Tag Archives: Germany

Elbphilharmonie Bauzeitraffer – 5 year construction timelapse

First of all, watch this time lapse video taken over five years.

Here is the story behind it.

The Elbphilharmonie is a concert hall under construction in the HafenCity quarter of Hamburg, Germany. The new construction sits on top of an old warehouse building and is designed by Swiss architecture firm Herzog & de Meuron.

In 2007, the construction was scheduled to be finished by 2010 with an estimated cost of €241 million. In November 2008, as an endorsement to the original contract, the costs for the project were estimated at €450 million.In August 2012, the cost were re-estimated to be over €500 million, which should also cover the increased cost for a strengthened roof.

As of December 2014, construction work is scheduled to end in October 2016 at a cost of €789 million, with an announced opening date of 12 January 2017.

The easternmost part of the building will be rented by Westin Hamburg hotel, scheduled to open in October 2016. The upper floors west of the concert hall will accommodate apartments.

I love the ambition of this project.  It’s something you don’t often see anymore.

Maybe Germany needs to be kicked out of the Eurozone

From Foreign Policy

Last year, Germany racked up a record trade surplus of 217 billion euros ($246 billion), second only to China in global export dominance. To some, this made Germany a bright spot in an otherwise anemic eurozone economy — a “growth driver,” as the German finance minister, Wolfgang Schäuble, puts it. In fact, Germany’s chronic trade surpluses lie at the heart of Europe’s problems; far from boosting the global economy, they are dragging it down. The best way to end this perverse situation is for Germany to leave the eurozone.

Germans usually respond to such charges with a kind of hurt confusion. We run trade surpluses, they patiently explain, because we are simply much more competitive than most of our trading partners. Can you blame us, they ask, if the world prefers to buy superior German goods (and has nothing we want in return)? So goes the argument: The rest of the world just needs to up its game, get its house in order, and become a bit more like Germany. In the meantime, don’t hate us ‘cuz we’re beautiful….

Contrary to popular mythology, however, there’s absolutely no reason why being “competitive” should mean running a trade surplus. As far back as 1817, the economist David Ricardo pointed out that the optimal basis for trade is comparative, not absolute, advantage. In other words, even if a country is better at everything, it should export what it is best at and import what it is less better at. Having an across-the-board advantage does not imply that it makes good economic sense to produce everything yourself, much less to sell more than you want in return. Or, to put it a bit differently, there’s no inherent reason why earning more can’t mean spending more, on consuming both public and private goods, as well as investing in future productive capacity.

Trade surpluses take place when a country chooses to spend less than it produces — when it has excess savings, beyond its domestic need for credit. It lends that excess savings abroad, financing another country’s ability to spend more than it produces and, by running a trade deficit, purchase the lender’s excess production. It’s true that a highly productive country might have the wherewithal to conjure up excess savings, while a less productive country might be inclined to borrow rather than scrape up the savings it needs. But fundamentally, trade imbalances arise not from competitive advantage but from choices about how much to save and where that savings should be deployed — at home or abroad.

Does it ever make sense to run trade imbalances? Sure it does. In the 19th century, Britain’s Industrial Revolution enabled it to reap vast earnings from expanded output, some of which it invested in the United States. The money lent to a rapidly growing American economy generated higher returns than it would have back home, while creating a market for British-made goods. The potential productivity gains made it a win-win: It made sense for the Americans to borrow and for the British to lend. But the case also highlights something that’s easy to forget: Running a trade surplus means financing someone else’s trade deficit.

The eurozone crisis is often called a debt crisis. But, in fact, Europe as a whole did not have an external debt problem, but an internal one: German surpluses and mounting debt in Europe’s periphery were two sides of the same coin. Germans saved (a lot), and the single currency induced them — rather than save less or invest it at home — to lend it to their eurozone trading partners, which used the money to buy German goods. By 2007, Germany’s trade surplus had reached 195 billion euros, three-fifths of which came from inside the eurozone. Berlin might call this “thrift,” but it’s hard to argue that Germany’s excess savings, which its banks often struggled to put to use, were well invested. Instead, they gave Germans the illusion of prosperity, trading real work (reflected in GDP) for paper IOUs that might never be repaid.

