Quotulatiousness

April 23, 2013

What we know (so far) about the would-be Via bombers

Filed under: Cancon, Law, Railways — Tags: , , , , , , , — Nicholas @ 09:18

Maclean’s has a summary pulling together files from Nicholas Köhler, Charlie Gillis, Michael Friscolanti and Martin Patriquin on what is known about the two men arrested yesterday in a plot to commit an act of terror on a Canadian passenger train:

One of the men, Raed Jaser, is believed to have grown up in a Palestinian family with Jordanian roots. Court records seem to indicate he went on to a troubled history in Toronto, where authorities arrested him after a months’-long investigation they say ultimately leads back to al-Qaeda elements in Iran.

Although he is not a Canadian citizen, Jaser, 35, appears to have been in Ontario for at least two decades.

In October 1995, a man with the same name and year of birth was criminally charged in Newmarket, Ont., with fraud under $5,000 (the charge was withdrawn a year later). In December 2000, a week after his 24th birthday, Jaser was arrested and charged again, this time with uttering threats. Although court records show he was convicted of that charge, it’s not clear what sentence he received.

[. . .]

Details about the other man police say was involved in the plot, [Chiheb] Esseghaier, a resident of Montreal, are also coming into focus. A highly trained engineer, he had the resumé of an academic poised to go places.

As recently as last month he was publishing research papers.

The March 2013 edition of journal Biosensors and Bioelectronics published a paper on advanced HIV detection by Esseghaier, Mohammed Zourob and a fellow PhD student named Andy Ng.

According to his CV, Esseghaier was born in Tunisia. He received an engineering degree from Institut Tunisia’s National des Sciences Appliquées et de Technologie in 2007, with his masters degree following in 2008. He then moved to Université de Sherbrooke to research “SPR biosensor and gallium arsenide semi-conductor biofunctionnalization.” In November 2010, he joined Institut National de la Recherche Scientifique (INRS), a graduate institution associated with the Université du Québec.

April 19, 2013

“Recklessly normal” band inducted into Rock and Roll Hall of Fame

Filed under: Cancon, Media — Tags: , , — Nicholas @ 00:01

Jessica Allen on Rush:

The first time Maclean’s wrote about Rush was in our July 12, 1976, issue. Back then, Geddy Lee was 22 and the band’s music sent “teen-age fans into paroxysms of ecstasy.” But offstage, the three members were described as “recklessly normal.”

Not much has changed.

Rush’s fans are, well, unique. It was their ardour, after all, that persuaded the Rock and Roll Hall of Fame to include Rush among its 2013 inductees. Tonight, Dave Grohl and Taylor Hawkins of the Foo Fighters will present Rush at the Hall of Fame ceremony in Los Angeles 10:30 p.m.

[. . .]

In 1997, Rush was the first rock band to be appointed officers of the Order of Canada since the national honor system, which recognizes “significant achievement in important fields of human endeavor” was created in 1967.

When asked about why it took so long for the band that produced 19 records in a row to reach gold or platinum certification in Canada to be inducted into the Hall of Fame, joining the ranks of bands like Abba, Aerosmith, The Talking Heads and Madonna, Lee suggested that it might have to do with the style of music they play: “Progressive rock is not accepted by this group of people who make this decision. Yes are not in the Hall. That’s an error. Deep Purple are not in the Hall. That’s an error. Moody Blues are not in the Hall. So prog-rock is viewed as a kind of lesser art form by the powers that be.”

April 16, 2013

Six political talking points on international trade that are myths

Filed under: Cancon, Economics, Media, Politics — Tags: , , , — Nicholas @ 11:32

In Maclean’s, Stephen Gordon collects six of the most common myths politicians use to justify trade distorting policies:

1) Exports are good. Not true; exports are the costs we pay for engaging in international trade. Diverting domestic productive resources to producing more things for foreigners doesn’t increase our standards of living.

2) Imports are bad. This is point one restated: imports are the benefits from trade. The reason we engage in international trade is to obtain goods and services more cheaply than we can produce them for ourselves.

3) Trade deficits are bad. I went though this at length in this post: noting that a country has a trade deficit (or, more properly, a current account deficit) is the same thing as noting that domestic investment is larger than domestic savings. It’s not obvious why this is necessarily a bad thing.

