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Canadian financial swindle is just as absurd as that of the US: Canadian and US Bank Bailouts Equivalent
by Open-Publishing - Monday 17 November 2008Trade-Exchange Rates Economy-budget USA Canada-Québec
http://www.chycho.com/?q=node/1889
Let’s do some simple mathematics to put things into perspective.
The United States has a population of 303,824,640 and the Emergency Economic Stabilization Act of 2008, commonly referred to as the $700 billion bailout of the US financial system, means that approximately $2,304 per capita will be donated to banking institutions, or should I say, be given to private banks so that they can maintain their stranglehold on citizens of the United States.
Canada has a population of 33,212,696 and on 12 November 2008, the federal government announced that they would be “purchasing another $50 billion in residential mortgages to further stabilize the lending industry and encourage lower interest rates.”
“The announcement follows a similar move last month in which Ottawa bought $25 billion in mortgages. The combined mortgage debt, both purchased through the Canadian Mortgage and Housing Corp. (CMHC), will bring the maximum value of bought securities to $75 billion”, which means that in Canada approximately $2,258 per capita will be donated to banking institutions.
click to enlarge - source
It should be evident by now that this money is being created out of thin air, however there is one thing that I would like to know, how is it possible that Jim Flaherty, Canada’s Finance Minister, continues to state that "our banks are solvent, our insurance companies are solvent, we regulate them, we have one of the highest capitalization requirements in the world . . . all of that is solid."
Jim Flaherty is the same person that stated how surprised everyone was with the sharp decline in North American demand for large SUVs and pickups when he commented about General Motors halting productions at the Oshawa plant sometime in 2009, axing around 2,600 jobs in the process.
How can Mr. Flaherty claim to be a Finance Minister and not understand what the impact of the rise in oil prices really means to consumers and to the economy as a whole? My guess is he knows exactly what the impact of oil rising from $30 a barrel to a peak of $146 really means, he just likes telling half-truths. However, if he was being sincere, then he should resign immediately, because it would mean that he is clueless about how our economic system really operates.
He couldn’t predict that large SUV sales would decline when oil increased 5 fold in less than 5 years?
Mr. Flaherty was handed a country with record Federal budget surpluses, that have allowed Canadians to pay down their national debt “by $95.6 billion” since 1996. And he is about to give $75 billion of that to private banks in less than two months. 12 years to save vs. 2 months to squander.
The half-truths that are being regurgitated ad nauseam by almost every news source and our elected leaders is that Canada might manage to escape the worst of the global economic crisis and that Canadian banks are ranked soundest in the world. But what the $75 billion bailout of Canadian banks implies is that Canada, which in 2005 exported more than 80% of its total global exports to the United States, is in trouble, and all indications are that this is just the beginning.
Keep in mind that in the United States the “bailout looks a lot like Iraq — a ’free-fraud zone’ where private contractors cash in on the mess they helped create”, and unfortunately in Canada, it promises to be the same.