Roughly around the same time that Carney announced non-binding MOU’s with India and Japan that of course will benefit Brookfield and himself,  he called for a  renewal of the EV subsidy, he avoided commenting on the Musqueam Indian band’s claim to all of Vancouver, he also announced an additional $2b to Ukraine while our own social fabric deteriorates.  A new Canadian first occurred under his watch as well; a LNG tanker arrived in New Brunswick from Australia.  That’s right folks!  We imported natural gas from the other side of the planet even though we have our own. This is certainly not carbon friendly and proves Canadians require an east-to-west pipeline.

Ottawa had better wake up to the real world.  Thanks to the recent discoveries of natural gas in many parts of Africa, the world is closing in around 300 years’ worth of proven reserves and an additional century, at least, of unproven ones. Much of this is in our high Arctic and the Indian Ocean.  The plus for us consumers is we can expect a price between $2 and $4 and means natural gas will be the cheapest energy source for the rest of this century. The responsible governments are adopting this cheap and clean natural energy whereas it is only the left leaning governments that are bent on destroying their economies with expensive renewables. Britains power costs four-times higher than Canada’s only because they fell for the renewable trap. 

Oil is a depleting resource.  It is estimated that the world has between 80 to 100 years’ worth of reserves.  Canada is lucky because our oil reserves are close to 80 years’ worth.  But Carney feels it should be left in the ground. If Canadian provinces were viewed as a family parented by the Liberals, Carney would ultimately be viewed as abusive for purposely limiting the success of his children.  It is disturbing that the Elbows Up crowd does not see this. 

The war in the Middle East shows how important our energy sources are for Canada and others. The Liberals have been successful in blocking new pipelines that would generate wealth for Canadians and the government. The demand is there for Canada to lock-in longterm contracts with nations to sell our oil and gas. Yet, our only roadblock remains the Liberal's Climate Change agenda.   

The Climate Scam is slowly destroying Canada. It is the Brookfields of the world who are the only ones profiting from it via government handouts and naïve investors willing to lose their capital.  The citizen however is becoming poor because of it.  In fact, the Liberals are becoming very successful at pushing Canada into Third-world status.    If we could develop our resources, we could easily become one of the most prosperous countries in the world. But since we are ruled by abusive parents, Canada will  never live up to its potential. As time goes on there becomes more reasons for the kids to either run away from home and seek independence or become adopted by our neighbors. 

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If buying stocks today the dividend yield must be between 3.5% to 6%.  However, it is still better to wait for the market to come to you.   We expect interest rates to fall in June which should support the stock market.  But by year end they will begin a multi year increase because government and consumer debts are getting out-of-control and lenders will demand a higher rate of return.  The chart below highlights the relationship between equity markets and interest rates. Specifically, markets do nothing at best when interest rates increase.  This is the reason to be patient and let the market come to you. 

Warning: When looking to buy a GIC, make sure it is insured.  At the end of 2025, three small American banks went broke.  They sold uninsured GIC's and it is estimated that holders of them will get nothing back.  Today, in Canada, small lending firms are facing large amounts of withdrawals as people are becoming scared of the mess in the Middle East and the Carney government.  To date no Canadian firm has gone under.  But the withdrawals are so high it is possible some of these firms could.  We stress if there is no insurance, do not buy.

Chart Source: www.tradingeconomics.com

Worthwhile Site - Carney Watch

Elbows up!  Welcome to Carney's "New...World...Order" where politicians do the opposite of what they ran their election on. 

www.carneywatch.ca

Another month has gone by and what has Carney achieved for the betterment of Canada? Nothing at all. At the same time more logging and auto job losses went unnoticed by him.  How quick he forgot Trump said economic force is all that is needed to take us over.  That is exactly what is taking place. As a western Canadian I would rather be governed as an independent state first, followed by Washington, and then Ottawa under a Liberal. Avoiding the latter at all costs is the only way for Canadians to recoup the standard of living we lost by their management. 

Even though he has achieved nothing, his lack of ethics continues to shine bright. He is trying for a second time to push through Bill C-15 which will allow Cabinet Ministers to exempt individuals or companies from federal law (except Criminal Code) for up to six years. In other words, Carney and his globalist lemmings will be able to pick and choose which friends get the national contracts for his failing budget and economic plan without scrutiny. Correct me if I wrong, but this is not democratic. Whether the projects are a success or they fail, we can be confident that Brookfield, and therefore Carney, will be awarded well.   

