There's a lot of talk about Jr's dying off due to the money flight from risk. There's a lot of evidence to show that's only part of the story. The bloated balance sheets and the hording banks are to blame too. What this tells me is that no one trust the government politicos to manage their way out of a wet paper bag. As one person recently put it, they are strangling the goose to get the last golden egg.
Carney is joining the voice to try get corporations to free up the "dead money" but why would they? It's like a General yelling charge as he beats a path the other way. Where is the direction from our politicos. They have strayed to far from their manifestos and gotten the whole globe in trouble. These are the people with the best information and the policy tools to act on it.
If there is a light at the end of the tunnel it's that the Green party surged ahead in the polls in Calgary. That was a wake up call for the old boys club. It's showing a shift in thinking. The NDP in Ottawa was the first alarm bell yet no one heard it. So what is our leader doing now? He's going ahead at break neck speed making secret deals that will damage Canada for the next 40 years. He's using every dirty trick to get deals done in secret before he gets ousted. http://www.huffingtonpost.ca/2012/11/08/rick-mercer-canada-china-deal_n_2094126.html When will the opposition call this what it is, treason? Well, never of course. One lone voice is speaking up while the people you elected as opposition do and say nothing.
The truth about the USA's one party system is shining through as the Repugnants er Repltiles er Republicans suddenly embrace peace and love and will soon be handing out flowers at airports and blessing people. They will become leaders of social change embracing gay rights and equal treatment of women. They even have a Muslim speaking out for them. It should be clear that they will do anything to keep up the farce of a two party system. Witness that they can't reach a deal on the fiscal cliff. http://www.cbc.ca/news/business/story/2012/12/31/business-fiscal-cliff.html The reality is they have conspired to test what will happen when if does go over. They want to see the damage and I think they are hoping for an all out collapse of all those trillions and trillions of dollars worth of phony derivatives. If they were not conspiring one party would call for the head of the other.
So what will the new year bring? If the Mayans are right we will begin to see the fast unraveling of the fraud we call our governments. The waste of good air will begin to abate. However, they will leave a lot of damage in their wakes. Under ideal circumstances we will see decades pass before any of this turns around. What's needed is a fresh slate of people who actually represent the people and a brand new banking system that is not a cartel. I don't see that happening. In fact, no one seems to think that will happen.
In the new market there will be very few survivors and it's up to us to find them. The pundits who are saying go find companies with heave cash balances and some solid data to back up their development plans are quite correct. This doesn't just apply to mining. As the super cycle comes to an end there is always a vicious cleansing that goes on. Even some of the good ones will go down in the shake out. Normally when this process is over we get a rebound but unless the money cartels are broken, it's not going to happen this time. This is why the companies are holding on to every penny. In mining they know to bury their money in the ground so that one day when demand return they will have laid away a fortune. We all need to start thinking about it and making our own very long range plans.