Letter: Greek PM, a glimpse of expediency?

November 2, 2011,

Greek PM faces showdown.

Is Papandreou saving his career at the expense of the global economy or is a referendum the only way to save it? Some see his referendum as a reckless move by a cornered politician who refuses to shoulder the legacy of brutal cost-cutting measures. Others charge it is a brilliant, gutsy strategy designed to silence his critics and ultimately garner the support the bailout needs to be successful.

When we hear French President Nicolas Sarkozy say, "This announcement took the whole of Europe by surprise," on the steps of the Elysee Palace in Paris yesterday. "The plan ... is the only way to solve Greece's debt problem" with Jean-Claude Juncker, the chairman of euro zone finance ministers saying, "Greece could go bankrupt if voters rejected the bailout package" and Japanese Finance Minister Jun Azumi saying, "Everyone is bewildered."

You know the players are getting desperate, especially when we read "That's enough now: Greeks out!" from Kronen Zeitung, on the front page of Austria's biggest-selling paper with more vitriol from the Greek press; including dailies traditionally friendly to the government, almost unanimously condemning Papandreou. Centre-left newspaper Eleftherotypia even described the prime minister on its front page as “The Lord of Chaos.” Ethnos, another pro-government paper, called the referendum “suicidal.”
 
Which brings us to question Ontario's future should the Greeks decide that onerous debt brought to them by back-room money dealers and assorted hangers-on does not fit into their future plans. Once the economic engine of Canada when Bill Davis was Premier and after only 6 years of unbridled socialism under Dalton McGuinty's leadership, no less, Ontario became an official have-not province in 2009 collecting a government cheque for the first time in our history! Shameful!!

With little to show since and notwithstanding taxpayer encouragement, is it possible that Dwight Duncan's meager attempt at finally reigning in his uncontrolled spending habits by reviewing the deceiving FIT energy program could be just a long overdue attempt to forestall a bond holder haircut resulting from Ontario's mind-boggling annual budget deficit of $16.3 Billion dollars," as in $16,300,000,000 and the "accumulated debt exceeding $235 Billion dollars," as in $235,000,000,000? I mean, little Greece was allowed to grow their accumulated debt  to $500 Billion before they came to the crossroads! When will the ponzi-schemers in Ontario realize we have come to ours?

Rating agencies, in a clear declaration of skepticism regarding this government's capacity to rein in its spending have already expressed their concern that these folks are capable of implementing a multi-year financial plan, with the intention of restoring a balanced budget by 2018. Meeting that target would require ongoing expenditure restraint in divergence from historical growth trends while achieving forecast revenue targets through projected tax increases.

But with the province’s long-term debt rating already at a AA downgrade; resulting in a raising of Ontario’s cost of financing and reducing our credibility in global markets, has the 'proverbial horse already left the barn'?

Another downgrade, with others to follow as we roll down the other side of this mountain is frustrating for those who see the folly of onerous public debt as new bondholders will doubtless demand double-digit yields; but they'll be taking a greater risk, assuming they are willing to part with their capital at all and certainly would expect to earn a greater reward for buying any sovereign debt, should they ever get paid out! But with interest payments threatening to become our largest expenditure after health; as Greeks and Americans are finding out, many know this can't go on much longer!

But the way things have been; up to yesterday, at least, that risk was being masked by an insidious fairy tale that sovereign debt somehow comes with a repayment guarantee but the unfortunate victims of this fairy tale are young Greeks, Americans, and yes Ontarian's, too when they realize they are tied to a debt run up by an older generation. If the Greeks can walk away, why can't we?

Attracted by unprecedented yields, will high-risk betters bail before the inevitable bondholder haircut leaving the hapless to pick up the pieces anyway? Just like the credit squeeze in the run up to the Great Depression, ignoring the reality that bills have to be paid and instead choosing endless band-aids only feeds a deep moral abyss creating an even deeper hole for the younger generation. In Ontario specifically, some fault lies with the post-Davis administrations, specifically the Peterson Administration, doubtless more with the Rae Administration when assistance from the IMF was starting to look good, but some fault lies with investors for making risky bets! Shouldn't they pay too?