4) Trade deficits are a sign of a slowing economy. The Canadian trade balance is generally counter-cyclical: falling during expansions and rising during recessions. A trade deficit is standard fare for Canadian expansions, not something to get concerned about.

5) Liberalized trade increases employment. Again, this is point one restated. Liberalized trade may increase the number of workers in certain export-oriented sectors. But the effect on total employment in the economy is zero.

6) Liberalized trade reduces employment. Again, this is point two restated. Liberalized trade may reduce the number of workers in certain sectors vulnerable to foreign competition. But the effect on total employment in the economy is still zero.

April 14, 2013

Alternet: Ten facts about state lotteries and the poor

Filed under: Cancon, Economics, Government, USA — Tags: , , , — Nicholas @ 11:20

While I don’t object to lotteries existing, I still don’t think governments should be running them, but they’re involved in most states and provinces:

State lotteries amount to a hidden tax on the poor. They eat up about 9 percent of take-home incomes from households making less than $13,000 a year. They siphon $50 billion a year away from local businesses — besides stores where they’re sold. And they are encouraged by state-sponsored ads suggesting everyone can win, win, win!

State lotteries, which once were illegal, now exist in most states. What many people don’t know about lotteries is that they prey on those who can least afford it; most people never win anything big; and 11 states raise more money from lotteries than from corporate taxes. Beyond the moral, mental health or religious debates over gambling, lotteries are another example of how society preys on the poor and the working-class.

Let’s look at why state lotteries do far more harm than good — especially at the bottom of the economic ladder.

[. . .]

4. They hit the poorest the hardest. “Simply put, lotteries take the most from those who can least afford it,” wrote economist Richard Wolff. “Instead of taking those most able to pay (the principle of federal income tax in the U.S.), state leaders use lotteries to disguise a regressive tax that falls on the middle and even more on the poor.” A 2010 study found that households with take-home incomes of less than $13,000 spent on average $645 a year on lottery tickets, which is about 9 percent of their income. The reason people play lotteries varies, but it mixes hopes and dreams with desperation: poorer people see it as a slim chance to radically improve their standard of living.

5. Communities of color, less-educated spend the most. Numerous academic studies have found that non-whites spend much more on lotteries than whites, with one study putting the figure at $998 for African Americans and $210 for whites. Household with incomes under $25,000 spent an average of about $600 a year, while $100,000-plus earners spent about $300 year. People who never graduated from college spent the most, about $700 a year, while graduates spent under $200.

Of course, being Alternet, we have to have at least one of our traditional straw men to knock down:

7. They give the wrong message about solving poverty. Lotteries reinforce libertarian political messages, suggesting that everyone needs to take individual action in response to society’s inequities, even though the government has helped well-connected individuals, businesses and industries become rich for decades. This easy money for states diverts political debate away from society-wide analyses and solutions to what prevents people from moving up the economic ladder. Instead, it pushes individuals in marginal circumstances toward gambling as their hope for gain.

I’m not sure what is “libertarian” about corporate welfare, crony capitalism, and other economic distortions on the part of government to favour certain people over others, but setting aside the slur, this is otherwise a valid point. Encouraging people to take individual action? I don’t see buying a lottery ticket as falling into that category.

April 11, 2013

Akaash Maharaj: Can the Liberal Party rediscover its ideals?

Filed under: Cancon, Liberty, Politics — Tags: , , , , — Nicholas @ 10:28

In the Globe and Mail, Akaash Maharaj wonders if the LPC’s long time in office — and the resulting accretion of power-seekers rather than idealists — can be atoned for in time to regain the hearts (and votes) of Canadians:

There is no denying that the Liberal Party’s long association with domination made it a magnet for individuals drawn to power rather than to public service, a tool of Liberals of convenience rather than Liberals of conviction. The question that will confront its next leader is not whether the Liberal Party can rebuild its fabled political machine into one capable of waging an effective campaign; it is whether it can rediscover its ideals and return as a party deserving of our country’s trust.

If it is to have any hope of doing so, it will need to find the courage to resist the lure of comforting self-deceptions and the seduction of recent polls.

The party’s decline at successive elections was not due to some lapse in judgment by a rueful electorate that yearns to repent at the next opportunity. It was not a want of resources that can be remedied by a new crop of bagmen or ward heelers. It was not an absence of messianic personalities whose charisma could substitute for grassroots renewal.

