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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (31584)	5/2/2005 5:53:37 PM
From: Cogito Ergo Sum	Respond to of 110194

Tommasso the federal government balanced there budgets by raping the provinces who in turn held back from the Municipalities... I really do not trust anything if it entails only Canadian Federal figures... You think our government is more honest than yours :o) Hope I'm wrong... regards K Message 21286487

To: Tommaso who wrote (31584)	5/2/2005 9:10:05 PM
From: Cogito Ergo Sum	Read Replies (2) \| Respond to of 110194

Tommaso, Also on the Canadian government.. So what is the point of these numbers my cynical mind asks Canada cbc.ca +8.9 Billion ooops Ontario Ontario gov.on.ca -6.2 billion I wonder how BC and Quebec will contribute ? Message 21286683 K

To: Tommaso who wrote (31584)	5/3/2005 1:43:46 AM
From: Taikun	Read Replies (1) \| Respond to of 110194

Tommaso, I think Canada's currency is a pretty good currency to be invested in. It should be in the top 1/3. The Swiss Franc, Singapore Dollar, Auzzie Dollar and Norwegian Kroner might beat it out for the top spot, IMO. The Loonie had a great run last year, and I think support for this high level will be at risk in the wake of the scandal, the possible election and Quebec seccession threats. I didn't spend as much time on the research as I originally intended when I began to notice the scales on the graphs had different points depending on the country, making comparisons time-consuming and inaccurate.(eg Canada's Industrial Production, the left scale is 0,4,8 where the US is 0,3,6. Why?) My take from that research was: Real GDP Fairly good growth (though they lagged Japan one qtr and haven't beaten the UK or US for 7 qtrs) I would have one question: how much gov't activity is in this number. Canadian gov't spending as a % of GDP is much higher than US, Japan and the employment growth is also significantly impacted to the upside by gov't hiring. (For example, I've seen months where half of new jobs are gov't jobs) The Canadian gov't also hires consultants who write reports that $1 of gov't spending generates $5 of GDP. This may go on in the US, but the scale is larger in Canada, and it has been going on for longer. (The consultants conveniently neglect to add in the cost of collecting the $1, for example) Nominal GDP: paints a strong picture Unemployment: higher than Japan, UK, US Narrow Money Growth: huge increase (interest-only ARMs just started in Canada and Canadians are just getting addicted to HELOCs) High short-term rates: high (only the UK was higher) Output per worker was strong The budget is well-balanced Industrial production: the US seems to have recovered better from the 2001 slowdown In the wake of the sponsorship scandal we have PM Martin rolling out a generous budget to try to bribe the voters on a National basis and in addition we have the Liberals trying again to win back the hearts of Quebecers. I wonder where all this money comes from and I sometimes think that the oil sands are even more at risk now to looting by the Feds and being sold to China for a song. prudentbear.com I have a large allocation to Canada (as you might also) but I am a little concerned in the medium/long term about the lasting impact of this scandal not only on Canadian politics and the business climate but on the long-term viability of investments in Canada. Perhaps I will consider adding more Asian and European dividend-yielding stocks and AAA corporate bonds. Of course I like the extra yield from the trusts, but preservation of capital is another issue. D