As unpleasant as it may sound, to default and restructure remains the method of last resort for loans that should never have been made in the first place. The reality is that governments do default; it has happened before to Argentina and will happen again! If Papandreou’s Socialist government falls, it would not be the first in Europe to be toppled by the austerity demanded by European debt relief. In Ireland and Portugal, governments fell after accepting bailouts from the European Union and the IMF, and last month the Slovakian government fell over a vote on whether to participate in the European Union’s rescue package. But these lessons are being ignored in an over-borrowed Queen's Park as if it doesn't fit with someone's economic fantasy. But all of this may be a moot point if, and when investor's say, enough is enough, as France and Germany have just done to the Greeks and China has just done to the Americans! The only question is...should Greeks, and then Italians, Spaniards, Americans, and yes Ontarian's, too continue to pay never ending interest on top of interest payments, seemingly without end or say NO and pull the plug?

Despite plenty of complicating factors, not the least of which is the viability of myopic banks who are now treading water with debt tied to stagnant CDO's and who no doubt regret pouring as much as they already have into these deep holes, don't our young deserve a new beginning?

Should Papandreou’s referendum gamble result in a “no” vote; as a recent poll says 60% do not support his government's austerity measures, this would have enormous consequences not just for Greece, but possibly for the rest of the world. It would no doubt lead to a disorderly Greek default, force Greece out of the 17-nation euro zone, certainly topple many European banks as well as other fragile banks around the world. Rejection by the Greeks of the continuing European bail-out saga; where the bondholders have already agreed to increase their haircut from 21% to 50%, will certainly cascade destruction through Europe and maybe into North America, too, so we may not even have a choice but to watch the unraveling of our joint financial architecture, such that it is that condones the mortgaging of our children's future.

Is it possible that wiping the slate clean with a general bondholder haircut may have always been the inevitable result when socialists are allowed to run amok? We may know the answer to that question before the end of this year!


 

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Letters: Why does Toronto protest lack Canadian content?

Walkom: It’s polite, but Toronto protest lacks Canadian content!

By Thomas Walkom,  Toronto Star, National Affairs Columnist,

October 18, 2011, 

In style, the Occupy Toronto protest is almost stereotypically Canadian. Those camping out in a downtown city park are polite and respectful to all, including police. The campsite itself is meticulously tidy, with protest placards lined up for inspection along the pathways.

So far, the protesters have shown no tolerance for thugs or vandals. In content, though, the Toronto demonstration seems curiously divorced from both the city and country in which it is taking place.

Maybe I missed it. But after a day at St. James Park, I didn’t find many talking about Prime Minister Stephen Harper’s decision to aid corporate interests by banning Air Canada strikes.

Nor did I find any talk about the radical moves coming from Toronto City Hall — such as contracting out city garbage collection in order to break the public sector unions, or selling off assets, or slashing library hours or cutting back transit services.

On the Ontario government’s ongoing moves to hand over public electrical generating capacity to big private corporations there was radio silence.

Ditto on the Bank of Canada’s decision to keep the dollar high at the expense of manufacturing jobs in Ontario.

For a movement focusing on distribution of income between the wealthiest one per cent and the rest of us, there was little mention of such basics as the minimum wage and income tax rates.

Nor was there discussion of how Canadian employers have used both globalization and high unemployment to ratchet down wages.

The Alberta tarsands? That’s a tough topic for a movement claiming to speak for 99 per cent of the population, since cutting back heavy oil production to protect the environment would lead to more joblessness.

But you would think the topic might be addressed.

And maybe in some places, it was. But not in the discussions I listened to. Instead, the criticisms were vague and derivative.