The Liberal Party instead received a calculated rebuke from Canadians against the divisions and hubris they saw gnawing at it. It was dismissed by an electorate who concluded that the Liberal Party was no longer willing or able to deliver liberal policies or governance.

He then goes on to enumerate what the Liberal Party should be — and it’s a pretty fair list — but not what most people would associate with the Liberal brand, unfortunately. Since Stephen Harper has co-opted the position the Liberals used to occupy (both in the political and philosophical senses), there’s definitely room in the Canadian political spectrum for a party that believes “liberty is the highest political good, and that as a result, the first duty of government is to seek the greatest liberty for the one that is compatible with liberty for all.”

A party that truly believed and worked towards that would be a Liberal Party worth supporting. Maharaj seems to want the Liberals to become more libertarian … and I think that would be a great improvement.

Ontario’s Green Energy Act is pushing the province to the top … of the retail electricity price table

Filed under: Business, Cancon, Economics, Government — Tags: , , , , — Nicholas @ 08:57

Ontario loves to be at the top of rankings, but Ontario electricity users should be upset that we’re surging to the top of this particular ranking:

Ontario’s Green Energy Act (GEA) will soon put the province at or near the top of North American electricity costs, with serious consequences for the province’s economic growth and competitiveness, concludes a new report from the Fraser Institute, an independent, non-partisan Canadian think-tank.

“Already, the GEA has caused major price increases for large energy consumers, and we’re anticipating additional hikes of 40 to 50 per cent over the next few years,” said Ross McKitrick, Fraser Institute senior fellow and author of Environmental and Economic Consequences of Ontario’s Green Energy Act.

“The Ontario government defends the GEA by referring to a confidential 2005 cost-benefit analysis on reducing air pollution from power plants. That report did not recommend pursuing wind or solar power, instead it looked at conventional pollution control methods which would have yielded the same environmental benefits as the GEA, but at a tenth of the current cost. If the province sticks to its targets for expanding renewables, the GEA will end up being 70 times costlier than the alternative, with no greater benefits.”

[. . .]

The study shows that the GEA’s focus on wind generation is particularly wasteful: 80 per cent of Ontario’s wind-power generation occurs when electricity demand is so low that the entire output is surplus and must be dumped on the export market at a substantial loss. The Auditor General of Ontario estimates that the province has already lost close to $2 billion on surplus wind exports, and figures from the electricity grid operator show the ongoing losses are $200 million annually.

The wind grid is also inherently inefficient due to the fluctuating nature of the power source. The report calculates that due to seasonal patterns, seven megawatts of wind energy are needed to provide a year-round replacement of one megawatt of conventional power.

“Consequently, the cost of achieving renewable energy targets for the coming years will be much higher than the Ontario government’s current projections,” McKitrick said.

Ontario’s LCBO workers vote in favour of a strike

Filed under: Bureaucracy, Cancon, Government — Tags: , , , , , — Nicholas @ 08:50

Michael Pinkus is looking forward to a potential LCBO strike:

Call me an anarchist but I want the LCBO to go on a nice, big, long strike. And by the time you read this newsletter I am 100% sure that the sheeple of the LCBO will have given their bargaining team the go ahead for strike action. Now the LCBO’s contract was up on March 31, 2013 — which means currently the guys and gals roaming, stocking and generally keeping track of the aisles are without a legal contract with the provincial liquor board. I’m not about to get into the nitty-gritty of the contract negotiations, but when I read in the Liquor Board Employees Division (LBED) Bargaining Bulletin: “The offer we received from management can only be described in one word: Outrageous!” — well I just felt that I had to look a little deeper to see how the LCBO was screwing their own people (which is a nice change from the people of Ontario they screw daily).

What outrage would I find on the pages of the LCBO’s proposal? Are they locking the doors and throwing employees out on their ears? Are they proposing actual punishment for selling to minors (like the sting David Menzies did in July of 2012)? Will there be repercussions for doing a bad job, breaking the law, real penalties?

Now I have met, had dealings with, and actually, once upon a time, worked alongside some very good LCBO employees, most of them casual part-timers — but I can tell you that for every one good one there’s two that are lazy, surly and just generally people you don’t want to deal with in a retail situation — and sadly, those are the one’s you are likely to remember. So from the LBED Bargain Bulletin dated March 1, 2013 here are 2 of the 9 crazy demands the LCBO is making of their employees and the Union’s response to those “outrageous” proposals (I highlight my favs, but you can read the full bulletin here):

[. . .]

