The Fall Economic Statement or Economic Blueprint for Economic Disaster

As I reviewed this budget update, I wondered what the last government was reporting when facing rising inflation. One has to go back to the very early 70s to see that early on, the budgets and updates being delivered by the federal government, led by none other than Justin’s father, Pierre Eliot Trudeau.

Here is a snippet of the budget

Inflation is a global problem. Canada’s experience was less favourable in 1972 than in 1971, with a sharp rise in food costs mainly responsible for the acceleration in consumer prices. * The government’s approach to the problem of inflation is to try to increase the supply of goods and services, increase personal disposable income, relieve pressures on those who are hurt, restrict the government’s demands upon the economy and above all, encourage self-restraint by all groups in their demands for higher income.

Even though some predicted an economic downturn and rising inflation rates, the seated government seemed to proceed in the same manner we are almost seeing today. With rose-coloured glasses on, what was about to happen was not even on their radar or a concern to the extent it needed to be, as they, too, seemed to feel all would sort itself out. They speak to all the usual go-to points, lower spending, strengthen this and tighten that, but in the next ten years, we saw an inflation rate of about 2.7% to over 12%, which put the country in a crippling recession. So now we find ourselves again reaping the results of a decade of stimulatory monetary and fiscal policy. Quantitative easing, where the central bank injects money into the economy, aka printing money, and low-interest rates in the wake of this, combined with the deficit surge of the COVID pandemic, have tilled the soil for record highs in inflation.

Of course, the concern now is that we’ve set things in motion for a repeat and the 1970s-style stagflation, slowing economic growth, raising unemployment and raising inflation. There are some similarities between the 1970s and today. The similarities are scarily similar as we have gradually rising inflation, resulting from unchecked spending with looser monetary policies due to the hundreds of billions earmarked for COVID relief that almost half was not even used for what it was intended for. Like in the 70s, we see an oil price shock. We will no doubt see a higher rate of labour costs through increased expectations of inflation-fueled wage increases. This all peaked and was only halted with interest rates as high as 22%, which considering the profile of most mortgages out there, and the decline in house prices, honestly smells foul. It took over ten years for things to settle, and you think we would learn something from our past mistakes? So far, the modest increases to the lending rates have done little to slow the upward trend of the inflation rate, which makes me wonder if we will see much higher growth come this December. Many are now sighting the similarities of the 70s that led to the recession of the 80s, but one thing they did have in their favour then that we will not have now is the shrinking population. As mentioned several times in articles I have written, the baby boomer effect is about to take place, and the timing could not be worse. With this administration’s reckless spending, we are dealing with a pandemic that turned out questionable. Yet, it shut down economies worldwide to trillions of dollars handed out as relief payments; we will head into a recession with fewer people paying into the tax coffers, as 33% of the workforce will leave. It’s like we charted a course through the perfect storm, with the declining world population, a layer of baby boomers retiring, and a massive federal debt will have consequences on a scale never experienced before. Many seem to be denied, and Freeland and Trudeau have blinders on them.

With that, let’s now discuss my review of the budget update. It didn’t take reading past the first paragraph of Freeland’s mini-budget to see a complete and utter lie. A mistruth, disinformation, Biden-level, utter stupidity. Freeland, like that warm bowl of oatmeal in the US we call Joe Biden, now blames Russia for all our problems. Well, little lady, we are not as innumerate as she may think. Diagram #2 shows that the inflation rate was way out of control long before Russia invaded Ukraine. Additionally, diagram #1 illustrates our national debt. Thanks to Trudeau’s reckless spending, printing money, and a complete cluster @#!$@# of the Pandemic, our national debt has become a generational financial burden.

On page 14 of the Mini Budget, Freeland writes the following. “In Canada, the transition to a net-zero economy will require significant investment from governments and the private sector. Investments will also be needed to limit strategic vulnerabilities in supply chains. Smart investments in critical minerals, energy, agriculture, and electric vehicles are needed to help make Canada a leader in the clean and digital technologies the world counts on.” Electric vehicles result in a complete collapse of our already failing power grid.
Additionally, electric cars do nothing to reduce carbon emissions; they move the issue further up the line. I will provide links below for more information about the power grid and electric vehicles. Also provided is a link about climate change which you should read.

On page 14 of the Mini Budget, Freeland writes the following. “In Canada, the transition to a net-zero economy will require significant investment from governments and the private sector. Investments will also be needed to limit strategic vulnerabilities in supply chains. Smart investments in critical minerals, energy, agriculture, and electric vehicles are needed to help make Canada a leader in the clean and digital technologies the world counts on.” Electric vehicles result in a complete collapse of our already failing power grid.
Additionally, electric cars do nothing to reduce carbon emissions; they move the issue further up the line. I will provide links below for more information about the power grid and electric vehicles. Also provided is a link about climate change which you should read.

