Monday, March 01, 2010

Jim Flaherty 1 - Kevin Page 0

The economy boomed back in the fourth quarter of last year, pushing well past expectations and raising the likelihood that the Bank of Canada will start to raise interest rates by summer.
Real gross domestic product grew at an annual rate of 5% in the fourth quarter, a full point above what analysts had expected and the largest quarterly increase in nearly a decade.
It outstripped the Bank of Canada’s forecast of 3.3% growth on an annual basis. The central bank has its next scheduled announcement on key lending rates on Tuesday but observers expect its overnight rate will remain where it is, at an all-time low of 0.25%.
The Bank of Canada and other central banks, particularly the U.S. Federal Reserve, have kept their key lending rates at, or near, the lowest levels possible in order to reduce the cost of borrowing and stimulate spending.
Canada’s economy grew by 1.2% in the fourth quarter, the largest jump since the third quarter of 2000, Statistics Canada reported.
Real GDP, a closely watched inflation-adjusted measure of economic performance, increased 0.6% in December alone, a fourth straight monthly advance.
Economist Douglas Porter of BMO said the data marked a clean break from the recession that began to be felt in Canada in October 2008.
The Bank of Canada essentially declared that the recession ended last summer -- a stance that was hotly debated in the months that followed, particularly because unemployment remained high and GDP increased minimally.
Kevin Page issued a Economic and Fiscal Assessment on November 2008. Report here
Kevin Page predicted a small deficit and laid out three options.
  1. Stay the course offer NO big spending increases.
  2. Auction off Crown assets or increase taxes or both to return to a balanced budget.
  3. Increase spending to stimulate the economy in the short term. The report says this could provide a buffer if a slowdown is expected to be "particularly severe," but would weaken the government's fiscal position in the short and long term.
Some of us disagreed with the third option in a massive stimulus budget suggesting it was NOT a conservative budget and betrayed the conservative principles. Some of us were concerned the significant increase of spending, 
speed would creat problems.
The Budget 
( December 2008 G8 and Canadian Premiers Advocated)
In March 2009 the Liberals allowed the largest budget to pass which was "Option 3" as proposed by the CPC led government. The only condition from the Liberals was to have the government provide quarterly reports. The NDP had already promised to vote it down before reading it, so in keeping their word the NDP did. The Bloc did not feel it had enough money for Quebec and also voted against the massive stimulus.
Most of 2009 we had the pleasure of watching the political parties create an industry of photo-ops, publicity stunts to attack each other without debating serious issues.
  • Exit strategy Afghanistan Mission?
  • Plans for Deficit Reduction, Balanced Budget for adopting "Option 3" in 2009?
The Budget March 2010
As the Olympic Games ends, we are going to be witness to the political parties in Ottawa provide further evidence why Canadians in larger numbers continue to tune them out.
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The_Iceman said...

Nicely done! The Liberals are hard on the attack today. It is all on the detainee issue. They want to deal with that before the budget. We aren't even 24 hours removed from the Closing ceremonies and the CBC has already dusted off Scott Reid for "valuable" commentary. This guy is crazy.

There is also some hilarious footage of Ignatieff trying to be sarcastic in the foyer today. He just makes an ass of himself, it's awesome!

The_Iceman said...

The Liberals are now publicly test driving the idea of forcing an election over the immediate release of government documents relating to our military operations in Afghanistan.

CanadianSense said...

I always admire your willingess to punish yourself by watching the CBC.

You are one of the VERY few left.

Scotty was right about taking out Harper awhile back, he has the 'new' job to prove it.

Many Liberals who step up in challenging the CPC have found out it is a career ending move.

Iffy was doing fine until he raised his eyebrows and proclaimed a desire to replace our PM.

His numbers (leadership) have never recovered, and managed to beat Dion in in hitting a new low.

I almost feel sorry for him. The key word is almost.

CanadianSense said...

Ispsos Reid Poll should remind them without a formal deal of Jack not taking over the coalition Dion, Iffy is only three points above the worst popular support number in 150 years.

I don't believe the financials are going well for the LPOC, the case for a revolt if they push will risk many 905 seats and BC seats.

If Jack plays this right with his leadership above Iffy as the next leader, he should publicly talk merger as of LPC with Liberals.

The_Iceman said...

Iggy is trying to create public anger at the government at a time when Canadian Patriotism is on maximum. It is stupid to try and turn people on their leaders when the people are feeling so proud to be Canadian.

Threatening an election over this is an insanely dumb play. Having said that, maybe I should just shut up and not say how stupid their strategy is? As Napoleon Bonarparte used to say "don't interrupt your enemy when he is making a mistake".

Fortunately Liberals generally prefer to do the opposite of right wing opinion wether the opinion is right or wrong, so they should not be deterred by my words.

CanadianSense said...

The opposition have been playing this game so long they have forgotten when to hold back.

If they require a "commission" to hang over the head of the PM apparently the lesson in 08 was not clear enough.
Dion got uppity and got sent packing by the voters.
Iffy must be worried about Bob so is making noise trying not to look like Dion, but its too late.
Layton has already passed him in leadership on several files.
Voters don't trust the Liberal leader and will reduce them to 24% if they get the other two parties to defeat the government.

Timing is everything and I have been supportive of the CPC taking the opposition to the woodshed since Jan 2009.
Nothing will change until a majority is returned.

Jen said...

I tell you this, if we told FOXMEDIA that the opposition parties and their media want to bring down the conservatives when the economy is turning around, FOX would think that we are nuts.
Not only bring down the government but to instate a coalition party that wwould make the Markets tremble.
No business would want to work with a unstable government like a COALITION.

CS, the opposition parties gives us an overall picture that they do not like to see you, your country prosper or happy or be patriotic.

wilson said...

Dippers are yapping off about 'no tax cuts to big business' again,
where have we heard that before?

Oh yah, that was Jack's #1 2008 campaign policy...which he dropped in exchange for a cabinet seat in the coalition of losers.!!!

NOTHING Libs and Dippers campaign on will be believed, after the (failed) coalition deal.
They may as well unite the left....bye bye LPC, hello Dems.

Jen said...

What Jack wants is for the wealthy and big businesses which supplies jobs to canadians, to be taxed heavily, yet he remains silent when it comes to the big shot unions.

Jack has the liberals and the media in the palm of his hands; the media are afraid of him and they better be because, any assinine remarks about him from the media well, he would finish them in an hour.

CanadianSense said...

The NDP are unhappy trying to regain their anti government position, the Liberals are not cooperating by giving support for the budget.

Who will blink first to avoid the Polls and risk giving Harper his majority?