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Canada’s Financial Freefall: When Rosy Rhetoric Meets Hard Reality

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This article is from The Opposition With Dan Knight substack.  

The Trudeau Government’s Economic Alchemy: Turning Gold Hopes Into Lead Numbers

Good morning, my fellow Canadians. It’s September 3, 2023, and if you’re expecting to wake up to a bright, financially secure Canada, well, I have some sobering news for you. The latest figures from Statistics Canada are in, and they confirm what many of us have suspected: the Canadian economy is not on the up-and-up. Despite the rosy pictures painted by Prime Minister Justin Trudeau and Finance Minster Chrystia Freeland, the real numbers don’t lie, and they point to an economic landscape in turmoil. Allow me to break it down for you.

The new Statistics Canada data is in, and it paints a rather bleak picture of the Canadian economy under the watchful eyes of the federal government and Justin Trudeau. Let’s delve into some numbers, shall we? A staggering $16.5 billion in debt was added by Canadian households in the first quarter of this year alone, with $11.2 billion being in mortgage debt. In an environment of 5% interest rates, a rate we haven’t seen for over a decade, this is a financial bomb waiting to explode.

And let’s not forget inflation. Since 2021, we’ve seen a cumulative inflation rate of around 16.5%. Now, remember, these aren’t just abstract numbers on a ledger somewhere; these are realities hitting your grocery bills, your gas prices, your rents, and slowly emptying your wallets. But it’s not just households feeling the pinch. The economy as a whole is stalling, with real GDP nearly unchanged in the second quarter of 2023, following a measly 0.6% rise in the first quarter.

Amidst all this, Justin Trudeau and the federal government seem content piling on debt like there’s no tomorrow. The Parliamentary Budget Officer’s March 2023 report shows Canada’s deficit is expected to rise to $43.1 billion in 2023-24, up from $36.5 billion in 2022-23. And let’s not forget that 1 out of every 5 dollars in this debt spree didn’t even exist pre-pandemic. Essentially, we’re spending money we don’t have, to solve problems we’re not solving, all while making new ones.

So, where has all this spending gone? Not into securing a robust future for Canadians, I can tell you that. Despite the monumental deficits and the reckless spending, housing investment fell 2.1% in the second quarter,marking its fifth consecutive quarterly decrease. Canadians are struggling to make ends meet, and the government’s financial imprudence is exacerbating, not alleviating, the situation.

But here’s a twist to the story: while investments in housing decline, Justin Trudeau decided it was prime time to open the floodgates of immigration. There’s an aspect of governance called planning, something that seems foreign to this administration. How does one justify allowing over a million immigrants into Canada without even hinting at a solution for housing them? The result is basic economics – demand outstrips supply, and prices soar.

Remember the days before Trudeau’s reign, when the average home in Canada cost around $400,000? Eight years under his watch and that figure has doubled. Trudeau’s policies seem like a cruel jest to young families, professionals, and, frankly, anyone aspiring to own a piece of the Canadian dream. It’s almost as if he expected the housing market to “balance itself”.

And before you think this is just a ‘rough patch,’ let me remind you that household spending is also slowing. So not only are Canadians going into debt, but they’re also cutting back on spending. They’re being hit from both sides, and there’s no end in sight. The government’s promises of prosperity seem increasingly hollow when we see that per capita household spending has declined in three of the last four quarters.

The Trudeau administration’s approach to governing appears to be in a parallel universe, one where debt is limitless, and financial responsibilities are for the next government or even the next generation to sort out. And don’t even get me started on the higher taxes lurking around the corner to pay off this bonanza of spending. This isn’t governance; it’s financial negligence.

When Canadians were told that this level of inflationary spending could turn our country into something akin to Venezuela, many scoffed at the idea. But let’s face it: the signs are becoming hard to ignore. The truth is, many Canadians have been led to believe they can have gold-plated social services without paying an ounce of gold in taxes. Prime Minister Justin Trudeau seemed more than happy to sell that narrative. He promised a utopia, a social safety net woven from dreams and aspirations. But what has that net caught? Rising costs, crippling debt, and a harder life for everyday Canadians.

