
Carney was Trudeau’s mentor for five years, so his cabinet is nothing but a continuation of Trudeau’s horrible policies. This ensures he will not be the saviour his voters believe him to be.
Instead of attempting to negotiate with our largest trading partner he took a holiday. Unlike Trudeau, or any past PM for that matter, he did not disclose the location for some reason. Perhaps it was because he wanted to meet his Brookfield buddies in private to discuss the business his green policies will generate for the company and how much their shares will benefit. Trudeau lacked brain cells whereas Carney has far more than average, but he could very well be dumb enough to try and get away with corruption far greater than what occurred under Trudeau.
As a former governor of two central banks, Carney must know that his main job as prime minister is to not just protect the value of the currency but always work at pushing it higher. Strong currencies create prosperity because it lowers the cost of imports which increases disposable income and accommodates lower interest rates that attracts foreign capital. As soon as Trudeau was given the boot the Loonie began to recover and went from 69.7 cents to 73.74 cents on June 16th. Lately the dollar has slid back to 73 cents, a sign of declining faith in Carney.
Carney is on record stating he will increase spending. Given he hasn’t released a budget yet, he is most likely holding true to his word. This is scary because there is not a budget surplus to bank on so his spending will be via debt and higher taxes, even though our finances are already near the breaking point. What is also concerning about this is that not only does he want to spend like crazy, but he also wants carte blanche doing it. This was evident when Carney’s good friend and Canada’s new Natural Resources Minister, Tim Hodgson, stated that the government will not publicly discuss any of the projects that Carney plans to “fast-track” for approval until they’re finalized. Moves like this undermines democracy because these decisions need to be made publicly through debate rather by one individual behind closed doors. Especially when it comes to tax dollars.
He is pushing forward with Net-Zero policies. His obsession with EV’s proves he does not care about consumer freedoms. Like Trudeau he feels he is smarter than everyone else and believes he should dictate our lives. If this was not true, why is he banning the ICE by 2035 and reintroducing a $5000 subsidy for EV’s when clearly people do not want them? He also believes removing CO2 from the atmosphere via carbon capture will save the planet when in fact life thrives during periods of higher CO2 levels. There is clearly something going on behind the scenes. Perhaps it is the numerous green companies owned by Brookfield; the Canadian corporate titan he helped relocate to a tax haven.
Both Carney and his wife are devout Greens. She works for Eurasia Group, a climate change think tank the Liberals support. Both want to close the oil and natural gas industry and will try to delay any attempt to build pipelines. This is despite the fact the sector is the country’s biggest tax generator and has no need to market itself because customers like Japan, Germany, and South Korea come begging for it. Trudeau, most likely at Carney’s advice, told these allies to go elsewhere and they did. It is also more than likely that Eastern Europe would be more than happy to purchase our oil and natural gas at the expense of Russia. Of course, no one in the Liberal Party cares. This is worrying because Africa has made numerous natural gas discoveries that our allies will purchase even though they would prefer ours.
Canada cannot afford another Liberal term. Each day Carney stalls on taking advantage of our oil, Canada’s productivity will continue to slide to last place amongst the 32 countries in the OECD (we currently rank 30th compared to 15th ten years ago). Yet Canada has the best potential of all countries. We need a new government that wants prosperity.
Avoid speculative assets. They will eventually get slaughtered because people will try to salvage what little capital is left. It is a joke that something like Bitcoin is over $100,000 when it is back solely on the Greater Fool theory rather than assets and cashflow. Furthermore, we suggest you avoid the US markets for now because Trump is determined to shrink the U.S. economy. Since he became President, money started to flow out of the U.S., much like Canada under our decade long Liberal reign.
For the next few quarters, we will witness Trump’s policies on corporate earnings globally. It will not be pretty. Pay heed to Warren Buffett’s mantra “be fearful when others are greedy, and greedy when others are fearful”. Protect your savings today and eliminate all debt. If you do not have the cash, you do not spend. Depending on one’s age build up insured GICs to between 35% and 60% of the portfolio even if interest rates are low. Those that lose the most are the ones who never remember the largest gains are realized by waiting for prices to come to you. And they will considering today’s crazy valuations, no matter the asset.
Continue to hold shares that pay increasing dividends like most of our recommendations. There is a chance they will all raise them again over the next year. If you bought when we first suggested than the dividends are paying double digit yields on your initial capital. BMO pays us 12.4%, Canadian Utilities yields 13%, and Pembina Pipeline and Enbridge pay us 21% and 26% annually, respectively. If you believe in the future of Canada as we do, the power of compounding will continue to reward you.
