet proof, apologies for the poor choice of words. Rocked by scandal? Not a sponsor lost or decline in viewership. This year’s Super Bowl set a viewing record. The NFL is a money making machine, and sponsors and fans are willing to set aside their moral outrage every Sunday, or when filling out their office pool. The NFL has got this down to a science. When scandal hits, they pretend they care, for a couple of weeks, and then it all goes away. (more…)