12 March 2010

RBC Economics: Imaginary project to drive NL economy in 2010

Sometimes you wonder if these guys actually have a clue:

The recent Public and Private Investment Intentions survey revealed that growth in non-residential capital investment in the province will be the fastest in Canada, surging by an impressive 31.2%. This increase will be fuelled by stronger investment in mining, oil and gas extraction,
utilities (related to the Lower Churchill Hydro development project) and the provincial government’s aggressive infrastructure stimulus plan.

Lower Churchill Hydro development project?

Since no one will be spending money on a project that doesn’t exist it’s going to be pretty hard for that gigantic imaginary project to drive economic development in the province.

It’s like the Matshishkapeu Accord, appropriately named around these parts after the spirit of the anus, the flatulence god.  Because that’s pretty much what the whole LC project is right now:  so much hot air that hits your nostrils with a pretty ripe odour.

Then there’s this piece of sure shite from the boys at the bank:

Employment in the province fell by 5,200, causing the unemployment rate to rise during most of the year; however, outside of energy and mining, the rest of the domestic economy fared surprisingly well.


Surprisingly well indeed, if you don’t mention that the fishery is down 22% in landed value.

And let’s not forget that forestry, as in pulp and paper making, is in near complete friggin’ meltdown.  Mills closed.  The one remaining mill has one machine going instead of two and is slicing off workers and costs in a desperate effort to stay afloat.

The province’s finance minister admits they’ve shagged up government spending so badly that current spending patterns are “unsustainable.”  But the fin min say recently that if it wasn’t for oil – thanks BP, CKW, BT, and   RG – he and DW would be shagged up royally?  good thing there were all those give-aways before 2003 of they’d be up the creek.

But sure sure thing, there, RBC economist guys.

Everything in Newfoundland and Labrador is just wonderful.

Protected by a magic bubble.

Friggin’ loons.