The solution? 

So what should be done? The best solution — and the least likely to be adopted — is for Germany to leave the euro and let a reintroduced Deutsche mark appreciate.

It will never happen but it is a solution that makes sense.

It’s okay for a city to have a sense of humor

Attention Dogs

I love this.  I wish Saskatoon and other cities would have a sense of humour like this like Bellvue, Washington.  It’s also okay for cities to be fun.

Of course then there is this.  It is amazing

Lego Bridge

Lego bridge

For some reason I think that doing it in City Park under the rail tracks would look great.  In case you are wondering, it is in Wuppertal, Germany.

Think of what little things like this all over Saskatoon would do for us.  Surprising things to make us laugh, smile or just smirk a bit as we make our way through the city.   I think it would be great.

Effects of climate change ‘irreversible,’ U.N. panel warns in report

More bad news on climate change from the United Nations

The Earth is locked on an “irreversible” course of climatic disruption from the buildup of greenhouse gases in the atmosphere, and the impacts will only worsen unless nations agree to dramatic cuts in pollution, an international panel of climate scientists warned Sunday.

The planet faces a future of extreme weather, rising sea levels and melting polar ice from soaring levels of carbon dioxide and other gases, the U.N. panel said. Only an unprecedented global effort to slash emissions within a relatively short time period will prevent temperatures from crossing a threshold that scientists say could trigger far more dangerous disruptions, the panel warned.

“Continued emission of greenhouse gases will cause further warming and long-lasting changes in all components of the climate system, increasing the likelihood of severe, pervasive and irreversible impacts,” concluded the report by the United Nations’ Intergovernmental Panel on Climate Change (IPCC), which draws on contributions from thousands of scientists from around the world.

The report said some impacts of climate change will “continue for centuries,” even if all emissions from fossil-fuel burning were to stop. The question facing governments is whether they can act to slow warming to a pace at which humans and natural ecosystems can adapt, or risk “abrupt and irreversible changes” as the atmosphere and oceans absorb ever-greater amounts of thermal energy within a blanket of heat-trapping gases, according to scientists who contributed to the report.

Meanwhile in Canada, we don’t care about climate change, only our own economy.

Canada’s hopes of securing an outlet for its landlocked oil wealth and pulling an end run around the eternally deadlocked Keystone XL project took a big step forward Thursday with the release of formal plans to build a U.S. $11 billion pipeline to the Atlantic.

TransCanada, the biggest Canadian pipeline company, submitted its application to Canadian energy regulators for a nearly 3,000-mile-long, million-barrel-a-day pipe running from oil-rich western Canada to refineries and shipping terminals in the east. The so-called Energy East Pipeline Project, which TransCanada officials hope could be in operation as soon as 2018, would provide an export outlet for huge volumes of current and future oil production that right now has no easy way to get to market.
The project wouldn’t replace the Keystone XL pipeline — Canada’s other high-profile, multibillion-dollar oil-transport project, which has been awaiting U.S. approval for years — but it could give Republican critics of U.S. President Barack Obama’s administration fresh fodder ahead of the midterm elections. Republicans have long argued that the White House’s refusal to sign off on the Keystone project would cost the United States tens of thousands of jobs. The Obama administration has finished reviewing the environmental merits of Keystone, but pushed back any decision until later this year or early 2015.

If the new Canadian route gets approved in 2016 by Canada’s National Energy Board, as TransCanada expects, it would give the eastern provinces a source of domestic oil — removing the need for some 700,000 barrels a day of oil imports — and would give producers in Alberta and Saskatchewan a direct route to big refineries that could turn the sludgy tar sands into valuable products such as diesel, gasoline, and jet fuel.

Over in Germany

On any given day, Johannes van Bergen, director of the municipal utility Stadtwerke Schwäbisch Hall in southwestern Germany, conducts his team’s array of gas, heat, and electricity sources to meet the energy needs of at least several hundred thousand Swabians in the region, as well as about more than 90,000 customers elsewhere in Germany. And every day — in fact, every hour — that energy mix is constantly in flux.

