Quotulatiousness

May 2, 2012

Jim Flaherty on why the IMF should not go too far to rescue the Eurozone

Filed under: Cancon, Economics, Europe, Government — Tags: , , , — Nicholas @ 08:44

As I’ve mentioned before, Jim Flaherty is the federal finance minister and also my local MP. I don’t always agree with him (especially around budget time when he channels his inner spendthrift), but he makes some excellent points in this article at The Telegraph:

At the meeting of the International Monetary Fund recently, Canada decided against contributing more resources to support the eurozone. We also argued that all countries borrowing from the IMF should be treated equally. We took these positions because we believe they are in the best interests of the eurozone, of the IMF, and of the international community.

We have always supported the IMF’s important systemic role in promoting economic stability by providing loans to countries that have exhausted their domestic options, and placing these countries on a path to sustainability through time-limited interventions. But it is not the IMF’s role to substitute for national governments.

[. . .]

Ultimately, the adequacy of the actions taken will be judged by the markets. Repeated expressions of confidence by politicians are futile if the markets continue to cast their vote of non-confidence. The markets’ confidence in political leadership will only be restored when it is clear that politicians are willing to see the full scope of the problem, to focus on the key issues instead of pursuing sideshows such as the financial transactions tax, and to set out and implement a plan for tackling these issues.

[. . .]

We cannot avoid the question of fairness. Eurozone members benefit from increased exports and price stability. Spreading the risks of the eurozone around the world, while its benefits accrue primarily to its members, is not the way to resolve this crisis. We cannot expect non-European countries, whose citizens in many cases have a much lower standard of living, to save the eurozone. Further, the IMF, with roughly $400 billion, already has adequate resources to deal with imminent needs.

H/T to Elizabeth for sending me the link.

May 1, 2012

Quebec’s student protest concentrated in certain departments

Filed under: Cancon, Media, Politics — Tags: , , , — Nicholas @ 10:03

In the Winnipeg Free Press, Stefani Forster looks more closely at the composition of the Quebec college and university protest movement:

They are the 66 per cent. And they have been mostly invisible in the torrent of stories about Quebec’s student unrest.

Roughly two-thirds of Quebec students are not on a declared strike from their classrooms, are not necessarily participating in daily marches against tuition hikes, and not getting the attention of the national and international media.

What are they doing? They’re completing their semester on time.

At McGill University, classes and exams have been largely unaffected by the student unrest. Only three departments — Gender, Sexuality and Women’s studies; Graduate Art History; and French Literature — are on strike.

April 30, 2012

The F-35, the “supersonic albatross”?

Filed under: Cancon, Military, Technology — Tags: , , , — Nicholas @ 12:24

Foreign Policy has a feature up called “The Jet That Ate the Pentagon” by Winslow Wheeler:

The United States is making a gigantic investment in the F-35 Joint Strike Fighter, billed by its advocates as the next — by their count the fifth — generation of air-to-air and air-to-ground combat aircraft. Claimed to be near invisible to radar and able to dominate any future battlefield, the F-35 will replace most of the air-combat aircraft in the inventories of the U.S. Air Force, Navy, Marine Corps, and at least nine foreign allies, and it will be in those inventories for the next 55 years. It’s no secret, however, that the program — the most expensive in American history — is a calamity.

[. . .]

How bad is it? A review of the F-35′s cost, schedule, and performance — three essential measures of any Pentagon program — shows the problems are fundamental and still growing.

First, with regard to cost — a particularly important factor in what politicians keep saying is an austere defense budget environment — the F-35 is simply unaffordable. Although the plane was originally billed as a low-cost solution, major cost increases have plagued the program throughout the last decade. Last year, Pentagon leadership told Congress the acquisition price had increased another 16 percent, from $328.3 billion to $379.4 billion for the 2,457 aircraft to be bought. Not to worry, however — they pledged to finally reverse the growth.

The result? This February, the price increased another 4 percent to $395.7 billion and then even further in April. Don’t expect the cost overruns to end there: The test program is only 20 percent complete, the Government Accountability Office has reported, and the toughest tests are yet to come. Overall, the program’s cost has grown 75 percent from its original 2001 estimate of $226.5 billion — and that was for a larger buy of 2,866 aircraft.