Trudeau has turned out to be less a responsible steward of the economy and more of a Pied Piper, leading us all off a fiscal cliff while playing a cheerful tune. Or perhaps he’s more like the Cheshire Cat from “Alice in Wonderland,” grinning broadly as he disappears, leaving behind only his grin and a trail of false promises.

As we approach the pivotal year of 2025, don’t forget who sold you this bill of goods. Remember the skyrocketing costs of living, the unmanageable debt, and the empty words that were supposed to make everything better. I, for one, certainly won’t forget. And I suspect, come election time, neither will you.

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Health

Lack of adequate health care pushing Canadians toward assisted suicide

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From LifeSiteNews

By Jonathon Van Maren

The family of an elderly man is speaking out about the terrible hospital conditions that led their father to request euthanasia before he died of natural causes.

The family of Cleo Gratton, an 84-year-old retired diamond driller who died earlier this month in Chelmsford, Ontario, of natural causes after being approved for assisted suicide, is speaking publicly about their appalling experience in the Canadian healthcare system.

According to the CBC, the elderly man “told his family he would rather die than go back to Health Sciences North in Sudbury,” and that a recent stay there found Gratton, who was suffering from heart disease and kidney failure, spending one night in the emergency room and then being transferred to a bed sitting in the hallway on the seventh floor.

“There were no lights, all the bulbs in that hallway had been completely removed,” his daughter, Lynn, told the CBC. “The only light we had was almost like a desk lamp that had been bolted to the wall. Patients are passing by, nurses are going by, no privacy, no compassion, no dignity.” The visit took place in mid-October, after which Gratton decided to apply for “medical aid in dying,” or assisted suicide.

Lynn said that nurses had to use headlamps to inspect her father’s feet, and that the experience was “just one thing after another and it really opened our eyes to what’s going on in our hospitals. My dad said, ‘Push, push, push for change. Make people aware of what’s gong on. Open the discussion, bring it to your MP, your MPP, keep going straight up.”

His family is now honoring his wishes to speak out about his experience. The doctors and nurses, Lynn emphasized, were “amazing,” but she noted that they seem overworked. “Why are they still taking in patients if we have an overcrowding issue and they have no place to put these people?” she said.

Cleo Gratton, who died of natural causes surrounded by his family before he could go through with assisted suicide, is just the most recent of many examples of Canadians opting for assisted suicide because they could not access the care that they actually desired.

In Quebec last year, Norman Meunier, a quadriplegic man, developed bedsores after four days left on an ER stretcher without a good mattress. That experience combined with lack of available homecare pushed him to request, and receive, assisted suicide.

An unnamed woman in her 80s, referred to in a MAID report as “Mrs. B,” received MAID earlier this year after requesting but being denied palliative or hospice care. Instead, with her spouse burning out as the result of her care, a rushed MAID assessment was completed, and she died by lethal injection.

In 2022, 44-year-old Winnipeg woman Sathya Dhara Khovac died by euthanasia after failing to receive the homecare resources she had desperately sought. In her posthumous obituary, she said she could have had more time if she’d had more help.

And, among other stories, at least four Canadian veterans were offered assisted suicide in lieu of the unavailable mental health supports they were requesting.

Stories of Canadians seeking palliative care, mental health resources, homecare, and other medical support finding that the only option available to them is assisted suicide have become routine over the past several years. Euthanasia has become a pressure valve for an overworked and under-funded healthcare system serving an aging population increasingly need of complex care — and if assisted suicide for mental illness is legalize, things will get much, much worse.