Technicians at the town’s smart-grid center monitor and manage the utility’s roughly 3,000 regional energy suppliers: several thousand solar photovoltaic (PV) installations, two wind parks, one gas-and-steam power station, six small hydro-electric works, three biomass (wood pellet), sixbiogas plants, and 48 combined heat and power plants, as well as other conventional and renewable energy suppliers outside the municipality.

The population that this ballet of coordinated energy sources serves is admittedly modest, but it’s here that the future of Germany’s energy industry is being tested in full — and proven.

Which of course is a model that we could use here but for whatever reason, the province and the country isn’t willing to experiment.

Their output, and increasingly that of the conventional, too, is distributed through a tightly knit, cross-border smart grid. The composition of supply changes from minute to minute depending on weather, demand, and other factors from one corner of the country to the other. Increasingly electricity is generated in and traded from locality to locality, and even across the country (or countries) via intelligent networks much like that in Schwäbisch Hall and other places in Germany.

No one predicted this scale of locally driven, citizen-led energy boom when the Energiewende began. Even just four years ago, just about everybody involved in the Energiewende thought that big-ticket projects like enormous offshore wind farms planned for Germany’s northern seas and Desertec, the mega-project to import solar energy across the Mediterranean from sprawling concentrated solar power arrays in the Middle East and Northern Africa, would be integral to Germany going renewable.

These projects, however, have flopped spectacularly.

Offshore wind has proven extremely pricey and technologically much trickier than originally assumed, which has led to billons in cost overruns and years-long delays. Germany’s seven operational offshore parks constitute a tiny fraction — just 0.6 percent — of the country’s renewably generated electricity, compared to onshore wind’s 34 percent. The offshore industry claims there’s smooth sailing for offshore wind just around the corner, but it’s been saying that for years.

Contextless Links

Canadian rhetoric makes no difference

The tough talk that has been coming out of Ottawa towards Moscow; it makes no difference at all.

The Conservative government’s tough rhetoric over Russia’s actions in Ukraine may play well to some voters domestically, but analysts doubt it will have any impact on curtailing Moscow’s policies in the region.

“I think the only people Putin’s going to pay any attention to, if he pays any attention at all, are going to be the United States and the European Union, above all Germany,” said Randall Hansen, director of the University of Toronto’s Centre for European, Russian and Eurasian Studies.

“The United States, because it’s the global super power, and Germany because it’s a major importer of Russian gas, which on the one hand gives Putin leverage, and on the other hand, he’s also dependent on Germany.

“Canada doesn’t matter in this in the slightest. We can rant and yell and threaten. It will make no difference.”

He’s not alone

Piotr Dutkiewicz, a political science professor at Carleton and the former director of the Institute of European, Russian and Eurasian Studies, said it’s relatively easy for the government to criticize because Canada doesn’t have extensive economic relations with Russia and there are no large Russian investments in Canada.

However, he notes that Canadian companies do have $3-billion worth of investment in Russia and the government should take that into consideration when speaking out.

“I think we should take a more balanced, I’m not saying uncritical, I’m saying more balanced position, taking into the equation Canadian interests in Russia,” Dutkiewicz said.

“If the Canadian government decides to be critical it should be critical, but at the same time we should watch what others are doing and how, by our criticisms, we’re really helping Ukraine.”

Dutkiewicz said that Canada is losing its reputation as a negotiator and instead is engaging in rhetoric stronger than that of the U.S., Germany or France.

“With their very heated rhetoric and no action we’re becoming a paper tiger in this process,” he said. “I really don’t like Canada to be seen as a paper tiger who is roaring without having any tools to implement its outrage.”

But the experts agreed that the government’s words have little to do with foreign policy.

“Harper and Baird, I think, are both principled democrats and have a principled commitment to liberal democracies such as Israel and a principled opposition to autocratic governments,” Hansen said. “But this is really about domestic politics. So they’re making a play to the Ukrainian community in Canada.

Germany 1945

I am reading Germany 1945: From War to Peace right now.  Here is a quick review from the New York Times

We have rarely felt sorry for what the Germans suffered at the end of World War II, in part because the Germans have done a superb job of feeling sorry for themselves. Most Germans in 1945 (and long afterward) believed that their own suffering freed them from any obligation to ponder what Germans had done unto others. Historians, therefore, have hesitated to exploit this material, for fear of seeming to endorse the repellent spectacle of German self-pity. The distinguished British historian Richard Bessel, however, understands the difference between suffering and atonement, and with “Germany 1945” he has produced a sober yet powerful account of the terrible year he calls the “hinge” of the 20th century in Europe.

