It’s an oil rich area in Alberta, and apparently a cause for concern. Oil development in the region has had a huge impact for the people who live there – the Lubicon Cree.

To make a long story short: it’s disputed land, and statistically, the Lubicon Cree’s quality of life has decreased since the oil production began, now it resembles that of a third world country. Federal social service payments went from the primary income source of 10 percent of the population to 90 percent. There is a severe lack of running water and sanitation and health conditions are abnormally high as a result.

Traditionally, trapping was a source of income for a majority of the populace, but after the first year of oil development, wildlife all but disappeared.
(more…)

There’s a familiar joke in my province that “B.C.” stands for “bring cash”. The sentiment is fueled by the far-above average house prices in most of the major urban centres in British Columbia. According to the CBC the average house price in Canada is about $330 000 whereas Vancouver is about $610 000. Prices are above Canadian averages in smaller B.C. urban centres like Victoria, Kelowna and Kamloops as well. Affordability hits Canadians hard, especially in B.C. The joke is that average Canadians can not afford to buy houses. For example, Stats Canada lists the average wage in Canada as $22.21 as of September 2009 or approximately $40000 per year. According to the CMHC’s affordability calculator, a person making this wage can expect (with a 5% down payment; $100 per month heating cost; $250 dollar debt repayment; $150 property tax and assuming 4% over 30 year amortization) to be able to afford about a $200 000 house. I admit that I was generous with the numbers as often people have more than $250 debt especially with credit cards, line of credits, and car payments. With higher debt, the affordability drops significantly. This affordability is about $130 000 less than the average house price in Canada. Where I live, in Kamloops, $200 000 will usually buy you a small apartment or mobile home. This may be adequate for an individual but often these are too small for families who need 3 or more bedrooms. To make up for this both parents work usually work to buy a starter home or townhouse.

This is not new news to anyone. Most people are aware of the crunch and that two people need to work to pay a mortgage. However, are most people aware of how the government’s policy with CMHC may be contributing to this affordability crisis?
(more…)

On February 5th, I commented on Obama’s plan to impose a $500,000 salary cap on U.S. executives who were holding onto taxpayer dollars for dear life.

Seven months later Obama has made bold moves in the right direction. Today the Treasury department ordered seven corporations, which have yet to repay their bailout money, to cut executive salaries and bonuses in half. The top 25 highest paid executives will have a $500,000 salary cap imposed on them and will see their perks capped at $25,000. The seven companies affected are: Bank of America Corp., American International Group Inc., Citigroup Inc., General Motors, GMAC, Chrysler and Chrysler Financial.

The Federal Reserve also weighed in, suggesting the monitoring of pay packages at thousands of banks to ensure salaries do not continue spiraling out of control.
(more…)

I woke an hour earlier than usual this morning to head off to the west-end of Edmonton to locate what now looks to be the last bastion of free parking in the city of Edmonton – Beulah Alliance Church. At eight blocks north of the West Edmonton Mall it was an easy find but a long drive as Edmontonians were caught, not just with their pants down, but with their all-season-radials in all-winter weather. I sought out this particular church amongst the plethora of other Albertan evangelical options not, however, for salvation or bake sales, but for a free bus that would take me to meet none other than Prime Minister Stephen Harper at, what was at the time, an ominous undisclosed location, where he would be speaking about an unnamed topic. Tantalized, I braved almost an hour in slushy gunk to get to the upper-middle class and mostly white riding of Conservative party member Rona Ambrose.
(more…)

The strong Canadian dollar, currently trading in the 97 cent range, could actually slow the recovery of the Canadian economy. Sure, it is fantastic for all of us vacationers looking to get out of here for a few days and head south to warmer climates, but there is a strong, potential negative side to this as well. A higher dollar translates into a high cost for exports, and the foreign community may not be up to paying these costs. If Canadian companies suddenly find that their product pricing cannot compete with those from other countries, the economic recovery could be severely slowed.