At those prices, there are few allies who will be able to afford them — Canada clearly not among them.

April 29, 2012

Do you read the daily stock market commentaries? Don’t bother

Filed under: Cancon, Economics, Media — Tags: , , — Nicholas @ 00:04

I don’t mean the ups-and-downs of the market … if you’re invested in the market, it behooves you to pay a bit of attention now and again. No, what I mean are the interpretations of what’s happening in the market and what is or isn’t driving it. Canadian Couch Potato has a good summary:

I remembered the joke this morning when I read the Financial Post’s daily market commentary: “The S&P 500 added more than 2% in the two previous sessions as immediate concerns over rising yields in Spain and Italy ebbed and on bets the Chinese GDP data would surprise on the upside.”

This commentary can sound so knowledgeable and wise. But to suggest that daily market movements can be explained in such simple cause-and-effect terms is laughable. If you want proof, all you need to do is read the commentary every day. You’ll just as often see statements like this: “The S&P 500 shed more than 2% in the two previous sessions despite immediate concerns over…”

It can’t work both ways: either these events affect daily stock prices, or they don’t. Once you accept this, you realize that commentary linking the S&P 500 to surprising Chinese GDP data sounds a lot like the joke about Katarina Witt and Billy Martin.

Here’s my own version of the daily market report: “The S&P 500 added more than 2% during the last two sessions because of an incredibly complex and largely random combination of factors that cannot possibly be distilled into one sentence. Analysts expect gains to continue during the second quarter, but since this already priced into the markets, no one should give a fiddler’s fart what they think. Meanwhile, money managers have released their forecasts for the year, which will be widely read and acted upon, despite the fact that their previous forecasts were dead wrong. Tune in tomorrow for more of the same. In the meantime, stick to your long-term plan.”

H/T to Terence Corcoran for the link.

April 27, 2012

Colby Cosh on the Alberta election results versus the pollsters

Filed under: Cancon, Media, Politics — Tags: , , , , — Nicholas @ 12:42

Most of the national press live and work in either Ottawa or Toronto. Neither location is a good vantage point for figuring out what is happening in the rest of the country:

One point three. Twelve. Fourteen. Seventeen. Eight, seven, seven, six, eight, seven, ten, nine, nine . . . two.

That’s a word picture of the polls taken in the run-up to April 23’s Alberta election, starting with a Leger survey for which interviews took place April 5-8. The numbers represent the Wildrose party’s estimated province-wide lead over the incumbent Progressive Conservatives. No public poll taken by a respectable firm during the campaign had the Wildrose behind the PCs. All pollsters agreed that at least a narrow Wildrose majority government was likely. Reporters in Eastern Canada dutifully filed “Wildrose wins” copy for the April 24 morning papers, believing that the outcome was certain.

And then came the shocking result of the election itself, arriving at the end of the mathematical sequence like some indecipherable symbol from a lost language:

Minus nine point six.

Michael Ignatieff’s incautious remarks prove he was the wrong leader for the Liberal party

Filed under: Britain, Cancon, Media — Tags: , , , , — Nicholas @ 10:05

Matt Gurney on the media kerfuffle over Michael Ignatieff’s perhaps-quoted-out-of-context remarks on Quebec and separation:

Michael Ignatieff is not entirely right when he claims his now infamous remarks on the inevitability of Quebec’s independence, made during a BBC interview discussing Scotland’s possible exit from the United Kingdom, were taken out of context. He is correct that the sound bites that aroused so much media interest in Canada did not do justice to the full interview. But, in the final analysis, he did indeed say, in clear terms, that Canada and Quebec are essentially two counties, that they have little to say to each other and that Quebec is at a “way station” on its inevitable road to full sovereignty. Ignatieff, a brilliant man whose political instincts remain as faulty as ever, may regret saying what he did, but he did say it.

