Spring is here and although it is still early it looks like the heat is back in the desert. That makes me happy.
Last week I was in Canada for a couple of days (greeted with snow and 32 degrees) and had the opportunity to read about the new Canadian budget. They are changing a few things such as corporate tax and they have raised the age qualification for old age security to 67 but the startling thing was the goal of government spending at 12.2% of GDP form 14%. Contrast that to the Obama administration taking US spending to over 24% from 20%. One is going the right way and the other is going the wrong way. Will and Ariel Durant the noted historians observed in “The Lessons of History” (1968) that “freedom and equality are sworn enemies, and when one prevails the other dies. To check the growth of inequality, liberty must be sacrificed.” I wonder how many people realize that?
One last point there is an election in France this year and to listen to the politicians their spending is nowhere in sight. Their government takes 56% of the GDP to operate their country. I wonder how long it will take for investors to start raising the interest rates the French have to pay on Sovereign Debt. Have a great weekend. The time is now.