MORE FREELAND MISINFORMATION

Freeland also includes this chart showing the rise of natural disasters. Now, if this is not a play on numbers, I do not know what is. She will have to get up much earlier to pull one over me. Let’s put some context and qualitative framing around this little chart. Over the past hundred years, annual climate-related deaths have declined by more than 96%. In the 1920s, the death count from climate-related disasters was 485,000 annually. In the last decade, 2010-2019, the average was 18,362 dead per year or 96.2% lower. We are not experiencing more natural disasters; we report more of them. We’re often just being told of one tragedy after another – telling us how many events are happening. The number of “reported” events is increasing, but that is mainly due to better reporting, lower thresholds, and better accessibility to the information (the CNN effect).

We need to look at the number of deaths per year, which is much more complex than the “number salad.”  We are not well-informed when the media doesn’t provide an overview of the data but instead inundates us with narratives and opinions of one catastrophic story after another without context.

A massive oversight buried deep in the budget is infrastructure, on page 35. This budget item should be something front and center. The specific thing we need to come to grips with is our power grid or lack of it. If we are to increase the number of electric cars, currently at about 5% of new car sales, to 50% of all recent car sales in 2030, our power grid will need massive upgrades and new power sources. The number fudgery that has been happening with electric cars with their required demand for electricity has been grossly understated. Freeland’s budget does not even speak to heart-pounding costs needed for upgrades that will take decades to complete and hundreds of billions of dollars. The 33.5 billion dollars may sound substantial, but this amount is not even close to the money needed to perform the necessary upgrades. No doubt, expect the carbon tax to skyrocket.

In part four of this mini-budget review, I will share with you a few topics I felt were missing and considering the gravity and impact these topics missed will have on our economy, I suggest these were not cut; they are purposefully ignored to avoid having to include them in their economic predictions.

POPULATION COLLAPSE

There is no mention of world population collapse. Falling fertility is already a problem worldwide; some have recently seen fertility rates fall to 1.84, whereas anything under 2.1 is far from ideal. Soon, many counties, as many as 151, expect fertility rates to drop to 1.32, producing enough babies to sustain their populations.  Under-fives will fall from 681 million in 2017 to 401 million in 2100. The number of over 80-year-olds will soar from 141 million in 2017 to 866 million in 2100. Jordan Peterson and Elon Musk predicted this over ten years ago and predicted we would not peak at the 9 billion as many have predicted.

We are running out of young people, whereby 51% are still childless at 30. They seem to be proud of it as they feel the world is better off due to overpopulation as they believe we have too many people, and it is by far the most genocidal thought that does not have a shred of science or truth.

This budget hinges on growing populations that will not come. Furthermore, we have a large percentage of people that are now leaving the workforce and, in time, will pass on. These numbers account for about 33% of the population and will significantly impact the government’s financial coffers due to reduced taxes collected. I have been trying to gain traction on these topics with my local MP, but that has been like pushing on a rope.

LIVING WAGE – A.I. REPLACING JOBS

There is also no mention of how the workforce will change to a degree never seen before. With the push for what they call “The Living Wage” in business to almost force companies to pay this living wage, companies like McDonald’s and any company that employs people with lower-wage workers are being replaced with automation in the form of AI and self-serve devices. Look at Mcdonald’s, the larger grocery stores that have replaced checkout cashiers with self-checkout. We now have self-ordering kiosks and apps, which is just the tip of the iceberg that, according to several reports, job losses will not be spread evenly across income– lower-wage, low-skilled workers are most at risk of losing work due to automation. These new “machines” are less error-prone, never get tired, never protest or strike and can work 24/7. Humans cannot compete in the millions of jobs about to be removed from the job pool. The economic impact this will soon have on the economy is wholly ignored. I find this due to this government’s ignorance and spending far too much time on the narratives and agendas of their choice.

COVID RESPONSE – SPENDING LIKE A DRUNK SAILOR

Thanks to Justin Trudeau, we witnessed the most wasted spending in the form of the Canada Emergency Relief Benefit known as (CERB) and the Canada Emergency Student Benefit known, along with one-time payments such as the Old Age Security, the Guaranteed Income Supplement, and the Canada Child Benefits being other “potential” suspects.

A study reported that up to $11.8 billion could have been wasted on youth aged 15 to 24 who live at home with their parents who earned over $100,000 yet qualified for the CERB.