Ironically, this is the very “fascist” behaviour that those with Trump Derangement Syndrome like to believe Trump is guilty of.  If Poilievre attempted this the left would be raging. But, since it’s Carney, the Elbows Up crowd think it is perfectly okay. Hypocrisy remains the fastest growing characteristic of being Canadian.

We used to be known as loyal.  No longer though. As soon as our largest customer, who happily protects us at no expense, has a little conniption fit because it wants a better deal on the goods it buys from us, we have an even bigger freak out and say go take a hike. I don’t know about you, but I expect a little better treatment at the businesses I frequent. It is a little thank-you for your loyalty. But nope, not from Canada. Canadians should not allow our government to snub our biggest customer and push them to show some class and negotiate.

America purchases 77% of our exports. China and the UK are our second largest customers who both purchase  4% of our exports each. Other than Communist China, we are the only country to refuse negotiations with Trump which says enough about Canada’s new beliefs. 

The Liberals had a decade to make Canada wealthier than Harper did.  They achieved the opposite and any growth Carney promises will only recover what was lost by his own party at best.   The proof is endless. Just a little of it is below:

Currency: The economy boomed under Harper and the Loonie reached par as a result. There was no reason the Liberals could not have maintained this other than complete incompetence. A declining currency creates inflation and demands higher interest rates. Both lower the standard of living of the citizens, which is also a new Canadian trait that evolved during the Liberal decade.

One outcome of a weakening currency is the growing gap between the Hourly Wage in Canada and the US. It has widened significantly under the Liberals. In April 2016 the gap was 19% compared to a 35% premium Canadian employees earn today for the same labor in the US due in large part to a weak Loonie.

The Liberals are so hopeless that they can’t even attract business with this low wage.

Net Foreign Direct Investment shows how much investment entered Canada versus how much left. Ideally, this should be a positive figure and was close to it until it appeared Trudeau was going to win in 2015. More than five-trillion investment dollars have left Canada than entered since then. 

Climate extremists like Carney use fear mongering to convince people that taxes can control Mother Nature.  As the earth exits an interglacial period like we are today, it warms and CO2 increases naturally. This allows the planet to green and provides us the oxygen and water needed to survive. Carney’s belief that we need to control the level of the non-poisonous essential gas is wrong and deters investment just like the above chart proves. So far a tax on carbon has done squat to lower the amount of it.

Greenhouse gas concentrations - Canada.ca

Business Investment Per Worker: Note how the amount companies invested per employee sky-rocketed under Harper and then declined by 17% between 2014 and 2023. Businesses clearly do not want to make long term investments in Canada if the Climate Clan is in power.

Canada cannot kick its high unemployment rate. So far Carney’s plan has done nothing to close the gap between  Britain and the US. Until this is reversed, Canadians should not vote for a party with investment scaring policies such as a cap on resource production and taxing essential greenhouse gases.

Non-residential investment as a share of gross value-added shows Canada ranks at the bottom among our major competitors.

Our businesses no longer invest in R&D as much as our competitors.

Lets not forget about the Liberal's tough on crime policy which resulted in an unprecedented increase in violent crime amongst other things. 

It is baffling that people are content with the Liberals. Economies tumble at a snails pace and Canada is proof. Our economy has literally been falling apart for a decade. Liberals conveniently forget that tent cities did not exist until Trudeau entered the picture and clearly ignore the fact they continue to grow larger in size and number across the country under Carney. 

Our leadership makes us look weak and as Communist Carney tries to bring us closer to China, we are no longer trustworthy.  It is time the Elbows Up crowd put on their big kid pants, admit their voting mistakes, and demand Carney fix the relationship with Trump or call an election. It is the Liberal voter that is responsible for everything wrong with Canada. Not Harper. Not Poilievre. And more importantly, not Trump.    

Credit: A trillion-dollar gap: 12 charts highlighting Canada’s capital flight crisis - The Hub

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What has Carney done lately?  Nothing like Trump has accomplished so far. Too bad we are run by the Climate Clan because the world demands energy that we can supply.  Who cares though, right? 

Japan details US$36 billion in U.S. investment: Japan plans to invest up to US$36 billion in American oil, gas and critical mineral projects. This is the first set of its $550 billion commitment under the trade agreement struck with the U.S. The investments include a natural gas facility in Ohio, where Japan is expected to invest up to $33 billion. The announcement comes weeks before Japan’s prime minister is set to meet with U.S. President Trump in Washington.

