Robert Reich explains the credit downgrade

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Simply superb.

Harper gags Canadians with their own money

From the Real News Network:

There is a North-America wide strategy to take away the right to mass protest.

The First Law of Economics

Harper once called himself a "trained economist" on a CBC interview. For the record, he has a master's degree from the University of Calgary, has never taught, run a business, met a payroll or had any direct connection with the Canadian economy - but he still knows how to run it. He was the head of the Canadian Taxpayers Federation, a mild-mannered sounding group whose real objective is reducing government to the size of something you could drown in the bathtub. All taxes are bad, according to these guys, although they and their appointed friends in the government are living high off the hog thanks to these taxes. Hmmmm...a slight disconnect here.

Harper was in Germany on Saturday - stunningly bad timing considering it was VE day - to demand, along with his sidekick Angela Merkel, that the rest of the world "rein in its spending". Astonishing hypocrisy considering the growth of non-elected Con partisans on the company payroll in Ottawa.

Today I read that Angela Merkel's party lost an election in the north of Germany on Sunday, which puts her party in a non-majority standing. She won't be able to force through her tax cutting measures. Looks like the German government is in as much disarray as everywhere else.

As for the "trained economist" blather, here's a wonderful quote from an Australian podcast called Ockham's Razor on the problem of peak oil.

The peak of oil production is past

The flat oil production plateau of 2005 to 2008 was a brilliant illustration of the fact that the predictive powers of economic theory are very limited. In spite of its technical jargon and its liberal use of mathematics, economics is more art and guesswork than a science. That's why the First Law of Economics states that for every economist there exists an equal and opposite economist.

Most of the economic policies and bank regulations were in place before Harper took command of the ship. He was busy trying to deregulate everything, including a push for zero down/forty year mortgages and allowing U.S. mortgage lenders and their lack of any checks or regulations to operate in Canada.

It was sheer luck and fortunate timing. The world started to melt before Canada had boarded the ice floe. To think that Harper has anyone to thank for it but his Liberal and Progressive Conservative predecessors is a fantasy.

Asset stripping - R - US

Selling Canadian property (read, property of Canadian citizens) for less than its true value and leasing it back, ensuring that the buyers will live off Canadian taxpayers for at least 25 years. The only way we get it back is if the deal is bad for us.

Protecting Canadian interests. Yeah, right!

From the Harper Index:
Privatizing federal buildings a "sweet deal" for new owners

...[T]he nine federal properties in different parts of Canada were sold to Larco Investments for $630 million less than assessed market value, according to the National Union of Public and Government Employees (NUPGE). Larco is a Vancouver- based company whose holdings include hotel and casino interests in Las Vegas.

...[I]n total, the Conservatives plan to sell off some 40 federal properties, carrying out an exercise started but not completed by the Martin Liberals.

...[S]enator and public works minister Michael Fortier said, in a statement that it was "a fair deal for taxpayers" because the $1.64 billion sale price was $400 million higher than the assessed value of the properties.

...[C]ontrary to government claims, the buildings were assessed independently by Informetrica at $2.3 billion, meaning that they were sold off at $630 million less than their fair market value," said Patty Ducharme of the Public Service Alliance of Canada (PSAC).

...[T]his is a give-away of colossal proportion," said Ducharme. "In addition to ceding ownership of nine premium properties, the federal government has, in effect, written a $630 million cheque signed by Canadian taxpayers."

...[T]his a sweet deal for the new owners and a lemon for taxpayers. It's a 25-year guarantee of steady profits. Taxpayers will pay extra operating and maintenance costs, and the federal government will be able to buy back the buildings only if taxpayers do not benefit financially," Ducharme said.

Also, this report from the National Union of Public and General Employees (NUPGE).

War is auto-cannibalism

General Rick Hillier, who, the last time I looked, was the Chief of Defense Staff, has now started putting his two cents in on economic policy.

Balancing trade with U.S. a challenge: Hillier

...[G]en. Rick Hillier spoke to the Economic Club of Toronto today on Canada's continuing mission in Afghanistan, and highlighted the important role the economy plays in supporting a war effort.

What a glorious future - working to support war. Take your profits and pour them into munitions, tanks, weapons of mass destruction. It's like auto-cannibalism. Your appetites will eventually kill you.

But some guys will get really, really rich. And you can bet whatever part of your body you like that none of these guys or their heirs will ever set foot in war zone. After all, they're dangerous. A guy could get killed!