The Sky Is Falling ...

So sayeth Chicken Little ?

No, So sayeth the 8 year occupant of 1600 Pennsylvania Avenue.

And, as was the case with C.L., his scare tactics come down to a lot of clucking and no substance.

Why so Galagher?

America is well on its way to a $17 Trillion Dollar Debt or some 100% of its annual GDP.  Moreover, its annual deficit - since the time the Democrats took over the White House, has totalled in the Trillions and continues to rise.  With the advent of their new Health Care in a matter of weeks - these numbers can be expected to climb exponentially.

So what does America need to do and fast - that's right, 'raise taxes and dramatically reduce spending'.

So what does the Fiscal Cliff do - you got it - it 'raises taxes and dramatically reduces spending'.

So what are we missing?  Not a thing - the sooner America falls off that cliff, the better.

Even the Republicans - had they won the recent Presidential Election - were in for a big surprise.  They kept saying they were opposed to more taxes but continually failed to acknowledge the deep hole the US has dug itself into and that cuts alone will not be enough.  Higher taxes are needed in concert with those cuts.

The Dems fearless leader wants tax increases - but just on the rich.  Makes a great sell given that the vast majority of Americans - 95+ % do not find themselves in that exclusive category.  But it won't work - there are not enough rich to make much of a difference.  Plus, that small percentage - the rich - create wealth through the creation of jobs.  Do you seriously think they will hang around and let themselves be the only ones taxed  higher?  In that regard, keep an eye on France where a 75% income tax has been imposed.  Great for Germany and the UK. 

Even the Clff and falling over of same, will not be nearly enough to reverse their debt / deficit buildup:  estimates put the savings from doing so at a mere half Trillion Dollars.  The new costs associated with the Health Care implementation of 2013 itself will exceed those savings.

So what does America need - it needs a few more Cliffs to fall off.

The only reason America has not already been deemed a basket case by the world's investors is the fact that many of those same investors are using the States as a refuge from even greater financial troubles in the EU.  The day is quickly coming when even they will see America for what it is - a sinking life raft.

For now, America's only hope, in the short term, is to take the plunge from the Cliff.

Just don't bet on it happening though, since both the Donkey and the Elephant continue to live in a world of their own - in the Zoo.


As I see it...

'K.D. Galagher'

I am entitled to my entitlements …

 

Not Again !!

Long time readers will know what I think about Canada’s Senate – but for those of you who may be of a more recent vintage …

I view the Senate of Canada as a somnambulistic warehouse full of Hacks, Flacks and Ne’er Do Wells.

Take Tory Senator Mike Duffy for instance and Liberal Senators Mac Harb and Patrick Brazeau and countless others no doubt.

These gentlemen and I use the term loosely, all have resided for years in and around Ottawa but since their appointments to the August Institution have been charging Taxpayers 10s of thousands of dollars each year for ‘living away’ …here in Ottawa.

And let’s be clear here – the rules of the Senate – not surprisingly, do not specifically prohibit such claims, but the spirit of those rules certainly do.  In other words, it is left to the individual Senator to look to his or her own conscience to determine whether such a claim is appropriate under the circumstances. And obviously, for the three distinguished selves above, they have a questionable inner guide.

Sometimes you hear that “there are some Senators that do good work” and indeed there are.  To them, I would say, join a Think Tank and do your unelected good work off the Taxpayer’s teat and on your own merits.

Then the are several other distinguished Senators who have joined a Speakers’ Bureau – including ‘the Duffy’ as Mike Duffy so affectionately likes to refer to himself as.  For the paltry sum of $8- 10 K these denizens of Canada will deign attend your private event and share with you some of their great Senatorial Wisdom.

In this case, the Senate Rules rightfully prohibit such a practice but even if the rules did approve – it would be wrong for anyone in Parliament – paid by the public purse, being able to cash in on their public persona.  Once retired – go nuts and charge the moon and that is what I would suggest all Honourable Senators do – retire.

Finally, just a quick word about an Elected Senate – Triple E or whatever.  Don’t do it.  It would be just another expensive layer – even more expensive than the current double R Senate – Rotten and Redundant.  An Elected Senate would continue to be just as Redundant and we would end up with the impasses witnessed below the 49th Parallel. 

