Thursday, February 12, 2009

Canada tallies first trade deficit since 1976

"Statistics Canada reported Wednesday that merchandise imports exceeded exports by $458 million in December. "

Hmmm. I wonder if that Buy Canadian idea is looking any better right now?


  1. Buy Cdn
    Are we smarter than a 5th grader?

    Option a.

    Open bids for materials for BC low cost housing projects. BC raw logs milled in the US return to BC for construction.

    Option b.

    Buy Cdn. Only lumber milled in Canada creating a few hundred jobs at a large increase in costs due to the low number of Cdn suppliers currently operating.

    On first instance we create many more jobs in construction due to the lower cost of materials.
    On the second we drive up the costs artificially with restriction limiting the overall amount of construction.

    If you choose A your wrong, the current value of lumber is not economical for many producers anyway so the price would go up regardless, buy Cdn.

    Ok, it`s a trick question because I didn`t include current economic conditions on production costs. I did leave the hint `low number of suppliers currently operating` as current conditions, how did you do?.

  2. Trick questions aside, whereas we still have that billion or so that Emmerson and Harper gave away to work on, that one should be a given. But I'll bite.

    A. If the amount of lumber required isn't significant enough to encourage local production, then they can't be building very many low cost housing units.

    B. If local producers can't compete given the cost of transporting the logs to the US, then finished lumber back, and adding on the dollar difference, then maybe this was a bad example.

    C. People would notice Don Cherry's tie first anyway.

    I was just glancing at some articles on the Guardian UK site and noticed something typical. Two headlines, one about the Dutch MP Geert Wilders being denied entry to the UK and another about a 7.5 billion pound contract for a rail system being awarded to a Japanese firm over our Bombardier which is established in Britain.

    There were 45 comments on the contracting issue and 149 on the accused Islamophobe. There's a reason why they put the Enquirer by the checkout in the grocery store.

  3. You hit it, a bad example.

    Other factors include inventory of which there`s probably enough to cover at least $500M worth of construction so putting any sawmills back to work is thin at best. Adding the return trip of lumber to the one way raw log trip costs and the pricing levels would have to drive the price up, depending on current inventory which is probably adequate, so it really was a trick question with no real answer.

    There is a moral though, lets get building.

  4. Totally agree on Don Cherry's tie, Comrade. This is what scares me most about the direction our beloved country is going.

  5. Turn down the volume on your bullshit meters before you read this or the din will split the world apart.

    government has awarded a $329-5-million contract to CAE Inc.
    Harper says the announcement is proof there can be good economic news amid the current financial turmoil.

    How can deficit spending to prop up a failing economy by increasing government size of payroll be "good economic news"?

    Cut the bullshit sirs and madames. We know the swamp we`re in. We are stuck with the current economic plan to spend our way out and we all know that is impossible, so if you`re going to do it save the bs, get on with it. The rest of us will pray yall have a plan for long term stability after government outspends the current consumer debt which created this in the first place.

    So cut the crap and lets get building before this plan gets so far behind the curve it`ll flop before it starts.

  6. "The contract announced today, in support of Canada's new fleet of 17 C-130J Hercules tactical airlift aircraft, is the first contract under the OTSP. The C-130J program will create and sustain approximately 330 jobs for the first three years and 50 jobs for the next 20 years throughout Canada.

    "We are proud to lead the overall design and development of a Canadian training solution for the C-130J. This will play a key role in preparing our Canadian Forces to be mission ready," said Robert E. Brown, CAE's President and CEO.

    The quote above is from the TSX site, listed under News section for CAE Inc.

  7. Only the government could spend $330M to sustain 330 short term temporary jobs and call it good economic news.

    The much touted coming soon or 2010 recovery we hear about will only be a technical recovery. The GDP and employment numbers will get a bump as the money flows but alas it is like the 330 jobs, temporary and short term.

  8. The "mission ready" part was what got my attention.

    There's no life like it.

  9. "mission ready"

    Leading to the solution to this global depression, war.
    Yes I can see how that ties into `good economic news`.

    don`t blame me I never voted

  10. Why $800B will only create a technical recovery and why we should be "mission ready".

    Obama touted his recovery plan as a job creator for Caterpillar. There are yards full of heavy equipment sitting idle across the country and now Caterpillar has verified there will be few jobs created. Obama desperately needs a commerce secretary before one of then says the stimulus, by create more paved roads will boost jobs in the auto sector.

    I think if this box of bandaids is the best the dems have the whole world is screwed meanwhile the G-7 is still talking Buy American as protectionist, as the last of the bandaids are disappearing off the shelf.

    And just off the top of my head. Obama really needs to cut out the partisan bs. Accusing the Republicans of partisanship by not endorsing the `it`ll do till we figure out what to do` plan is over the top. The bill was pure partisanship right from the start, it is chock block full of items conservatives would never vote for.
    It would be a good time for Obama to consider if pushing this politically motivated partisan plan further to box in the Republicans as the partisan ones is wise. Either the global markets see no `recovery` in the recovery plan or they are all Republicans too.

