48 Replies to “And The Budget Will Balance Itself”

  3. Couldnt believe it at first sight.
    Canada really has almost no gold reserves, the US has 8000 tons, Germany 3000, even France and Italy over 2000 tons each and so on – one can argue about the use of gold in modern times, but to be totally out? …
    The gold price is managed pretty well – selling now at low prices, congrats again!

  4. There I go and brag about getting great expensive stuff at my local thrift shop..
    And all that time Canada is selling gold at half price… damn..

  5. Well Hell, Obama is giving America away,
    At least the Canadians are getting half price..

  6. But the dollar going into free-fall is the first step in balancing the budget.
    1) Dollar goes down
    2) ?????
    3) Profit!
    Or was that collecting underwear, I never can remember Justinian economics.

  8. Wow, that should buy every Canadian a selfie stick. Look out Province of Alberta or Saskatchewan, you could be next?

  11. 1.3 metric tonnes of gold is only about $46 million USD. The bigger question is why doesn’t Canada believe in a gold reserve?

  12. Steve from Rockwood >
    “The bigger question is why doesn’t Canada believe in a gold reserve?”
    Cause “they” have all those natural recourses with an endless supply of Third World slave labor waiting to produce it.
    The even bigger question is – “why is Canada bringing in millions of Third World squatters, especially throughout a local and global recession?”

  14. Is this part of the handing over of Canada’s financial and political sovereignty to the UN?
    Mark Mignacca is no doubt correct that Soros is pleased. It was probably under his direction that this sale took place.

  15. The Libranos will sell their Grannies to keep their promises, they’ve turned into promise keepers, something I don’t think even many of their supporters expected.516

  16. So the children are SPENDING their inheritance … meh. It’s a story as old as time itself. The leftist children spend all the money made by their conservative elders … and when it is all gone, the children will shake-down MORE relatives (taxpayers) for even MORE money (taxes). And the suckers (taxpayers) will give their cute children everything they want. This will go on until the children are crying for the good old Harper days again.

  17. Of course, we must always remember these words of wisdom from that great man, Conrad Black (he is as dead man to me now)
    Trudeau, with a minority, will grow or go. I believe the former, but he has earned his chance. We really cannot have another four years of government by a sadistic Victorian schoolmaster.

  18. Watch for more. It has not yet been announced, but Canada is now a UN protectorate. Under the Liberals, the important decisions are made elsewhere. I wonder how long it will take for Canadians to catch on that they are the first “post-national” country (statement from Trudeau the fool.)

  19. According to an 1998 Investment firm article, When Central Banks Sell Gold, Their Currencies Devalue.
    “there is one cardinal factor which destines a currency to DEVALUATION… that is when a country’s Central Bank embarks upon the foolhardy exercise of selling off its GOLD RESERVES – for whatever spurious reasons and/or rationalizations the controlling politicians invent.”
    Between 1994-1997 Canada sold off 79% of their gold and it devalued the dollar by 11%. My question is what are the Libranos scheming by seemingly trying to further destroy our dollar.
    http://www.gold-eagle.com/article/when-central-banks-sell-gold-their-currencies-devalue

  20. Because it’s current year!
    No doubt Trudeau bought a lot of that gold personally or supporters of the liberal party did – I’ve been told that finding quantities of physical gold for sale is not easy. When you’re about to devalue the currency by printing a ton of paper dollars – you want precious metals.

  21. “The way to crush the bourgeoisie is to grind them between the millstones of taxation and inflation.”
    ~Vladimir Lenin
    “The best way to destroy the capitalist system is to debauch the currency.”
    ~Vladimir Lenin

  22. Remind me how bourgeoise is defined ? It means all the people who actually WORK for their living … being productive ?

  23. Given the trivial size of Canada’s Gold reserve, it has as much chance of doing anything useful as the Spawn and his cabinet.