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Jonathon’s writings have been translated into more than six languages and in addition to LifeSiteNews, has been published in the National PostNational ReviewFirst Things, The Federalist, The American Conservative, The Stream, the Jewish Independent, the Hamilton SpectatorReformed Perspective Magazine, and LifeNews, among others. He is a contributing editor to The European Conservative.

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Artificial Intelligence

AI Faces Energy Problem With Only One Solution, Oil and Gas

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From the Daily Caller News Foundation

By David Blackmon

Which came first, the chicken or the egg? It’s one of the grand conundrums of history, and it is one that is impacting the rapidly expanding AI datacenter industry related to feeding its voracious electricity needs.

Which comes first, the datacenters or the electricity required to make them go? Without the power, nothing works. It must exist first, or the datacenter won’t go. Without the datacenter, the AI tech doesn’t go, either.

Logic would dictate that datacenter developers who plan to source their power needs with proprietary generation would build it first, before the datacenter is completed. But logic is never simple when billions in capital investment is at risk, along with the need to generate profits as quickly as possible.

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Building a power plant is a multi-year project, which itself involves heavy capital investment, and few developers have years to wait. The competition with China to win the race to become the global standard setters in the AI realm is happening now, not in 2027, when a new natural gas plant might be ready to go, or in 2035, the soonest you can reasonably hope to have a new nuclear plant in operation.

Some developers still virtue signal about wind and solar, but the industry’s 99.999% uptime requirement renders them impractical for this role. Besides, with the IRA subsidies on their way out, the economics no longer work.

So, if the datacenter is the chicken in this analogy and the electricity is the egg, real-world considerations dictate that, in most cases, the chicken must come first. That currently leaves many datacenter developers little choice but to force their big demand loads onto the local grid, often straining available capacity and causing utility rates to rise for all customers in the process.

This reality created a ready-made political issue that was exploited by Democrats in the recent Virginia and New Jersey elections, as they laid all the blame on their party’s favorite bogeyman, President Donald Trump. Never mind that this dynamic began long before Jan. 20, when Joe Biden’s autopen was still in charge: This isn’t about the pesky details, but about politics.

In New Jersey, Democrat winner Mikie Sherrill exploited the demonization tactic, telling voters she plans to declare a state of emergency on utility costs and freeze consumers’ utility rates upon being sworn into office. What happens after that wasn’t specified, but it made a good siren song to voters struggling to pay their utility bills each month while still making ends meet.

In her Virginia campaign, Democrat gubernatorial winner Abigail Spanberger attracted votes with a promise to force datacenter developers to “pay their own way and their fair share” of the rising costs of electricity in her state. How she would make that happen is anyone’s guess and really didn’t matter: It was the tactic that counted, and big tech makes for almost as good a bogeyman as Trump or oil companies.

For the Big Tech developers, this is one of the reputational prices they must pay for putting the chicken before the egg. On the positive side, though, this reality is creating big opportunity in other states like Texas. There, big oil companies Chevron and ExxonMobil are both in talks with hyperscalers to help meet their electricity needs.

Chevron has plans to build a massive power generation facility that would exploit its own Permian Basin natural gas production to provide as much as 2.5 gigawatts of power to regional datacenters. CEO Mike Wirth says his team expects to make a final investment decision early next year with a target to have the first plant up and running by the end of 2027.

ExxonMobil CEO Darren Woods recently detailed his company’s plans to leverage its expertise in the realm of carbon capture and storage to help developers lower their emissions profiles when sourcing their needs via natural gas generation.

“We secured locations. We’ve got the existing infrastructure, certainly have the know-how in terms of the technology of capturing, transporting and storing [carbon dioxide],” Woods told investors.

It’s an opportunity-rich environment in which companies must strive to find ways to put the eggs before the chickens before ambitious politicians insert themselves into the process. As the recent elections showed, the time remaining to get that done is growing short.

David Blackmon is an energy writer and consultant based in Texas. He spent 40 years in the oil and gas business, where he specialized in public policy and communications.

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