Canada's Debt Crisis
Where news meets rational thinking
Good morning, It’s Tuesday, August 20th. In today’s news, Canada’s debt crisis is ‘much worse’ than the government admits, Toronto’s latest ‘affordable housing’ project is another big financial misfire, the GOP reports that ‘Biden committed impeachable conduct and defrauded the American people to enrich his family,’ Canadian and UK tech giant Mike Lynch among those missing after luxury superyacht sinks and much more.
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Study: Canada’s Debt Crisis is “Much Worse” Than the Government Lets On
The Fraser Institute's recent study highlights how Canada's debt crisis is much worse than what the Liberal government presents. The government often highlights that Canada has the lowest net debt-to-GDP ratio among G7 nations, but the study shows how this statistic is misleading because it includes financial assets that aren't available to pay down the debt.
When using the net debt metric, which subtracts these financial assets from total debt, Canada ranks 5th among 32 industrialized countries and lowest in the G7. However, when total debt is considered—without subtracting these unusable assets—Canada's ranking plummets to 26th out of 32 countries and third lowest in the G7, trailing the UK and Germany. This drop of 21 places is the largest change among the 32 countries analyzed.
The report explains that gross debt provides a more accurate comparison with other countries because it doesn't offset debt with assets that can't actually be used to reduce liabilities. Specifically, the net assets in the CPP and QPP, which amount to approximately $716.7 billion, make up more than a quarter of the $2.7 trillion difference between Canada's gross and net debt.
This big gap highlights that the federal government is using net debt to hide how bad Canada’s financial situation really is compared to other countries. More
Our Thoughts: Canada's household debt-to-GDP ratio has soared to around 103%, making it the highest among G7 countries. This means Canadians owe more than their entire annual economic output, creating substantial financial pressure on households.
Canada's national debt has also ballooned, reaching nearly $1.23 trillion. This represents a near 100% increase from $620 billion in 2015, when Trudeau took office.
Home prices in Canada have surged by over 40% since 2020, with the average price for a single-family home now exceeding $850,000, making home ownership increasingly unattainable for many Canadians.
It doesn’t matter if the government spins one flawed stat to show how well they’re doing for us—we can all feel the reality we’re living in.
Toronto’s Latest ‘Affordable Housing’ Project: Another Financial Misfire
Mayor Olivia Chow's newly announced "affordable housing" project in Toronto has sparked criticism due to its exorbitant costs and lack of transparency. The project involves constructing 78 rent-geared-to-income units on a Green P parking lot in Kensington Market, with each unit projected to cost an astonishing $405,128. The total construction budget is estimated at $31.6 million, though final approval is pending and funding details are vague.
The city is also seeking an additional $2.3 million annually from the province to operate the project. When combined with the $654,605 in lost annual revenue from the parking lot, the cost to taxpayers will be an additional $3 million, or $34,461 per unit, per year.
Critics argue that this so-called "affordable housing" project is far from economical. For the same price, the city could purchase 500-square-foot condos for each tenant, bypassing the need for heavily subsidized and inefficient public housing. They also highlight the continued failure of the city's policies to address homelessness effectively, pointing to the encampments of drug addicts in nearby parks and the strain on the shelter system caused by unchecked migration.
This project is another example of political maneuvering rather than a genuine effort to provide cost-effective housing solutions. More
GOP Report: Biden Committed ‘Impeachable Conduct and Defrauded the American People to Enrich His Family’
As the Democratic National Convention kicks off with a focus on President Joe Biden, House Republicans have released a final impeachment report on the Biden family's business dealings. This report details allegations of corruption and influence peddling during Biden’s vice presidency, contrasting sharply with the celebratory tone of the convention:
Financial Gain:
The Biden family reportedly earned over $27 million from selling political influence.
Burisma Scandal:
Hunter Biden was paid millions by Burisma, a Ukrainian company with a controversial reputation, while Joe Biden was vice president.