Separatist politicians welcomed his comments, as it “confirms” that Quebec’s independence is inevitable. Federalist politicians, particularly those unkindly disposed toward the Liberals, slammed Ignatieff, and the party he led for good measure. It was all premised upon the idea, whether sincerely believed by Ignatieff’s critics or not, that his comments may in some way encourage Quebec to leave.

That’s unlikely. But it might — just might — hasten along the day when the Rest of Canada (the ROC, as it’s called) decides to rid itself of Quebec.

Ignatieff described the situation we face as Quebec and Canada having nothing to say to each other. That’s not exactly it. It’s not that we don’t have anything to say, it’s just that we don’t have anything in common. And the more we talk to each other, the clearer that becomes. But that growing distance between Quebec and the ROC is not, as Ignatieff described it, a “contract of mutual indifference.” If it was, that would be fine. But that isn’t the system we built. Quebec’s indifference to the ROC comes at a cost — almost $7.4-billion in transfers from other Canadian provinces a year. That’s effectively half of the total sum dispersed through the equalization process. That’s not indifference, that’s bribery. And the price Quebec is willing to settle for is not necessarily the price the ROC will be willing to pay indefinitely.

April 26, 2012

Canada’s strange and imperfect approach to the abortion debate

Filed under: Cancon, Health, Law, Media — Tags: , , — Nicholas @ 08:40

It’s a highly contentious topic that nobody really wants to tackle (well, no politician anyway). Canada has had no abortion laws on the books, and just the hint that someone wants to bring some in is cause for panic in certain quarters:

Canada’s “consensus” on our unlimited abortion licence — any time, for any reason, fully funded by tax dollars — is a strange one. First of all, it’s not really a consensus, as only a minority of Canadians, when polled, support the extreme position we currently have.

Yet the faux-consensus is apparently so essential that any attempt to moderate Canada’s abortion enthusiasm is thought to be unpatriotic, as if adopting, say, French or German abortion policies would be to accede to the most retrograde social policies imaginable. At the same time, the faux-consensus is so fragile that every attempt must be made to prevent any discussion about it.

This odd consensus produces odd behaviour. This week, Conservative backbench MP Stephen Woodworth has a private member’s motion coming up for debate in the House of Commons. Given that Stephen Harper is committed to maintaining the status quo, pro-life MPs must resort to nibbling around the edges of issues that perhaps, one day, under certain circumstances, might lead to questions being asked about why Canada has the most extreme abortion licence in the world, save for China, where abortions are sometimes compulsory.

April 25, 2012

Complaint submitted to CRA over the David Suzuki Foundation’s charitable status and partisan political activity

Filed under: Cancon, Law, Media, Politics — Tags: , , — Nicholas @ 08:56

It’s been an open secret for years that some organizations with charitable status under the Canada Revenue Agency’s rules are stepping over the line with regard to partisan political activities. A complaint has been lodged with the CRA over the David Suzuki Foundation on these grounds:

The David Suzuki Foundation on Tuesday became the target of a complaint to the Canada Revenue Agency, just days after its namesake co-founder stepped down amid heightened tensions between environmental charities and the Conservative government.

EthicalOil.org, a non-profit organization that promotes oil from Canada and other democracies, sent a letter to the agency asking it to investigate whether the David Suzuki Foundation is breaking rules that pertain to political activity. Registered charities are allowed to devote only a small fraction of their resources to political activity, although they can never be partisan.

“If you find the Suzuki Foundation is in contravention of the CRA rules, then we request that you consider whether the Suzuki Foundation should have its charitable status revoked or otherwise be sanctioned,” EthicalOil.org said in its 44-page letter, which was drafted by Calgary-based JSS Barristers and obtained by the National Post.

April 24, 2012

Colby Cosh on the “Alberta surprise”

Filed under: Cancon, Media, Politics — Tags: , , , — Nicholas @ 08:53

From his most recent column at Maclean’s:

An Alberta astronaut returning from Titan and seeing the result of last night’s election would say “Meh, so what else is new? The PCs carried 61 of 87 seats? Kind of an off year for them, I guess.” Yet the ostensibly boring, familiar outcome wrong-footed much of the media and absolutely all the pollsters. Even PC insiders, correctly detecting a last-minute shift away from the Wildrose Party heirs-presumptive, envisioned a much smaller vote share than the 44 per cent Alison Redford’s party achieved. The public polling firms all botched the job, with none forecasting anything but a Wildrose majority even on the final weekend.