China and Canada are the only two major economies that refuse to negotiate with Trump. If Carney really cared about us, he would be spending his time on this continent fixing trade agreements with Trump. Unfortunately, he believes we can make up lost demand from our largest customer and closest Allie. How? One of the main reasons our two economies vibe so well is because it takes less logistics to arrive at market. What will happen to our economy when many of our companies relocate operations to save on transportation costs  to accommodate the business owners? Anyone who thinks this will not occur is foolish.  Even Carney voted to move Brookfield to the U.S. to save money. 

Canadians fail to recognize we will always be dependent on the US economically and militarily. Blame Trump as much as you want for our current economy, but it all started in 2015 with Trudeau.  This is why we need to brush aside our hurt feelings and demand Carney begin negotiations with Trump. Both sides will benefit. Trump knows this. But he is also aware how weak Carney is and knows the longer this goes on the easier the negotiations on the next CUSMA will be.  His tariffs are not to blame for our situation but rather our pathetic voting habits are. 

Without providing evidence, people say Trump is corrupt. Maybe he is, but I doubt it.  There certainly is no concrete evidence. What can you possibly bribe a person with who has six-billion dollars and the best government pension? Nothing at all. Interest at 0.01% will still earn him $5m per month. This is why, no matter how bizarre his ideas and behaviours are, I believe the intent of his policies are to benefit the average American, not himself. Carney on the other hand has a far way to go to get to the Billionaires Club and appears to be doing everything in his power to get there. His sole strategy involves making Canadians poor.  

It must be remembered that PM Carney was Trudeau’s main advisor for five years.  His coaching did nothing to stop our standard of living from falling off a cliff and encouraged debt to the point where Canada is on the road to going broke. His policies helped increase violent crimes, accommodated a record number of overdoses by allowing “Safe-Supply” in  certain provinces, pushed home prices to the stratosphere via mass immigration, and weakened personal rights. Him and his entourage also do not care  about the social decay taking place across the country. Specifically, every year food bank usage breaks records and there is an estimated 85,000 homeless (20,000 of which are children and youth) in Ontario alone.  He also allows 5% of the population that receives $32b annually to decide economic growth and test private property rights, all the while taxing  the greenhouse gas that is literally responsible for all life on earth.

Financially, the U.S. government is worse off than Canada’s.  They need revenue, just like we do. How governments manage this differs.  Morons like Carney prefers to tax carbon which deters foreign investment whereas Trump likes to tax imports which so far has resulted in $9.6trillion in total U.S. and foreign investment (Investments – The White House).   

Trump has stated on a few occasions that Canada makes nothing that Americans need. This is simply not true. Without Canada America would be a failure. The U.S. desperately needs our resources and relies heavily on our electricity. And, if Canada ever gets its act together, they will be the biggest buyers of our rare earth minerals. Certainly, in the decades ahead they will need more of what we offer today.

We have far more in common with the US than any other country and always will. But, for some reason, Canadians seem fine with our Prime Minister choosing to negotiate trade with a mass murdering dictator on the other side of the planet rather the country next door to us who believes in democratic values and provides most of our national security at no cost. If Canadians continue this behaviour, it will confirm that we are no longer the nation we were eleven years ago. Perhaps its time for us to chip in and if tariffs help finance our security, we don’t have any right to complain.  It also adds fuel to the debate for Canada to become the 51^st or break into smaller independent countries. The latter would be ideal. 

There is too much change taking place too quickly that will undermine the global economy. Rational thought, in both finance and politics, is lacking.  The stock markets are extremely over-valued and do not reflect the risks. The TSX and the S&P 500 (Shiller PE Ratio - Multpl) is roughly 25% and 55% higher than its historical average, respectively.  In times like this, it is better to wait on the sidelines for the markets to come to you.

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We are being led by a Prime Minister with ethics that Canadians believe Trump has:

• Background: Where is Carney’s skin in the game? He has 97% of his wealth outside of Canada, with 91% being U.S. investments. One of which is Brookfield. According to his SEDI filings, deferred share rights and option grants in Brookfield as of 2024 totaled 539,136 shares (pre-split). As of this month, Carney’s holdings are in-the-money to the tune of $36m.