Biden is alleged to have pressured Ukrainian officials to fire a prosecutor investigating Burisma, a move that coincided with Hunter’s lucrative role on Burisma’s board.
Romanian and Chinese Deals:
Hunter Biden allegedly secured $1 million from Romanian real estate tycoon Gabriel Popoviciu in exchange for influencing Romanian anti-corruption authorities.
In 2013, Hunter Biden and Joe Biden were involved in a deal with Bohai Harvest RST, a Chinese investment firm. This deal helped China gain access to military-use technology and a $3.8 billion cobalt mine in Africa.
CEFC China Energy:
The report details a deal with CEFC China Energy, linked to the Chinese Communist Party. The arrangement included a controversial "10 percent for the big guy" email, suggesting Joe Biden’s personal stake in the deal.
Hunter Biden’s 2017 WhatsApp message to a CEFC executive demanded fulfillment of a financial commitment, resulting in an additional $5 million flowing into the Biden family’s accounts.
Legal and Investigative Issues:
The report criticizes the Biden-Harris Justice Department for allegedly obstructing investigations and providing preferential treatment in Hunter Biden’s tax trial.
Prosecutors initially attempted to dismiss charges and later proposed a lenient plea deal that fell apart due to judicial scrutiny.
Despite the severity of these findings, Republicans will not pursue impeachment. With President Biden already stepping down and the upcoming election, the report serves more as a counter-narrative to the positive portrayal of Biden at the convention, aiming to highlight what Republicans view as serious ethical breaches during his vice presidency. More
Canadian and UK Tech Giant Mike Lynch Among Those Missing After Luxury Superyacht Sinks
A Canadian man died after a luxury yacht, the British-flagged Bayesian, sank off Sicily during a violent storm on Monday. The 56-meter yacht, carrying 22 people, was anchored near Porticello when the storm hit. Of the 15 survivors, including a one-year-old girl, eight were hospitalized. Six people, including British tech magnate Mike Lynch, are still missing. The body of Canadian-born Thomas Recaldo, the ship's cook, was recovered. The yacht sank quickly, and the wreck was found 49 meters deep. Italian authorities are investigating the incident. More
Volcano Eruption After Powerful Quake in Russia Triggers Airspace 'Code Red'
One of Russia's most active volcanoes, Shiveluch, erupted on the Kamchatka Peninsula, sending ash plumes five kilometres into the sky and briefly triggering a "code red" warning for aircraft. The eruption followed a 7.0 magnitude earthquake off Kamchatka's coast, with scientists warning of a stronger quake soon. According to reports, the ash cloud stretched over 490 kilometres. Despite the warnings, no flights were disrupted, and no immediate injuries were reported. More
Anti-Israel Protesters Arrested After Breaching Barrier at DNC Ahead of Biden Speech
Anti-Israel protesters breached the first layer of fencing outside the Democratic National Convention in Chicago, where President Biden was set to speak. After marching from Union Park to Park 578, some protesters managed to slip through the fences, but police quickly restored security. Despite predictions of up to 40,000 attendees, only about 15,000 showed up, carrying signs condemning US support for Israel. Tensions were high, with some protesters chanting slogans from the 1968 Chicago protests and expressing frustration with both President Biden and Vice President Harris over their stances on Israel. Counter-protesters also gathered, with law enforcement separating the opposing groups. More
UK Government Considers Including Misogyny as a Form of Terrorism
Home Office Minister Jess Phillips announced that misogyny will be treated as an extremist ideology, similar to far-right and Islamist extremism, as the government aims to crack down on harmful beliefs. Despite concerns about free speech, Phillips emphasized that the same standards used for other forms of extremism would apply. This move follows Home Secretary Yvette Cooper’s review of Britain’s counter-extremism strategy to address the radicalization of young men online and to enhance women's safety through increased law enforcement efforts. More
Tiny Thought: RIP UK
Toronto Street Gang Investigation Leads to 32 Arrests, 158 Charges