The decisive blow came in January, when a Red Army invasion force, nearly four million strong, poured into eastern provinces that would soon cease forever to be German. (The Anglo-American invasion from the west paled by comparison.) They killed with dreadful efficiency. German military deaths that month exceeded the total wartime losses of either the United States or Britain. Millions of civilians fled in terror from what they had long been told were savage Slavic hordes. Hitler’s government, deep in denial, did little to ease the refugees’ distress. Nor did it permit the orderly surrender of lost territories. While some soldiers and civilians enthusiastically embraced orders to fight to the death, the rest were kept in line by roving SS death squads that hanged deserters from lampposts. But the formidable Wehrmacht was hopelessly outnumbered and outgunned.

Bessel leaves no doubt about who was to blame for the suffering: Hitler, who chose to destroy his country rather than surrender and face defeat. For the German people — many bombed or chased out of their homes, all at the mercy of the occupying armies — this was the legacy of the Third Reich: not conquest and glory, nor genocide and guilt, but betrayal and ruin, rubble and grief.

Although the Allies faced a tough job in imposing order, one thing they needlessly feared, as it turned out, was resistance from dead-enders. Rumors of a “Werewolf” underground proved groundless (contrary to the claims of those who argued a few years ago that postwar Germany was just as bad as postwar Iraq). The occupiers were surprised to find a docile people, preoccupied with finding shelter, food and missing family members.

With death all around, the invaders sought vengeance. Soviet soldiers pillaged and raped the most, but the French were not much better. The British and Americans, with fewer grievances, committed fewer atrocities. While Germans resented the inevitable injustices of Allied denazification programs, when the most prominent surviving Nazis went on trial in Nuremberg in November 1945, few could summon any sympathy for these pathetic men who had led their nation into the abyss.

If you have a chance and an inclination to look at a rarely looked at part of World War II, the book is worth reading.  If you don’t want to read the book, you may want to check out these photos posted to The Atlantic’s In Focus blog.

Hands-On Bavarian Count Presides Over a Pencil-Making Empire

Count Anton-Wolfgang von Faber-Castell has been known to hurl wooden pencils from the tower of his castle to the stone courtyard below.

It is not a petty fit of pique by a mad Bavarian aristocrat. The 72-year-old count, the eighth in a long line of pencil makers, just wants to prove how durable the pencils that carry his family name are.

The Faber-Castell family has been making wooden pencils by the hundreds of millions here in a storybook setting, bisected by the swift Rednitz River, which was once the main source of power here. A torrent of brightly colored pencils flows from clattering machines in a century-old factory with a tile roof and windows framed in pastel hues.

Faber-Castell is the largest maker of wood-encased pencils in the world and also makes a broad range of pens, crayons and art and drawing supplies as well as accessories like erasers and sharpeners. About half the company’s German production is exported, mostly to other countries in the euro zone. That means that Faber-Castell contributes, at least in a small way, to Germany’s large and controversial trade surplus — which now rivals China’s for the world’s largest.

Faber-Castell illustrates how midsize companies — which account for about 60 percent of the country’s jobs — are able to stay competitive in the global marketplace. It has focused on design and engineering, developed a knack for turning everyday products into luxury goods, and stuck to a conviction that it still makes sense to keep some production in Germany.

“Why do we manufacture in Germany?” the count asked during an interview at the family castle near the factory. “Two reasons: One, to really make the best here in Germany and to keep the know-how in Germany. I don’t like to give the know-how for my best pencils away to China, for example.

“Second, ‘Made in Germany’ still is important.”

Not all its factories are in Germany. But when Faber-Castell, which is privately held and had sales of 590 million euros, or about $800 million, in its last fiscal year, manufactures in places like Indonesia and Brazil, it is at its own factories.

In contrast to many American companies, like Apple, that have outsourced nearly all production to Asia, Faber-Castell and many other German companies make a point of keeping a critical mass of manufacturing in Germany. They see it as central to preserving the link between design, engineering and the factory floor.