But who really suffers from an LCBO strike? California, Spain, Italy, France, Australia, Chile, in other words import wines and liquor producers, who can ONLY sell through the Province run monopoly, and they’ll be demanding the LCBO settle so their products get into the hands of Ontarians instead of sitting idly in warehouses collecting dust. Meanwhile local producers could see a boon as Ontarians thirst for wine is not met by the LCBO but instead by in-province wineries. Tourism to wine producing areas should also see an uptick; instead of visiting Grandma on a Saturday afternoon the family would pile into the car (with Grandma) to tour the highways and bi-ways of Ontario wine country. A long LCBO walk could mean that Ontarians finally get the taste for their homegrown wines en masse and will then demand greater access — one weekend away is quaint, but having to make the trek each and every weekend may prove too much. And with that kind of demand we could see movement in this province towards a freer market system with independent and corner wine stores. Maybe the government will get tired of having to pay all those wages, negotiating with an inflexible union and decide to sell off the LCBO — preferring instead to reap the rewards from taxes instead of paying the price of labour unrest … sigh, wouldn’t that be nice?!? As for the employees, the good ones will have no trouble finding a job in the public sector [I think Michael means private sector here], many in the same kind of newly created positions. The others? Well they’ll just go back to ditch digging where they belonged in the first place.

April 10, 2013

Despite government denials, the iPod duty is alive and well

Filed under: Bureaucracy, Business, Cancon, Government — Tags: , , , , — Nicholas @ 08:13

Expect to pay more for your iPods and similar devices, says Mike Moffatt in the Globe and Mail:

Last week, I wrote that the federal government’s changes to tariffs in Budget 2013 would result in new import duties on models of MP3 players and three of four models of Apple iPods. The tariff changes involve changing the tariff status of 72 countries, so music devices manufactured in China, Indonesia and Malaysia will pay a 5 to 6 per cent tariff rather than their “preferential” rate of zero, starting in 2015.

The article caused quite a stir, and the government denied it was true. A spokeswoman for Finance Minister Jim Flaherty said the article was wrong. “Music devices like iPods are imported into Canada duty-free under a long-standing special tariff classification from 1987,” she wrote. That classification, which was unaltered by the recent budget, is known by its number: 9948.00.00. (We’ll call it 9948 for short.)

However, a close reading of the relevant document, Tariff Item 9948.00.00 (9948 for short), shows that to qualify for the special classification, the importer must meet strict criteria.

My position that importers cannot meet the requirements of 9948 rests on three straight-forward premises:

1. It appears that sellers of iPods and MP3s are required to collect “end use certificates” from the final consumer on each sale, and be able to present these to the CBSA if audited.

2. The 9948 requirement for “end use certificates” appears to be actively enforced by the CBSA.

3. Retailers cannot reasonably collect these certificates from consumers when they buy an iPod.

These three, put together, make retail sales of iPods and MP3 players ineligible for 9948 and therefore subject to an iPod tariff. What follows is my evidence.

The importer must maintain a database (what Moffatt calls “an iPod registry”) of personal information on the final purchasers of the devices, but there is no matching legal requirement on the consumer to provide this personal information (which would probably violate privacy laws in any other context).

The CBSA’s Memorandum D10-14-51 requires that consumers attest that they will use the iPod in a manner in which it is “physically connected” to a computer (though not necessarily permanently so, according to the memo) and will “enhance the function” of that computer. The consumers must attest that their devices will be “solely used for the purpose for which they were imported.”

If a consumer uses a device in a manner not covered by 9948 during the first four years of ownership, the importer is required to “make a correction to the declaration of tariff classification and pay any applicable duties and taxes.”

This rule is not trivial. CITT Appeal No. AP-2008-023 discusses the need for sellers claiming the tariff reduction (here Code 2101, the predecessor to 9948.00.00) to show that the end consumer is using the goods in the manner described on the certificate.

But there is no practical way an importer could possibly verify and ensure that that the retailer’s customers have not changed how they are using iPods and MP3 players.