The last time that the Canadian dollar reached parity with the US, the manufacturing and tourism industries suffered. Now, that being said, the tourism industry will likely be fine in the short term, largely due to the Olympic Games in just a few months. But how does one save the manufacturing industry from demise when there is simply nobody that can afford to buy materials from Canada? In 2008, it was cheaper for companies in the oil sands to purchase steel and completed pre-fab modules from China, ship them across the Atlantic on freighters and float them down the Athabasca River on tugs than it was to buy steel from plants within Canada. If even our own country stops buying materials from within its own reserves how do we convince the rest of the world to do so?
(more…)

I’m sure that every French dilettante who ascended the steps to the gallows during those cleansing day of the French Revolution were wondering the same thing as many titans of business are today.

“Why do they hate use so much? I mean really we’re not that bad.”

Yet, as U.S. public perception of big business rapidly turns from hero to villain, from placid Canada, nothing.

Oh, maybe I’m being a tad harsh. There is the slight grumbling of resentment and outrage. That sort of coffee talk indignation that ends at the finish of a mocha latte. But no marching in the streets. No mass calls for righting an egregious wrong.
(more…)

“It’s very quiet now”, the agency receptionist told Ben, while pointing to a book to enter his details. “Please call me when anything comes up”, Ben replied, shaking his head from left to right as he enters his information into the agency diary. This is the common response Ben got when he went job hunting last week after unsuccessful job search online and having his email account flooded with the reply; “Unfortunately, we found a more experienced candidate, we are unable to offer you the position at this point in time. We will keep your information …”

However, whether Ben was qualified or unqualified, job shortages or losses are not limited to temporal and part time jobs as house hold names like General Motors, Chrysler and Canadian Television (CTV) also answered present in the job loss roll called with even far reaching implications.
(more…)

Remember when you used to trade marbles? Or baseball cards? Or whatever else you had that someone else saw value in.

How about carbon credits?

Bartering is still going on between countries though you don’t hear much about it. Probably because it falls outside the realm of the global financial order i.e. the IMF, OPEC, and other oligopolies and their various taxing authorities. They probably would not be amused at the growth of the bartering concept.

Recently I was speaking to some college students. We were talking about global bartering as a possible solution to unlocking the stuck banking system that is fueling the recession. After all, a small business can barter just about any product or service on the internet now. Why not countries?
(more…)

I don’t like economics. I don’t like the recession. It feels as if the media has latched onto a new hot-button issue and won’t let go. Every day it seems like another statistic related to the recession is being discussed without an ounce of optimism for an entire newscast. Keep in mind, I live in Alberta and we’ve yet to face the brunt of the recession. However, let’s be realistic and look at the Petro-Canada/Suncor merger as an example: did anyone talk about the jump in the markets? Not really. Why not? What have we got to hide? Looking forward to today with the G20 meetings, there doesn’t seem to be a lot of optimism. How are we going to face the biggest economic crisis in six decades? It’s obvious we can’t fix this over night but someone has to take a step in the right direction. I like the G20 event, I also noticed the markets have rallied around it (for a third day in a row too), why hasn’t anyone emphasized this? I think we just need some optimism to get the ball rolling.

In a stunning move this week, Jack Layton, slammed the government over a leaked memo that revealed the government’s interest in cutting the number of environmental impact reviews it conducts. The leader of the New Democrat Party, “Uncle” Jack Layton, said it spoke of the government sacrificing the environment for the economy. Perhaps even more stunning was Layton’s suggestion that the opposite of a green economic recovery was a “brown” one.

Until now, political leaders in Canada have traditionally abstained from weighing in on opposite-colour contraversies. The last time it had happened was in 1967 when Lester B Pearson suggested the opposite of burgundy was magenta; a move which grew widespread protest from members of the PWFCIM (People Who’s Favourite Colour Is Magenta) who claimed Pearson’s assertion was reckless and inaccurate. That was a different time however, and Layton’s modern-day assertion is drawing its share of supporters, as well as speculation that “brown” may actually enter the books as the colour of anything un-eco friendly. This comes much to the dismay of the PWFCIB (People Who’s Favourite Colour Is Brown), who lament that the colour brown has been through enough denigration already, having previously been stigmatized as the colour of ‘poop’.
(more…)