Wednesday, February 21, 2018

What if the Trans Mountain Pipeline will not be built? Goodbye Canada!

I guess, Murray Edwards saw this coming and lives now in London, England.

Canadians have always had a self-destructive tendency and now with the emotional opposition to pipelines and the anti-business attitudes of its governments, Canada is well on its way of destroying its economy.  Yes, only Alberta seems to be mired in the economic doldrums.  So much so that Rachel Notley is even waging a trade war against her fellow NDPers in B.C.  Her strategy of implementing carbon taxes in return for pipelines has failed. She probably will lose the next election and Alberta will be even more bitter about leftist governments than ever before.

Canadians may say that our economy is doing great right now, but that is only due to a housing boom that made people in Toronto and Vancouver millionaires and created lots of construction jobs. That will change; leave it up to your governments.  As a landlord I love it, because with evermore obstacles for first time buyers in real estate, those governments have created an even larger number of underfunded millennials than there are now underfunded baby boomers. Renters, you are welcome here. But when the housing boom goes, so will Canada’s economy and auto industry. After all, who can afford shiny new cars if there is no real estate to secure the car loan?  Read all those excuses lately that your house is NOT an investment; that renting is better than owning?  Humbug!  That is nearly as stupid as the looser statement: "Oh, it is only money." As a minimum your house is a forced savings plan!  Of course, like any investment, you must buy at the right price.

So, maybe we can count on the coming boom in commodities?  Canada effectively destroyed that for itself!  So what else is there to make a living from?  Right, I move my money out-of-Canada.  That is the new long-term goal. Maybe I will move myself out of Canada, but I still think it is, despite the Liberals and NDPers, one of the best countries to live in – but then I have never visited Argentina. Alberta, being the most entrepreneurial and probably the province with the most right-of-centre government for generations to come, will likely retain some of its economic leadership as the king-in-the-land-of-the-blind. Alberta on the boundary between mountain and prairie is a province with the best natural setting. Here you really know when it is summer or winter and everything in between.  Quebec is beautiful as well, but the population is the most spoiled in Canada – so no way I want to live there! (I am sure I will get a comment from some Quebecers who will say that they are glad I won’t live in their province – to each his (or its) own). Did you notice how consistent my brackets (parentheses) are? Must be all my computer programming! 😊

So really, where can one make money these days in Canada? Taxes are likely to go up in support of a flagging economy and all those people off the payroll. If you think robotics will cause job losses, just wait a few years.  I am going overseas with my money.  I think South America is beautiful and in full emergence.  Still a lot of drug cartels but maybe that will decline with legalized drugs in the rest of the Americas and of course in Europe.  How is that for economic growth – Canadian dope heads?

So, I am going to put my money at work in the U.S., Europe, and emerging markets. Bonds? No way because governments and Wall Street will continue to spend more than they make. BTW did you know that in Baltimore, U.S., the top personal tax bracket is 54%? Maybe after a major financial debacle will reason return to Canada and possibly the U.S. They say, if you don’t like your job, quit because life is too short.  I say, if you don’t like your degenerating country anymore, quit because life is too short.  Maybe my son who bought himself a piece of land in Canada’s boon dogs sees it right!  I am glad I steered my daughter away from geology into accounting. She probably ends up becoming a civil 'servant’ with defined benefit pension plans and a well-paying job living of the rest of Canada.  After all, if you can't beat them - join them! (Lots of exclamation marks too in this post). 😊

Canada will always have a soft spot in my heart; especially Alberta. But not for my money! See you guys during a nice Canadian summer in the mountains because I am sure that with a declining economy you have saved the environment. Now just try to make a living! In winter, I am moving South or to the Mediterranean. I just must find a way of getting my money out of my RRSP with minimal taxes. Unfortunately, I learned too late in live what a sham a RRSP is.  RRSPs are good for the unsuccessful!

Sounds a bit bitter?  What would you like me to say to make you feel better and more comfortable?  Something like: Goodbye suckers! No, that would be ungrateful. And I am not, because Canada gave me and my family a good life. I tried to warn you… The reason there are not more rich people is not that it is so difficult. It is because people are undisciplined and lazy; they count on the government to take care of them from cradle to grave. As said in earlier posts, not taking responsibility for your own life comes at a high cost; not only in terms of money but also in terms of personal freedom.

BTW  when so many U.S. citizens don't know that Ottawa is the Igloo capital of Canada then I have the right not to know that Baltimore is a city rather than a state! 

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