Friday, December 28, 2007

The Consequences

I`ve touched on child support but I`ll save the really interesting information for the book, consider this the condensed version with each post a book section.
The Consequences
I suspect most Cdns have yet to realize, or perhaps they believe the`re insulated from the serious consequences a corrupt justice industry has on their personal situation.
Recently a report came out that placed Vancouvers property crime rate at the highest in North America. No surprise to those that have been exposing why. Four times higher than New York City and that`s based on reported crime, not the estimated 6 out of 7 that are not reported, in reality it`s astronomical.
Here`s the breakdown, my complete analysis in the book will also be based on statistics for accuracy.
Statistically 80% of crime is rooted in a child denied a parent, usually the result of sole custody.
The current record high incidences of crime committed is by the generation that are, or will be, the parents of a historical first, a generation of youths that are outnumbered by seniors that will drive health care costs to quadruple. To top that they are also the leading edge of the highest sole custody rate creating the highest number of children denied a parent, the root cause of crime. lol, I can already hear the poopaas. Your thinking there are lots of things that will nullify the results of the highest number of youth problems in a generation outnumbered by seniors, like the economy.
Greed is the root of evil in our justice industry and a good economy, historically, has also been the salvation. As of today Vancouver has gone through it`s best economic boom ever with labour shortages creating excellent work incentives, yet crime is on the rampage, a complete reversal of historical trends. You say np, the police are being `restructured` and our economy is strong so we`ll pull through even though crime has not responded to our strong economic conditions which I stress is a historic first.
Our economy has gone from manufacturing to raw resource exporter in the last five years. As the global economy and markets slow China will reduce demand dramatically. They will be only too happy avoid further expansion as markets contract and concentrate of stabilizing their recent rapid growth that has lead to the explosion in commodity prices. The Cdn government has no influence on global prices They, like us are just riding along with the wave of global demand. As demand falls revenue will decrease along with government job creation. Did I forget to mention our employment rate looks so good due entirely to government hiring, not the private sector creating jobs.

We`ve heard from Cdn governments our economy is strong even if global demand drops off. The argument that seems to be widely believed is simply not believable. They say even if global demand drops off China will continue to consume large amounts of raw resources suppling their own countries demand for finished goods keeping commodity prices up. Consider this, Walmart is China's 7th largest trading partner. With Cdns owing $1.25 for every $1.00 in assets and in debt for $1T, $50B in credit card debt, $250M in personal loans and Americans $10T in debt retailers like Walmart will soon be cutting way back. The amount of goods produced in China already vastly out supplies their own demand. Even if it didn`t why would they continue to expand to supply their own market when consolidation would bring commodity prices down when high prices are the result of overall global demand and not internally.
When I first started writing about future events I said Ontario would take the first and biggest hit. The`ve been shedding jobs since 2002. Now I`m saying the rest of Canada will now feel the effects because the problems that our federal government has persistently avoided.
Cause and effect will be detailed in the book.

Famous last words
'World Bank chief economist Francois Bourguignon. Bourguignon declared in early September, "What we are seeing is that, in all probability, there will be a very small impact of the subprime crisis and it will be over in a couple of months" '
Reality
Friday December 28
WASHINGTON (AP) -- Sales of new homes plunged last month to their lowest level in more than 12 years
Foreclosures have soared to record highs and probably will keep rising.
This is not just a US problem. Canada is not insulated from trouble in our main source of revenue, falling commodity prices. Canada, Europe, UK and other countries have been bailing out the mortgage holders on subprime and ABCP. The results are in, we are facing a major global slowdown that will put the Cdn economy in a situation that historically increases crime which is already at historic highs.

Fri Dec 28, 11:00 AMGary Norris, The Canadian Press
London's property market hit what was widely regarded as a peak of insanity in January when a six-square-metre storage room in a basement in the tony Knightsbridge district sold for the equivalent of US$335,000. By December, British home prices were reported to have fallen during the month by the most in three years amid fears of a crash in 2008.

The current situation in the US replicates our Cdn 80`s housing crash. The rumour originating in the real estate offices that housing will stay strong until interest rates spike up as was the case in the 80`s is false, inflation combined with a broke consumer is the culprit, not interest rates.
If you`ve enjoyed this outline the book will contain the details of governments response and actions.

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