As I see it…

‘K.D. Galagher’

His Heart Was In The Right Place …

 

But Baird (and Harper) was wrong to oppose observer status for the Palestinians at this week’s UN Vote.

For the past several years, Canada has prided itself on being Israel’s best friend – and rightfully so, since America, under Obama, dithers trying to appease the Islamists. But you have to know what fights are worth having and in that regard, Canada’s vote this week should have been in favour of Palestinian recognition, not against it.

‘Everyone in the know’ seems to agree that nothing much will change as a result of the vote; that is to say, true peace will not come about until the two sides hammer out a deal at the negotiation table.  So there was little or nothing to be lost, from casting a favourable vote.

The main thing that would have been gained, however, is a greater sense of self worth amongst the Palestinians themselves. 

That said, some fear, that voting for the motion,  would encourage the Palestinians to become even more militant and thereby would delay the day for a mutually acceptable peace.

Perhaps, but given the turbulent history of this area, dating back millennia, it is most doubtful that any UN motion could make things worse.  In fact, I would argue, the successful motion helps place the Palestinians on a more equal footing with their Israeli counterparts and through that, it could enhance the possibility of genuine peace.

What is not at all helpful though, is Netanyahu’s petulant response to the vote which was to announce more housing development for the West Bank. This is guaranteed to incite the Arab Community and could very well cause a new round of violence.  Western nations should condemn this, in no uncertain terms.

I began this blog by saying Canada needs to understand what fights are worth having when it comes to our support of Israel.  And, rest assured, there will be lots of “worthwhile” occasions on the horizon; Canada’s UN Vote this week, was not one of them.

As I see it…

‘K. D. Galagher’

 

The National Post Has It Right …

 

There was a Big Winner and a Big Loser in the News Yesterday – so says the National Post on its front page today.

The only problem with their story today is that it Mixed the Two Up.

As the Post sees it – the Winner is the Governor of the Bank of Canada, Mark Carney and the Loser is Toronto Mayor, Rob Ford.

I would argue the reverse – a decline for Carney and a rise for Ford.

Let’s look at Mayor Ford first:

Yesterday, an Ontario Court Judge ruled that Ford had breeched conflict of interest laws and therefore ordered his removal from office.

Ford had been actively involved with a $3k grant to support his football team for disadvantaged teens.  Imagine – he gets judicially censured for trying to help the disadvantaged while other politicians, who will remain nameless, get off scot free for wasting (funnelling?) billions.

But that aside, the Judge was correct in his ruling – Ford should have refrained from actively taking part in Council’s decision – regardless of how noble the cause.

Indeed, that said, it is refreshing to see a Judge impose the law as it exists rather than inventing it from the ether. It would be interesting though to speculate whether the Judge would have been so conservative in his ruling had the alleged offender been of the Liberal or NDP persuasion.

So Ford caused his own downfall and the Court refused to bail him out.

But by so doing, the Court has made Ford a Hero.  Here was a guy who, up until now, had virtually botched the job of being Mayor and – all of a sudden – he is the recipient of our sympathies and best wishes.

The Guy has come out of all of this a Winner.

Okay, now Carney:

If you believe the press clippings, Carney is the best thing since the invention of sliced bread.  He and he alone saved Canada’s Banking System during his time in office.

I beg to differ.

There are really three saviours here (and none are named Carney);  Paul Martin, David Dodge and Jean Chretien – as much as I would like to think otherwise.

When those three took over the helm of Canada’s finances in 1993 – they inherited a whopping $40+ billion dollar deficit and an out of control debt - from Mulroney and his fellow Conservatives.

Martin did the policy work, Dodge did the implementation and Chretien, to his credit, allowed it to happen.

Martin even stood firm against our Banks demands that they be allowed to merge with one another.  Thank heavens they did not or they most likely would have been up to their respective ears in the fallout experienced south of the border.  As luck would have it – only one of our Banks – the Canadian Imperial Bank of Commerce got in over its head by investing in these caustic instruments. Even I, at the time, thought that the merger request made sense.  I know better now. 

Thank you Paul Martin.

But the point in all of this is that Carney was not the key player in this – he was though most fortunate to inherit good books as a result of the three above-noteds.

