He’s Got the Teeth & the Hair …

 

He’s even got the Name.

All he lacks is the rest of the body including a Brain.

Young Trudeau that is.

He has run a policy free campaign – with pride, stating that Leadership Races are not the time to discuss policy.

Rather reminiscent of Kim Campbell’s proclamation that Election Campaigns too were not the time to delve into such trivia.

Makes one wonder when exactly is a good time?

Plus, in the case of the coronation of Trudeau, how does one properly assess whether or not to vote for him when you have no idea as to what exactly he stands for.

One of the few areas he has pronounced himself on is pro choice – he is an ardent supporter.  Given that alone, he has lost this potential supporter.

He has also made clear that if it comes down to a choice between Quebec and the Rest of Canada, he’ll take the former.  Again sufficient information for me to turn away.

I said at the outset of the Leadership Race that Young Trudeau (YT) would be wise to sit it out until he at least gained some real experience.  Surprising as it is, he did not take my advice.

And I say that not because I thought he could not win – in fact I was afraid he would and not because I feared the Liberals returning to power – at this point in my life I really do not care who is in power – they are all varying shades of red. (And now we no longer have Maggie Thatcher to call back to set things straight).

Rather I said I hoped he would not run – again for his own sake, in that he did not have the needed life experience.  But more importantly, for the Liberal Party’s well being since by going the Trudeau route they could fore stall any serious look at where they collectively have gone off the rails.

That said, let’s hope that with that the Race coming to its logical conclusion that Trudeau will find the time to discuss policy before we are plunged into an Election a couple of years hence.

From my perspective though, I would be most surprised if he did.

As I see it …

‘K.D. Galagher’

 

The Penny Finally Dropped … or

 

Should I say, ‘Dollar’ as in the American Dollar?

This week, Japan came out and said that it too would begin the printing of money – their Yen – as if it is going out of style …as well it might be.

This exercise, known as Quantitative Easing, has been perfected in recent years by the US of A; in essence it is the printing of money without anything to back it up e,g, gold.

Japan is now trying it out since its economy has lain dormant now for well over a decade.  Moreover, its debt to GDP surpasses 233%; America in contrast, has a ratio of just over 100% – mere pikers in the international race to the bottom.

Japan’s move though got me to thinking – why are countries following this apparent disastrous route and that’s when I had my Eureka Moment.

Up to that point, I had viewed the reckless printing of money as something that would impair governments’ ability to manage their respective economies.  In fact, I was correct but for the wrong reason.  Quantitative Easing is really a scheme designed by Governments to pass the risk of their mammoth debts on to their unsuspecting publics. 

But first, a look at my credentials in the field of economics.  I took first year economics in University and received one of my best marks in that subject.  I also took a third year economic geography course and can still vividly recall Von Thunen’s Ring Theory.

So there you have it – I do have some expertise to bring to bear.

And a little more background:

I have written continuously about the dire straights within which the States currently finds itself; its debt tops $17 Trillion and will surpass $20 Trillion by the time the current occupant of the White House moves on; the Fed must purchase the Government’s own bonds because the private market for such collapsed some time ago (it is akin to buying from yourself); one third of its populace is on welfare; and finally, as more and more retire from their labour force, fewer and fewer are left to carry the load.

So that brings us back to Quantitative Easing – best enthusiastically described by Fed Chairman Ben Bernanke as throwing money out of helicopters in the hope that these monies will be picked up by the populace and spent to stimulate the economy.

Governments like the USA and now Japan hope that with the printing of fiat money (nothing to support it) – their economies will be boosted and tax revenues will increase which will enable them  to continue their spend thrift ways while at the same time using this free money to fund their respective debts.

Nice trick if you can get away with it and so far America has albeit its economy is still sputtering on the brink of recession.  

The really neat thing about this is that it costs governments nothing save the insignificant cost of the printing.

But sadly it costs you the taxpayer since Quantitative Easing is just another word for devaluing one’s currency – like inflation without inflation although it can easily lead to inflation and in the end will most likely do so.

It also resembles Cyprus’ 10% off the top savings.  ‘Presto’ and your holdings are worth 10% less.

Take Zimbabwe for instance.  It too likes to print money and in fact now prints 100 Trillion Dollar Bills worth but $5 bucks; all due to its reckless printing and runaway inflation.

I do not foresee such denominated bills in America’s future but I do readily see serious inflation come about as a result of its indiscriminate printing of dollars.

