New Anti-TMX Strategy: Remove Pipeline Insurance Coverage

First they said all the whales were going to die because of oil tankers, but then we looked at the marine traffic data and saw the increased tanker traffic was irrelevant compared to the total traffic (from ferries and other tankers and transports). 
 
Then they tried to tell us that Alberta oil was entirely uneconomic, that Asia didn’t want it, and oil companies would wind up with all these “stranded assets” because by golly any day now the world is going to stop using oil altogether. Of course, the idea of eco-radicals providing investment advice to protect oil producers from themselves is laughable.
 
Now they’re saying the TMX is just plain uninsurable, so the insurance companies would be making a bad financial decision to insure it. These people are idiots. The insurance industry is not going to abandon a Crown corp whale of a client for the sake of these morons’ and their ignorant opinions. 
— Read more at the Calgary Herald —
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Danger: Yield Curve Is Giving Us Economic Warning Signs

Canada’s yield curve is looking very scary. It has almost completely inverted and this is typically an indicator of coming recession.

An inverted yield curve occurs when short-term bond yields are higher than long-term yields.

Fear creates this situation. Lower returns are expected.

Borrowers, worried about liquidity issues, become desperate for capital in the short-term that they will pay higher rates for a 90-day loan than a 30-year loan. Lenders fear falling interest rates so they bid up the price for long-term bonds, lowering the long-term yield further.

This combination of factors inverts the yield curve, which is otherwise “normal” in the sense that longer-term rates are higher due to inflation and risk.

 

yield curve

 

This is a warning to our fellow Canadians. Consider locking in some long-term rates before they fall further and shift some more assets to cash.

 

 

The Paris Climate Agreement Is Pointless and No One Cares

About two years ago, Trump pulled out of the Paris Climate Agreement.

Plenty of fear-mongers told us the world would fall apart and really bad things would happen.

But here’s the simple truth about the Paris Climate Agreement:

The only way to get all of the governments of the world to sign on to Paris, was for them each to realize that they weren’t actually on the hook for anything.

The result was pledges such as Pakistan’s hilariously ambitious commitment,  which was “to reduce its emissions after reaching peak levels to the extent possible.” Yeah, after something peaks it typically goes down. Every country makes the same “pledge” automatically by virtue of definition of “peak”.

The Paris agreement was and is completely meaningless — nothing more than pompous, self-congratulatory theater so that the world’s elites can feel good about themselves when they go hang out to their fancy conferences.

Paris will have the same fate as Kyoto I and II.

Continue reading at the Institute for Energy Research

Ottawa Needs Alberta More Than Alberta Needs Ottawa

Alberta keeps federal finances afloat, according to a new study:

  • In a 2017 study, we measured Alberta’s net contribution to Canada’s economy during the most recent economic boom in the province. We showed that when it comes to overall economic growth, job creation, or business investment, Alberta made a substantial contribution to the health of the Canadian economy from 2004 to 2014.

  • Since 2014, Alberta has struggled and much has changed. However, Alberta continues to punch well above its weight in at least one critically important respect—its net contribution to federal government finances.

  • Even through the recent recession and uneven recovery, Alberta has remained, by far, the largest net contributor to federal finances.

  • Alberta’s net contribution to Confederation peaked in 2014 at $27.6 billion. Since then, due to economic weakness in the province, its net contribution shrunk somewhat, but was still $20.5 billion in 2017. In total, from 2014 to 2017, Alberta’s net contribution to Confederation ex-ceeded $92 billion.

  • Alberta’s large contribution has helped stabilize federal finances and prevent the federal government from running even larger deficits. In 2017, for example, in the absence of Alberta’s net contribution and if all else had remained equal, Canada’s deficit would have been over $39 billion—more than twice the $19 billion that was in fact the case.

  • Alberta’s economic health is a matter of national importance and its struggles in recent years have implications for all Canadians. In short, Canada cannot reach its full economic and fiscal potential unless Alberta is able to do the same.