Carney was appointed by one Stephen Harper -
Conservative.  The same PM and Team which saw our deficit climb to heights not even contemplated by their fellow Tory – Brian Mulroney.

In recent years, we have looked good in comparison to the rest for the simple fact that the other western nations did worse than we did during and post the American financial meltdown beginning in 2008.  And we were able to do so – because of the successive Liberal Governments from 1993 to 2005. 

So is Carney a dud?  Who knows since, from my perspective, he succeeded on the sterling efforts of those who came before him.

Will he succeed as Governor of the Bank of England?  Again – who knows, but if I was a betting man – and I am – I would not bet the farm on his doing so.

As I see it …

‘K.D. Galagher’

 

 

As Columbo Would Say…

 

Just One More Thing.

Well Maybe Two …

The New Motto For The United States of America that has been bandied about since Tuesday’s Election:

• Ask Not What You Can Do For Your Country…Ask What Your Country Can Do For You.

Plus Flora MacDonald is famous for saying it is passing strange…

I find it passing strange that now that the Election is over – all of the media has suddenly focused on how bad the American Economy is – the fiscal cliff etc etc . Where were they a week ago?

Oh and one more thing..

In the lead up to the Election I naively thought that America was split more or less 50/50 between the Givers and the Takers – when in reality, like here in Canada and Europe – the Takers now obviously compose the majority. 

After 4 more years of Taking – the chances of the US returning to some form of sanity – is very remote indeed.

As I see it …

‘K.D. Galagher’

Let The Games Begin …Again.

 

OBama has won another 4 more years !!

And unlike his poor imitation here in Ontario, thankfully, Obama will not be able to run and hide from his win.

Given that, the ‘Why’ he won is not important; we can leave that to the Historians to determine.

Moreover, ‘What’ it means for the United States and the World generally, is not an issue either, because the Dye has been Cast.

The main thing here is that the American Voter got what he or she wanted, as did Canadians …if we’d had been able to vote, that is.  Indeed, in our case, a recent poll showed that only 9% of us would have voted Romney.

For the record, Count me among the 9.

That said, the next four (4) years will be most interesting.

In fact, Too Interesting.

And as is the case with McGuinty, I do not plan to talk about the re-elected President in my future Blogs, rather I will let the events to unfold, do the all the speaking.

‘K.D. Galagher’

 

A Mirror Reflection …

 

Of The First Debate.

By that I mean I scored Romney 2:1 over Obama in the first debate and now I score Obama 2:1 over Romney in last night’s final debate.

I thought that given all the ammunition he had, Romney would have wiped the floor with Obama – so to speak.  I was wrong.

Last night’s debate was supposed to have been about Foreign Policy, but it drifted into domestic affairs.  Had it stayed with its original purpose – here are some of the factors Romney had going for him:

• The Middle East is burning;
• Iran is on the cusp of being able to deploy Nuclear Weapons;
• Israel has been cut adrift;
• North Africa is quickly descending into Al Qaeda Hell;
• The Taliban is on the verge of retaking Afghanistan and is now only awaiting the 2014 pull out of American Troops;
• Iraq is falling apart;
• Pakistan is becoming more instable by the day and it has Nuclear Weapons;
• Nuclear China is threatening both Japan and Taiwan;
• North Korea is threatening the South with imminent attack and it too has a nuclear capacity;
• Europe is raging with mass protests and the EU is on the verge of collapse;
• Hugo Chavez of Venezuela – our favourite communist this side of the pond, just won another long term in office;
• Castro sadly is still kicking.

So where are Obama’s successes?  Oh yes – he killed Osama.

If Romney could not upstage Obama with all this going on – I despair and I say this bearing in mind that the other field in which Obama has failed in is with respect to his Country’s Economy and he is doing even worse there.

So where does that leave us?

Certainly the Election next month will be even closer than it should otherwise have been.

I still predict a Romney win but this is no longer assured.   I still honestly believe that America will be better off with Romney – much better off in fact, but not as well off as it should be.

In other words – Romney is flawed but not as flawed as the current guy.

Where are the FDRs and the Churchill’s when you need them and believe me – the US needs them as do we all.

As I see it…

‘K. D. Galagher’