April 8, 2013

“‘Cash for sick days’ doesn’t have the same populist appeal”

Filed under: Cancon, Economics, Education, Government — Tags: , , — Nicholas @ 12:52

In the Globe and Mail, Barrie McKenna explains why there’s a widening fairness gap between public employees and everyone else:

The seven-month-long dispute [between the Ontario government and public school teachers] has exposed something much more disquieting: the widening fairness gap in the Canadian workplace. Thousands of public sector workers enjoy high salaries, guaranteed pensions and special perks that other Canadians will never get, regardless of how long or hard they work.

Public sector workers argue they’ve earned these gains through decades of tough negotiations with employers. And once promised, governments should not unilaterally revoke them. Fair enough. But it’s not an argument that’s likely to sway many Canadians, who exist in a parallel universe.

The ability to bank and monetize sick days is virtually unheard of in the private sector. Less than 3 per cent of the 1,336 private sector plans in Mercer Canada Ltd.’s client database allow employees to bank sick days, according to figures supplied to The Globe and Mail. That compares to 28 per cent of the 407 government plans tracked by the benefits consultant.

No wonder Ontario teachers chanted “respect teachers, respect collective bargaining,” while they suspended school sports, plays and other extracurricular activities for millions of students in recent months. “Cash for sick days” doesn’t have the same populist appeal.

April 7, 2013

1,900 first-year psychology students versus the arrayed might of Wikipedia editors

Filed under: Cancon, Media — Tags: , , , — Nicholas @ 11:03

You know how great Wikipedia is? You know what’d make it even greater? Adding nearly 2,000 first-year university students as contributors and editors (because they do such a great job of writing research papers and citing their sources):

Steve Joordens urged the 1,900 students in his introductory psychology class to start adding content to relevant Wikipedia pages. The assignment was voluntary, and Joordens hoped the process would both enhance Wikipedia’s body of work on psychology while teaching students about the scientist’s responsibility to share knowledge.

But Joordens’s plan backfired when the relatively small contingent of volunteer editors that curate the website’s content began sounding alarm bells. They raised concerns about the sheer number of contributions pouring in from people who were not necessarily well-versed in the topic or adept at citing their research.

Discussions in the Wikipedia community became very heated with allegations that articles were being updated with erroneous or plagiarized information. Some community members called for widespread bans on university IP addresses and decried the professor’s assignment as a needless burden on the community.

April 5, 2013

Northern Quebec is the home of the world’s best gin

Filed under: Business, Cancon — Tags: , , — Nicholas @ 00:02

Or so Maclean’s says. Thanks to Canada’s odd patchwork of post-Prohibition trade restrictions between provinces, Ungava by Domaine Pinnacle is only available in Alberta, BC, and Quebec itself:

It is a difficult gin to miss. When Ungava won a Best of Show award at the prestigious World Spirits Competition last week, a judge noted its “unusual colour that helps grab your senses.” It’s perhaps the most polite way of drawing attention to Ungava’s yellow tint, about which Pinnacle president Charles Crawford is slightly more blunt. “It’s a bit like morning’s vitamin-enriched urine,” he says. His PR people prefer “sunshine yellow.”

The process by which Ungava gin is made is even more peculiar than its colour. An ice cider producer by trade, Crawford has a history of wonky tinctures — Pinnacle also produces maple-infused whiskey and a cider-brandy concoction. “Ice cider is a good product, but you can only make so much of it,” he says. “We decided to get into spirits, because there aren’t many that are uniquely Canadian.” In fact, Crawford wanted the gin to be truly, pre-colonially Canadian. He whittled down a list of 40 indigenous herbs, berries and flowers (“Nothing planted by Europeans”) to six ingredients, all found on the Ungava Peninsula in Nunavik: cloudberries; crowberries; Labrador tea; a Labrador tea cousin known as Ukiurtatuq, or “Arctic blend”; wild rosehips, which lend the gin its yellow colour; and of course juniper, without which Ungava wouldn’t be proper gin.

Every year, Crawford hires “these two guys from Kuujjuaq” (he’s unsure of their names) to pick the botanicals during Ungava’s four-week harvesting season, which usually begins in late August. The pair pack “a couple hundred kilos” of their pickings into clear, pillowy bags and send them 1,500 km straight south to Ungava’s production facility in Cowansville, about an hour’s drive east of Montreal. A neutral spirit made with locally grown corn is infused with the botanicals.

