The non conformer's Canadian Weblog

July 20, 2008

The math behind a 4-per-cent pay raise

Our politicians are certainly not limiting themselves to a 4 percent pay raise for a start..
 
Canada should avoid a recession, but the cost of gasoline, heating and groceries will continue to rise until early next year.  according to  Mark Carney, governor of the Bank of Canada, in his latest report on the health of the Canadian economy. “Food prices, which had been falling, uniquely in Canada, are starting to firm up, but not dramatically,” he said.
 
The math behind a 4-per-cent inflation rate Globe and Mailall 465 news articles »
 
The math behind the 4 percent inflation rate only next  predicted in Canada is typical of too lying statistics even  because it   for certainty for nelgects the living costs for those persons the  most vulnerable in society, the poor persons, and, and the seniors actually anyone living on a pension, have seen the cost of living gone up as much as 30 percent on food alone in the last year.. Now all the major grocery chains in my city are 30 percent higher in selling price of meats, vegetables, bread   as well over the same period last year.  “in August, even if prices don’t change between now and then, gasoline will cost about 40 per cent more year over year. Gasoline makes up about 6 per cent of the consumer price index, so a 40-per-cent hike means a 2.4-per-cent rise in total inflation, even if everything else stays flat.” Not only has the price of fuel, gasoline gone up  by more than 4 percent but so has the price of bus tickets now as well.. Now we know the increased price of Gas affects not only the price of heating fuel, buying manufactured goods, clothes as well..
 
If Canadian Ostriches now were to believe their self centered  leaders, they’d think inflation was not a problem and Canada’s economy was on a roll. But it seems Canadians rightfully don’t put much credibility in their leaders or the PM’s statements. Consumer confidence definitely has plunged.
 
Do most of the statements from Ottawa  actually work? Or do they prompt a further erosion of confidence because consumers and businesses fear their self centered, selfish leaders again are out of touch with reality ? Preston Manning included.
 
Other Canadian and U.S. central bankers warned of tougher times ahead on Tuesday as the slumping North American economies suddenly appeared more vulnerable to job loss, financial failures, inflation and weaker consumer spending.
 
General Motors Corp. announced plans to cut its U.S. and Canadian white-collar salary budget by 20 per cent, further reduce truck production, suspend its dividend and borrow
 
In Canada  house prices experienced their first decline in nine years last month. Home prices in major markets edged down 0.4 per cent from last June, and sales volumes plummeted, by as much as 42 per cent in Greater Vancouver
  
The consumer prices rose 1% in May from April – the biggest one-month increase since 1991.
 

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