Wednesday, December 17, 2008

Private Sector Forecasts, Who Knew?

Back peddling in lightning fashion, Jim Flaherty has now conceded .4% NEGATIVE growth for 2009. That's right, just two weeks ago Flaherty predicted .5% GROWTH for 2009, but now all of sudden private sector forecasts have caused him to REVISE:
Finance Minister Jim Flaherty has lowered his official economic outlook to an outright contraction next year.

Canada's gross domestic product will shrink 0.4 per cent in 2009, compared with a November estimate of growth of 0.5 per cent, Mr. Flaherty said Wednesday after a meeting with his provincial and territorial counterparts in Saskatoon.

The forecast is based on the average of 16 private sector forecasters. Canada's economy hasn't shrunk on an annual basis since the early 1990s.

You might have to use your long term memory here, but you may recall that when Flaherty came out with economic statement, way back at the end of November, there were cries that he ignored private forecasts, his numbers were junk. One example, which just happens to now be in line with Flaherty, the OECD report, released at the same time as the economic statement:
Organization for Economic Cooperation and Development (OECD) expects considerably slower growth for Canada: 0.5% in 2008, -0.5% in 2009 and 2.1% in 2010.

Now, all of sudden, Flaherty is basing his projections on private forecasts, which were available to him when he released his disingenuous update. I mention this, because Conservative apologists argue that events are unfolding so fast, one needs to constantly re access (we've heard this since the election, as the Conservatives have continually tripped over their rhetoric from week to week). The simple fact, that everyone needs to remember, Flaherty and Harper will well aware of the situation in late November, they were TOLD by private forecasters that their numbers were "too rosy", completely out of line with reality, and yet they presented Canadians with a dishonest assessment. Now, when they've been smoked out by the opposition and must come clean, we see these drastic revisions, so obscene in their scope, incompetence is a kind word.

As I mentioned elsewhere, first there was no recession, then a "technical" recession, then talk of possible depression. At this rate of catchup, Harper might be predicting the "end of days" by the weekend. One thing is clear, despite attempts to hide behind a real deterioration in recent weeks and months, there has been a DELIBERATE attempt to misrepresent the situation for political purposes. Wear it well, you deserve it.


Mike said...

Well Jim Flaherty is a liar. The only difference between what he is doing to Canada now, and what he did to Ontario in 2001 and 2002, is that now he doesn't have the power of a majority to hide it and pretend the deficit isn't there.

And make no mistake, it isn't Flaherty being a yes man to Herr Harper, like the Mop and Pail want you to believe, this is all him and he wears it. He does, after all, have a history.

CuzBen said...

Poor form indeed, but as I am always ready to point out, not isolated.

Your provincial cousins in Ontario are just as guilty. McG's political games and at Queen's Park mirror the nonsense in Ottawa, albeit less flagrant and without the media spotlight...but equally inappropriate and self-serving.

Ted Betts said...

Is this was Harper meant by a "steady hand" at the economic till?

In the last 6 months, is there a single bit of information that Deceivin' Stephen and Deficit Jim that is credible and that Canadians can rely upon?

Anonymous said...

It wasn't too long ago that Harper and Flaherty were peddling disinformation on the state of the economy to Canadians just to get relected.

JimmE said...

Just so you know:
ALL governments; heck all companies, & most individuals on a resumes, engage in, spin, guilding the lily, lies of omission, - call it what you like.
The difference with this bunch is they are so deep in the tank of falsehood they don't even remember what is true & what is flim-flam.
The reason is simple. The present PM like the former Ontario Government has a radical neo-con agenda that they need to keep under wraps to gain/stay in power. As it is all fruit of the poison tree, all that can be produced is wormwood.
Trouble is, the neo-con agenda's underpinning has been now shown to be FALSE. So what does a Party, who's entire political raison d'etre was to fool the nation into thinking they were just good managers do now?
The answer my friend, is blow'n in the wind.

Steve V said...


Not isolated, just unique in terms of degree of deception.

Anonymous said...

You Liberal idiots are going to get another pointy stick in your eye, bet you don't have the balls to face the electorate.

JimmE said...

Drink is the curse of the Anonymous Class

burlivespipe said...

At this rate of meme contraction, I forecast that Flaherty will be swallowed up by the black-hole of his belly button by January 4th, 2009... And reappear, somewhat mussied, through his own ass on Aug. 21nd.

Susan said...

The problem is that the cons are still in power and their latest tactic is stall, stall, stall until the results they are after take place on their own. Take the country to the point where the size of government is inevitably cut and everything is handed over to the private sector, and in the process if the Liberal party is too 'right' and rationale, it will go down as well. I don't even think the cons care if their party is destroyed, as long as the country is.

Steve V said...


It would seem dear leader is doing everything in his power to avoid an election. You guys are a delusional hoot.

Anonymous said...

Susan is absolutely right in my opinion. The whole project of the Harper Conservatives is to slowly replace the government with the corporation (aka "neoliberalism") by exploiting libertarian angst and tax rage.