statism watch

And there’s a bridge in Deseronto he’d like to sell you. Allow StatismWatch to suggest a little historical context. The charts below are of the various rallies during the Great Depression (Dow) and the most recent year on the DOW and TSX. The time scale at the bottom of the 1930s chart covers a period of four years, and the turnaround didn’t start in earnest until after three years. With the amount of new cash that is being thrown at the banks and the global money supply at present, the staggering debt held by Canadian households, China and Russia’s moves out of US currency and the continuing collapse in employment, the similarity between the period from October 2008 until present and October 1929 until May 1930 (~60% recovery) gives one pause.

Related: China explores buying $50bn in IMF bonds | Chinese economists deem huge holding of US bonds “risky” as Geithner visits | Soaring loonie adds to anxiety over economy | Economist Warns Fed Will Bring About Zimbabwe Style Hyperinflation | Federal deficit to top $50B | Canadian households $1.3-trillion in debt | Economic stabilization may rely on carbon economy, economist says | Digital Money Forum Pushes For Electronic Currency

The Canadian Press
June 8, 2009

OTTAWA – There are signs that Canada’s economy has stabilized, Finance Minister Jim Flaherty said today as a major international think-tank cited Canada among countries in the leading-edge of recovery.

The minister’s remarks came as the Organization for Economic Co-Operation and Development named Canada among four industrialized countries showing signs of having reached a bottom in the economic downturn.

The OECD cautioned it was still too early to say definitively whether the signs of improvement were “temporary or a more durable turning point,” but said positive indicators were present in a majority of its 30 member countries.

“The OECD composite leading indicators for April 2009 point to a reduced pace of deterioration in most of the OECD economies with stronger signals of a possible trough in Canada, France, Italy and the United Kingdom,” the organization said.

At a Montreal event, Flaherty expressed “cautious optimism that a global economic recovery may not be far behind.”

He predicted Canada will lead the way as the recovery takes hold.

                      <—- Sep to Jun —>

Flaherty said Canada is in the best shape of any G7 country, despite a federal government deficit that is expected to be “slightly more than $50 billion” this fiscal year.

The government’s budget originally estimated the 2009-10 deficit would be substantially lower, at a still-large $33.7 billion, but the Conservatives announced in late May that it would be about $16 billion higher than that due to a dropoff in revenue because of the recession and because of the cost of a bailout for the Ontario auto industry.

Statistics Canada reported Friday that the country’s unemployment rate had hit an 11-year high of 8.4 per cent, the total number of Canadians who have lost their jobs since the recession began in October increased by 41,800 to 363,000.

But Flaherty said today that all of the measures in Canada’s economic action plan to help Canadian households and businesses are “in place and fully operational.”

He spoke after the Canada Mortgage and Housing Corp. reported that the annual rate of housing starts increased by about nine per cent to 128,400 in May from 117,600 in April.

That was the latest of a string of economic indicators in Canada that have shown a slight pickup in the past month or two, although from very low levels.

The OECD leading indicators report found that Canada’s index had increased by 0.4 points in April from March, although it remained 7.6 points lower than last year. It was the second consecutive month that Canada’s index had improved.

The organization said China and India, which are not OECD members, also showed signs of having reached a trough.

But it added that “major non-OECD economies still face deteriorating conditions.”