Trader Joe Has a Brother. He’s Even Better

Separated in 1960, the two brother set out to create two very different business empires

Chances are that you have never set foot inside the best grocery store in America: Aldi. And even if you are lucky enough to be in one of the 32 states where Aldi is, perhaps you were put-off by the cardboard boxes in lieu of shelves, or the row upon row of suspicious-looking off-brands. What is this place? Why do I have to put down a deposit to check out a cart? What is the weird giant shelf by the exit? And what do you mean, I have to pay for a bag?

Calm your hormones, meine Schatzis: Aldi, which is short for Albrecht Discount, is the American incarnation of a German grocery chain that is so ubiquitous in the Vaterland that almost 90 percent of Germans shop there. (Not all German imports are luxury cars, beer, and super-cool glasses.)

Aldi is part of a charming subset of Teutonic trade: the brother-run company that cleaves in twain. Shoe aficionados already know the story of the Dassler brothers, Adolf and Rudolf, whose bitter feud resulted in the creation of Adidas and Puma. (Germans pronounce Adidas differently—some might say correctly—AH-dee-das, from Adi Dassler.) But outside Germany, few know about grocery-store kingpins Karl and Theo Albrecht (who was kidnapped in 1971!)—even though Karl, with a reported net worth of more than 17 billion euros, is the richest man in Germany (Theo’s descendants are a close second).

The Brüder founded their discount-store empire together. A disagreement in 1960 over selling cigarettes hastened a partition, and an epic game of grocery-store Risk: Theo would rename his business Aldi Nord, and would control territories north of the Rhine, plus a healthy chunk of Europe. Karl would head up Aldi Süd, and get southern Germany, more of Europe, plus the U.K. and Ireland. But both companies operate stores in the United States—Aldi Süd operates as Aldi, and Aldi Nord as the now ubiquitous Trader Joe’s.

But whereas Trader Joe’s employs just one major cost-saving device—private labeling—everything else about it is Americanized. The place is swarming with upbeat employees; cashiers stand at the till and bag your products for you; you just grab a cart willy-nilly and they trust you to put it back. Aldi also private-labels (those $1.99 “Millville” Rice Squares are Chex, you guys!), but what makes it a more exciting venture—and even cheaper than Trader Joe’s—is that it has imported the entire German grocery experience (aside, alas, from employees yelling at you if you do something wrong).

Column: Making Winters Work

My column in today’s The StarPhoenix

A well-travelled friend once told me that Saskatoon and northern Saskatchewan were the greatest places on Earth to be in the summer and the world’s worst places to live in the winter.

How much I agree with him depends on the wind chill.

Winters here are long and dreary, and they last from October until May some years. Not only does the snow linger, for many of us, the winter mindset dominates our thinking on all sorts of policies and decisions even during the heat of summer.

We argue about new ideas for the city all of the time. “We can’t have bike lanes because it snows half the year.” “The winter is too long to waste money on a pedestrian bridge.” “Money on parks is wasted because they never get used in the winter.”

There is much we don’t do because of this white stuff – even when we are complaining about the heat in the summer.

Other cities aren’t held captive to winter in the same way.

Many Nordic cities with far worse winters than ours have excellent bike infrastructure and keep the trails cleared year-round.

Edmonton struck a committee last year to help manage winters better.

I am not sure if I agree with the approach that Winnipeg and Calgary have taken with elevated walkways, but I was able to walk all over Winnipeg in -40 C temperatures with only a light jacket.

A report prepared for the Minneapolis-St. Paul region mentioned that nine of the 10 happiest American states are ones that feature cold winters, and listed examples of cities that do winter really well.

In Germany, Austria, and France, people look forward to outdoor holiday markets where they can find a festive atmosphere along with holiday decorations, seasonal gifts, and warm food and drink.

New York City has imported the idea and has set up massive outdoor markets across Manhattan. Before you scoff at the idea, look at the large crowds that come out in any weather to Wintershines. People will come if you give them reason to do so.

December is easy, but we have to make February tolerable. Winnipeg is doing an excellent job. The city pays a lot more for winter snow and not only can you drive around, the sidewalks are cleared. Imagine being able to drive and get around on foot. It can happen.

