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The big quiet bail out – Euro/Japan central banks propping up stock markets, is the US next?

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You’d think that the golden age of markets, if there was one, would be something like the post WWII economic expansion era. That was pretty impressive, driven by baby boomers and the gigantic wave of consumption that enveloped them. Never before in history had parents worried so much about the outfits that New Baby would wear, and it only got crazier from there.

Fundamentally though, the late 1700s were far more earth-shaking. Not in the consumerist sense; those austere horse-travelers managed to survive somehow without the likes of either Apple or Lululemon, for example, but consider the free-market achievements of that period. The United States came into existence, a profound new experiment in governance and free(ish) markets. In academic circles, famed economist/philosopher Adam Smith coined the term “the invisible hand of the market” in his book The Wealth of Nations. It was a reference to the ability of a market economy to provide benefits far beyond those that accrue to the creator. That is, an inventor of something that becomes wildly successful enriches not only the inventor, but society as a whole. Plus, it is an indirect reference to the ability of markets to efficiently allocate capital.

We tend to forget that wonder of capital markets, particularly as the world drifts into one defined more and more by government intervention. Since the 2008 financial meltdown, governments have gone kind of berserk in attempting to keep the financial world afloat, causing markets to gyrate in increasing spirals through wild-eyed policy guidance as the dollars at stake become stupefyingly large. We no longer have economist/philosophers at the helm; we have economist/desperados who have convinced the world their alchemic ways will work, and they don’t know that it will, but they’re really really hoping.

The new breed of economist has introduced an all new Invisible Market Hand – not one that provides infinite benevolence, but one that is like a forklift driver feeling confident in his/her ability to pilot a fighter jet because the seats are similar.

The strategy of which I speak began in Japan over the past decade. After years of trying to kick start the Japanese economy in various ways, including dropping interest rates to zero, the central bank began buying up treasuries as a means of supporting debt markets. When that didn’t get things going, they took the next step and actually began buying up equities to prop up stock markets. Since then, Europe has started a similar program. And yes, you heard that right – in those jurisdictions, if stock prices fall too much, the market is prevented from self-correcting, and governments are, in effect, breaking the fingers of the original Invisible Hand.

They appear to be stepping in to keep critical sectors of the economy in good shape, and also to enhance the “wealth effect”. The wealth effect refers to how citizens tend to spend more drunkenly when they feel wealthy, and for many that means a healthy portfolio. If someone sees their retirement nest egg shrink from $100,000 to $50,000 in a severe market downturn, those people tend to lockdown spending – a wise reaction. But as we’re seeing, the world keeps turning because we are consumers, and like it or not, consumption makes our world go round. So by making those portfolios stay healthy one way or another, governments seek to put the population in a semi-drunken spending stupor in order to keep the party going. Anyone who’s witnesses a true boom economy will recognize the phenomenon – at the peak of the oil boom 6 or 8 years ago, there were direct flights from Fort McMurray to Las Vegas, and thousands of twenty-somethings were purchasing vacation properties. Suffice it to say that those days are gone.

Don’t expect the new Invisible Market Hand to bail you out if your brother-in-law convinces you to load up some hot stock tip he got from a friend who got it from a friend who got it from a friend, because the “friend” at the end of that chain will be some dubious stock promoter that may or may not end up in jail, and even panicked governments won’t save those souls.

With the new strategies for propping up markets however, we’re starting to see the lengths governments will go to in order to maintain financial stability. You’d think the mountains of debt will lead to a day of reckoning, but, emboldened by the global government response to the 2008 financial crisis, the high priests of finance are becoming more emboldened. That our fate depends so heavily on a squadron of tweedy economists is truly frightening, but we’re all in the same boat, so enjoy the ride…

 

For more stories, visit Todayville Calgary.

Terry Etam is a twenty-five-year veteran of Canada’s energy business. He has worked at a number of occupations spanning the finance, accounting, communications, and trading aspects of energy, and has written for several years on his own website Public Energy Number One and the widely-read industry site the BOE Report. In 2019, his first book, The End of Fossil Fuel Insanity, was published. Mr. Etam has been called an industry thought leader and the most influential voice in the oil patch. He lives in Calgary, Alberta.

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Judges are Remaking Constitutional Law, Not Applying it – and Canadians’ Property Rights are Part of the Collateral Damage

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By Peter Best

The worst thing that can happen to a property owner isn’t a flood or a leaky foundation. It’s learning that you don’t own your property – that an Aboriginal band does. This summer’s Cowichan Tribes v. Canada decision presented property owners in Richmond B.C. with exactly that horrible reality, awarding Aboriginal
title to numerous properties, private and governmental, situated within a large portion of Richmond’s Fraser River riverfront area, to Vancouver Island’s
Cowichan Tribes. For more than 150 years, these properties had been owned privately or by the government. The Cowichan Tribes had never permanently lived
there.

But B.C. Supreme Court Justice Barbara Young ruled that because the lands had never been formally surrendered by the Cowichans to the Crown by treaty, (there
were no land-surrender treaties for most of B.C.), the first Crown grants to the first settlers were in effect null and void and thus all subsequent transfers down
the chain of title to the present owners were defective and invalid.

The court ordered negotiations to “reconcile” Cowichan Aboriginal title with the interests of the current owners and governments. The estimated value of the
property and government infrastructure at stake is $100 billion.