April 4, 2013

Harper Conservatives actually love big government … but on the cheap

Filed under: Cancon, Economics, Government — Tags: , , , , , — Nicholas @ 12:49

Stephen Gordon points out that the “small government” rhetoric from Stephen Harper’s Conservatives is so much hot air:

If asked, the Conservatives will tell you that they favour a smaller government that intervenes sparingly in the functioning of the market, and it’s been pretty well-established that a medium- and long-term goal of the Conservative government has been to reduce the share of Canadian GDP that is taxed and spent by the federal government. But lower taxes and lower levels of spending are not the same thing as a smaller government.

Here are the highlights (sic) of the “Strengthening the Competitiveness of the Manufacturing Sector” section of Chapter 3.2 of the budget plan:

[. . .]

  • $920 million to renew the Federal Economic Development Agency for Southern Ontario (FedDev Ontario) for five years, starting on April 1, 2014. Seriously? A slush fund economic development agency for Southern Ontario?
  • $200 million for a new Advanced Manufacturing Fund in Ontario for five years, starting on April 1, 2014, funded from the renewed FedDev Ontario. More pork to be distributed to firms that enjoy the favour of the government.
  • Building on the success of the National Shipbuilding Procurement Strategy, the Government will better ensure that purchases of military equipment create economic opportunities for Canadians by developing key domestic industrial capabilities to help guide procurement, by promoting export opportunities, and by reforming the current procurement process to improve outcomes. The Conservatives can’t even be bothered to sustain the fiction that government procurement should be aimed at obtaining the best value for the taxpayer. Public money is to be spent where politicians want to see public money being spent.

[. . .]

You don’t need a big government to interfere with markets, or to weaken property rights and the rule of law. The decision to forbid shareholders of Potash Corp from selling their holdings to BHP Billiton didn’t cost the federal government a dime. Nor did instructing banks to not offer lower mortgage rates. And then there’s the example of the government’s preference for the clumsy and heavy hand of regulation over more efficient, market-based approaches to reducing greenhouse gas emissions.

I don’t think it’s quite correct to say that the Conservatives want a smaller government. They seem happy to run a government that is as big and dumb as its predecessors — so long as it’s cheap.

Canadian public sector workers earn between 9% and 12% more than private sector workers

Filed under: Bureaucracy, Business, Cancon, Government — Tags: , , , — Nicholas @ 09:12

Once upon a time, back in the far-distant past, public sector workers got lower wages but better job security, benefits, and pensions than their private sector counterparts. Over the last few decades, the public sector wages caught up and surpassed the private sector, and if anything the benefits and pensions got better. The Fraser Institute calculates that currently there is between a 9% and a 12% premium paid to public sector workers for similar jobs (and that understates the overall differential):

Comparing Public and Private Sector Compensation in Canada examines wage and non-wage benefits for government employees (federal, provincial, and local) and private-sector workers nationwide. It calculates the wage premium for public-sector workers using Statistics Canada’s Labour Force Survey from April 2011, after adjusting for personal characteristics such as gender, age, marital status, education, tenure, size of establishment, type of job, and industry. When unionization is included in the analysis, the national public-sector “wage premium” (i.e., the degree to which public-sector wages exceed private-sector wages) declines to 9.0 per cent from 12.0 per cent.

Aside from higher wages, the study also found strong indications that Canada’s government workers enjoy more generous non-wage benefits than those in the private sector, including:

  • Pensions: 88.2 per cent of Canadian government workers were covered by a registered pension plan in 2011 compared to 26.4 per cent of private-sector employees.
  • Early retirement: Government employees retired 2.5 years earlier, on average, than private-sector workers between 2007 and 2011.
  • Job security: In 2011, 0.6 per cent of government employees lost their jobs — less than one sixth the job-loss rate in the private sector (3.8 per cent).

To ensure public-sector compensation is fair to both taxpayers and government workers, the report argues that better data collection is needed and suggests that Statistics Canada should gather data on wages and non-wage benefits more regularly and systemically than it does now. In addition, comparisons between the public and private sectors should focus on total compensation, not just wages or specific benefits such as pensions.

About one in five Canadian workers is in the federal, provincial, or local government civil service or related organizations, and only 15% of Canadians are self-employed. The vast majority of government workers are unionized, while the reverse is true in the private sector.

