Economy headed for the dumper

[HisSelf]

Looks like we're in for a few lean years. The Bank of Canada is now saying that we can expect at least 2 years of near zero growth. Fortunately, we have some elasticity built into the system. Anybody care to guess what it might be?

[guyser]

Sure, that elasticity is the Banks pulling the rubber band to get covered by the govt for all the dumbass loans they made to losers who cant pay it back.

..or...

The boing boing rise in user fees to cover themselves.

[eyeball]

Take a vacation! C'mon Canada...SPEND! Please...for the love of humanity...spend...

[M.Dancer]

I'm having my best year ever. My last best year was last year.

[scribblet]

If all the newscasts just quit telling everybody there was a recession, nobody would know and things would just tick along as usual. It's all the doom and gloom, it feeds on itself... I bet if all the media started announcing the recession is over, things are good, etc. etc. it would be -

[bush_cheney2004]

I'm having my best year ever. My last best year was last year.

Louis: Looking good, Billy Ray!

Billy Ray: Feeling good, Louis!

[punked]

Looks like we're in for a few lean years. The Bank of Canada is now saying that we can expect at least 2 years of near zero growth. Fortunately, we have some elasticity built into the system. Anybody care to guess what it might be?

Is it that we saved up in the previous years, and cut all the excess spending as to have money to spend in the down times. Wait no wait our government has made it do we will surely have a deficit in the coming years.

[WarBicycle]

I'm having my best year ever. My last best year was last year.

Same here, what do you do?

[M.Dancer]

Same here, what do you do?

I work in media...marketing to the c-suite

[guyser]

I'm having my best year ever. My last best year was last year.

I anticipate a better year once this recession comes. I make more money in bad years.

[Guest FrootLoops]

My dad says that teh the guys in power now need to start doing things like conservatives and not like teh Librals.

[Shady]

I'd like to see more tax cuts. Mostly income tax cuts. And I'd also like to see some spending cuts, or at least a slower rate of growth. And depending on inflation, a cut in interest rates.

[punked]

I refuse tax cuts with out spending cuts it is just doesn't work which is what I don't get is happening from our shitty minority government. That is not a Dig the Conservatives either, even though I vote NDP, this stupid minority government and that includes all parties are promising us the world and then cutting taxes it is stuipd.

[Guest FrootLoops]

I refuse tax cuts with out spending cuts it is just doesn't work which is what I don't get is happening from our shitty minority government. That is not a Dig the Conservatives either, even though I vote NDP, this stupid minority government and that includes all parties are promising us the world and then cutting taxes it is stuipd.

That is a small c conservative point of view and a good one. The NDP would raise spending and taxes.

[msj]

If all the newscasts just quit telling everybody there was a recession, nobody would know and things would just tick along as usual. It's all the doom and gloom, it feeds on itself... I bet if all the media started announcing the recession is over, things are good, etc. etc. it would be -

Yep, dishonesty will solve all our problems.

Look at the US: PDF

Just imagine how effective our political system would be if the media only told us good news stories about politicians: no ad scam, no RCMP raiding CPC HQ, no Flarherty ethics investigation etc...

I bet if the media started announcing that politicians are being held accountable that it would be

[Zachary Young]

Contrary to popular belief it is not spending that drives economic growth but saving.

We are undoubtedly heading into some tough times. Actually we've been in relatively tough times for the last thirty years, compared to other developed nations. Due to horrible economic policies which are shared by all the major political parties (I think it's really time to acknowledge we only have one political party, the party of high taxes, wasteful spending and government control over the economy and your life) our economy has been relatively stagnant, especially in terms of wages of workers (a product of productivity, which has been pretty much flat for a long time).

A crash course towards freedom is probably the only thing that can stop pretty serious economic problems, especially if the American economy continues to decline (and if there is a serious move amongst oil producing nations to switch to the Euro as their reserve currency (as has already happened / is happening in Iraq, Iran and Venezuela) this will be assured). Get rid of half the federal government. Abolish the income tax. Fire 3/4ths of the bureaucrats that rule this country. Deregulate and sell off as much land / industry that is owned by the state as possible...

obviously none of this will happen, as it is anathema to the policies and philosophy of the political parties that rule our country.

Oh well... at least we can enjoy the decline, as Canada claims it's place as a rightful honorary member of the third world.

[August1991]

I'm having my best year ever. My last best year was last year.

The TSX has been good to me too.

There are ups and downs but anyone who thinks the system is "fundamentally flawed" is someone who never saved and is now jealous. My only fear is that such people devise a scheme to tax the "fundamentally flawed" system (ie. devise a way to tax people like me.)

If the economy is headed for the dumper, there are many moochers who will be out of luck.

[sharkman]

Geez, you'd think no one ever heard of the business cycle before. Our economy is SUPPOSED to have a recession every now and then. It's normal. What's not so normal is the climbing food prices and the climbing gas prices. I guess we'll just have to spend more of our disposable income.

