Today, news networks are scrambling to get interviews with the "experts" who are always wrong. Today you'll be able to hear why they were wrong, and why they're right about why they were wrong. The confidence game is in full swing, confused Canadians: an expert is waiting to persuade you.
The reason given for the latest forecast, is "Europe, the global economy, yadda yadda". The same old shit. Of course, for that to be true these so-called "experts" would have had to believe back in march that Europe was going to correct itself, that the U.S. fiscal cliff (which has been completely ignored all year in favour of massive campaign spending and the presidential reality show) wouldn't prove to be a big deal. Think back, did you believe it back in March? Do you believe it now? Why? What changed?
Interest rate hike? Isn't going to be happening, just as I've told you. At least, until Canada and the Eurasian nations feel ready to decouple from the USD. However, the lack of doing so isn't going to prevent Canada's downward spiral as consumer debts continue to build up which will sooner or later bring a seemingly complete halt to the consumer spending component of Canada's GDP. These will weigh on forecasts and since the cost of the future is defined by the prosperity of the present, that cost will continue to escalate. Slow and unreliable growth will be the defining factor of the next year of extremely volatile oil prices and I feel that Canada's extreme energy industry will be feeling this year's volatility quite heavily. The fairly predictable osculation between $80-$100 largely due to oil price fixing won't be nearly as predictable this year as even the heavy weight of central banks and oil manipulators will not be able to keep stability in face of an increasingly volatile global economy.
Canada's unseen deficit
The federal deficit is really not where the major problems will first start arising though, as the federal government will be pushing more and more costs on to provinces to save face which in turn will be pushing more and more costs on to cities to save face. Looking at the U.S., it is the cities which are going bankrupt first, this will then escalate to states (as it has in some cases already), and finally the federal government will have nowhere to hide the true state of it's bad finances.
Bridge disrepair raises fears
Most cuts hitting services, says budget watchdog
Cities demand more federal money for infrastructure
Government costs outpace economic growth, report finds
"Never let a good crisis go to waste" - Rahm Emanuel
Now I know for those who are opponents to The Harper Government™ the lack of foresight is simply written off as stupidity but don't be naive. When you look at the amount of money the government has been pumping into advertising, media monitoring, "correcting" online posts, etc etc - one thing is clear, it has all been a confidence game and they've known that the global economy has been in a downward spiral. They've used this "fiscal crisis" and a panicked population to take advantage of the fear to pass sweeping changes, designed not to improve our economy but rather to use "recovery" as a cover to convince people we must sell out our sovereignty to keep up with global trade.
Harper urges U.S. to avoid fiscal cliff, but looks to Asia as a backup plan
The 'backup plan' seems to be exactly the plan I've been writing about, but backup? No. This is our primary plan now and I'm pretty sure it has been for awhile. The U.S. is preparing for complete lockdown and totalitarianism because the government there (and also everywhere else) knows that the U.S. hasn't yet even seen the beginning of their economic collapse. When it comes, they'll be ready, no doubt about that.
U.S. Budget Deficit Widens as Fiscal Cliff Looms
Of course, the "fiscal cliff" is a public relations tool being used to focus the public's attention just as the "debt ceiling" was used before to set the stage for this "fiscal cliff". This is a progressive propaganda campaign design to acclimate the population to an ever worsening situation without causing panic. Once again, it's all about the confidence game. As long as you remain confident everything is ok, you'll remain apathetic and asleep. As one lady who was interviewed at the CPC's election party said: "now with a conservative majority we don't have to worry about the economy, and I can just focus on partying!". Party on.
In the land of the blind, the one-eyed man is king.
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Richard Fantin is a self-taught software developer who has mostly throughout his career focused on financial applications and high frequency trading.