During a session with one small group that graciously allowed me to listen in, the most coherent complaint had little to do with Canada. Rather, it was levelled against the U.S. Federal Reserve, that country’s central bank.

Indeed, most of the language of the Toronto protest appears to have been imported verbatim from the far more famous demonstration on New York’s Wall St.

Thus bailouts were condemned. But which ones? Unlike, the U.S., Canada didn’t bail out its banks. It did, however, help bail out auto giants GM and Chrysler.

Do the protesters object to that? If so, they are probably offside with 99 per cent of Ontario’s autoworkers, who were happy to see their jobs saved.

Occupy Toronto opposes corporate greed. But what does that mean? Do those in the 99 per cent whose pensions are invested in corporate equities think it greedy when stock prices rise?

All of this is not to disparage the protest. There is a real energy at St. James Park among people who think something is wrong with the world the way it works now.

Security guard Jarret Maxwell, for instance, says that while his life is good he finds it intolerable that so many across the globe are so poor.

He also freely admits he doesn’t know much about how government works but figures he has to find out — since, he says, that’s the way to change things.

With luck, he will. With luck, the Occupy Toronto protesters will eventually coalesce around a series of concrete aims.

But first they have to address reality as it is — in this city, in this province, in this country. We are much affected by the U.S. But its situation is not ours.

Thomas Walkom


October 27, 2011,

After reading the above by Thomas, I am moved to write this post, one i've been thinking about for the last couple of weeks since Occupy Toronto set-up camp in St. James Park.

So here is my take on things. There are some people that simply hate! They hate our banks. They hate our Provincial and Municipal governments. I get that. I am not thrilled with all banks or all Provincial and Municipal government decisions either. And let’s face it, if I were this would be a rather mundane blog. But the Occupy folks seem to think our banks and recently elected Provincial and Municipal governments are good for nothing. I read things like 'bankers are greedy' or 'there is nothing the Provincial and Municipal governments do that is good'. I hear statements such as “I didn’t vote in the last two recent Provincial and Municipal elections or the ballot is a "worthless piece of paper and doesn’t give either government the right to do anything for me or to me”.

But wouldn't these folks be further ahead to Occupy Congress...that's where the 1991 decision was made by President Clinton to abolish their Glass-Steagall Act from 1934 that had placed controls on bankers for causing the Great Depression. It was Congress that voted to provide taxpayer dollars to finance the purchase of homes folks could not afford and then, forced to rescue the same banks when folks didn't repay their mortgages. So, I was a little confused about why these folks saw fit to camp in our park in inclement weather!

When I looked for suggestions for the heading of this post, I got cliche answers that try to trivialize my point such as “oh, so if someone steals my TV, I should abandon my house?” All of these things baffle me because I am not saying these things at all.

Many times, I have made the point to different folks that being in Canada is a choice and a responsibility. The response is usually hostile and often taken as I am telling folks to leave the country. I am not trying to kick someone out of the country. But I do believe that in a world like this one, it is a shame that folks have horrible things to say about a country that offers the best opportunity to live free. So I wanted to take a moment to discuss this rationally, without any emotion and without directing it at anyone so that no one gets their feelings hurt thinking I don’t like them.

Is our country ideal? Unfortunately, that is not always possible....but is there a better alternative? Not that i'm aware of. I understand that the Provincial government has let it's spending get out of control. I understand that during the G20 riots, there were examples of individual rights being taken away or trampled on by folks who refused to leave the scene of the crime. I understand that Canada doesn’t offer the complete individual freedom that some folks crave.

But I believe we are closer to ideal than any other country out there. Let’s start with this blog. In many other countries, I would not be able to be as critical of any government as I am here. In many other countries, I would be locked up or even killed for simply speaking out against the government. I have more freedom in Canada than most people in the world have. Freedom to practice the religion that I choose, regardless of what it may be. Freedom to demonstrate peacefully. Freedom to leave the country should I choose to, which some countries don’t offer.