Countries that are serious about managing their finances properly do the following:

• Refrain from debt / balance their budgets
• Increase their money supplies in direct proportion to the rise in their Gross National Products (GDP)
• Reduce Taxes to allow for more money to spend in the private sector where real jobs are created.

It would do both American and now Japan good to follow the above prescriptions but sadly I do not foresee this happening any time soon,

As I see it …

‘K.D. Galagher’

 

If The Young-un is not careful…

 

He may fall into US Hands.

Since my writing of the Young-un Blog several readers have written to me challenging my worried assessment and saying that this is all just ‘old hat’ – it is North Korea simply once again “calling wolf”. 

Hopefully those who think that are correct but I still am convinced the North’s position has gone well past mere posturing.

I say that for the following reasons:

first, the young-un is new to his position and must project himself strong in the face of opposition from within and without;

second, never before has the North revoked the July 27th armistice with the South (i.e. bluffing is to threaten to revoke and not to actually revoke it);  and,

third, not since the 60 year old cease fire, has the North actually declared war on the South … until this past week that is (i.e. again – bluffing is to threaten to declare war …not to actually do it).

It has a million man army and just one spark would be enough to set things off …

That said, if the Young-un is not careful, he may be falling into a trap of his own making and one that the US may welcome.

There are two – (possibly three rogue nations if you count Pakistan) that have or are close to perfecting their nuclear capability.  The US is on record – at last saying it will not allow Iran to join the nuclear club so that leaves North Korea.

The North – does have those weapons but does not have the capacity yet to deliver them to the continental United States.  Now comes along the Young-un madness which gives the States the excuse it needs to ensure that they never gain that capability.

If I were the Young-un, I would be backpedalling for no other reason than that.

Will he?  I am not so sure and hence the reason for my last Blog.

Should he?  As stated, in his own interest he should.  

One last comment, this is by far the most dangerous story out there and yet, from our own media, you would think that nothing is going on in the Koreas at all.  It is all robo call and great issues such as that.  Pathetic.

As I see it…

‘K.D. Galagher’ 

 

Two Nutbars at the Top….

 

And dear reader, for once I am not talking about our Nutbars close to home.

Rather, I am writing today about the Leaders of Iran and more specifically, North Korea.

Iran is led by a tyrant who brooks no dissent from within and states his major priority to be the elimination of the Jewish State Israel by way of nuclear holocaust.  I have said in numerous past blogs that this is the biggest story of our time.  If Iran is allowed to perfect its nuclear weaponry Israel will most likely become history and the west will be sucked into the world’s first nuclear war.  No one will be spared the fallout.

Thankfully, it appears that at last Obama has realized what is at stake here, as evidenced by his recent buttering up to the Prime Minister of Israel.

But in recent days the worry about Iran has been replaced by the ravings of a even greater madman – the leader of North Korea.

As evidence of this, its leader cancelled just cancelled the armistice which brought an end to hostilities on the Korean Peninsula in 1953.  This has to be about the dumbest thing for the North to do.

All the while its leader, Kim Jong Un (hereinafter referred to as the ‘young-un’), plays toy soldiers with his Generals, while most of his populace starves.

From my perspective, there are but three possible outcomes:

first, that this has all been a bluff on the part of the young-un to gain more aid;

second, that he actually wishes to bring about a cataclysm but that will thankfully end prematurely when his Generals, realizing that the young-un is indeed serious, seize the reins of power from him; or,

third, his generals are a nutty as the young-un is and a nuclear war is unleashed.  This would not be pretty.

My guess is that either the second or third scenario will prevail but am hopeful for the second.

And, I do not think we will have long to await the outcome.

In any case, I do not see the young-un dying of natural causes like his grandfather and father before him.

We are living in dangerous times.  Our governments’ finances are teetering on the brink and our world is facing war on a scale that could exceed anything experienced in mankind’s history.

It is fitting then, at this most holy time of the year, to pray to the Lord Our God for deliverance.

As I see it…

“K.D. Galagher’

Preston Manning … A Wannabe

 

Very recently, Preston Manning concluded his annual Networking Conference here in Ottawa.

He gave the keynote speech where he identified the most pressing issue for us Conservatives – the need to be more environmentally conscious.

Yes, you read that correctly – we need to be more Green, as per the Green Party of Canada.

Never mind that the environment registers with the public right down there in the cellar … that is what he sees as our major need.

Let me be clear at the outset, I do not respect Preston Manning and his recent pronouncement only reinforces my poor opinion of him.