The Wildrose Party’s final count of 17 seats must surely leave its braintrust, heavily stocked with Conservative Party of Canada veterans, obliterated with horror. The CPC has built a pretty good electoral machine, but as old Ralph Klein hand and Wildrose supporter Rod Love reminded CBC, the Alberta PC brand is the most successful in the country. He probably could have gone even further afield if he wanted to. (On August 24, 2014, the PCs will officially become the longest continuously serving government in the annals of Confederation.) In 1993 the PCs were in trouble late, but succeeded in outflanking a popular Liberal opposition and running against their own record. They did it again in 2012. Redford succeeded in making herself the “change” candidate — though not without help from the Wildrose insurgents, who suffered late “bozo eruptions” of the sort the CPC itself has long since succeeded in extinguishing.

Update: Even Colby can’t seem to avoid the “Ten things” meme:

1. Proportional representation just won itself a whole passel of new right-wing fans.

2. Alberta Liberal morale remained high throughout an election in which pollsters warned continually of disaster. And the pollsters proved to be almost exactly right about this (if nothing else). Yet even as the mortifying results rolled in, Alberta Liberal morale still remained high. Then their egomaniac not-really-Liberal disaster of a leader, Raj Sherman, won his seat by the skin of his teeth. This means he will not have to be replaced unless an awful lot of people smarten up fast. Alberta Liberal morale after this event? Easily, easily at its highest point in ten years. “Please, sir, may I have another?”

[. . .]

5. Those who did boycott the Senate election seem awfully proud of themselves, because it was a “meaningless” election. Why, one wonders, does it have to be meaningless? The “progressive” parties could have agreed on a single Senate candidate in advance; if they had done so, that candidate would certainly have ended up first in the queue, and provided an excellent test of Stephen Harper’s integrity, which I am told is much doubted.

The problem is that Harper might pass the test, you say? Then what’s the harm? You get some smart, popular left-wing independent speaking for Alberta in the Senate? That’s bad for “progressives” how?

I’m still waiting for the definitive post-election analysis of why all the polls were so far off: I didn’t see a single poll in the last two weeks of the election that didn’t have Danielle Smith’s Wildrose Party in clear majority territory. Nobody was predicting another PC victory in that time period (or if they were, the national media wasn’t picking it up).

April 21, 2012

Argentina: Canada without the boring politics and grey politicians

Filed under: Americas, Cancon, Economics, Politics — Tags: , , , — Nicholas @ 09:58

Robert Fulford sees lots of similarities between Argentina and Canada, except the one difference that makes all the difference:

In some ways it’s much like Canada, a huge one-time colony with a talented population and endless natural resources — arable land, oil and gas and much else.

Except it is not like Canada. It doesn’t work. And the reason it doesn’t work is that it lacks a reliable, careful government, not subject to sudden bouts of hysteria. Argentina has few of the boring politicians who irritate people like Sid.

Public life in Argentina expresses itself through spasms of showmanship, braggadocio, paranoia and demagoguery. It’s the land of the eternal crisis, where a military coup is never unthinkable.

Argentina’s many economic failures, generation after generation, are self-created, politically induced. In all the world there’s no more obvious example of a nation that has squandered, through flawed governance, the riches provided by nature.

This week Cristina Fernández de Kirchner, President of Argentina, and the widow of the last president, announced she’s grabbing YPF, the country’s biggest energy company, taking it from Spain’s Repsol. Cristina, as she’s usually called in Argentina, thinks she can run YPF better than the Spanish. Of course the Spanish are furious and will sue as well as blacken Argentina’s name wherever possible. What Cristina has announced is a brazen, heedless act, with nothing to recommend it but high-handed nationalist fury.