I didn’t commit to voting either. But I recognize our freedom as a great attempt to create the best order out of mass confusion possible. I find it amazing that the right to vote was created so that citizens could provide guidance to our government, creating a charter in 1867 that is largely still relevant today.

So whenever I read of folks who seem to absolutely hate our banks and government and would prefer both didn’t exist at all, I am always baffled. Because I don’t believe that a country without financial structure and guidance would work. I simply don’t believe that a Canada without financial structure and an elected government can provide the opportunities that we enjoy.

So I make the statement to folks that it is a choice and a responsibility to live here. Because ultimately it is just that, a choice and a responsibility.

One of the beautiful things about living in Canada is we are free to leave if we want to. If we believe that the Canadian government is the worst on the planet, we can move to France or Costa Rica or Ghana or China or wherever we choose. We even have the free will to choose to live in Somalia under shariah law if that more fits what we think is right and fair.

I have that choice and responsibility and I have chosen to stay and do my part. I do so because I think I have a better opportunity for a good life here than I would somewhere else. I have chosen to stay and do my part because I think I am more free in Canada than I would be in other places (and I have thus far visited 14 other countries).

By choosing to stay and do my part, I am making the statement that I think daily life is better here than other country. I am choosing to stay and do my best to change what I don’t like as a citizen by exercising my freedom that serves as a blueprint for our government. By staying, I am choosing to be a part of what Canada is, the good and the almost good enough.

So when I say that you are free to leave, it isn’t a threat. It is simply a reality. If folks hate it here as much as some folks seem to, they have the individual freedom to choose to leave. However, if folks choose to stay, then they are choosing to join a cast of over 30 million, and that means that they are choosing to vote and pay taxes to our government for what they provide and they are choosing to abide by the will of the majority of the people. That is what being in Canada means. We are free to work and to vote in order to make it a better situation than it currently is, and we are also free to find a better situation elsewhere.

I am not mad at any of the Occupiers who hate our banks or our government, I merely don’t understand why they choose to stay, if what they feel is they're in the worst country on earth. Nobody has to stay. Anyone can move to Sweden if they think it is better there.

You can go anywhere.......but you are not. And you aren’t going to. And you know why? Because deep down, you know that there isn’t a better gig for you. You know that despite all of its flaws, Canada is still the only place where you have the opportunity to do what you do. The freedom to write in your blogs, to demonstrate on our streets and congregate in our parks was won on the backs of many of our grandfather's and great-grandfather's who fought; and some died for the freedom you now enjoy! And you aren’t going to leave because in the end, you know that many of the ideals that Occupy leaders, like that graphic artist and founding editor of Adbusters, Kalle Lasn espouse so fervently, even you know they cannot work.

And in that way I think that many of the Occupy leaders who espouse such hatred for our banks and government are hypocrites. They hate the very thing that on this planet gives you the right to protest...Freedom. I understand the ideal of personal freedom and that you want to reach for as much of it as possible. I also understand that despite contrived rantings to the contrary, you know that you have it better here than you would elsewhere. Because if that weren’t true, you would have left already.

So please allow me to be clear. I don’t want to kick any of you Occupiers out. You are more than welcome to stay. My statement that you are free to leave isn’t meant as a threat or an easy way out of any argument. I am not trying to insult you in some way. I am merely stating the obvious fact. And regardless of what cliche you throw at me next, that fact will remain and other readers will understand that it is merely a smokescreen meant to hide the reality that no matter how much the Occupiers complain about the our banks or government or complain that individual freedom doesn’t exist here, it rings hollow. Because the rest of us can see through that smokescreen and we understand one fact that cannot be ignored… you are still here.

You don’t have a better option. If you did, you would have taken it.

                               -30-

Letter: Hands up, Toronto,

Hands up, Toronto,

by: Jayme Poisson, Toronto Star, Staff Reporter,

October 23, 1022,

They have been trying to convince everyone for the last couple of weeks that they are the majority but one can only wonder about folks who would camp in a park in inclement weather to draw attention to Marxists and assorted characters. Hasn't the thought occurred that in order to effect change, you need to part of the process? We just went though an election where the majority voted for None of the Above, by not bothering to fulfill their civic duty!

