Friday, November 04, 2011

Alberta Fianace - Heading for disaster big time!

The  Conservatives, through short sightedness and abject miss management has forced this province into a position of being at least, flat broke and at the outside near bankrupt.  

During the great, high flying times they had drawn more than 90 billion from the Heritage trust (Arms Length ? AIMCo)  Production remains flat meaning little new revenue while expenditures sky-rocket. Recent news broadcasts and releases tout more production but the fine print shows the increases are in foreign holdings.

Make work programs for the resource people costing 9 billion a year or more. Oil companies pulling a million profit or more for non producing wells while workers get 1 week in 3 employment.  Not enough for any trickle down luck to take place.   If these kids manage to get enough coin it goes for new rims for their favorite truck.

For those of you who think they will not face a heavy load of taxation after the next election; the Government is still short near a billion dollars for new power lines!   That coin will come as a new tax measure plus the coin for day to day operations and corporate subsidies.

Much of this loose gold goes to the executive professionals  who get full pay, most of whom are foreign educated because of the Conservatives  attack on the people of Alberta forcing kids into trade schools rather than leave a University choice. The Conservatives found early on it was cheaper to put their kids though trades schools and employ professions from foreign sources.

Reports of high school students still leaving school to get into the artificial, non existent Alberta boom I find very disquieting.

The Conservatives  reduced royalty to 5% Canadian before the crunch! This is not enough money to call it a break even deal!  Now, they have no place to move!

Facing an election in the near future and dwindling profits they are trying desperately at taxpayer expense to generate a picture, no matter how false or  how costly of a rollicking provincial economy and, it simply is not true. 

Probably, "Arms Length" public service pensions administered by AIMCo are being invested in CCS, P3 financing  and like programs so they don't show up as a debt. If they treat them like the Heritage fund they will be paid 4% for their "investment"  This would be one reason why this Government is pushing so hard on a CCS program rift with misdirection and lies.  They have already invested so the WRP grab for attention of saying  "stopping CCS" would bring a whole new set of problems.
 A Pension Fund was invested in Alberta Conservative projects would show on the pension side of the books as an investment  and it would not show as part of the debt on the Government side.  If it is treated like the Heritage fund there is no intention of repaying but will hold appreciation very low to push profits onto the projects.


You can see why this Government fought so hard against a Federal Securities commission!  If you or I tried anything like this we would be in court!
 
Strapped for cash they tried Bond funds which didn't fly; industry doesn't trust them; knows better. But it is possible AIMCo bought up a bunch of the bonds and tacked them into their portfolios. 

Arms Length with this Government means they can direct the funds which ever way they want, investing in whatever doubtful project they want and the "arms length"  comes into effect barring the public from a look at the accounts and investment strategy.

Get rid of these suckers while you still can! And, the WRP is on side with all this stuff so you won't find an improvement there.  If anything it will be much worse.
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