  24. Keyensian economies are based on hopes and dreams.
    We will be wishing we have gold reserves when our dollar stays low. But, I guess the manufacturing in Wynnetario will be doing a bang-up business and just flying off the shelves. Ontario’s economy will be one of the shining stars in the world, half price for products that nobody wants to buy.
    Again, how much did Trudeau say it costs for a pallet of “resourcefulness fertilizer stock” on the TSX?

  25. The budget itself and the rest of our allies will fight ISIS. No wonder there’s so much time for hijinx like selfies…how hard can it be, running the country is a series of photo shoots.

  27. 1.3 metric tonnes is what, about 2800 lbs. Since a single gold ingot weighs 30 lbs, that means that Canada’s entire gold reserves are about 93 ingots. You could fit our entire reserves in a single steamer trunk.

  28. That applies only to countries that are in financial trouble. You can prove your link wrong by reversing the argument or “countries that buy gold have a higher currency” or even countries with a lot of gold have a high currency. This is completely false. Russia, Brazil and Mexico all have a lot of gold and their currencies are doing poorly.
    “Between 1994-1997 Canada sold off 79% of their gold and it devalued the dollar by 11%. My question is what are the Libranos scheming by seemingly trying to further destroy our dollar.”
    This is a false statement as well because the Canadian dollar reached par with the USD after the sle and with no additional gold buying. This means the value of the Canadian dollar is tied to the amount of gold we hold on reserve. Canada’s low dollar is a function of low oil prices, low commodity prices and high deficit spending.
    Selling gold in January 2016 wouldn’t be a bad idea if the funds were converted into Canadian dollars. Plus Canada has so little gold reserve left it likely costs a lot just to keep it safe, relative to the value we own.
    The fact that Canada can own so little gold and still be seen as a good place to invest is a good sign the outside world trusts our banking system. Let’s see how long that lasts.

  30. There is nothing wrong with Keyensian economics. It is just not applied properly by governments. Keyensian economics contains a ying and yang. You deficit spend during recessions and you surplus save during booms. This is never done. American Presidents, for example, have run deficits almost every single year going back to the early 1920s (yes, even Reagan). That is almost 100 years of ying. If they had 50 years of yang the US would not have a $19 trillion debt.
    Let’s face it. Most governments cannot pay off debt. They can only spend more than they have. This is because they run on the promise of giving us more than we can afford and we buy it every single election because we don’t want to be the ones who have to sacrifice.

  32. Tequila for breakfast this morning? Or university economics educated? Either way, both risky financial strategies.
    Keynesian economics were responsible for the ’29 stock market crash and depression and the one coming.
    Keynesian economics is based on credit and borrowing to pay for “stuff” which should be paid for in cash or with the resources of the owners (nations and personal finances). Pointy heads like you see the “scheme” as a game plan.
    The Canadian dollar is fiat currency. It will be used as toilet paper like Zimbabwe dollars are now. Gold, not so much, when the tough times come.

  33. Elections have consequences. These terrorists will stop at nothing to destroy our country and I’m talking about the Liberal scumbags.

  34. Who needs resources?
    We have Resourcefulness, we have Reason, We have Responsibility.
    We have so many R words.
    That’s Hoowee R.

  35. Always a shocking graphic … but the ONLY problem leftist politicians need to confront, is finding enough printing presses to keep up with their creation of MORE and MORE $ Benjamins

  36. Look for the selfie of JT and Russell Oliver the Cashman at the corner of Eglinton and Avenue Rd any minute now….empty steamer trunk in the background.

  37. Who needs gold when we have billions of pieces of coloured paper
    the sheeple still accept as money. However that situation isn’t
    going to last much longer because billions more funny
    money is being created out of thin air as we speak. Today
    gold hit 1200 bucks American on the way to two grand plus.

  38. The premise here is that the civil service know how to count. Yet the data is presented by the same civil service that cheered Trudeau’s election, became euphoric when Brison cancelled the limits on sick days, and went over the moon when the government said announced its negotiating stance in upcoming collective bargaining. For a reality check, see http://www.thestar.com/news/canada/2009/12/22/lost_gold_turns_out_the_mint_cant_count.html. The Mint reported it “lost” $15 million in gold, but corrected that after what “turned out to be a $15.3 million combination of bad counting, bad cleaning and sales of gold slag below market value.”