  11. Behind the curve demonstrated.

    Back in early 2008 the Liberals knew the economy would tank, even Mr. Garth commented time is on the Liberals side as the worse it gets the better election chances they would have. Thinking the economy would hang together they had the notion they could use the environment to push the C`s out of power. Even during the election campaign when it was obvious Cdns were worried about economic conditions they continued to push the GreenSt. Behind the curve all the way. The fall economic statement ignored the economy in favor of flaming partisan issues. Way behind the curve. Move up to the US $800B stimulus, partisan all the way, way behind the curve.

    Basically they all viewed the current and forward looking economic situation as less important than creating a partisan political plan. After removing the partisan politics from the global plans I wonder what the real plan is and am I the only curious one?

  12. It's a bit amusing that the voices for the markets called for more Tonka trucks while at the same time posturing as conservative stalwarts. Then after the initial petulance basically went back to treading water and probably working diligent behind the scenes to acquire their "fair share"

    He pulled out a plum.. Don't be distracted by their shrill shrieking, they are just doing what they always do and are pissed because their snouts have been given a tiny rap.

    I also have a suspicion that besides the reality of who won that election and who is getting the blame for the mess, that being Bushco, the American people could care less about partisanship angling right now. Obama is not an idiot and I'm sure he realizes that the ladies bill that has you up in arms isn't going to matter a tinkers damn unless he does something effective about the economy.

    I read an article recently that referred to Bush as the disgraced president. I also read that military enlistment is way up and has been for over a year now.

    Who needs a draft when a good economic disaster will do?

    Besides all that, just because Bush supported pro life agenda and shut down growth on the liberation issues, didn't make him a good Pres. That may have been the only thing he actually had a direct influence on anyway. Who could ever believe that he actually ran the country and determined it's policies? During the last weeks of his tenure he was shunned at gatherings of international leaders as well. The only support he had was from the Haliburton backed Iraqis and that situation could be described as tenuous at best. Once the Americans have effectively withdrawn, what's to stop an Ayatollah Khomeni deal going down there? The Dems run with keeping the social agenda high on it's priorities and the Repubs fly with the Reagan deficit building trickle down into the pockets of Corporations economic program. Take your pick.

    In Canada it is now obvious that Ignatieff has no strategies other than not putting his foot in his mouth if he can, sucking up to traditional funding sources and being Grand Lady in waiting. That's been obvious for a while.

    The last election is a bigger curiosity to some extent, as it defies logic that the great masters of political strategy would try to win an election based on a tax. Maybe they convinced a naive Dion that was the way to go, but even an amateur analyst like me could see where that would go. I think it was the Igg forces angling to get him out and then institute the grand plan of waiting for the coronation.

    The economy be damned.

  13. "During the last weeks of his tenure he was shunned at gatherings of international leaders as well.'
    "The Dems run with keeping the social agenda high on it's priorities and the Repubs fly with the Reagan deficit building trickle down"
    Lets be clear, trickle down failed because all governments since Reagan, including Clinton, have been promoting deregulation. It was not the economic plan but the administration of including the latest market trend, derivatives, all failed from lack of oversight removed over decades. The strategy to fight back against the economic attack of 9/11 was backed by the dems and the msm when they shouted shop and support your country. Further over the last 2 years the dem controlled congress resisted attempts to reregulate.

    "it defies logic that the great masters of political strategy would try to win an election based on a tax."
    My point precisely is bringing `behind the curve` to everyones attention, political logic and planning is what they know best and are inclined to stick with it.

  14. "Further over the last 2 years the dem controlled congress resisted attempts to reregulate."

    I take it then that your view is this represents an alignment of the representatives of the Feudal Lords against the representatives of the Zionists? With the hedgers bouncing back and forth across the fence when able. ??? Or something close to that.

    But, if the Repubs were proponents of re regulation and understood the consequences of not doing it, why weren't they crying from the roof tops? Countrymen, lend me your ears!

    While on the subject of political stink bombs, even though McCain seemed to represent a reasonable alternative, and likely would have been the better candidate as opposed to Bush, how does a voting public swallow both the Repub record and Sarah Palin all in one gulp? What sort of message did choosing her send? McCain might as well have hung a sign on his back. "Old Fool".

    Biden's shortcomings were comically dismissed as someone who runs his mouth too much at times, but Palin was a political disaster.

  15. For my choice I Like Mike flat tax proposal and the repubs economic recovery strategy better than attempting to have government spending replace the trillions in evaporated consumer spending. Biden gives this `recovery plan a 30% chance of failure while I give it 70%.
    A pitbull with lipstick is still a pitbull when the American public wants a woman to be the first woman president. She should have stuck to policy.