In almost every case, the benefits provided to nearly one million young people translated to CERB exceeding their monthly earnings in 2019. There were several other wasted expenditures:

  • Spouses eligible for CERB: $7.0 billion for an estimated 581,000 spouses eligible for CERB who earned between $5,000 and $23,999 in 2019 and are living in families with at least $100,000 in household income.
  • Canadian Emergency Student Benefit (CESB): $1.6 billion for an estimated 324,900 students aged 18 to 24 eligible for CESB while living with their parents in households with at least $100,000 income.
  • One-time payment to seniors: $1.4 billion was sent to seniors not eligible for the Guaranteed Income Supplement, a program specifically targeted to low-income seniors.
  • One-time top-up to the Canada Child Benefit: $503.5 million, or one-in-four dollars of the CCB top-up, is estimated to have gone to families with household incomes of at least $100,000 in 2019.

CARBON INITIATIVES WILL DESTROY CANADA

Another issue I have with this budget is the carbon mandates and taxes. These are unrealistic and are nothing more than theatre since the reality of it is, scientifically speaking, even if every single person on earth became carbon neutral, it would result in having no impact on climate change. Climate change has been happening for billions of years, and humans do not affect this natural occurrence. The total amount of carbon that makes up our atmosphere is .04%; of that, only 3% is contributed by humans. The only thing that could change the course of climate change would need to be something cataclysmic, like a meteor strikes the size of a city block or a massive volcanic eruption.

It is already happening in the United States that has been a direct result of the attack against fossil fuels and failed financial strategies to recover from COVID, all being blamed on Russia. Soon, like millions of Americans, we will see millions of Canadians who will have to decide if they go hungry or cold. With unrealistic green mandates based on highly flawed pseudo-science, we have placed a knee on the neck of our economy and cut off our means to remain energy self-sufficient.

The fact is that green initiatives are a billion-dollar business to which many politicians have attached their political agendas. It is time science replaces fearmongering and climate theatre before destroying our children’s lives and future. 

But let’s talk about some fundamental issues with Trudeau’s lack of financial prowess. There is no getting around it, the world is changing, and these are times never seen before, ever! Unless we have some knowledgeable, strong leaders, we will be left behind and at the whim of things and events that will transpire.  Sometimes, the worst thing one can do is follow the playbook, stay the course and hope it’s all transitory. This is simply following the herd off a cliff, but sometimes, not following the pack is not a popular decision at first, but in the end, it will usually prove to be the best scenario. I am not saying the job of an elected official is easy, but it’s not meant to be. For these coming times, more than ever, we need nothing less than a political warrior who will have the fortitude to get us through these next few years. One is willing to forgo ribbon-cutting ceremonies for the less glamorous but much-needed work that needs to be done. One who will keep this region prospering and safeguard its sovereignty with the intellect that would make Elon Musk proud.

For me, there seem to be the “go-to” issues that may resonate with many, those usual pillars used for platforms that are preached repeatedly. I feel old playbooks should be tossed out since what we will be facing in these next few years has never been seen before, with China’s economy about to crater on a financial Richter scale that will send shockwaves deep into the west.

The US banks are now lending money for homes requiring no down payment whatsoever, which, coupled with the trillions they are currently in debt, plus the trillion they just handed out for education debt forgiveness, which was not received well at all, has further compounded their debt. What is happening in the United States echoes what is happening here in Canada with Trudeau’s expenditures and the printing of money and the spending of 80 billion a year on climate initiatives that will undoubtedly result in not moving the needle one iota concerning carbon emissions.

Western society is in peril, but many seem unaware, and the media seem to have rose-coloured glasses on and keep with the approved narrative, saying this is all transitory. One of Trudeau’s sales pitches or elevator speeches is the GDP; something others have been grasping onto like a life preserver as Canada’s financial situation begins to list. The Liberals are shoving money out the door at a rapid pace. This, combined with severe declines in investment that took place even before the COVID crisis, has led the Bank of Canada to print immense amounts of money. The budget starts off boasting about GDP. But don’t be fooled; we are headed for that massive iceberg unless we stop this hyper-infatuation with the GDP and focus on the country’s overall wealth.

The Bank of Canada continues to try to shore up Canada’s economy, which has become more complex as the Liberals increase spending, restrict growth, and push investment out of the country. Canada also has the problem of being a nation that doesn’t build anything real. More and more of our economy amounts to nothing more than shifting money around on computers. Also, our recently absurdly inflated housing market is cratering in the wake of rising mortgage rates.