• “Conveniently, Carney’s election pledges also line up with major Brookfield investments. At the leaders’ debate, he praised Westinghouse, a nuclear firm he helped acquire while at Brookfield. His housing plan promotes pre-fab homes, directly benefiting Modulaire. His AI policy props up Compass Data Centers and Data4. All Brookfield, all profit lining his pockets.  “Canada’s Prime Minister cannot be trusted to make decisions on housing, energy, or AI when his decisions, or those of his Ministers and civil servants, could boost his own future payouts from Brookfield. Even if he’s not making decisions directly about those companies, broader policy initiatives that advance these sectors will directly benefit his future earnings.”” Sell The Assets To End Carney’s Conflicts - Conservative Party of Canada

• Carney continues throwing money at Ukraine rather to our own dilapidated military. He pledged $4.3b on June 17th and $2.5b in December to them.  Why?  Perhaps it is because he wants more contracts for Brookfield during the reconstruction of Ukraine. The company, via its subsidiary Westinghouse,  will already be supplying the nuclear reactors and fuel to Ukraine. The company reportedly secured a $4.5b contract, linked to a $4.3 billion aid package pledged by the Canadian government. Westinghouse Reinforces Commitment to Ukrainian Recovery

• Why is Carney suddenly in love with China? Especially  considering last March, while campaigning,   he stated “China does not share Canadian values when it comes to trade and Canada needs to be very careful about boosting bilateral commercial ties”. Why would he choose relations with a murderous dictator rather than a eccentric cut-throat billionaire that lives next door? This is certainly not very Canadian.  Of course it has nothing to do with Brookfield. “We are one of the world's largest alternative asset managers, focused on real estate, infrastructure, renewable power and transition, private equity and credit. In Greater China we have US$23billion of assets under management.” China also has the largest Carbon Credit market.  Canada election 2025: Carney says China differs on trade values , Brookfield China 博枫 | Brookfield Asset Management

If you have been following our advice your portfolio is boring. The Investment industry does not like investors like us because we stay clear of most of their products like mutual funds and ETF’s so less commissions are generated. We also rarely trade. Specifically, there is no need to trade shares on a regular basis if your holdings have a history of dividend increases. This is one of the reasons we are willing to hold for years.  Plus, Canada has the most potential in the world. All we need is a federal government that cares for all provinces. 

Today you can earn around 2% from the money market or a Guaranteed Investment Certificate for no risk. Depending on the share price, for not much more risk, one can invest in dividend paying shares to earn a much higher return.  Based on today’s share prices our recommendations are yielding between three and six percent versus around two for a money market investment.  Based on our purchase price the yield is substantially higher. For example, Suncor recently increased their dividend 5% to $2.40 annually, creating a 8% dividend yield on initial capital. We expect all other holdings will increase their payouts over the next seven months. 

There is a long list of Canadian companies that have an excellent record of growing dividends every year.  Canadian Utilities has the best record on the TSX at 54 consecutive years of dividend increases.  We expect a small increase in the new year of only a penny quarterly.  The second-best performer is Enbridge at 53 of the past 54 years. Two Canadian banks have one of the world’s best dividend records.  The BMO has paid a dividend every year since 1828 and the Bank of Nova Scotia annually since 1833. The remaining Canadian banks have increased their payouts 49 of the past 54 years,  Atco Industries is 32 years, and Pembina Pipeline is 15 years.  National Bank has had seven dividend increases over the past three years  This is probably the best record on the TSX.  The Bank has the biggest spread between it’s per share profit and the dividend it pays out. I expect another increase over the next 6 months.

The world’s most successful stock market investor is Warren Buffet.  His company Berkshire Hathaway also prefers companies that have an excellent record of increased dividends.  He uses the income to build up the cash reserves until deals are found. Today Berkshire Hathaway’s holds  $382 billion in cash equivalents, the highest in its history.  This is bigger than the entire market cap of Procter & Gamble or Home Depot and should be alarming for most investors.

Our recommendation remains the same. Continue to build up your cash.  Depending on one’s age, place 60% of your portfolio in a GIC with terms no longer than a year.  A good rule of thumb is a percentage of your age.  If you’re in your thirties, strive for 30% cash and 60% at the age of sixty. The returns are not the greatest when rates are low, but the principal is safe and at this stage in the game, future returns will be from waiting for the market to come to you.   

A reminder that when  you trigger a capital gain, prepay CRA 25% of the gain.  The interest rate to be paid on non-corporate taxpayer overpayments is 5% (corporate rate is 3%) and will be reset March 31, 2026.  To keep track of their interest rates, follow Prescribed Interest Rates on the CRA website.