Yet Cristina believes that when you encounter economic trouble, the best course is to strike out against something foreign. At the moment she’s also making anti-British noises, agitating to annex the Falklands Islands, which Argentina seized in 1982 and had to give back when it lost the war with the U.K. Somehow the Falklands (called the Malvinas in Argentina) are linked with the oil-company seizure as nationalist issues. A T-shirt has appeared on Cristina’s supporters: “The Malvinas are Argentine, so is YPF.”

“Alberta appears headed for its fourth change of government in its 107-year history”

Filed under: Cancon, Politics — Tags: , , — Nicholas @ 09:18

Lorne Gunter in the Edmonton Sun on the last public opinion poll numbers before Monday’s election:

Alberta appears headed for its fourth change of government in its 107-year history. The Tories’ 41-year rule seems set to end on Monday.

Wildrose still leads the Tories by 10 points, 41% to 31%.

Wildrose has fallen five points since last week – not surprising, perhaps, given the battering the party took early in the week when two of its candidates badly fumbled issues of gay rights and racism.

What is perhaps surprising, though, is that the Tories have not been the only beneficiaries of Wildrose’s tough week. While Premier Alison Redford and crew rose two percentage points between Week 3 and Week 4, so too did the Alberta Liberals under Raj Sherman. The NDP under Brian Mason also climbed a point.

April 20, 2012

Confused about the F-35 program? Scott Feschuk will help you

Filed under: Cancon, Government, Humour, Military — Tags: , , , — Nicholas @ 12:51

No, really:

What exactly is an F-35?

It’s a new fighter jet being manufactured by Lockheed Martin. Its full name is the Joint Strike Fighter F-35 Lightning II. We probably shouldn’t be at all concerned that this sounds like something a little boy would name his tricycle.

What’s this got to do with Canada?

All the cool countries are getting F-35s, so we’re buying some too. In fact, our Department of National Defence wanted this hip new toy so badly that it structured the procurement process to ensure no other jet could win. In 2010, the Conservative government dutifully announced plans to purchase 65 F-35 fighters, at a cost of $9 billion. On one hand, that sounds like a lot of money, but on the other hand, why do you hate our troops, first hand?

[. . .]

Doesn’t $9 billion seem like a reasonable price for basically a whole new air force?

Did the government say $9 billion? It meant $15 billion, by which it actually meant $25 billion.

Wait — why have the numbers changed?

That meddling Auditor General of ours happened to notice that National Defence low-balled the total cost of the F-35 program by the teeny-tiny amount of ten thousand million dollars.

Defence Minister Peter MacKay said this was “a matter of accounting.” What he meant was that he and his cabinet colleagues were “a-counting” on Canadians not catching on to the fact they were concealing some $10,000,000,000 in costs.

That’s a lot of zeroes.

I’ll thank you not to refer to members of the federal cabinet that way.

April 19, 2012

“Ontario is on track to have the highest electricity prices … in North America”

Filed under: Cancon, Economics, Environment, Government, Technology — Tags: , , , — Nicholas @ 10:08

Scott Stinson explains why Ontario consumers are facing huge price hikes for electricity over the next 18 months:

It’s no secret that Dalton McGuinty’s Liberals have placed a huge bet on growing a green-energy sector by subsidizing the production of renewable energy. Although energy bills have been steadily rising since the party took power in 2003 — the average cost of a kilowatt of electricity was more than 30% higher last year than it was five years ago — the Liberals have somewhat masked this fact by handing a 10% rebate back to consumers with the euphemistically named Clean Energy Benefit, which also happens to utterly contradict the conservation incentive that should be part of a switch to a greener grid.

Electricity costs, though, are set to spike.

“Ontario’s power system is fuelled by consumers to the tune of about $16-billion a year,” says Tom Adams, an energy consultant who has written extensively on electricity and environmental issues. “That number is headed for $23-billion or $24-billion soon, by 2016,” he says in an interview.

[. . .]

Mr. Adams notes that when the Green Energy Act, with its guarantees of above-market rates for wind and solar electricity known as feed-in-tariffs (FIT), was introduced in 2009, the Liberals said electricity costs would only be impacted by about 1% annually. We now know that rates for consumers are rising by 9% a year. “The government says about half of that is due to Green Energy, but if they were being honest it would be more than that,” Mr. Adams says.

