Politics

Sales Tax On The Table For Aberta

The problem with a consumption tax is that it discourages spending and it’s distasteful to an electorate which prides itself by being sales tax free .  Implementing a sales tax now would be done amidst a climate of mismanagement operated by the PC government over the past ten years.  Pay raises to the provincial public sector have significantly outpaced private sector pay.  An entitlement culture has permeated the halls of Edmonton’s legislature and the old boys’ club downtown Calgary is starting to feel the pinch with the oil price falling off a cliff.

At one point our old Premier Stelmach attempted to make a course adjustment with his new “royalty framework” which ultimately had the goal of capturing more of the resource revenue for the benefit of the province’s purse.   We know what happened to him and we know what he’s thinking now in the context of the red ink starting to flow from the pens of government accountants and big talk of a new sales tax.

New revenue generating ideas concocted by the Prentice government will all be perpetrated from a position of weakness generated by years of “living for today” and cowering to the demands of public sector unions and oil executives.  Is he now asking for a “mandate” or will he step up and lead the province with some acknowledgment that it’s not the average tax paying Albertan who has created the revenue mess – it’s the policies and mismanagement drummed up by his party.

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Orderly Exit of Target From Canada

Good riddance.  The contemptuous posture taken by management upon entering Canada was truly remarkable.  Imagine – we’ll bribe you with a five per cent discount if you fork over your banking information!  Ultimately compromising the data without implementing sufficient security measures was the last straw.  Canadians stood up to the idiocy.  Proud of ya!

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Not Such a Quiet Ski Day

What started out as a lone trip up to Nakiska for skiing took an interesting turn mid day.  You see – I met this skier – let’s call her Jo.  I have never met someone as passionate for the sport.  Although now well into middle age, she’s discovered skiing by moving through what she thought was a hurdle of not knowing anybody with whom to ski.  She started talking to people around the sport and agreed to head up with an acquaintance.  One new friend led to another and soon she found herself in the company of advanced skiers looking to take her to the double diamonds.

On this day, she was determined to practice some drills solo with the purpose of keeping up with her new ski network.  I was delighted to have her shimmy up by my side at the lift station for the ride to the top of Nakiska Gold at which time I exclaimed “it’s a hard life”.  With her giggle, I became suspect that we may just share some adventure tales, and perhaps the late sun softened snow together.

Jo works two jobs but still projects around 80 ski days this season.  We pondered the fate of those facing the drudgery of work or the boredom of channel surfing when we were breathing the fresh mountain air and peeling off a sporty fifteen run day.  Her willingness to learn select advanced level tips was practiced in tandem as we carved symmetrically together down the slope.  She glowed at my suggestion that she was on the precipice of expert form at which time we targeted weight transfer and angle of attack.  Having apparently corroborated her friend’s notion that the deliverance of more mindful aggression would translate into spontaneous turning opportunities on the steeper pitch, her excitement for possibility shone bright.

After last run, Jo and I headed in for some left over lunch and après ski beverages.  We were literally the last guests to leave the lodge on this memorable day.

In the instance of one early afternoon lift ride to the top of Nakiska Mountain Resort in early January 2015, my easy going quest for some solo outdoor exercise turned into an exhilarating ski experience in which the finesse of the sport was revisited and my passion for winter fun was rekindled in good time for a promising upcoming season.

Book Reviews

Book Review Death of Money

Jim Rickards believes that the monetary system is in peril and consequently there is a plan in place to deal with the eventuality of the current reserve currency (U.S. dollar) to debase greatly.  According to Jim in his book The Death of Money, he suggests the writing was on the wall not when the balance sheet of the federal reserve and U.S. government exploded with the issuance of U.S treasuries via QE 1 back in 2009 but in 2005 when the production of derivative products such as mortgage backed securities accelerated swiftly.  In the eyes of the U.S. administration after consultation with Wall Street, the alternative to the government bail outs of 2008 / 2009 of Freddie Mac, Fannie Mae, GM, AIG, Bank of America, Citigroup etc was a run on banks and an economic apocalypse.  So – what has changed?  Jim believes an aura of acknowledgment is now pervasive amongst financial elites and that an orderly procession is underway to restore the gold standard through a unit called the “SDR” (Special Drawing Right).  I surmise from Rickard’s writing that a nation’s currency would be correlated to the SDR based on balance sheets, circulation and gold reserves.

It is suggested that governments have great staying power in coping with financial stress given counterparty interests which has prevented the cataclysm to date.  China has been a large net purchaser of treasuries emanating from the quantitative easing programs and apparently requires time to acquire more gold to position itself powerfully in the context of the SDR formula.  Mr. Rickards throws out the figure of gold at $9,000 per ounce as a possibility at the time of gold standard reinstatement and SDR conversion.  He naturally suggests that you allocate a portion of your portfolio in gold, namely 20 per cent. He recommends this modest percentage in the context of his theory given his belief that the gold market is manipulated and investors are at the whim of a price suppression scheme.

For the open minded – I recommend the book.

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Talk of a Twenty-Five Dollar Checked Bag

I always check a bag and my carry-on bag is so small that it goes under the seat in front of me.  Just couldn’t imagine getting involved in a squabble over overhead bin space while boarding a plane.  My jacket will fall nicely over someone else’s checked bag in the bin.  My travel habits won’t change over twenty-five smackers.  Do I begrudge the airline a profit?  Well, No. I actually like them having a sufficient budget for airplane repairs when needed. .   I recall seeing an episode of “Mayday” whereby a plane went down because the airline was too cash strapped to conduct repairs without cutting corners.    That money comes from money charged to passengers because that’s where their revenue is derived.  It comes from the service they provide you, the passenger.  In capitalist North America, we have the opportunity to vote with our feet.  Don’t fly.  Find a new airline.  Boycott for a period.  Voice  your displeasure in a manner which detrimentally affects their bookings.  Take a bus.  Hitchhike.  Beg for a ride on kijiji.  You get the picture.  Your world won’t crumble over $25.  In fact, reallocate the wasted funds from the duty free shop and you’re back on par. Enjoy the excitement at the carousel upon arrival.  Maybe find a new love by feigning the retrieval of some lovely ladies luggage as it drops from the chute.