This ruling, together with previous Supreme Court of Canada rulings in favour of the concept of Aboriginal title, vapourizes more than 150 years of legitimate
ownership and more broadly, threatens every land title in most of the rest of B.C. and in any other area in Canada not subject to a clear Aboriginal land surrender
treaty.

Behind this decision lies a revolution – one being waged not in the streets but in the courts.

In recent years Canadian judges, inspired and led by the Supreme Court of Canada, have become increasingly activist in favour of Aboriginal rights, in effect
unilaterally amending our constitutional order, without public or legislative input, to invent the “consult and accommodate” obligation, decree Aboriginal title and grant Canadian Aboriginal rights to American Indians. No consideration of the separation of powers doctrine or the national interest has ever been evidenced by
the Court in this regard.

Following the Supreme Court’s lead, Canadian judges have increasingly embraced the rhetoric of Aboriginal activism over restrained, neutral language, thus
sacrificing their need to appear to be impartial at all times.

In the Cowichan case the judge refused to use the constitutional and statutory term “Indian,” calling it harmful, thereby substituting her discretion for that of our
legislatures. She thanked Aboriginal witnesses with the word “Huychq’u”, which she omitted to translate for the benefit of others reading her decision. She didn’t
thank any Crown witnesses.

What seems like courtesy in in fact part of a larger pattern: judges in Aboriginal rights cases appearing to adopt the idiom, symbolism and worldview of the
Aboriginal litigant. From eagle staffs in the courtroom, to required participation in sweat lodge ceremonies, as in the Supreme Court-approved Restoule decision,
Canada’s justice system has drifted from impartial adjudication toward the appearance of ritualized, Aboriginal-cause solidarity.

The pivot began with the Supreme Court’s 1997 Delgamuukw v. British Columbia decision, which first accepted Aboriginal “oral tradition” hearsay evidence. Chief
Justice Lamer candidly asked in effect, “How can Aboriginals otherwise prove their case?” And with that question centuries of evidentiary safeguards intended
to ensure reliability vanished.

In Cowichan Justice Young acknowledged that oral tradition hearsay can be “subjective” and is often “not focused on establishing objective truth”, yet she
based much of her ruling on precisely such “evidence”.

The result: inherently unreliable hearsay elevated to gospel, speculation hardened into Aboriginal title, catastrophe caused to Richmond private and government property owners, the entire land titles systems of Canadian non-treaty areas undermined, and Crown sovereignty, the fount and source of all real property rights generally, further undermined.

Peter Best is a retired lawyer living in Sudbury, Ontario.

The original, full-length version of this article was recently published in C2C Journal.

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Trump Blocks UN’s Back Door Carbon Tax

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From the Daily Caller News Foundation

By David Blackmon

Has the time come for America to seriously reassess its participation in and support for the United Nations (U.N.)?

It’s a question that some prominent people are asking this week after the increasingly woke and essentially useless globalist body attempted to sneak a global carbon tax in through the back door while no one was looking.

Except someone was looking, as it turns out. Republican Utah Sen. Mike Lee, who chairs the powerful Senate Energy and Natural Resources Committee and is part of the majority on both the Senate Judiciary and Senate Foreign Relations Committees, said in an X post Thursday evening that this latest bit of anti-American action “warrants our withdrawal from the UN.”

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Secretary of State Marco Rubio said in his own X post on the matter on Wednesday that the Trump administration “will not allow the UN to tax American citizens and companies. Under the leadership of POTUS (President Donald Trump), the U.S. will be a hard NO. We call on other nations to stand alongside the United States in defense of our citizens and sovereignty.”

On Friday afternoon, Mr. Rubio took to X again to announce the news that efforts by himself and others in the Trump administration succeeded in killing an effort to move the tax forward during a meeting in London. However, the proposal is not fully dead – a final vote on it was simply delayed for a year.

The issue at hand stems from an attempt by the International Maritime Organization (IMO) – an agency of the U.N. – to impose net-zero rules on fuels used for seaborne shipping operations. The Trump administration estimates the imposition of the new requirements will increase the cost of shipping goods by about 10%, thus creating yet another round of inflation hitting the poorest citizens the hardest thanks to the globalist obsession with the amount of plant food – carbon dioxide – in the atmosphere.

Known as the IMO Net-Zero Framework, the proposal claims it would effectively “zero out” emissions from the shipping industry by 2050.

The potential implications if the U.N. ultimately succeeds in implementing its own global carbon tax are obvious. If this unelected, unaccountable globalist body can levy a carbon tax on Americans, a concept that America’s own elected officials have steadfastly rejected across the terms of the last five U.S. presidents, what would then prevent it from imposing other kinds of taxes on the world to support its ideological goals?

President Trump’s opposition to exactly this kind of international intrusion into America’s domestic policy choices is the reason why he has twice won the presidency, each time de-committing the U.S. from the Paris Climate Accords.

It has become increasingly obvious in recent years that the central goal of the global climate alarm movement is to dramatically raise the cost of all kinds of energy in order to force the masses to live smaller, more restricted lives and make their behavior easier for authoritarian governments to control. This camel’s nose under the tent move by the U.N. to sneak a global carbon tax into reality is just the latest in a long parade of examples that serve as proof points for that thesis.

At some point, U.S. officials must seriously reassess the value proposition in continuing to spend billions of dollars each year supporting and hosting a globalist organization whose every action seems designed to inflict damage on our country and its people. Now would be a good time to do that, in fact.

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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