An 11-month investigation, dubbed Project Foxxx, led to the arrest of 32 people and the laying of 158 charges against members of the Jamestown Crips, a Toronto street gang involved in firearms and drug trafficking across Ontario, Manitoba, and Newfoundland and Labrador. The investigation, which began last September, was a collaboration between multiple police forces, including Toronto Police and the RCMP. Authorities seized nine firearms, $320,000 in cash, and significant quantities of cocaine and methamphetamine. The suspects, aged 16 to 55, are now facing a variety of charges, with court proceedings underway. More
9 Percent of Canadians in Top Income Bracket Considering Using a Food Bank
A new Statistics Canada report highlights the widespread impact of rising living costs, with 9% of Canadians in the highest income bracket considering using a food bank. Overall, 42% of Canadians are worried about food prices, and nearly half are struggling to meet daily expenses, a 12% increase from 2022. The report shows that families with children and those with disabilities are hardest hit—55% of families with children and 57% of those with disabilities are struggling financially. Housing affordability is also a major concern, with 38% of Canadians worried about being able to afford a home, up from 30% in 2022. Additionally, 23% of Canadians are concerned about affording groceries, with 8% saying they are very likely to need help from community organizations like food banks. More
How Ryan Reynolds and Disney’s Turned ‘Deadpool & Wolverine’ Into a Record-breaking Movie
The marketing campaign for Deadpool & Wolverine stood out due to several strategic moves. Disney and Reynolds' firm, Maximum Effort, executed high-profile partnerships worth $135 million with brands like Heinz and Adidas, while Disney's marketing budget exceeded $100 million. The film’s trailer broke records with 365 million views in 24 hours, featuring provocative content that stirred buzz.
Reynolds, Hugh Jackman, and director Shawn Levy conducted a global tour across 10 cities and high-profile events like the UEFA EUROs 2024. The campaign’s creativity included unique promotions, such as a customized popcorn bucket and humorous PSAs, which helped propel the film to a remarkable $1.086 billion in global earnings, setting a new record for R-rated films. More
7-Eleven Targeted by Circle K Owner in $30 Billion Convenience Store Buyout
Alimentation Couche-Tard, the Canadian owner of Circle K, has proposed acquiring Seven & I Holdings, the Japanese company that operates 7-Eleven. If successful, this deal would be the largest foreign takeover of a Japanese company on record and the biggest cross-border acquisition of 2024. Seven & I, valued at over $38 billion, has set up a special committee to review the offer. The bid has caused Seven & I’s stock to jump nearly 23%. If completed, the acquisition would significantly expand Couche-Tard’s presence in North America and Europe but may face scrutiny from antitrust regulators and challenges due to Japan's cautious stance on foreign takeovers. More
Prehistoric Paintings Found in the Amazon Depict Supernatural Figures
Recently uncovered prehistoric wall drawings in Colombia’s Amazon rainforest, at Cerro Azul, reveal ancient humans’ complex view of thw world. Dating back possibly as far as 10,500 BC, the vivid artwork includes detailed depictions of animals like deer, birds, and lizards.
Some images feature hybrid figures combining human and animal traits, suggesting that these creatures were viewed not only as sources of food but also as supernatural beings involved in rituals. The exclusion of common animals like fish and the absence of big cats, which held spiritual significance for local tribes, adds further mystery to these depictions.
This art, uncovered through recent archaeological work following Colombia's 2016 peace agreement, provides profound insights into how early Amazonian societies perceived their environment, illustrating a deep, spiritually rich relationship with the animal world. More
NASA Considers Using Floating Clocks In Space To Tell Time On The Moon
The US plans to establish a unified time standard for the Moon by 2027 as part of NASA's goal to maintain a permanent lunar presence. A recent scientific paper by Colorado researchers proposes using clocks stationed at Lagrange points—stable positions in space where gravitational forces from Earth and the Moon balance—to synchronize time between the two celestial bodies.
