Tuesday, February 03, 2009

The death of Conservatism

Conservatism is dead, not only in Canada (cf. recent budget) but in the world. The good policies of Margaret Thatcher and Ronald Reagan are passe. Mr. Obama, a liberal's liberal, is in charge of the US. Social and fiscal liberalism will mushroom. If he follows through with "Buy American" Protectionism, cross-border trade will die. Every G-20 country is putting into effect liberal budgets where obscene amounts of money, that will eventually be lost, are thrown around. In Canada, after 64 billion, what's another billion? 

It's too bad and unnecessary. The markets are turning around from the low of Nov. 20, 2008. The Dow and the TSX are creeping up. By the end of the 3rd quarter of 09, they will mostly have recovered. The economy will begin to recover by the end of the 4th quarter. In the mean time, the G-20 nations are putting a huge drag on the recovery by their large-deficit budgets. As Mr. Reagan so eloquently said in his first inaugural speech, Jan. 20th, 1981, "Government is not the solution to our problem; government is the problem."