Updated Every Monday, Wednesday and Friday

Wednesday, January 28, 2009

Behind the Veil

What do you do when you've spent the majority of your political career campaigning for an Elected Senate? When you've railed against the status quo and called for Senate Reform at every possible junction?

If you're Prime Minister Stephen Harper, you choke down your beliefs - fight back the catcalls of being a sellout for power - and install 18 new senators to do your dirty work for you. You take a deep breath, plug your nose and become the system you railed so passionately against for over a decade.

It's okay though, it's easy to justify - to make it right in your own head - at least now those pesky senators won't fight back when you try to push shit through behind Canadian's backs.

You know, like when they stopped you from sneaking Bill C-10 into law and exposed your whole charade in a rather embarrassing and public debacle.

It's okay tho'... it's all part of the plan. Putting the pieces into place.

Of course getting that plan into motion it took a bit of a finagling on your part. You had to taunt and tease the opposition, push them into forcing an election (ignoring your own assurances and continuous demands for a 'fixed election date'). Showing just enough of your hand to ruffle feathers and send the house of cards tumbling.

You had to dance around the threat of a Coalition while sowing fear and discord amongst the populace with Radio and TV ads, doing everything in your power to show Mr. Dion as a out of touch milquetoast and Mr. Layton as a power-hungry car salesman. All the while you swear up and down that the Liberals and their plans would take us into a deficit.

At the same time you stand there and boldly say things like: "The only way there's going to be a recession is if they're [the Liberals] elected and that's why they're not going to be elected."

You assure us that the Conservatives are the ones to guide the ship through the storm.

Then you have Jim Flaherty announce a $25 billion 'not a bailout' for Canadian Banks in the middle of a busy election process - where it was, for the most part, ignored.

And, barely a month later, another $50 billion 'not a bailout' for Canadian Banks - again, no discussion and quietly left to die on the lips of the press.

But then he tables your new budget and guess what? We're now DEEP into deficit territory.

Sixty-Four BILLION dollars deep.

In the middle of a recession.

Luckily it'll only be a "Temporary" deficit - at least that's what Mr. Flaherty called it (2 days before Christmas when no one would care).


Tell me, how long will it take to pay back $64 billion dollars in the middle of a recession?

And what exactly makes it temporary? The fact that 'one day' it'll be paid off?

Of course he makes sure to sweeten the deal for the average Joe(anna) - this last Tuesday Mr. Flaherty stood triumphant amongst his peers, basking in applause as he announced $35 billion dollars in 'stimulus' packages. You know, for our faltering economy.

The one that wasn't in a deficit before. The deficit that only the LIBERALS were capable of causing.

But I digress...

And so we get a tax break here, $200 million or so there (to keep the status quo and shut up us writers who were kicking at your door only months ago).

Yet where's that money coming from? Where's the math? And how'd we NEED to get $64 billion into debt?

There's a great article on the whole situation HERE. I suggest you read it.

I'll post a nice little excerpt from it:

"According to Finance Minister Jim Flaherty: "This program is an efficient, cost-effective and safe way to support lending in Canada that comes at no fiscal cost to taxpayers."(Ibid)

Yet Finance Minister Flaherty contradicts his own statement when he acknowledges that the project will drive up the public debt:

Under the proposal, Ottawa plans to sell a combination of government bonds and other public debt instruments to raise the $25 billion. Then CMHC will ask the banks and other financial institutions to ascertain how much debt they would like to sell to the agency, using a process known as a reverse auction. ...

Flaherty said the action would "make loans and mortgages more available and more affordable for ordinary Canadians and businesses."(Ibid, emphasis added)

The official Ministry of Finance statement confirms that the operation will be financed by the Treasury. Prime Minister Harper claims that "it will cost the government nothing" because the net public debt from an accounting point of view remains the same. While the operation is casually described as a transfer of assets from the banks to the CMHC, what we're dealing with is a cash injection equivalent to 4.6% of Canada's Gross Domestic Product (GDP), which is financed through a massive public debt operation.

The necessary funds (requiring the issuing of government debt in the form of T-Bills and government bonds) are transferred to the CHMC, which in turn upon completion of the mortage purchases, channels the funds to the chartered banks."

Key Points:

The Government is Financing Its Own Indebtedness

No Parliamentary Debate

The most serious public debt crisis in Canadian history

Face it folks "The fog is thickening" in the Canadian government - and it's not going to clear up any time soon. With more Conservative senators on the docket, with more back channels on the go and a populace unaware - we are going to be in some serious trouble here.

Money is being taken from us. It is being spent and we're not being shown where it's going. Yes, it's par for the course with the Conservatives as of late, but this is different. This is bigger.

This is not something to sit on.

Honestly, I'm not sure what I can even do - but I need to put this out there at the very least.


P.S: Oh, and by the way - that 'not a bailout' is going "... to be increased to $125 billion from $75 billion" in the first half of this year. (source)

1 comment:

Clint Johnson said...

Just goes to show that it doesn't matter which side of left-right spectrum they fly the flag of, conservative Harper or liberal Obama... they are just two sides of the same statist coin.