The coming increases, meanwhile, which can partly be attributed to locked-in contracts for renewable energy, are also a result of a host of other factors, from new generation capacity being introduced to phase-out costs of existing facilities to new transmission capacity being added to the energy grid.

The (richly deserved) end of the Tory era in Alberta

Filed under: Cancon, Media, Politics — Tags: , , , — Nicholas @ 09:53

Unless all the polls are way off, the election in Alberta will see the eternal rule of the Progressive Conservatives finally come to an end. But as desperate times call for desperate measures, the Tories have unleashed the last of their secret weapons to hold back the Wildrose barbarians — perhaps the most embarrassing political video ever posted. David J. Climenhaga saves you the pain of watching the video:

If you have any doubts left there are only four more sleeps before the end of the Progressive Conservative Era in Alberta, look no further than the video and website called “I never thought I’d vote PC.”

Whether or not the PCs under Alison Redford had anything to do with this vain effort to encourage hip, edgy young people to vote for the clapped out Conservative party in a last-ditch effort to prevent a Wildrose Apocalypse, there could be no surer sign of the imminent demise of the once mighty Tory dynasty.

I mean, really, telling young voters you understand why they’d “rather gouge their eyes out than vote Conservative” in an effort to get them to vote Conservative is just … embarrassing.

[. . .]

After this pathetic excuse for a Tory campaign, the tattered remnants of the Alberta Conservatives have less dignity left than Saddam Hussein when he was hauled out of his hidey-hole in Tikrit by the soldiers of the U.S. Fourth Infantry Division! This little video squib is just the final excruciating evidence before our eyes notice that the moribund Conservatives’ best-before date has passed.

I’m not kidding about the quality of the video — I couldn’t make it past the first minute before feeling too humiliated on behalf of the folks who made it and I had to shut it off. If you want to watch it in all its cringe-inducing glory, David has it embedded on his site.

Pentagon sleuths foil Anglo-Canadian military plan

Filed under: Cancon, Humour, Military, USA — Tags: , — Nicholas @ 00:09

The story of Ensign Chuck Hord’s memorial portrait in the Pentagon, with both British and Canadian military angles:

In a Pentagon hallway hung an austere portrait of a Navy man lost at sea in 1908, with his brass buttons, blue-knit uniform and what looks like meticulously blow-dried hair.

Wait. Blow-dried hair?

The portrait of “Ensign Chuck Hord,” framed in the heavy gilt typical of government offices, may be the greatest — or perhaps only — prank in Pentagon art history. “Chuck Hord” can’t be found in Navy records of the day. It isn’t even a real painting. The textured, 30-year-old photo is actually of Capt. Eldridge Hord III, 53 years old, known to friends as “Tuck,” a military retiree with a beer belly and graying hair who lives in Burke, Va.

[. . .]

Capt. Hord at the time was director of the Multinational Interagency division, a new Pentagon office designed to coordinate military logistics between the U.S. and its closest allies.

Office colleagues say Capt. Hord developed close bonds with his British, Canadian and Australian counterparts. Their office boasted its own beer fridge.

Several of Capt. Hord’s work colleagues attended the 2004 party, including a British captain who smuggled the portrait into his car and put it on display at the office. Capt. Hord, amused, called it an act of “buffoonery.”

[. . .]

Back on the wall in the office, visitors often asked who it depicted. “They all looked at it and said, ‘Man, what year was that? It looks like the 1800s,’” said Canadian Lt. Col. Brook Bangsboll.

That was the light-bulb moment. On one of his last days at the Pentagon, Lt. Col. Bangsboll went to a jewelry shop to have a brass plaque engraved, egged on by colleagues and co-conspirators. “We didn’t know what to do so we said, ‘Let’s just lose him at sea,’” Lt. Col. Bangsboll said. “It makes it interesting and kind of mysterious.”

He kept the circumstances of the ensign’s death vague because he thought some nosy Navy historian would spot the ruse if the plaque cited a specific battle.

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