As a result, the Bank of Canada seems to believe it has few options other than to print more and more money, which brings its problems, the risk of inflation, a loss of trust in Canada’s currency, and severe economic decline. Canada’s economy is a house of cards, increasingly being exposed with the recent interest rate hike and some predicting 9% to 10% prime lending rates come this December. If this happens, it will further move us deeper into a recession and on the cusp of a full-out depression. Before COVID and the spending spree, we had measures and safeguards in place to shield us from such an event, but those safeguards are no longer present, and our safety nets are gone; we are now on a rope without any safety nets at all.

The gravity of this situation must be understood. Canada is printing money at an unheard-of rate to the tune of billions of dollars to offset the financial impact of COVID. But now, printing money is referred to as something a little more financially sophisticated, called “Quantitative easing.” It is a description that removes the “hurt” by descriptively distancing itself from what it actually and indeed is, and that is, printing money. Whatever you want to call it, quantitative easing demands a quick and robust financial recovery; if not, our children and our children will be faced with holding a bag of double-digit interest rates and the thought of owning a home or even living on your own a pipe dream.

BABY BOOMERS

Another genuine issue that does not get much attention in the news is the baby boomer effect. I have modelled what this will look like over the next few decades, and it’s not good. Think of it: over 33% of the population is leaving the workforce and soon dying, leaving vacant retirement homes, LTC facilities, and millions of fewer taxpayers.

PRINTING MONEY

One of Trudeau’s sales pitches or elevator speeches is the GDP; something others have been grasping onto like a life preserver as Canada’s financial situation begins to list. The Liberals are shoving money out the door at a rapid pace. This, combined with severe declines in investment that took place even before the COVID crisis, has led the Bank of Canada to print immense amounts of money. The budget starts off boasting about GDP. But don’t be fooled; we are headed for that massive iceberg unless we stop this hyper-infatuation with the GDP and focus on the country’s overall wealth.

The Bank of Canada continues to try to shore up Canada’s economy, which has become more complex as the Liberals increase spending, restrict growth, and push investment out of the country. Canada also has the problem of being a nation that doesn’t build anything real. More and more of our economy amounts to nothing more than shifting money around on computers. Also, our absurdly inflated housing market – boosted largely by foreign elites buying up our country is a huge source of vulnerability.

As a result, the Bank of Canada seems to believe it has few options other than to print more and more money, which brings its problems, the risk of inflation, a loss of trust in Canada’s currency, and severe economic decline.

FINAL WORD

Canada’s economy is a house of cards, increasingly being exposed. The gravity of this situation must be understood that Canada is printing money at the unheard-of rate to the tune of billions of dollars to offset the financial impact of COVID. But now, printing money is referred to as something a little more financially sophisticated, called “quantitative easing.” It is a description that removes the “hurt” by descriptively distancing itself from what it actually and indeed is, and that is, printing money. Whatever you want to call it, quantitative easing demands a quick and robust financial recovery; if not, our children and our children will be faced with holding a bag of double-digit interest rates and the thought of owning a home or even living on your own a pipe dream.

In the 2022 Budget, Trudeau said: “Our real GDP is a full 1.2 percent above where it was before the pandemic. Just think about that: Our economy has not just recovered after a devastating recession—wave after wave after wave and lockdown after lockdown. It is booming” – This is undoubtedly the most stupid and flawed statement one could make about the financial situation we find ourselves in now. What he said would be like saying, “The fire is keeping us warm as it burns down your house. “

Worth pointing out that back in 2018, just months before COVID hit, one of Canada’s most crucial financial health measures was showing choppy waters were ahead. The Bank of Canada numbers showed that the M1+, a measure of the money supply, continued to slow. The decline in the M1 observed then was almost twice as large as the previous year. This decline was an ominous signal that things would worsen, and we’re indeed headed into leaner times. If this was a boxing match, 2018 was the right jab. COVID was the follow-through-Mike-Tyson-level left-hook that completely knocked us into next week with a broken face—now faced with a perfect storm, as that gloomy outlook in 2018 led right into 2019, which, as we all know, the economy took a complete crapper thanks to the lockdowns that put a stranglehold on businesses.

It seems much like back in the 70s, today we find the government blaming oil prices and Russia, and anything else they can point to but fail to realize monetary policies is to blame for the mess we find ourselves in. Much like before, leading up to the crash of the 80s, the economy was good, keeping the Liberals in power, and they remained in office and were booted out once things hit the fan. This sounds eerily familiar, as Justin Trudeau overstayed his welcome. Some feel the damage has been done, the economy is set, and nobody can unravel without a mandated recession.

Putting our faith, hopes and prayers into printing money and budgetary number fudgery is simply nothing more than financial responsibility avoidance.

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