🇨🇦💙 One thing I know, Carney is a master of the pro forma statement. Financial projections in a macro sandstorm. Our future is in the bag.
As Head of the Bank of Canada he withstood all the US political and financial industry’s pressure to allow asset backed mortgages into Canada. We were relatively unscathed while Iceland almost went bankrupt.
As the Head of the Bank of England during Brexit, Carney said Conservative Truss’s disastrous mini-Budget, in which she planned to borrow billions of pounds to slash taxes for the rich, of creating “Argentina on the Channel” in reference to that country’s troubled economy.
Trump? The centre of everything Carney does right now is playing the weaker opponent in a battle he can’t lose. Steve Jobs once said “The most precious resource we have is time.” 🤔
Another great addition to your great work. CongratsGeezer!
Saw something beautiful today. At the hockey game between Buffalo and Boston when it was time to sing the anthems the singers mike almost immediately stopped working while singing the Canadian National Anthem. The Buffalo fans picked it up and sang the anthem loudly with vigour and happiness. A loud cheer when they finished. Its an omen. Good things are coming our way.
First thought: competent, experienced tradesmen/women who want to get out of the US, Canada may want you. (That’s just a guess.)
Second thought: virtually none of these approaches would work in the US—Congress and lobbyists would stop any of it out of their own self-interest, no money or power in it for them. (Probably deprive them of the source of funds and power they now have as it is.)
From what I read, especially in Substack, the decline in support for Trump bodes well for the Democrats to win the House and possibly (hopefully) the Senate in the mid-terms. Unless of course, Trump and his corrupt enablers find a “national emergency” excuse to justify cancelling the mid-terms.
We are so lucky here in Canada to have Mark Carney as our prime minister. Canadian voters, in the last election made a wise choice to reject Pierre Poilievre and his Conservative party. A sizeable number of Conservative supporters are commonly referred to as “Maple MAGA's”
Hopefully, the situation will change for the better in the US, and you won't need to be *so* jealous! Good wishes from Ontario, Canada.
Andrew Coyne says "Canada’s ‘New Government’ has no interest in arresting our economic decline" Mr. Carney can't win for losing a I am frustrated with the negativity.
I am particularly interested in the new Canada Strong Fund. I read the CBC article this morning complete with comments from “economists” and none of them made reference to what I feel is the main point of the program and that is to retain some portion of every Major Project as Canadian owned and to benefit from all future profits of that project in the same proportion as the contribution.
So many posts I have read complain that every big project gets sold off to American or foreign business and Canada gets nothing but the jobs and taxes. Now we can also get some of the profits which in turn will help to grow the fund.
Many other posts and comments make a comparison to the Norway fund, I attempt to address those as well. Not in Fred’s class, but at least I try to get my head around things!
THE CANADA STRONG FUND
First point is we don’t know all the details yet, so there are many ill informed assumptions going around, including possibly, my own.
Many comparisons are being made to Norway’s wealth fund which really are not valid. Norway’s fund was set up to deal with the profits yielded by their 2/3 state owned oil program in the North Sea. Even non-state owned oil is heavily regulated as to where the profits go. That fund is now around US$2Trillion and helps run the country’s excellent social benefits.
During the 1950s in the UK, a government funding program called Premium Bonds was set up. These were bonds that anyone could buy in the local post office and of course had a value. You could buy 100 pounds of bonds and keep them or gift them or pass them on to your kids. The government used the money to fund whatever they chose depending on need. The value of the bond never changed, so in effect what you bought for 100 pounds 10 years ago is still only worth 100 pounds today even though the value of the pound has decreased, the compensation for this is they have a draw (like a lottery) once a month and the winner gets a million pounds!
So I believe Carney’s new Canada Strong Fund is kind of a cross between the two. For decades Canada has simply given away so much of its natural resources by allowing private companies, foreign and domestic, to completely own mines, oil etc.
The purpose of the program (I believe) is to counter that by forcing some portion of the ownership to remain in the hands of Canadians. This is, initially at least, to focus on Major Projects as defined and selected by the government. For any of these projects, funding and investment is needed. The big investors might be Canadian (such as Enbridge) or foreign (such as the UAE or Qatar). The hook to get the investment will be support from the government in the way of (usually) a loan to be repaid on completion of the project once operational and profits start to come in.
My understanding of the new Canada Strong fund is that it will be introduced alongside the government funding, in some proportion. Going back to the project completion, once the profits start coming in and the government is paid back, the percentage or portion contributed by the Canada Strong fund remains as a proportion of the ownership. It will share in the profits in that same proportion for ever. That means that ordinary Canadians will have a part ownership of every Major Project which is something we have never had.
The $25 Billion contributed by the government is a stater or sweetener for the fund, much like you give a kid a new piggy bank and put $10 in it to start it off.
Many things we don’t yet know…Will the value of our bonds go up with time or some other basis….can they be gifted or resold…how will we buy them….will there be any minimum or maximum amounts…and many more. We have to wait and see what the package looks like. Ultimately it could serve as a pool from which funding for all kinds of new Canadian projects could draw from and increasingly make them Canadian owned but still privately run, much like the non-state owned oil companies in Norway but funded by ordinary Canadians in whatever amounts they choose.
🇨🇦💙 One thing I know, Carney is a master of the pro forma statement. Financial projections in a macro sandstorm. Our future is in the bag.