April 1, 2013

Canadian government pre-approves Cyprus-style haircuts for bank depositors

Filed under: Cancon, Economics, Government — Tags: , , , — Nicholas @ 09:39

Not only can it happen here, but Stephen Harper’s Conservative government is making it explicit that it will happen here:

The politicians of the western world are coming after your bank accounts. In fact, Cyprus-style “bail-ins” are actually proposed in the new Canadian government budget. When I first heard about this I was quite skeptical, so I went and looked it up for myself. And guess what? It is right there in black and white on pages 144 and 145 of “Economic Action Plan 2013″ which the Harper government has already submitted to the House of Commons.

This new budget actually proposes “to implement a ‘bail-in’ regime for systemically important banks” in Canada. “Economic Action Plan 2013″ was submitted on March 21st, which means that this “bail-in regime” was likely being planned long before the crisis in Cyprus ever erupted. So exactly what in the world is going on here? In addition, as you will see below, it is being reported that the European Parliament will soon be voting on a law which would require that large banks be “bailed in” when they fail. In other words, that new law would make Cyprus-style bank account confiscation the law of the land for the entire EU.

I can’t even begin to describe how serious all of this is. From now on, when major banks fail they are going to bail them out by grabbing the money that is in your bank accounts. This is going to absolutely shatter faith in the banking system and it is actually going to make it far more likely that we will see major bank failures all over the western world.

What you are about to see absolutely amazed me when I first saw it. The Canadian government is actually proposing that what just happened in Cyprus should be used as a blueprint for future bank failures up in Canada.

March 31, 2013

Ralph Klein, RIP

Filed under: Cancon, History, Media, Politics — Tags: , , , — Nicholas @ 09:47

In Maclean’s, Colby Cosh talks about the late former premier of Alberta:

Ralph Klein, the former premier of Alberta, has died at 70. He shall not now ever be able to collect on the vast debt of apologies he is owed by calumniators, false chroniclers, lazy pundits, and political enemies. The misunderstandings of Ralph have been copious and mostly deliberate. He is still routinely characterized as an anti-gay social conservative in league with sinister theocratic forces, even though he was personally about as churchy as an alley cat. More importantly, he took a diamond-hard line against the use of the “notwithstanding” clause after the Supreme Court wrote sexual orientation into Alberta’s discrimination law in the Vriend decision; and he insisted the public accept the court’s verdict.

He is accused of failing to maximize the public benefits of Alberta’s resource wealth and “save” oil and gas funds for the future, although government resource revenues grew more than fourfold in his 14 years as premier and the net financial position of the province improved by $43 billion. Both promptly collapsed under his bamboozled successor Ed Stelmach, and have not yet recovered to Ralphian levels. Klein is also charged with failing to pay enough conscious attention to economic diversification, a concept that served as the pretext for a hundred costly boondoggles under earlier Conservative regimes; yet somehow he succeeded in presiding over an Alberta economy whose GDP moved sharply away from energy-dependence, and which saw the emergence of previously unimaginable non-energy businesses like software maker Matrikon and game manufacturer BioWare. Whether or not you care to give an iota of credit to Klein, his rule coincided with Alberta becoming a place young technicians and entrepreneurs don’t have to be stupid not to leave.

[. . .]

There is a basic failure among diehard enemies of the Klein government to accept the evidence that his energy, privatization, and flat-tax policies increased the Alberta government’s capacity to spend and provide services — that the more we got of Klein, the safer and more lavish their cherished government entitlements appeared to be. They are not at all safe now; the profoundest irony of Klein’s demise is that it has arrived at a moment in which present premier Alison Redford faces choices like those Klein confronted when he captured the Progressive Conservative leadership in 1992.

Indeed, when Redford’s heavily obfuscated budget plans are translated into English, one sees that the next few years in Alberta must inevitably resemble the early days of Kleinism. Premier Redford is trying to protect spending on infrastructure to prevent a “deficit” in upkeep on buildings and transport, of the sort that materialized after Klein’s initial austerities. But operational spending, particularly on personnel expenses, is bound to be slashed, Klein-fashion. And the slashes will have to be all the deeper if the bridges are going to get painted. A fierce fight with the public sector (whose unfunded pension liabilities grew 80% between Klein’s last budget and Stelmach’s second) is already taking shape, with teachers, doctors, and pharmacists on the verge of all-out war over their pay envelopes. Haven’t the Klein-haters who fell over themselves to vote for internationalist, socially concerned Alison seen this movie before?

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