As I have been reporting for some time now on my Household Debt chart, net Federal Direct Investment is going offshore not coming onshore. This has been the case for the last 18 years and the current energy sector dismay is not helping. But service workers in the F.I.R.E. sector are happy enough as foreign capital flows into Canada buying up negative yielding houses. ITEM: "70 per cent of all detached homes sold on Vancouver’s west side were purchased by Mainland China buyers" National Post November 2, 2015
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Guns or Butter?
According to the Postmedia News reading of the just released Canadian Budget; Flaherty, Harper & friends "... plan to leverage billions in spending on military equipment into making Canada an arms exporter."
The chart to the left suggests there is plenty of room for Canada to move up in rank.
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The Star reports that the new Canadian budget passes along their survey of forecasters who have a very bullish call for a big spike in growth next year.
Get thee down to the retraining center for a placement in the bullet and bomb department.
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I wonder who the Economic Growth Forecasters are. They do not appear to be business people at ground level.
As the chart left demonstrates, the PMI (Purchasing Managers Index) which reflects Business Owner Confidence, has been in a downtrend since the peaks in 2010-2011.
But only two weeks ago to the question: “How much of a kick are we going to take on the revenue side because of lower nominal GDP?"
Mr. Jim Flaherty replied "Significant, it’s significant.”
The Military Industrial Complex Northern Edition
The Huffington Post Canada notes that the Tom Jenkins OpenText Corp report (commissioned by the Canadian Public Works Department) said that the production and trade of military goods is "powerfully influenced by governments" that can encourage the development of a country's defence industry.
The Canadian government will move this spring on Jenkins' recommendations and will begin an analysis that will look at "selecting a series of interim key industrial capabilities to help guide immediately pending defence procurement projects."
Global News picks up the story with:
"But the budget affirms the core message the Jenkins report delivered: that the government must ensure future purchases of military equipment be used to "create economic opportunities for Canadians by developing key domestic industrial capabilities" on future procurement."
"A key opportunity for doing so is by targeting, as estimated by Mr. Jenkins, the $49 billion in Industrial and Regional Benefits obligations that foreign prime contractors are expected to accumulate by 2027 to support high-skill and high-value opportunities and jobs in Canadian industries."
"The budget document said the overall strategy would "provide Canada with a stronger manufacturing base with a capacity for leading-edge technology and innovation. The potential benefits for the Canadian economy are significant."
OpenText Corporation is a software company headquartered in Waterloo, Ontario, Canada. As Canada's largest software company, it produces and distributes computer software applications designed to enable enterprise content management solutions for large corporations across all industries.
OLD NEWS DEPT:
The Times Colonist in Victoria tipped us off back in August 2011 with "Citizens not consulted about buying drones. Military to spend $1 billion on ARMED drones for Arctic patrols"
Follow the money.
"Progress, far from consisting in change, depends on retentiveness. When change is absolute there remains no being to improve and no direction is set for possible improvement; and when experience is not retained, as among savages, infancy is perpetual. Those who cannot remember the past are condemned to repeat it." George Santayana Vol. I, Reason in Common Sense
"History, real solemn history, I cannot be interested in.... I read it a little as a duty; but it tells me nothing that does not either vex or weary me. The quarrels of popes and kings, with wars and pestilences in every page; the men all so good for nothing, and hardly any women at all - it is very tiresome." Jane Austen spoken by Catherine Morland in 'Northanger Abbey'