Where are the Tories taking the country?

In the 2008/09/10 economic meltdown, the boogieman under the bed and the thing that we knew but did not talk about, was derivatives. It is estimated that there are $2 trillion (that is TRILLION) in derivatives that have been ignored by Wall Street, Bay Street and governments and those derivatives are going to come back to bit our collective butts.

And let's not be too smug about this, our Canadian banks are just as exposed to the toxic derivatives as any one else.

So what does the collected brain trust on Parliament Hill do about it?

They propose that derivatives should be sold on the open market just like IBM or Apple. That was they can spread out the pain when derivatives get called?

This is LUNACY!!!!!

American Health Care at its best?

I was talking with a buddy the other day.  He lives and works in Denver, Colorado. He has developed at strange lump on his nether region and sought the advice of his local doctor. He is one of the lucky Americans because he has health care coverage through an HMO paid for in part by his company. For those who do not know, an HMO is the American equivalent to a combined group practice and membership-only clinic.

HMOs general work pretty well as long as you don't have a really difficult case because many HMO also subscribe to a regime called managed practice. One example of managed practice is as follows; if you have condition A, you can be treated for condition A. But is you have condition A and then develop condition B, you may have to wait for condition A to be cured before condition B is treated because, and here is the real rub, the insurance companies that fund the health care coverage will not pay for the second condition. Why not? There is a caveat in many US health care policies that talk about pre-existing conditions. Condition B may or may not be related to condition A but the pre-existing condition clause make the insurance company the arbiter of the condition... not the doctor.

In my buddy's case he had a hernia about 10 years ago - before he went to work for his current company. His insurance company decided that his current suspected condition was the consequence of that hernia. It is a totally stupid assertion but try to fight the insurance company over it.  The company will not pay for his treatment.  Maybe he should come to Canada for treatment.  Or maybe go to Mexico or even... Cuba.

With all its warts and blemishes the Canadian health insurance system does better than my buddy's private one. Just remember that when the Cons come knocking on your door trying to sell you a private plan.

Flaherty to be hit by 2x4 (made in china)

I cannot even fathom the news out of China today.  It seems that FinMin Flaherty has decided to sell Canada to the Chinese in exchange for having a ScotiaBank branch across the street from Mao's tomb.

I have spent a great deal of time in China, I have done business in China and I have been screwed by Official China more times than I know what to do with.

If Flaherty imagines that Canadian banks are going to be welcome to operate as equals in China, I like some of what he is smoking.  The truth is that in a manged economy where ALL spending flows from a central point, being a prestigious Canadian bank, no matter how well run, will be a pimple on an elephants ass in China.  If your goal in life is to cash travelller's checks and operate an ATM, then China is for you.  If you want to get into the auto and home financing business in China -- good luck.

Canadians need to learn a whole lot more about the world outside of North America if they want to compete.

Softwood... Again or still?

There are any number of ways to look at this most recent dust up with the US with respect to softwood lumber.

No one that I am aware of has disputed that Canadian companies exported more than was allowed under current agreements but has anyone noticed the situation surrounding those exports?

Part one of the saga is that the current softwood agreement, which incidentally enriched US firms while penalizing Canadian firm, was signed when the dollar was at par. Now that the Canadian dollar is worth 80 cents, it makes Canadian lumber cheaper for Americans. In a true free market environment, something paid lip service to in North America, the cheaper product, assuming equal or better quality, should have the edge in sales. Not so for Americans who have been whipping this dead horse of an issue for years.

Part two began early on in this enduring saga and continues today. As American lumber companies push the punitive issue on Canadian companies, they are playing a waiting game. As Canadian companies buckle under to the financial penalties and contracting markets, the Americans lurk in the shadows ready to pick up the failing Canadian companies for a song. Think I am kidding?

• South Carolina-based Bowater picked off Canadian Avenor Forest Products.
• Oregon's Pope and Talbot bought Harmac Pacific.
• Weldwood of Canada, wholly-owned by US-based Champion International, bought Alberta's Sunpine.

And what did these, and many more good corporate citizens do with their ill gotten booty? They sold the assets off bit by bit and closed a bunch of mills, putting Canadian workers on the street. Do they do this because Canadian mills are obsolete or not making money? No, they do this to eliminate competition.

We are so very stupid in this country that we allow this to go on while apologizing to our tormentors.

Pass the.. er.. we used to call it cheese

Canada is in discussions with the European Union to set up a free trade deal.  But what the parties are discussing is more than free trade.  Under the agreement, Canada and the EU will be harmonizing standards.  What that really means is that Canada is going to have to agree to whatever standards the EU can think of.  Take for example what can be classified as cheese under EU rules.  Canadian Cheddar with most likely become One-world-economic-order-dairy-based-product in English and more than likely Fromage-faux in French.

The EU has skirmished over currency, sausage and anything that they can possible dream up to fight about.  If the EU decides to ban US beef, will Canada have to follow suit?

Consequences.  Think about it Steve.

Olympic pats and FUs

Pats on the back to our Olympic athletes. Pats on the back to journalists who supported them. Pats on the back to Canadians who supported them.

FU to the journalists who did not support the athletes. FU to the government who could not give a rat's ass about our athletes. FU to Canadians who felt cheated by the athletes and NOT by their government. FU to the PQ for the flag flap. That bears repeating. FU to the PQ for the flag flap.

Did we do well? Yes we did. Could we do better? Yes we can. Can the government do a better job supporting athletes with subsidies and better and more professional facilities? Yes they can. Can Heritage Canada spend more on sport than they spend on Francophone summits? Yes they can.

Can Harper see beyond his limited horizon and realize that the Olympics are a chance to support our athletes rather than just making a statement about foreign affairs? I hope so.

'nough said.