It is official, the latest Federal Budget shows Ottawa will continue to hurt the energy sector.  There was not one item that will benefit Alberta or Saskatchewan.  Take this as a sure sign that if the Liberals get re-elected in October, they will attempt to shrink the energy sector even more. This destroys any hope of a West to East pipeline under the Liberals.  Rather than helping his own country, he has made it so demand for Saudi Arabia’s oil, and other nations with questionable human rights records, from the East Coast will continue.

Shrinking the West’s energy sector does the same to Ontario’s economy.  This is because the province provides most of the steel needed by the energy sector.  We would not hold any shares in any Ontario business that provides the steel and other needed materials for the energy sector for as long as Trudeau is in power.

One budget item that might help the economy is that first time home buyers may borrow up to $35,000 from their RRSP’s. This could possibly slow the housing correction in many cities. The one flaw in this of this policy is how many young people have saved $35,000 in an RRSP, especially if they have student loans, car loans, and other debt? Plus, the money must be paid back. If not, Revenue Canada will consider the $35,000 as income from the year the money was withdrawn.  The person will have to pay back the taxes owed, plus interest.  Revenue Canada can also add in a penalty at its own discretion.  

This is just an example of one of Trudeaus promises he made in the Budget. Most of the goodies in this terrible budget are spread out over five years.  In other words, most will be cancelled after the election. It is a political move, but in realty has no value.  Not surprising, this gimmick starts in September - just in time for photo-ops for the election.

The Liberals continue to tell us how great the Canadian economy is doing. Conveniently, they omit that is on the back of record household debt.   The truth is the economy is slowing as Canadians have started to feel the pinch. Normally every smart government (and individuals) uses this good time to pay down debt and build up a cash reserve.  Not this bunch. The Liberals intend to add to a mountain of debt, which means in the coming recession (beginning in the fourth quarter) taxes will have to go up even more.  Plus, it appears they want to push the value of the Loonie down.  A sinking currency causes citizen to lose purchasing power and always results in rising unemployment.  At all times every government must try to push their currency up.  This is the road to prosperity.

Then there is the destructive carbon tax which is going to shrink the disposable income of every Canadian.  Only the government will benefit, and they be increasing this revenue every year until 2024.  Add to that, CPP premiums will be increasing every year until 2026.  It is estimated that a Canadian with an income of $55,000 in 2026 they will pay an extra $500 a year in premiums. At least if one lives long enough, they will get some of this money back. 

The coming recession is going to be 100% Ottawa induced.  There is obviously no one in the Liberal party that has a clue of basic economics.  But, what do you expect when both the Prime Minister and the Finance Minister have been handed their wealth?  Trudeau has never had to meet a payroll.  His trust is from his Grandfather building a chain of gas stations in Quebec.  He is a Golden Spoon benefactor.

The good news is that once the fools in Ottawa clue in to what the real economy is like, they will have to rush and save the energy sector.  Ottawa will become desperate for all that tax revenue oil and gas generate across Canada.  They will have to stop the rising unemployment.  Rough times in Canada are coming.  Build up a cash reserves and fast.