— Continue reading the full study — 

Nunuvut Has North America’s Highest Homicide Rate

Fun fact: Three of the top five murderous places in North America are in Canada!

Meanwhile, New Hampshire has very little gun control but it is safer than Canada.

You are more likely to be killed in our northern territories than you are in most of the United States.

So, does the United States have a high homicide rate? Well, some parts of the country, including Maryland, South Carolina, Louisiana and a few other states certainly report relatively high homicide rates when compared to many high- and middle-income countries. And some of those states also have lax gun laws. This should lead us to evaluate what is it that leads to these regional issues with homicide. Given that these are regional issues, and clearly not national ones, however, its difficult to see why any national mandates would be appropriate.

Additionally, If one can point to Canada or the UK or Luxembourg and immediately conclude that gun control in those jurisdictions produced their low homicide rates, why can one not also point to New Hampshire or Oregon or Utah and conclude that their lack of gun control is the reason for their low homicide rates?

uscan_homicidenorthamericacol_homicide4_blog

— Continue reading at Mises.org — 

 

Elizabeth May’s National Energy Program

Green Party calls for Canada to stop using foreign oil — and rely on Alberta’s instead.

This is actually just the 21st century version of Trudeau Sr.’s “National Energy Plan.”

You may recall that one key objective of the NEP was “ultimate independence from the world market.”

There is nothing wrong with buying foreign oil per se.

The problem is that Ottawa’s bungled energy policy and interventions have created economic advantages for foreign oil and economic disadvantages for Canada’s oil. Canada would be a much more competitive producer than it is now but for Ottawa’s foolishness.

If you read the article and think about the totality of what the Green leader is proposing, it’s hard not to think “NEP.” She would block foreign oil imports and simultaneously cripple Alberta oil production. The only result would be major impoverishment.

More Hints of Trudeau Corruption

It’s been awhile since we’ve had anything new for you, so we’re delighted to provide this latest submission from our newest contributor, Scoot Newperson.

Corruption allegations have been following Trudeau for quite some time now, the most high-profile example being the SNC Lavalin affair. But that’s just the small stuff.

Shady Business at the Trudeau Foundation
Submitted by: Scoot Newperson

John McCall MacBain gave a gift for $928,000 over two years (428k in 2015, 500k in 2016) to the Trudeau Foundation. John McCall MacBain who just so happens to be the former Chair of the Board of Directors for the Trudeau Foundation.

Interestingly enough, when you do some searching for these details you find a stub on the Trudeau Foundation website which has seen been locked down/removed.(http://www.fondationtrudeau.ca/en/activities/news/largest-gift-foundations-history).

Google preview of the link says “Sep 9, 2016 – McCall MacBain Foundation makes largest gift in the Pierre Elliott Trudeau Foundation’s history John H. McCall MacBain, Marcy McCall …” – there is no record of this URL on the Internet Archive but the link still is indexed on Google.

It could be the page was removed from the Trudeau Foundation page in response to the appearance of impropriety revealed in articles like this:

Money began to rain on Trudeau Foundation once Justin took over Liberals, analysis shows

The only other link I can find tying MacBain to Trudeau is from a new article dumping ground (http://www.bloggingtories.ca/forums/viewtopic.php?p=107740 ) which reference an article here — which has also since disappeared.

In addition to this oddity MacBain, who is a Canadian now living in Switzerland, also happens to be the Founding Chair of the European Climate Foundation.

In 2015, Trudeau announced in Paris that Canada was going to contribute 2.65 Billion over 5 years to ‘combat climate change’ , increasing Canadian contributions from 236 million in 2015 to 800 million in 2020.

300 million of Canada’s pledge goes directly to the “Green Climate Fund” . An article extoling the virtues of the “Green Climate Fund” can be found here (http://news.trust.org/item/20180719154640-yj9ih/) written by a man named Laurence Tubiana.

The same Laurence Tubiana named CEO of the European Climate Foundation in 2016 (https://europeanclimate.org/laurence-tubiana-appointed-as-ceo-of-the-european-climate-foundation/).

It doesn’t take a genius to figure out how this works.

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