The St. James Park gang certainly can't be judged as apathetic but they continue to marginalize themselves as they spin their stories among themselves with a sea of twinkling fingers and quirky hand signals; like, 1st guy hears his delusion spoken by a close friend who just heard from another friend who heard it first from the 1st guy...Well, THAT makes it true. Must be! How long must they camp until they realize their message and their method doesn't resonate?






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The Great Ontario Energy Rip-Off! Enough is Enough!!

October 24, 2011,

It's no secret that our 'Green Energy Act' could easily turn into another boondoggle should Obama's Solyndra $527 Million solar energy bankruptcy be a harbinger to Ontario's 'Green Energy' agreement with Samsung!

Our 'Green Energy Act' appeared to operate under the radar until it was reported that our wind generators were not turned off last Christmas and the Taxpayer had to pay $1.5 million when Quebec and New York took our surplus wind generated power and then to make matters worse, we again exported surplus power to New York and Quebec this summer and the Taxpayer had to pay $6.6 million!

And now, we are being told that Energy to thousands of similar businesses in York Region, perhaps 100's of thousands of similar businesses province wide will increase...substantially!

To bring the light of day to The Great Ontario Energy Rip-Off, a PC candidate organized a media event on Thursday, September 22nd at a Richmond Hill factory to assist similar small and medium-sized Ontario employers, who as a group comprise the largest single block of employers in Ontario with the intentions of attracting interested media to shine their light into what small and medium-sized business perceive as a very dark hole.

To provide some background information, on Thursday, September 15th, a York Region employer received a letter from Power Stream advising of a switch to Time Of Use billing with a substantial Energy cost increase that was supposed to take effect on May 1st. and called Power Stream to get the facts.

When calling their customer service, the employer was told that Power Stream does not set rates. Rates are set by Ontario Power Authority and consumers would not see this increase until receiving the November bill as the increased rates will apply as of October 1st., making this two weeks notice to adjust cost structures!

It is interesting to note that Ontario small and medium-sized employers were never asked for their opinion, but simply told that the new rate schedule was mandatory.

The first suspicion was that the announcement had been put off until just before the election to minimize consumer pushback! This information was immediately sent to the PC and Liberal candidate for their comment. By bringing the issue of a massive and surreptitious Energy cost increase forward, the employer simply wanted to give the candidates the opportunity to save jobs. Only Vic Gupta, PC replied!

Upon further review of the Power Stream letter, the employer was able to confirm that all Ontario small and medium-sized businesses are scheduled for a whopping 57% increase for Energy used on On-Peak hours (from 11 am until 5 pm) based upon the Summer schedule.

According to this new rate sheet, the current daytime rate of .068 kWh is to increase to .107 kWh, and understand that this new rate schedule will affect similar Ontario businesses who can't or won't switch to a midnight shift! Further, the future Winter scheduled Energy cost increase (with TBA for values noted) would be determined by the Ontario Power Authority after the election.

The second suspicion is that this massive Energy cost increase is a direct result of poor planning and poor decision-making and Energy consumers are once again expected to make it right.

The York Region-based employer has been making consumer-packaging; the kind that you see on thousands of retail products across Canada for 25 years and all plant machinery uses energy. As Energy consumption is directly related to the volume of orders received from clients, the only method available to avoid this onerous cost increase in a meaningful way is to change to 'off peak' hours, meaning the midnight shift, according the Power Stream rate sheet!

Assuming that employers could entice their employees to switch to the midnight shift, Time Of Use could have created an incentive to operate at off-peak offset by an increased cost for on-peak by making it revenue neutral but this new rate schedule is clearly a cash grab and a dangerous precedent.

