25 March 2009

Sound fiscal mismanagement


From nottawa, the first perspective on the provincial budget which is scheduled to to be presented on Thursday.

net expenditures dannystan Take a look at the chart of capital and current account spending. 

Since when is increasing spending by 18% in a recession “sound fiscal management”?

Well, it isn’t.

The only people who would use those terms to describe the provincial government spending habits over the past four years are people who have never actually looked at what is going on.

Either that or they are sitting on the government benches or work for people sitting on the government benches.




We live in a fiscal house of cards” (March 2008)

What goes up must come down” (March 2008)

Before you click to another page because this is all old hat, consider that in 2003, oil was around US$25 per barrel.  The only people who predicted that within five years oil would hit US$100 a barrel within five years were either in an insane asylum, considered candidates for a straightjacket or part of a very small group of oil pundits who had been faithfully predicting hundred dollar a barrel since the 1970s.  Eventually they had to be right, just like a psychic.

Ask around today and you'd have a hard time finding anyone who will tell you that we will see oil below US$50 a barrel in the near future either.

Odds are better, though, that oil will drop to US$50 and lower within the next decade.

Okay so it happened a little sooner than predicted.