Kicking the can down the road

Dollars and Sense

According to some politicians it is a “step in the right direction.”

In agreeing to terms that would allow the U.S. government to increase its debt ceiling, we can at least breath a sigh of relief that a crisis was averted. But, really, who doubted that something would give at the 11th hour, as the consequences of not reaching an agreement were too grave, and simply had to be avoided.

The real question is (and was): what steps will be taken to tackle the real problem — dealing with a national debt that is spiralling out of control? When you are $14 trillion dollars in debt, is a “step in the right direction” really enough?

It appears that other than a few politicians, most don’t think so. Certainly the markets seem underwhelmed, though there are other factors that may have contributed to the selloff that took place after the agreement was reached. 

For further evidence of what the markets think, look at the price of gold, which continues to set new records. The message is clear: investors and central banks around the world are losing faith in paper money, and instead are investing in hard assets that are perceived to be more likely to hold their value as governments in many countries continue to print money to solve problems.

Do I sound pessimistic?

As an investor, I am not. Government policies around the world may not be in the best long-term interests of the economy, but at least they are predictable, and as such are presenting opportunities.

Over the last week I have received calls and e-mails from concerned clients, wondering if there is anything we should be doing in light of what is going on. 

Consistently, my answer has been: we already have, and we’re doing fine.

It truly is an exciting time to invest!

 

 

 

Jim Grant, CFP (Certified Financial Planner) is a Financial Advisor with Raymond James Ltd (RJL). This article is for information only.  Securities are offered through Raymond James Ltd., member Canadian Investor Protection Fund. Insurance and estate planning offered through Raymond James Financial Planning Ltd., not member Canadian Investor Protection Fund. 

For more information feel free to call Jim at 250-594-1100, or e-mail at jim.grant@raymondjames.ca. and/or visit www.jimgrant.ca.

 

Just Posted

Tuesday’s Lotto Max draw went unclaimed. (Photo courtesy of BCLC)
Tuesday’s Lotto Max draw went unclaimed. (Photo courtesy of BCLC)
Lotto Max jackpot goes unclaimed again

42 of the 64 Maxmillion prizes of $1 million were won, the majority were sold in Ontario

A slide on best practices when reporting a suspected impaired driver that was presented to Parksville city council on June 7 by Margarita Bernard, a volunteer with MADD. The organization’s Report Impaired Drivers campaign involves the installation of informative signs within the City of Parksville. (Mandy Moraes photo)
MADD brings campaign to report impaired drivers to Parksville

Aim is to raise awareness that 911 should be called

Pam Bottomley (executive director), right and Sandy Hurley (president) of the Parksville Downtown Business Association visit the PQB News/VI Free Daily studio. (Peter McCully photo)
PQBeat: Downtown Parksville gears up for post-pandemic bounce back

Podcast: Hurley, Bottomley chat about what’s ahead for the PDBA

(Black Press file photo)
RCMP: Air ambulance called to Whiskey Creek after crash involving 2 motorbikes

Both riders taken to hospital with serious injuries

People watch a car burn during a riot following game 7 of the NHL Stanley Cup final in downtown Vancouver, B.C., in this June 15, 2011 photo. THE CANADIAN PRESS/Geoff Howe
10 years ago: Where were you during the 2011 Vancouver Stanley Cup Riots?

Smashed-in storefronts, looting, garbage can fires and overturned cars some of the damage remembered today

Restaurant patrons enjoy the weather on a patio in Vancouver, B.C., on April 5, 2021. THE CANADIAN PRESS/Jonathan Hayward
Labour shortages, closed borders major obstacles to B.C. restaurant, tourism restarts

Industry expert says it won’t start to recover until international travellers can visit

A still image from security camera video recorded June 8 shows an individual lighting trash on fire in the doorway of 19+ Cannabis Store on Victoria Crescent. RCMP and Nanaimo Fire Rescue are investigating numerous fires set in downtown Nanaimo in the past three months. (Photo submitted)
‘It’s out of control’: More than 20 fires set in downtown Nanaimo in past 3 months

Authorities asking business owners to keep dumpsters locked

(Black Press Media file)
Dirty money: Canadian currency the most germ-filled in the world, survey suggests

Canadian plastic currency was found to contain 209 bacterial cultures

(pixabay file shot)
B.C. ombudsperson labels youth confinement in jail ‘unsafe,’ calls for changes

Review states a maximum of 22 hours for youth, aged 12 from to 17, to be placed in solitary

Eleonore Alamillo-Laberge, 6, reads a book in Ottawa on Monday, June 12, 2017. THE CANADIAN PRESS/Sean Kilpatrick
Parents will need to fight ‘COVID learning slump’ over summer: B.C. literacy experts

Parents who play an active role in educating their children this summer can reverse the slump by nearly 80%, says Janet Mort

The border crossing on Highway 11 in Abbotsford heading south (file)
Western premiers call for clarity, timelines on international travel, reopening rules

Trudeau has called Thursday meeting, premiers say they expect to leave that meeting with a plan

The B.C. government’s vaccine booking website is busy processing second-dose appointments, with more than 76 per cent of adults having received a first dose. THE CANADIAN PRESS/Jonathan Hayward
B.C.’s COVID-19 infections, hospitalizations stable for Tuesday

108 new confirmed cases, 139 in hospital, 39 in intensive care

Most Read