As Head of the Bank of Canada he withstood all the US political and financial industry’s pressure to allow asset backed mortgages into Canada. We were relatively unscathed while Iceland almost went bankrupt.
As the Head of the Bank of England during Brexit, Carney said Conservative Truss’s disastrous mini-Budget, in which she planned to borrow billions of pounds to slash taxes for the rich, of creating “Argentina on the Channel” in reference to that country’s troubled economy.
Trump? The centre of everything Carney does right now is playing the weaker opponent in a battle he can’t lose. Steve Jobs once said “The most precious resource we have is time.” 🤔
Another great addition to your great work. CongratsGeezer!
Saw something beautiful today. At the hockey game between Buffalo and Boston when it was time to sing the anthems the singers mike almost immediately stopped working while singing the Canadian National Anthem. The Buffalo fans picked it up and sang the anthem loudly with vigour and happiness. A loud cheer when they finished. Its an omen. Good things are coming our way.
First thought: competent, experienced tradesmen/women who want to get out of the US, Canada may want you. (That’s just a guess.)
Second thought: virtually none of these approaches would work in the US—Congress and lobbyists would stop any of it out of their own self-interest, no money or power in it for them. (Probably deprive them of the source of funds and power they now have as it is.)
Yeah, I know.
I'm in California . . . and I am *so* jealous!
From what I read, especially in Substack, the decline in support for Trump bodes well for the Democrats to win the House and possibly (hopefully) the Senate in the mid-terms. Unless of course, Trump and his corrupt enablers find a “national emergency” excuse to justify cancelling the mid-terms.
We are so lucky here in Canada to have Mark Carney as our prime minister. Canadian voters, in the last election made a wise choice to reject Pierre Poilievre and his Conservative party. A sizeable number of Conservative supporters are commonly referred to as “Maple MAGA's”
Hopefully, the situation will change for the better in the US, and you won't need to be *so* jealous! Good wishes from Ontario, Canada.
Canada Strong. This is the way!
Andrew Coyne says "Canada’s ‘New Government’ has no interest in arresting our economic decline" Mr. Carney can't win for losing a I am frustrated with the negativity.
Our MAGAts will learn how wrong they are when the bottom falls out of our economy; your naysayers will never admit it when Carney's programs succeed.
Long read so apologies in advance……..
I am particularly interested in the new Canada Strong Fund. I read the CBC article this morning complete with comments from “economists” and none of them made reference to what I feel is the main point of the program and that is to retain some portion of every Major Project as Canadian owned and to benefit from all future profits of that project in the same proportion as the contribution.
So many posts I have read complain that every big project gets sold off to American or foreign business and Canada gets nothing but the jobs and taxes. Now we can also get some of the profits which in turn will help to grow the fund.
Many other posts and comments make a comparison to the Norway fund, I attempt to address those as well. Not in Fred’s class, but at least I try to get my head around things!
THE CANADA STRONG FUND
First point is we don’t know all the details yet, so there are many ill informed assumptions going around, including possibly, my own.
Many comparisons are being made to Norway’s wealth fund which really are not valid. Norway’s fund was set up to deal with the profits yielded by their 2/3 state owned oil program in the North Sea. Even non-state owned oil is heavily regulated as to where the profits go. That fund is now around US$2Trillion and helps run the country’s excellent social benefits.
During the 1950s in the UK, a government funding program called Premium Bonds was set up. These were bonds that anyone could buy in the local post office and of course had a value. You could buy 100 pounds of bonds and keep them or gift them or pass them on to your kids. The government used the money to fund whatever they chose depending on need. The value of the bond never changed, so in effect what you bought for 100 pounds 10 years ago is still only worth 100 pounds today even though the value of the pound has decreased, the compensation for this is they have a draw (like a lottery) once a month and the winner gets a million pounds!
So I believe Carney’s new Canada Strong Fund is kind of a cross between the two. For decades Canada has simply given away so much of its natural resources by allowing private companies, foreign and domestic, to completely own mines, oil etc.
The purpose of the program (I believe) is to counter that by forcing some portion of the ownership to remain in the hands of Canadians. This is, initially at least, to focus on Major Projects as defined and selected by the government. For any of these projects, funding and investment is needed. The big investors might be Canadian (such as Enbridge) or foreign (such as the UAE or Qatar). The hook to get the investment will be support from the government in the way of (usually) a loan to be repaid on completion of the project once operational and profits start to come in.
My understanding of the new Canada Strong fund is that it will be introduced alongside the government funding, in some proportion. Going back to the project completion, once the profits start coming in and the government is paid back, the percentage or portion contributed by the Canada Strong fund remains as a proportion of the ownership. It will share in the profits in that same proportion for ever. That means that ordinary Canadians will have a part ownership of every Major Project which is something we have never had.
The $25 Billion contributed by the government is a stater or sweetener for the fund, much like you give a kid a new piggy bank and put $10 in it to start it off.
Many things we don’t yet know…Will the value of our bonds go up with time or some other basis….can they be gifted or resold…how will we buy them….will there be any minimum or maximum amounts…and many more. We have to wait and see what the package looks like. Ultimately it could serve as a pool from which funding for all kinds of new Canadian projects could draw from and increasingly make them Canadian owned but still privately run, much like the non-state owned oil companies in Norway but funded by ordinary Canadians in whatever amounts they choose.
As I understand this plan, ordinary Canadians can invest in this plan??
They have an intelligent businessman running their country