Winnipeg has also installed heated bus shelters at a growing number of stops. Even in -40 C with a brutal wind, I was able to take off my tuque, gloves, and unzip my jacket while waiting for a bus.

The city has slowly added winter warming shacks as attractions along its rivers. It started as a local idea, and now gets international attention from architects and designers. Those shacks get you out of the wind and give you an excuse to brave the elements.

No matter the weather, thousands of people are having fun all winter long.

Adding a few warming huts each year would make a cold and windy Saskatoon riverfront a lot more tolerable. It would also help connect the different business districts which are spread out because of our river.

Holiday seasonal markets would also be perfect in the Saskatoon Farmers Market. Who knows? It could even one day expand into something other than a weekend destination.

The first step is not warming huts or outdoor markets, however – it is to convince council to get serious about residential snow removal. And our business improvement districts must get serious about keeping sidewalks clear.

Then it relies on everyone figuring out ways to make winters more enjoyable.

Maybe it’s a restaurant opening its deck on milder days, or community associations holding outdoor parties in the winter, like they do in the summer.

It requires the city looking at ways of making our parks winter-friendly, perhaps with more fire pits, or ensuring bike lanes are cleared all season long.

It’s bus shelters that actually do keep us warm. Once we figure out how to shed the shackles of a cold winter and enjoy it, we will find out that even our summer months can get better.

© Copyright (c) The StarPhoenix

Life inside a German POW camp

French POW’s filmed their time in the camp with camera parts smuggled in sausage.

The Austrian camp, close to the border with Czechoslovakia, was originally built for troops taking part in military exercises.

There were 40 barracks, 20 each side of a central aisle. The land was bound by two lines of barbed wire, the perimeter illuminated by floodlights.

Escape seemed almost impossible. Almost…. and it is remarkable that we can see it.

Through some extraordinary ingenuity – and cunning – the men filmed their efforts.

Their rarely seen footage is called Sous Le Manteau (Clandestinely). So professional is it that on first viewing you would be forgiven for thinking it is a post-war reconstruction.

It is in fact a 30-minute documentary, shot in secret by the prisoners themselves. Risking death, they recorded it on a secret camera built from parts that were smuggled into the camp in sausages.

The prisoners had discovered that German soldiers would only check food sent in by cutting it down the middle. The parts were hidden in the ends.

The camera they built was concealed in a hollowed-out dictionary from the camp library. The spine of the book opened like a shutter. The 8mm reels on which the film was stored were then nailed into the heels of their makeshift shoes.

It gives an incredible insight into living conditions within the camp. The scant food they were given, the searches conducted without warning by the German soldiers. They filmed it all, even the searches, right under the noses of their guards.

 

The Germans are losing patience

From the Economist

The Germans are not yet openly angry. That would be out of character in a people who have, since the second world war, been eager to atone for the past and be good European partners. In one recent poll, 34% of Germans even said they empathised with the wrath of the southern Europeans. But the mood is shifting. The southerners may see Germany as forcing excessive austerity on them and showing insufficient solidarity, but Germans have a different view.

First, they feel they have already shown solidarity. Almost a quarter of a century after the fall of the Berlin Wall they still pay a solidarity tax to eastern Germany. Some also transfer taxes to weaker German states such as Bremen. Many conclude that, once in place, solidarity ceases being voluntary and instead becomes a yoke. They also bear much of the risk of euro bail-outs, even though a study released this week by the European Central Bank showed that the average German household has less wealth than the average Spanish, Italian and Cypriot one (though this is partly because German households tend to contain fewer adults and are more likely to be in rented accommodation).

Second, they argue that Germany recognised a decade ago that it was not competitive and undertook painful reforms that are now paying off. The crisis countries should follow suit. And third, Germans think the euro crisis was largely caused by rule-breaking (even by Germany itself), which must not be repeated. As one diplomat puts it, “solidarity is important, but it should follow rules. It is not just ad hoc giving.”

