The Terrible Five

The Canadian dollar has been sliding because the Federal Government and the provincial governments of B.C., Alberta, Ontario, and Quebec -  also known as the Terrible Five (T5) - have done everything possible to tell foreigners not to invest in Canada.  The T5 hates the energy sector and wants to close it down, even though it is the biggest generator of tax dollars.  Plus, it means directly and indirectly about one million jobs.

The T5 wants to close down all pipelines because maybe one day in the future a spill might occur.  Instead, they will accept solar and wind power.  For obvious reasons wind power is limited.              

Solar power is interesting in that it could become another ‘Asbestos’.  Panels are made of heavy metals such as lead, chromium and cadmium, as well as sulphuric acid and phosphine gas.  Each panel emits nitrogen trifluoride, which is 17,200 times more potent than CO2 as a green house gas over a 100 year period.  It is estimated the panels create 300 times more toxic waste per kilowatt-hour than nuclear reactors.  Will these metals leech into homes and buildings and slowly destroy people’s health just as asbestos does?

Toronto, Winnipeg, Vancouver, Victoria, Halifax and many other cities have an abundance of tall healthy trees that provide tonnes of oxygen every day.  If homes are getting solar panels it will mean many of these trees must be cut down because branches block out the sun rays.  Interestingly, not one Green, or any of the T-5, mention the planting of more trees.  They are the cheapest and most efficient way to destroy CO2.

Prime Minister Trudeau is not defending the Trans Mountain Pipeline, even though he gave it the green light.  He hopes the B.C. government will stop it, and the Site-C Dam, as he is on record that it will do everything possible to stop both.  Last summer the P.M. changed regulations for the West to East Pipeline.  Trans Canada Pipeline (TCP), nor any other pipeline company for that matter, would ever be able to fulfill his new rules.  As a result, he was 100% responsible for its demise.  Yet, the PM loves doing business with Saudi Arabia, so we import their oil.  I guess their oil will never do any damage if spilt.

Every energy company around the world sees this and now will not consider investing in Canada.  Apache Corp., a huge American energy producer pulled completely out of Canada last summer.  Apache said at the time “it will focus its efforts on its existing assets in Egypt, the U.K. North Sea, and the U.S.”.  Clearly, they rate Egypt a better investment climate than Canada!

The carbon tax, set to begin on January first and rise for five consecutive years, will scare away foreign investment.  This tax will make all Canadian goods non-competitive because no other country is imposing this negative tax.  In fact, the Paris Accord is dead.  Only Canada is trying to implement the goals.  All other countries are talking the talk but doing nothing.  The tax will not change the level of Green House Gases.  It is a 100% tax grab which will increase Canadian unemployment. Sadly, T5 does not understand that there is only one taxpayer – the consumer.  Not one corporation pays a cent of taxes.  This expense is passed on to the consumer in higher prices.

Using Australia as an example, they had a carbon tax but quickly cancelled it as it put Qantas Airline on the road to bankruptcy.  We would not own shares in Air Canada or Westjet.  Both will become uncompetitive with U.S. airlines on flights between the two countries. 

The Bank of Canada predicts Canada’s growth rate will drop to 2% in 2018 and 1.6% in 2019, from today’s 3.1%.  Business investment in Canada has fallen by 18% since the third quarter of 2014, the second worst of seventeen industrialized countries.  Investment in machinery and equipment has steadily fallen since 1998.  The World Bank states Canada’s “Ease of Doing Business” has dropped to 22^nd place from 14^th in 2016.  All this is negative for our dollar.

Today, the T5 should be doing everything to attract foreign investment and support the Loonie.  Letting the dollar to sink is making Canada’s economy a terrible investment.  There has never been one instant anywhere in the world where a weak currency has brought prosperity.  Instead, it makes a country poorer and creates rising unemployment.  Yet, governments keep on trying to devalue their currencies for no benefit.

Today, the U.S. economy is strong because the dollar is the strongest in the world.  Canada’s most prosperous period, which was between 2002 to 2007, saw the Canadian dollar rise from 65 cent to $1.12US.  The strengthening Loonie added to our full employment. 

We expect our dollar will trade between 75 cents to 81 cents until the election period a year from now.  If the Terrible Five are re-elected, they will push the Canadian dollar down to between 60 and 65 cents.  Yet, of all countries Canada has the best potential.  The Terrible Five are Canada’s enemy.