  40. I wonder just how much of Lord Keynes’ work you have actually read? He was a brilliant man, and the fact that numerous gov’ts have misapplied his methods and prescriptions are as irrelevant to Keynes’ soundness as a businessman’s who constantly sells his products for less than it costs him to produce complaints about Adam Smith.
    Keynes in a nutshell:
    1 – run surpluses in good times, spend the savings during bad times
    2 – A little inflation is a good thing; a large inflation is ruinous
    3 – when interest rates get too low, a ‘liquidity trap’ can appear
    From wiki: “A liquidity trap is a situation, described in Keynesian economics, in which injections of cash into the private banking system by a central bank fail to decrease interest rates and hence make monetary policy ineffective. A liquidity trap is caused when people hoard cash because they expect an adverse event such as deflation, insufficient aggregate demand, or war. Common characteristics of a liquidity trap are interest rates that are close to zero”. (my emphasis added)
    – and this, of course, is exactly what we are seeing today. All three of the bolded conditions above are being met. The US, Western Europe and Japan have all lowered interest rates to essentially zero (or even below zero in some cases), and yet have not been able to induce people to invest. “Pushing on a string” was the old saw. Ben Bernanke once whimsically proposed dropping money from helicopters (cooler heads prevailed, and the money instead was dropped at JP Morgan, Goldman Sachs, etc.) to stimulate the ‘insufficient aggregate demand’ Keynes foresaw. At the same time, the new technologies are pushing deflation upon us. Stuff, in general, gets cheaper and better, in real terms. I bought a Honda Civic in ’75 – it was underpowered, rusted out in a few years, etc. – for $3,500. Barrel of oil was $3.50. New Honda Civic today, a much better car, is about $17,000, while oil is ten times what it was. 15 years ago, a 40″ inch 720p flat screen was $10,000; today, they are advertising 40″ 4K TV’s in Toronto for under $1,000. Finally, every rational person realizes we ARE already at war with Islam; most politicians just don’t have the guts to say so.
    Keynes’ actually has a pretty good track record IF YOU LOOK AT WHAT HE WROTE, and not the distortions claimed by the neo-Keynsians. Unfortunately, his work is not accessible to the lay reader (too many big words – cf this paragraph from Chap 1 of his General Theory:
    “I have called this book the General Theory of Employment, Interest and Money, placing the emphasis on the prefix general. The object of such a title is to contrast the character of my arguments and conclusions with those of the classical theory of the subject, upon which I was brought up and which dominates the economic thought, both practical and theoretical, of the governing and academic classes of this generation, as it has for a hundred years past. I shall argue that the postulates of the classical theory are applicable to a special case only and not to the general case, the situation which it assumes being a limiting point of the possible positions of equilibrium. Moreover, the characteristics of the special case assumed by the classical theory happen not to be those of the economic society in which we actually live, with the result that its teaching is misleading and disastrous if we attempt to apply it to the facts of experience.”)

  41. I have no doubt this was a condition imposed by those with whom we are negotiating financing of sovereign debt. Same goes for the sale of Hydro One.

  42. I’d just note that Gordon Brown, the one-eyed chancellor of Britain, famously sold 1/2 of Britain’s gold for $277 US/oz. Immediately afterward, gold prices started rising, peaking at $1800/oz, and even now, after five or six years of backfilling, is still $1200/oz.
    Therefore, I’d suggest taking some of your ‘mad’ money and buying gold. As someone said 30 or 40 years ago – “find out what the central bankers are doing, and do the opposite”.

  45. I was trying to find a reference for you but I believe Keynes went broke investing his own money before the crash of ’29. I guess he learned from his mistakes 😉

  47. Henry Hazlitt, a real economist, remarked about Keynes’ General Theory of Employment, Interest and Money that everything in it that was true was not original and everything in it that was original was not true.

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