Christmas 2011

I hope everyone had a great Christmas.  After a daring battery run to Walmart on Saturday morning, we met up with the Sieberts for coffee/tea and to exchange gifts and Christmas cheer.  After that we headed out to Warman to Lee and Brittany’s place for Christmas Eve dinner to open gifts.  Wendy talked about the evening over at her blog but I was got some great gifts from Lee and Brittany including some DVDs and When the Gods Changed by Peter C. Newman, an iPad from Wendy, a Denver Broncos hat from Oliver, some big bear head slippers from the dogs, the Steve Jobs biography from Mark, along with a stocking full of fun stuff.  Oh right, Wendy gave Mark, Oliver, and myself a Snuggie for Christmas.  We aren’t happy about it.

On Christmas we went over to the Reimers where I got a really cool book by Gloria’s great uncle Heinz Guderian who was a Panzer commander and later became the Chief of the General Staff during WWII.  He wrote several important books on armoured tactics and I was thrilled to get a copy of one.  It also confirms my belief that if Gloria hadn’t married Jerry, she would be leading a war against a rival country.   Kristy gave me a gift certificate for Indigo! instead of trying to figure out what to get me.  Instead of getting a book to read, I went to Indigo! today and got a big one to write in.  While we were there, we walked over to Best Buy and looked at iPad cases.  We found one that  works for now but I am planning to add a keyboard in the future but they were all out of stock.

Tonight we are chilling out, listening to Moxy Fruvous while taking down the Christmas tree and decorations.  In a couple of hours we will be ready for New Years.

When do you stop spending?

Jim Flaherty said today that he would spend to defend Canada from another recession

Under questioning from opposition MPs, Flaherty said for the first time that the Conservative government would move in with another round of stimulus spending if the world economy suffers a double-dip recession.

“We would obviously do what is needed” if there was a “dramatic deterioration” in the economies of the United States and Europe, he told the committee.

But for now, Flaherty said, the government is not changing its budget plan despite the turmoil on financial markets and debt crises in the United States and Europe. The plan calls for spending cuts of $4 billion a year to eliminate the annual federal budget deficit — now $32-billion annually — in a few years.

Pressed by opposition MPs about how Ottawa would react to a renewed global slowdown, Flaherty said he would change course and develop a pro-growth spending plan as the Conservatives did during the recent recession.

Here is my problem with this problem.  Do any of us think that the United States/Europe is going to fix their problems in the next recession.  I am not saying Flaherty is wrong but does this look like it’s going away.  Jeff Rubin points out that with global demand the way it is, as we come out of a recession, prices will increase and drive the economy back into it which means, how many of these recessions will we be able to afford to ride out until we are looking at Mulroney-esqe debt loads and Devine type deficits again.

We are looking at a default or massive bailouts for Greece, Italy, Spain, Portugal, and the too big to fail banks in Germany.  There is a dysfunctional governance system in the United States, and even China has some long term economic problems.  Does anyone think this next recession is going to be a quick one or we won’t be experiencing a triple or quadruple dip recession before this is all said and done?  No, me neither.

I know Jim Flaherty has been seeking out the advice of economic experts like former Calgary Flames captain Jim Peplinski but may the alternative might be figuring out ways to reinvent Canada’s economy to thrive in a world where recessions will be the norm, not the exception.

Defense Spending by GDP

The Economist has an interesting article on defense spending by GDP.

Biggest military spenders by GDP ON JUNE 8th China’s top military brass confirmed that the country’s first aircraft carrier, a refurbishment of an old Russian carrier, will be ready shortly. Only a handful of nations operate carriers, which are costly to build and maintain. Indeed, Britain has recently decommissioned its sole carrier because of budget pressures. China’s defence spending has risen by nearly 200% since 2001 to reach an estimated $119 billion in 2010—though it has remained fairly constant in terms of its share of GDP. America’s own budget crisis is prompting tough discussions about its defence spending, which, at nearly $700 billion, is bigger than that of the next 17 countries combined.

It’s not totally accurate as the Illustrious is being converted to a helicopter carrier and England is building the Queen Elizabeth class of aircraft carriers and the reality is that the Invincible class of aircraft carriers was at the end of it’s life expectancy. 

It is interesting that despite the outrage of how much Canada has been spending on defense lately, we still spend less than Australia, Brazil, and Italy among the largest military spenders.  I was also surprised to see Turkey so high on the list and not not see Pakistan considering how much India spends.