When the full effects of outrageous Time Of Use Energy rates; as noted in the Power Stream letter are felt by similar Ontario businesses, the sound may be deafening, especially if it results in more existing jobs lost to every 'green' job gained.

Despite confusion and denials, now we hear of a 'hidden agenda'...Carbon Tax or Cap and Trade Tax or perhaps both are reportedly on the table!

Will it be left for the Occupiers to state that...Enough is Enough?

                                   -30-

What will it take for union elites and their poverty pimps to prove they were not responsible for the election of Ford?

October 22, 2011

That question was on many lips when the Municipal campaign was over! G20 violence, coupled with the Toronto garbage strike; when the union turned on former Mayor Miller; their trusted benefactor no less, was the beginning of the end for CUPE and OCAP influence in Toronto.

So the question is.....will the union elites and their poverty pimps finally show the peaceful St. James Park crowd who's really in charge today outside new City Hall? Regardless of their feeble attempts to profess to be socialists,  union elites and their poverty pimps both are as close to the stereotype, evil, greedy capitalist malignant power brokers they espouse such hatred for.

Saying they will be "protesting cuts proposed by the Ford administration" simply proves once again that when union leaders and their poverty pimps find a source of income, regardless of how despicable or corrupt the process, they are without conscience. Their penchant for resembling a parasite by binding to their victim in a 'death 'til us part' spiral that is merciless towards anything that might impede that source of income is exposed again for all to see.

Should the unions elites and their poverty pimps co-opt the St. James Park crowd today where they are most vulnerable; the narrative, can we expect the ubiquitous propaganda to change? Canadians can always recognize a phony!

                                    -30-

Is this really the Rally Cry?

"We, the 99%, will not accept cuts to our social services while our public funds are spent on corporate bailouts only to disappear into corporate tax holes."

Wait just a minute.....

Canadian banks were NOT bailed out. However, GM and Chrysler were bailed out. Who benefited from the Auto bailout? The Canadian Auto Workers UNION!!! Who ganged up on our meek premier, The Canadian Auto Workers UNION!!!

This means that under duress, tax dollars from hardworking Canadians were used to bailout union workers and not banks!

So, would the rally organizers please clarify your position on bailouts? If we're protesting the use of taxpayer funds to bail out extortionist unions....then yes, we're in, just tell us where and when and we can all protest together!

Could a confrontation be in the works?

October 21, 2011,

As a few prepare to rally outside Toronto's New City Hall tomorrow, some are concerned that undesirable elements, like OCAP and Union leaders may bring unwanted chaos to what is intended as a peaceful albeit loosely-organized event calling for more attention and support from citizens in their quest to denounce banks and corporations A worst case scenario is a good first couple of days and then have the police come in like they did at the G20.

We are told they have a peaceful message that's non-violent, but despite the organizers' best intentions, some are concerned anarchists, like the Black Bloc and other thugs could co-opt the rally and turn it into yet another G20-style standoff between police and whomever they can attract.

Unfortunately, it has been reported that the organizers have stopped communicating with some in the media, but it is important to continue to get the word out, particularly given concerns that some individuals; undesirable to the rally appear to be inserting themselves into the dialogue as evidenced by a few Facebook pages, in which some posters are concerned that the rally could quickly deteriorate into violence should agents provocateurs be allowed the run of the protest. Some Facebook devotees make comments that would seem to indicate confrontation could be in the works.

I'm certain rally organizers do not wish to incite or invite problems with the police or the citizens of Toronto. Vancouver's Stanley Cup riot showed the world the power of social media when everyday citizens turned their cellphones to the rioters, taking over 5,000 images. Vancouver Police are still pouring over these!

While organizers have resisted the urge to name one specific leader; i'm certain a conscious choice on their part but some have started forming committees. Will some of the messages on the minds of individuals be lost?

It's been reported that a lot of voices have been silenced or being ignored. The rally needs to be led by everyday people and not activists, because when it's everyday people leading it, more everyday people will get involved.

                                            -30-