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Budget measures would improve credit access | $12B for infrastructure forms key pillar of stimulus package | Few surprises as government turns on the spending taps | U.S. Senate confirms Geithner as treasury secretary despite reservations | Iceland’s government collapses | Optimistic central bank expects speedy economic rebound | Ottawa risks erasing decade of debt reduction | Canadian, U.S. energy policies to be inextricably linked: Prentice | Business Development Bank will get $350M injection, Clement says | Prominent Economist: Crisis Caused By Government Interventions | New UK bank bailout | Vancouver dodges public referendum requirement for funding to finish Olympic Village | Zimbabwe unveils 100 trillion dollar banknote | Financial crisis: Bank of America given $138bn rescue package | Q&A: Prime Minister Stephen Harper speaks with The Post’s John Ivison | Premiers to press Harper for infrastructure boost | Vancouver mayor to recall legislature to handle Olympic Village crisis | Bring in a Canadian securities regulator: Flaherty’s handpicked business panel | Merged Citigroup, Morgan brokerage would be largest | Obama to visit Canada, Tories to propose ‘integrated carbon market’ | Brace for a big, ‘comprehensive’ budget: Harper | Canadians starting to save cash, shun debt | GM’s U.S. bailout deal bars strikes | European Leaders Call For New Global Order | Transport Minister Baird calls for dramatic action on stimulus package | Obama calls for ‘dramatic action’ on stimulus package | UK PM unveils ‘New Deal’ plan to create 100,000 jobs | Flaherty vows short-lived deficit, consults corporate chiefs on spending initiatives | Analyst: One Third Of Banks Could Collapse or Merge In 2009 | Auto bailout gives Federal, Provincial governments incremental nationalization powers | Banks won’t say where U.S. bailout money going | UK: Bailiffs get power to use force on debtors | Kissinger Calls For New International System Out Of World Crises | Canadian auto bailout could reach more than $4-billion | U.S. to spend $17.4-billion to ‘rescue’, nationalize auto industry | Harper government plans deficits as deep as $30 billion | Flaherty appoints business leaders to economic advisory council | IMF Chief Warns Of Riots In Response To Economic Crisis | Bank of Canada ready to monetize distressed equities | Canada may backstop ABCP rescue: Flaherty | The ugly spectre of ‘new Keynesianism’ and the self-appointed Guardians | Army ‘Strategic Shock’ Report Says Troops May Be Needed To Quell U.S. Civil Unrest | Federal government, Ontario agree on $3.3B auto bailout package | ‘Outrage’ greets banks’ failure to match rate cut | State to bail out, control US auto industry | Get close to Obama on economy and security, paper says | Financial Times: And now for a world government | Terence Corcoran: It’s Twilight for Detroit and the U.S. economy | Mexico to downsize metal in coins to save a few cents | Automakers seek $6B aid package from Ontario, federal government | Bank of England mulls “nuclear option” of cash injection | Zimbabwe tackles cash shortage amid riots and looting | Icelanders storm central bank in protest | Liberals and NDP sign unprecedented pact; to pursue stimulus, carbon taxes | UN Climate Change Conference open with call for ‘co-operation’ | UK closer to joining euro, EU commission president says | Iceland turns 90 amid economic ruin, currency freeze | TSX drops 600 points, N.Y. also falls | Britain buys control of Royal Bank of Scotland | Iceland inflation soars to 17.1% | Canada in recession: OECD | Maybe we should look at Zimbabwe before trying to print our way out of a money crisis | Britain to introduce massive stimulus packageObama appoints architects of economic collapse, financial globalism to economic team | | Jim Flaherty Urging Greater Federal, International Control over Canadian economy | Citigroup seeks ‘emergency cash’ | Deficits ‘essential,’ Harper says | Harper vows Canada will remain open to international trade | 5 injured during protest in Iceland over economic meltdown | ‘Hard decisions’ needed during economic crisis: throne speech | Paulson, Bernanke defend change of plan: $700-billion now to be given directly to banks | After G20 meeting, Ottawa ready to spend to spark economy | Congress Accuses Federal Reserve Bagman Of Bailout “Bait and Switch” During Angry Hearing | Flaherty eyes sale of Canadian government assets | Analysts Predict Hyper-Inflation To Push Gold To $2000, Oil to $300 | Terence Corcoran: Rescuers pulling market under | U.S. government won’t use bailout fund to buy troubled assets | Ottawa to pour another $50B into mortgage markets | Bank of Canada adds $8B to credit markets | Merrill CEO: Economic Environment Recalls 1929 | Fed Hides Destination Of $2 Trillion In Bailout Money | PM, premiers agree to speed up infrastructure investment | Flaherty lauds Keynesian global ‘economic stimulus’ strategies | Who are the Architects of Economic Collapse? 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