RBC … as in …

 

The Royal Bank of Canada.

RBC’s President came out the latter part of last week and apologized to Canadians for allegedly hiring migrant (foreign) workers to replace 45 of its employees.

I say ‘alleged’ since these foreign workers were not coming into Canada to work rather they were coming here for training and were then going to take these 45 jobs back with them to India – a.k.a. ‘outsourcing’ which is an even worse case scenario but which has been going on now for decades.   

Question.  Where are most of your ‘things’ manufactured?

If you said China – you get full marks.

If you added the fact that this work was originally ‘outsourced’ from the West – you’d get bonus marks.

Can you imagine how much our cost of living would be if the things made in developing countries like China were made in North America.  It would be astronomically high. 

So I do not fault RBC in the least for doing what they were in the process of doing – if they did not do it – one of their rivals would and RBC would be at a disadvantage and sooner than later, thousands of its workers’ would be out on the street.

Speaking of that, RBC has over 60,000 employees in Canada and is in the top 5 when it comes to profitability.

I do though think it was tacky of RBC to have the very employees, who were going to lose their jobs – do the training.  RBC at the outset should have assured these 45 employees that other comparable work would be found for them in return for their assistance.

But getting back to the issue of outsourcing.

Capitalism requires that businesses stay competitive in order to survive.  And in that regard, outsourcing has proven to be a good way for western companies to stay competitive.  We cannot compete with developing countries’ much lower wages but we can take advantage of them in the way that RBC and countless others have been doing successfully via outsourcing.

In that regard, I was most surprised to hear Jason Kenney come out and say he was shocked by RBC’s action. He said something along the lines that ‘migrant workers were not intended to steal jobs away from Canadians’ despite the fact that this is often the result and despite the fact that, as mentioned, they were not migrant workers to begin with.

Kenney knows better – he is after all the Minister of Immigration and knows full well the difference between migrant workers (e.g. apple pickers) and outsourcing (e.g. textile workers).

More to the point, he is supposed to be a Minister in a Conservative (i.e. business friendly) Government and dissing companies like RBC which are only trying to stay viable is reckless. 

But Kenney is also an astute politician; he knows that more and more Canadians (read also Americans, Europeans etc.) have less and less use for Capitalism despite the benefits it has brought us all.

It seems these days that there is a growing belief that most of the ills facing society are the result of cold, calculating Capitalism.

And as more and more members of society become takers and not makers, this sentiment is bound to worsen. 

Indeed, the Guy Currently In The White House has made his career out of bad mouthing Business and it comes a no surprise then that America is spiralling down under the weight of debt in similar fashion to Europe.

As a result, we find ourselves being replaced by Developing Countries when it comes to employing Capitalism to increase the standard of living. In just a few years, China’s economy will out pace that of America’s.  It did not have to be.

So back once again to RBC – 45 workers in the scheme of things is small potatoes (unless you are one of the 45 that is) but on the broader scale the huge negative reaction to RBC speaks volumes.

The other day I called the local Ottawa office of a international company  (not a bank) and my call was answered by someone in the deep american south.  The next day I called the same local number and was put through to the Philippines.  It is just a way of life now.

For all those who have lost patience with Capitalism I would be most interested in hearing from them what system they would use in place of it.

As for RBC President Gord Nixon – he made a mistake …. not for permitting outsourcing…but in apologizing for having done so.

As I see it …

‘K.D. Galagher’

We’ll Get The Bastaas…

 

My favourite quote by one of Boston’s Irish Citizenry.

In my recent Blog, I worried that the people of the United States might cower in fear as a result of this past Monday’s double bombing at the Boston Marathon.

Thank goodness I need not have – especially as it related to the good folks of Boston.

I heard a handful say that they would never participate in a marathon again but the overall reaction was to ‘carry on’ in the face of adversity; they were not going to allow themselves to change their lifestyle due to horror inflicted by psychos.

It is indeed encouraging to see that such character is alive and well south of the border.  I know that it still is in Britain and most certainly Israel.  I suspect it lives on in Germany and Japan but as for the rest, it is a long past memory.  And when I say that, I also suspect that Canada would find itself in the lesser group.  Fortunately, we have not yet been tested to know for certain.

Take Young Trudeau for instance.  In his first real interview …this with Peter Mansbridge the day after the bombing he had this to say:

‘we must look to find the underlying cause for the bombings’.

No we don’t…even the man who currently occupies the White House finally came out and called it was it is “Terrorism” and you do not deal with terrorists nor do you seek to find out its root causes.

Suffice to say it is mad men out to harm innocents and defenceless for their own disturbed purposes.

When I wrote my most recent Blog I indicated that I thought the bombings were done by either domestic whackos or foreign al qaeda agents and in the scheme of things it did not matter too much to me who was involved since Terror is Terror whoever the perpetrator.

Just released FBI  photos of the two likely suspects show them to both to be lily white and have all the markings of domestic youth.  I think we’ll soon know their identities and why they decided to do what they did.

But that will be cold comfort to those who died who suffered horrendous physical and mental injury.

I do not believe in the death penalty per se but could be convinced of its applicability when it comes to Terrorists.  At the very least these two, if and when they are caught, will spend a lifetime in jail and will have lots of time then to reflect on the root causes.

For the rest of us, we have to get on with living.

As I see it…

‘K.D. Galagher’ 

 

Marathon of Hope …

 

Let’s turn yesterday’s Terrorist Act on its head by holding another Boston Marathon asap.

Moreover, we should challenge these self same terrorists to try it again … but this time we’ll all be on guard.

If we cower and run, they win.  If we stand defiantly in the face of their pathetic effort to destroy our will – We Win.

So let’s have another long distance run for the sake of ourselves, our families and our way of life.

And in so doing, let’s call this wicked deed what it is … a cowardly terrorist act that preys on the defenceless innocents.  

I suspect the guilty will be found out and prosecuted but at this point there is nothing to suggest it was foreign (e.g. al qaeda) or domestic (e.g. minute men) but regardless, the perpetrators are nothing but cowardly scum. 

We cannot allow them to terrorize us.  In fact, the only way they can terrorize us, is if we let them .. since terror, must terrorize, to be successful.

I think back to the Brits in the dark days of 1940 when an invasion was expected to be imminent and each night the Luftwaffe bombed the City of London indiscriminately.  Their brave citizens went to the bomb shelters at night and in the morning came out to meet the day with strength and determination. 

Some say that since then, we in society have lost the will to be able to do this again. 

I simply do not believe that.

But we do need some leadership to show us the way.  Never mind more screening at airports, rather show us the way in which we can lead our daily lives – normally, but with defiance, in the face of those who would otherwise seek to destroy us.

You Terrorists do your worst and We Will Do Our Best and we will see who of us survives.

As I see it …

“K.d. Galagher’

 

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’