Unlike fixed Earth time zones, lunar time differs due to relativity, with the Moon's time moving about 56-57 microseconds faster. The proposed method aims to address these differences by using orbital clocks to correct for various cosmic factors, ensuring accurate timekeeping for future space missions. This system could eventually be adapted for deeper space exploration, including trips to Mars and beyond. More
NFL Power Rankings 2024
As the 2024 NFL season nears, with cut-down day on August 27th and preseason games ending on August 25, it's time to reassess team outlooks. The latest Power Rankings reflect changes since April's draft, influenced by holdouts, injuries, and trades.
Kansas City sits in the top spot, the 49ers have slipped to third, the Bills have jumped eight places to number seven in the league, while the Patriots, Broncos and Panthers currently sit at the bottom of the heap. Full Rankings Here
Blue Jays Reportedly Entertaining Trade Offers for Bo Bichette
Bo Bichette's season has been disappointing due to persistent leg injuries, affecting his performance and visibility, especially with attention on Vladimir Guerrero Jr.'s contract. Bichette has also indicated that he will not stay beyond the 2025 season. As a result, the Toronto Blue Jays are considering trading Bichette this winter. This move would allow the team to recoup value, potentially in the form of high-end prospects or major league pieces, instead of risking losing him for just a compensation pick. More
Caitlin Clark Breaks WNBA Rookie Record for Assists
Caitlin Clark set a new WNBA rookie record for assists with 232 during the Indiana Fever's 92-75 victory over the Seattle Storm. Clark, who leads the league in assists at 8.3 per game, surpassed Ticha Penicheiro's 1998 record of 224 assists. Clark's achievement came in her 28th game, compared to Penicheiro’s 30. With 12 games remaining in the season, Clark is on pace to break the overall WNBA single-season assist record of 316. She also contributed 23 points, 5 rebounds, and 2 blocks in the game. More
Harvey Weinstein Will Remain Locked up in New York While Awaiting Rape Retrial
Harvey Weinstein will remain in custody in New York while awaiting a retrial on rape and sexual assault charges. After this trial, he will return to California to serve a 16-year sentence for a separate rape conviction. Weinstein's 2020 Manhattan conviction was recently overturned, and a retrial is set for November. Currently, he is held at Rikers Island following health issues. Prosecutors in Manhattan are considering new sexual assault charges, though details and timing are unclear. More
Switzerland Dumped Munitions in its Lakes, Now it’s Offering $57,000 for the Best Ideas to Get Them Out - Munitions, some of which were surplus, faulty or outdated, were submerged in several lakes, including Lake Thun, Lake Brienz and Lake Lucerne, between 1918 and 1964. They were buried between 150 and 220 meters (492 and 722 feet) below the surface, according to Armasuisse. But now, Switzerland wants to pull them out. The three best entries will share a prize pot worth 50,000 Swiss francs ($57,800).
Ultra rare 'Star Wars' Boba Fett Figure Sells for Record-breaking $1.34 Million - An extremely rare prototype Boba Fett action figure made for Kenner's Star Wars line in 1979 sold for a record-breaking $1,342,000. Goldin Auctions said the Kenner 1979 J-Slot (Version 2) Rocket-Firing (Mailer) Prototype Boba Fett, which never made it to market, is now the most expensive toy ever sold, the most expensive action figure ever sold and the most expensive non-prop Star Wars-related item ever sold.
Food Truck Offers ‘Bird Snatch’ Insurance Policy After Hungry Birds Cause Issue Among Customers - Hawkins BBQ, a food truck on the Isle of Man, has introduced "seagull insurance" for £1 ($1.30) to replace meals stolen by aggressive seagulls. This unique policy, aimed at customer satisfaction, also supports the Manx Wildlife Trust.