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Showing content with the highest reputation on 06/23/2022 in Posts

  1. Earlier this week, the federal government announced the first phase of its plan to reach zero plastic waste by 2030. This first phase involves a ban on straws, takeout containers, grocery bags, and other plastics. But a new Fraser Institute study out today finds that this plan will havelittle to no environmental benefit while imposing a large financial cost on Canadians! Not only is Canada's contribution to global aquatic plastic pollution virtually non-existent, but only 1% of Canada's plastic waste is everreleased into the environment as litter. And it doesn't stop there – the additional waste generated by the substitutes for plastic will increase costs for municipalities by $300 million a year, which is just one cost of this policy that will ultimately be a burden on Canadians. Learn more by checking out the full study here, and be sure to spread the word on social media. Sincerely, Niels Veldhuis President The Fraser Institute
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  2. News On the heels of yet another searing hot round of CPI digits out of the U.S., the Fed went all commando on interest rates last week, lobbing a .75% hike at the inflationary spiral, its third raise this year. Some might characterize this move as an overbearing, heavy-handed offensive. Other central banks- Britain, Brazil, Saudi Arabia – promptly followed suit. Even Switzerland entered the fray with a rare 50 basis point salvo – Swiss Franc Surges Over 2% After SNB Surprises With Rate Hike All told, nearly four dozen countries around the globe have pushed borrowing costs higher since the beginning of the year – Interest Rates Rise Around the World, as War and High Inflation Grind On Spiraling price pressure is everywhere. It’s insidious. It’s impacting the cost of everything, from patio furniture to Snausages. And it’s changing our spending habits, forcing some to give up on life’s little luxuries. For others, the impact is far more profound – One in five Canadians eating less due to food price rises… As central bankers ponder their next foray, the risks of a full-blown recession intensify. Bloomberg economic models peg the current threat of an economic downturn at a 72% – US faces a Fed-triggered recession that may cost Biden a second term We’re now on recession watch. It’s a volatile predicament: accelerating inflation, overzealous shoot-from-the-hip central bank chiefs, looming economic weakness… not to mention a tapped-out consumer that, according to the University of Michigan’s consumer sentiment index, is waaaaay low – Americans have never felt this bad about the economy (the revolution will not be televised). The University of Michigan’s consumer sentiment index cratered to 50.2 from 58.4 in an early June reading, according to a Friday report. That reflects the lowest level since regular monthly data collection began in the late 1970s. Where the broader markets are concerned, the negative sentiment runs deep – “the liquidation frenzy (margin calls) that erupted recently coincided with hedge funds going on the largest two-day selling spree on record.” Broader market sentiment is so bleak, it’s possible we’ll see some positive short-term price trajectory as the market can only stretch so far in one direction before it reverses (somewhat). Commodity News Gold? Resilient. Firm In the precious metals arena, the party faithful is convinced that the spring is coiling ever tighter. They’re confident we’ll bear witness to the mother of all breakouts before the year winds down. For now, gold is testing key support at $1,830. It would be good (constructive) if $1830 holds. While nearly everything has been laid to waste (look at crypto), this neutral price action in the metal could be characterized as positive. Crypto – Bitcoin Precious few asset classes have been spared the relentless, unabated selling pressure we’ve witnessed over the past few months. But investors in the crypto space have had their heads handed to them – Crypto Black Monday: Celsius Suffers Liquidity Crisis, Plummets 70% in One Hour With Bitcoin having broken through what many thought would stand as strong support at $20k, Peter Schiff weighed in, his pessimism towards crypto largely substantiated. The CEO and chief global strategist of Euro Pacific Capital has been wary of Bitcoin’s steep trajectory since it began defying gravity. A few choice tweets… According to strategists at Glassnode, “The current bear market is now entering a phase aligned with the deepest and darkest phases of previous bears,” the strategists wrote in a note. “The market, on average, is barely above its cost basis, and even long-term holders are now being purged from the holder base” – Bitcoin Rout Enters Deepest And Darkest Phase; Entire Market Underwater This one is bound to ruffle a few feathers – Bitcoin investors tend to have low financial literacy, according to BoC research There’s a broad range of opinions out there… Bitcoin versus Gold? Being a hardcore ‘gold is real money’ bull, I’m hopelessly biased about which camp I’m pitching my tent. If we are right about what’s coming down the pike, our diligently prospected shortlist of junior explorecos will go on a tear that will challenge the imagination of even the most fervent gold bull. I’ve seen this movie before. Accumulating asset-rich companies in the early innings of the last bull run earlier this century was akin to buying dollars for dimes. Moving along…
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  3. While several provinces have mulled the idea of giving drivers a break on their gas taxes, the federal government rejected it out of hand this week with Natural Resources Minister Jonathan Wilkinson saying it would be “irresponsible.” From a purely economic perspective, he has a point; with Canada facing ever-spiralling inflation, making a scarce commodity cheaper is likely to make everything worse. However, the Trudeau government has suspiciously refused to follow this philosophy in all of the non-gas aspects of their budgeting. Just last week, Finance Minister Chrystia Freeland promised to address inflation by pouring even more deficit-financed money into our already overheated economy. The National Post’s John Ivison is the latest pundit to notice that the Liberals conspicuously stopped trying as soon as the NDP effectively gave them a majority government in March. The Supply and Confidence Agreement inked between the two parties offered a handful of budget goodies (such as subsidized dental care) in exchange for an NDP promise to keep Trudeau in power until 2025. “The prospect of losing your job in the next year or so concentrates the mind,” wrote Ivison, “instead, this government is comfortable and complacent.” Bill C-11 – which would give the CRTC unprecedented power to control the programming on streaming services such as YouTube and Netflix – has passed the House of Commons with NDP and Bloc Québécois support. Peter Menzies, a former vice-chair of the CRTC, is very disheartened that “the world’s most extensive internet regulation legislation so far” has gotten this far. In a column for The Line, he credited the bill’s passage to a relentless campaign of intimidation, debate-stifling and – where possible – outright lies. “That opprobrious gaslighting strategy and all the imperious overtones that it implies worked for Donald Trump,” he wrote. “And, right now, it’s working just fine for those governing Canada.”
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