My colouring of Manning changed long before he became Leader of Her Majesty’s Loyal Opposition in 1997 but he certainly did not endear himself to me upon reaching this milestone:

He was not going to live at Stornaway; he was not going to have a car and driver; he was going to sit in the middle of his caucus, away from the front bench.  All of these promises lasted but mere weeks. 

It has been alleged that he changed his hair, fixed his teeth, took voice lessons and dramatically changed his haberdashery.

In short, there appeared to be little the man would not do to try to fit into the establishment.  

So much for the ideals of Reform.

And that, dear reader, leads me back to the formation of the Reform Party of Canada in the late 1980s.

Manning, as its founder, was going to bring Canadian Politics into a new era of openness where the grassroots would rule and their representatives in Parliament would carry out their wishes.  Even I bought into this dream since I was tired of the tweedle dee and tweedle dum approach of Liberals and Conservatives. 

I say dream since it soon became evident that Manning would not listen to his grassroots and he brooked no dissent from within.  He turned out to be just as autocratic, as any other leader.

With all this, I am left not knowing what political philosophy Manning really possesses, but I do know he is has let many of us on the right down by his acting like a traditional politician.   

As I see it…

‘K. D. Galagher’

 

 

Just When You Were Beginning To Think…

 

That Governments were running out of ways to tax the poor downtrodden  (as if..)  …

Along comes the EU which just imposed a Deposit Tax on the hapless folks of Cyprus.

You heard it correctly – a 10 % tax on Cypriots’ Bank holdings.

I have been warning for some time now that the European Contagion was not only far from improving …it was actually getting worse and would soon consume the Americas.

The bottom-line in all of this is that our Governments are all broke.

I do not need to tell you that this is a most novel way for Governments to secure new funding.  Up to this point, they had relied more or less on taxing one’s income but as those taxes have maxed out (e.g. France’s 75% income tax) there is only so much more that can be gained from it.

Obama too will soon see that increased taxes on the top 1% will only go so far in addressing the State’s $17 Trillion Dollar Debt and $1 to $2 Trillion Dollar annual Deficit.  Can you imagine the money to be had by going EU and taxing Depositors’ / Investors’ holdings at the rate of 10%.

For that matter what is hold politicians at the 10 per cent mark – why not go for 25% or higher?

Depositors have already been contributing albeit silently since their holdings have not been keeping up with inflation.  Over that last many years they have received pittance for their money – often less than 1% while inflation – even the low official versions of same – is running north of 3%. 

To put this in perspective, say you were a depositor in Cyprus and had $100k on deposit at the beginning of 2012.  At the end of the year and allowing for 1% interest, you would have a tidy balance of $101k.  However with inflation, that money would only be worth $98k after the effect of the year’s inflation.

Now move ahead to March 2013 and your nest egg is debited by the 10% EU tax – your balance plunges to $90,900.

Only in Cyprus you say?

Don’t be too sure and while you are reflecting on this you will be well to remember that income tax itself started as a temporary measure.

As I see it…

“K. D. Galagher’

 

Marc Garneau…

 

Another politician with sterling principles.

Garneau was the only candidate in the current Grit race that had any chance to beat or at least, give the Hair & Teeth – aka Justin Trudeau – a run for his money.  That he decided to drop out this close to the finish tells me one thing – and one thing only – he wants to endear himself to his about to be elected New Leader.

Any odds on who will be the Foreign Affairs Minister should Justin pull off a General Election win?

There are several losers in this scenario not the least of whom is Garneau himself – he has let himself / his team down by not seeing this through.

He has also let Trudeau down by making his upcoming victory all the easier since Trudeau needs some bumps and bruises to be an effective leader.

Finally, Garneau has let his Party down by ensuring another Coronation which is the last thing the Liberals need right now..  They have had too many of those in recent years and now of all times, when they desperately need to delve into soul searching, new policies and the like – that will all be jettisoned in the search for another Messiah.

Well hopefully it will all work out for Garneau since a bitter price is being paid for his actions.

I sat beside Garneau at a dinner many years ago and found him to be a rather cold fish – not the hail hardy politicians I was more accustomed too.  But of course, he was only an astronaut at the time.  But in following his career since then, I have seen no reason to change my initial assessment. Indeed, if I had been a Liberal voting next month – I think I too would have voted Teeth and Hair over him – the latter being likely much more fun to share a beer with.

The fact is though, I would not have been voting for either gentlemen – rather my vote would have gone to Martha Hall Findlay since of all the candidates, she seems to have been the only one who has made an effort to think through some policies.

As I see it…

‘K.D. Galagher’