The Canadians have elected a liberal government and crude oil is failing in price. That is the reason behind the dive in the Canadian dollar in the past few days.

The price of crude oil is volatile lately and may remain so for the near term. Powerful forces are clashing in the oil patch and it is going to take some time for the eventual solution to work itself out. But the final outcome will be higher oil prices – that is a given. The economics of producing crude will ultimately dictate higher prices. In the short term, I expect the daily volatility to continue for a while.

The liberal government that recently won the elections in Canada is another matter. Liberals are called democrats in the US. I call them Spendocrats. Whatever the label, their thing is to spend other people’s money on their pet projects.

The idea is not new – and it never works in the long run. But it never seems to stop the next hot shot politician to come up with a new idea of show to take from the rich and give to the poor.

I may not be poor, but I am certainly not rich. The logic behind taking from the rich and giving to the poor is so wishy-washy I do not even like to think about it. Liberals never seem to have heard the story of the ant and the grasshopper.

I grew up in the country. Education was valued but common sense was prized. Education that defies common sense is, in my opinion Brain Washing. Tanking from those that produce and giving to those that are not willing to produce is fundamentally wrong. It is like giving the weeds in your garden equal space and equal nutrients, even thought doing so allows them to eventually overpower the food producing plants.

Giving away other people’s money may provide a momentary high, but it leads down a dead end street. How many times do we have to do it before we accept it?

Good luck my Canadian friends – you’re gonna need it.

 

Leave a Reply

Your email address will not be published. Required fields are marked *

Comments Protected by WP-SpamShield Spam Blocker

See the Music of the Market

The unique trading method that is Trading Between the Lines