Vancouver Secrets

Be Careful Of What You Wish For

IF Obama wins today, we’ll quickly start to feel the “change” in Canada. The move to socialism in the US will have an impact that most left wingers couldn’t imagine due to their “Hate Bush Syndrome”.

Here’s how it will play out:

By being a capitalist driving force worldwide, the US has driven the economies of the world. A move to socialism will alter the world’s economy dramatically.

1) With a US government totally under control of the new breed of Democrats (the Moveon.org Liberals) the problems of the past month will compound. They will raise taxes and will increase social spending. With no check on them, the left will be able to pass all the programs the current congress were veto’d on. I was hoping Americans would have discussed how miserable the current congress and senate really are. The subject managed to stay hidden through the campaign. Nancy and Harry - nice.

2) The US economy will slow even more due to increased entitlements (paid through hidden payroll taxes). Not that Obama will be sending every poor American (less than $250K income) a check - although a lot of America believes this - the costs of his promised social programs is astronomical. Government spending on this scale usually improves the economy when it’s targeted to programs businesses take part in. But when the money is spent on entitlements, the impact is blunted dramatically. As much as they hate companies like Haliburton, the company sure impacts a lot of lives.

3) Business will be taxed more - this will mean either raising prices - impossible due to recession - or cutting costs. We all know which costs are easiest to lower. Less employment means less spending. Less spending means less imported goods… on and on.

4) Business investment will decline - due to higher taxes on capital gains and profits. This impacts all business globally.

5) A move to domestic social spending means America will have a lot less to spend internationally. Disaster relief and military spending are certain to be cut. This money flows to almost every country in some fashion.

So why would this matter to Canadians and the rest of the world that seems to desperately want Obama?

We’ll sell less to the US. Less wood, less oil, manufactured products, toys, services… less of pretty much everything.

Meaning less opportunity, less profits and income to tax.

So for all you Obama cheerleaders - remember the change you hoped for isn’t going to be quite as you imagined it. You may be re-electing the worst Congress and Senate ever (recent approval ratings of single digits), and electing the most inexperienced and left-learning president in history.

For those with conservative values - it will be time to hunker down. Get liquid and be ready to weather the storm. If McCain loses - it will be 4 long years of a social experiment that could likely decimate world economies. Patience will be needed - it’s all we’ll have to combat the lunacy.

I have faith that America’s entrepreneurial drive will win out in the end. I also have faith that Obama won’t actually come through on his promises… at least I can hope.

photo credit: genetew

Someone Needs To Bring Him Up To Speed

photo credit: vieux bandit

French President Nicolas Sarkozy this weekend:

“Frankly, if someone would like to tell me that the world today needs an additional division, we do not have the same reading of the world,” Sarkozy said Friday in Quebec City.

We normally don’t care what foreign leaders say about our internal affairs, but this is different, because it comes from France. France’s view of Quebec has a mythical significance to separatists.

Except for one thing.

Quebec has used separation to ride through each recession the past 40 years - and have always succeeded doing so.

The reason the Bloc gained isn’t because they didn’t want Harper or the Liberals, or because of cuts to the arts… it’s because they can see what is coming up fast - a recession.

Quebec has rising unemployment, a slowing manufacturing base, and is one of the first provinces to feel a recession.

As a province that has always taken more than it’s fair share of transfer payments, the separation threat has always resulted in increased payments, contracts and public works projects - all funded by Canadians.

Sarkozy wasn’t informed of this strategy. Maybe now they’ll bring him up to speed.

Recession Tips

Or, How Are You Planning On Surviving This Recession.

photo credit: megananne

With a recession all but certain, you have two choices:

1) Hunker down, cut back and ride it out…

2) Ignore it and continue down a blissful path of running up your credit.

#2 sounds a lot more fun, less work, and if you’re listening to the Canadian media, all will be hunky-dory.

The reality is that with the market poised to go well below 10,000, the Canadian dollar is retreating, our commodities are falling fast, the price of oil is headed towards $50… it’s starting to sound like an exact repeat of the 80’s.

High interest rates are certain to be here next year, the price of a home will be significantly less than it is today, and stocks will be a bargain. Hell, if you want to get into business you’ll be sure to find a company you can buy for a song.

Cash is now king.

Those with cash can play along with Warren Buffett and buy up assets at incredibly low prices. Those that do will be incredible rewarded and - in good ‘ol Canadian fashion - be vilified (or at least frowned upon).

Canadian’s don’t like those that get rich by being smart. Just look at the what’s being blamed for the current mess. Wall Street, greed, sub-prime mortgage brokers…

The reality is that a socialist policy of making it the right of every American - whether they could afford it or not - to have a home lead to this collapse.

The market and the financial industry just did what was expected - they made money off of a “system” the Democrats handed them.

When house prices stoppped rising at a rate of 10%+ per year, the system failed.

This is because people who never had the income to pay for the home that was given to them through the Equal Housing Opportunity laws suddenly couldn’t get a home equity line of credit to cover the spread.

Then it became the game of musical chairs. Pass the mortgage around and the last one left holding the bag wins.

Unfortunately, the Canadian financial system played in this game too. We’re only starting to hear the news - wait till after the election for the rest of the story.

So, it’s official - we’ve maxed out our credit… now our bills are due.

If you want to get through the next few years without serious pain, now’s the time to:

1) Put away your credit cards.

2) Avoid loans or relying on your home equity.

3) Save.

The bright side of the above is that you will lessen your carbon footprint - and get those pesky environmentalists off your back - and you’ll seep better at night.

How are you planning on surviving the recession?

813 Points On the Good News

photo credit: lantzilla

The TSX dropped 814 points today on the good news that the US had passed a bill to bail out the financial markets.

Makes you wonder what the market knows that we don’t.

Canadian stocks fell the most in almost eight years, led by a record drop in raw-material shares, as tighter credit, rising unemployment and lower home prices threatened to tip the U.S. into a recession.

“Commodities are getting pummeled,” said Martin Anstee, a fund manager at Stone Asset Management in Toronto, which oversees about $800 million. “People are forecasting a wall of recession, which means lower commodity prices. We had a good run on higher commodities — now we’re taking it in the neck.”

Look like we’re in for a ride… the bright side is that Kraft Dinner might come down to be affordable again.

Wrecking-ball Harper

photo credit: mrhappy

The Canadian Press now rivals AP as far as yellow journalism.

So bad they didn’t include the writer’s name.

Here’s a heading of one of their articles:

Wrecking-ball Harper accuses Liberals of being anti-Alberta, pro-recession

Plus you have to love the first paragraph:

Prime Minister Stephen Harper accused the opposition Liberals of cheering for a recession and of attacking Alberta in one of his most incendiary broadsides yet of the election campaign.

You can read the whole thing here.

I wonder who they are cheering for…