[Zachary Young]

"Geez, you'd think no one ever heard of the business cycle before. Our economy is SUPPOSED to have a recession every now and then."

Is it? Why is that? You'd think YOU'VE never heard of the Austrian Theory of the Business Cycle.

The Austrian Theory of the Business Cycle says that economies are not SUPPOSED to have recessions every now and then, but rather the business cycle is a product of artificial manipulations of the interest rates, and the malinvestment that is a result thereof.

Let me break it down for you.

Interest rates are artificially lowered (the 'real' interest rates should be determined by the market and it's determined by the percentage of savings) creating the boom. Entrepreneurs are fooled into making investments that look profitable, but aren't. Eventually these investments are proven to be uneconomic, and so they are liquidated. This is the bust.

If we abolished the Bank of Canada and went back to sound money there would be no more business cycle.

[August1991]

Sorry, I can't resist.

If we abolished the Bank of Canada and went back to sound money there would be no more business cycle.

Define "sound" money. And business cycle - what's that? Women menstruate but female cats don't. Why should economies have a "cycle"? Are economies female - but not female cats?

Zachary, we use money, sound or not, to trade. The world is a better place if more people can trade and cooperate. If money helps us trade and work together, then money is a good thing. I don't see any cycle in this. Can you?

Edited April 26, 2008 by August1991

[punked]

Sorry, I can't resist.

Define "sound" money. And business cycle - what's that? Women menstruate but female cats don't. Why should economies have a "cycle"? Are economies female - but not female cats?

Zachary, we use money, sound or not, to trade. The world is a better place if more people can trade and cooperate. If money helps us trade and work together, then money is a good thing. I don't see any cycle in this. Can you?

The guy is a libertarian what he means by sounds is money either back by something like gold so every bit you have floating out there you have some gold in a vault somewhere saying it is worth something. OR You actually just use gold as your money. NOOOOO THANK YOU.

[punked]

That is a small c conservative point of view and a good one. The NDP would raise spending and taxes.

See I am ok with that becuase if you raise spending you should raise taxes. Seems like the big C conservatives don't get that.

[Wild Bill]

See I am ok with that becuase if you raise spending you should raise taxes. Seems like the big C conservatives don't get that.

This is what the NDP never seem to get! They take the efficiency of government for granted.

If you and all your neighbours needed a park built in your neighbourhood you'd pass the hat to come up with the money. Some poorer folks might contribute in labour. It's like the old barn-building bees in pioneer days. Let's pull a number out of our collective butts and say that the park would cost $10,000.

Now, if the government says it will build us a park things are quite different. First, there are at least a few hundred thousand dollar reports that must be done, to see if we truly want a park, if the park will be ecologically a benefit to the community and most important, how to build the park so it will withstand earthquakes and tornadoes, even if it's not in an earthquake or tornado zone.

The work must all be done by CUPE contractors, even if they cost double what other firms will charge. Some of those contractors will have connections to various politicians, of course. Money will change hands both ways.

When all is said and done that $10,000 park will likely cost somewhere around a million and a half! Where will the money come from? TAXES, OF COURSE!

Please don't even try to deny that's the way the system works. I'm 55 years old and have been watching this time after time after time for my whole life! You might as well try to convince me that the sun rises in the west.

This is why I could never vote NDP. They live in dreamland.

[punked]

This is what the NDP never seem to get! They take the efficiency of government for granted.

If you and all your neighbours needed a park built in your neighbourhood you'd pass the hat to come up with the money. Some poorer folks might contribute in labour. It's like the old barn-building bees in pioneer days. Let's pull a number out of our collective butts and say that the park would cost $10,000.

Now, if the government says it will build us a park things are quite different. First, there are at least a few hundred thousand dollar reports that must be done, to see if we truly want a park, if the park will be ecologically a benefit to the community and most important

how to build the park so it will withstand earthquakes and tornadoes, even if it's not in an earthquake or tornado zone.

The work must all be done by CUPE contractors, even if they cost double what other firms will charge. Some of those contractors will have connections to various politicians, of course. Money will change hands both ways.

When all is said and done that $10,000 park will likely cost somewhere around a million and a half! Where will the money come from? TAXES, OF COURSE!

Please don't even try to deny that's the way the system works. I'm 55 years old and have been watching this time after time after time for my whole life! You might as well try to convince me that the sun rises in the west.

This is why I could never vote NDP. They live in dreamland.

http://www.fin.gc.ca/toce/2005/frt_e.html

The report shows that NDP governments have balanced the books 46 per cent of the time.

Liberals have the worst fiscal record overall. Liberal federal, provincial and territorial governments have posted year-over-year budget deficits an astonishing 79 per cent of the time.

Conservative governments have only a slightly better record than the Liberals, logging deficits 65 per cent of the years in which they’ve been in power.

[August1991]

The report shows that NDP governments have balanced the books 46 per cent of the time.

Since when is "balancing the books" a measure of government competence?

If I take 75% of what you earn and spend it on stuff you don't want, I have "balanced" the books. Does that make me competent?