Saturday, May 19, 2012

Paying Debt Down Good, Trust Fund Good Too


PAYING DEBT DOWN - GOOD FOR EVERYONE - BUT THERE ARE A FEW EXCEPTIONS

THE HAIGHT BEQUEATH IS OVER AND ABOVE - AND SHOULD BE A MEMORIAL TRIBUTE


     SO HOW CONCERNED IS A REGIONAL CANADIAN HISTORIAN, ABOUT THE POTENTIAL NEGATIVE ECONOMIC FALL-OUT, OF A POTENTIAL DEFAULT OF GREECE? FOR A START, WE POSSESS A STORE OF PROVISIONS HERE AT BIRCH HOLLOW, AND SUZANNE ALWAYS HAS PRESERVES FOR THE PANTRY SHELF, COME LATE AUGUST, EARLY SEPTEMBER. THE FOOD RATIONS MAY NOT LAST US FOR LONG, BUT AS WE CURRIES ARE ALL A TAD OVERWEIGHT, A CRISIS WILL PARE DOWN OUR "PEAR" SHAPES. AS FAR AS WORRIED. I'M FAR MORE CONCERNED ABOUT THE WAY THE MOST VULNERABLE, COULD GET CLOBBERED BY THE FALL-OUT. THOSE WHO HAVE LARGE MORTGAGES. CITIZENS WHO ARE TAPPED OUT ON THEIR AVAILABLE CREDIT. DO WE KNOW HOW MANY ARE IN THIS POSITION OF VULNERABILITY, WHO WITH JUST A SLIGHT CHANGE OF INTEREST RATES, COULD BE PUSHED OVER THE EDGE? I WORRY A LOT ABOUT THE SOCIAL WELFARE IMPLICATIONS, BECAUSE WITH THE COST OF FOOD TODAY, A LOT OF FAMILIES ARE BEING FORCED TO SETTLE FOR LESS NUTRITIOUS FOOD, AND THAT'S HURTING THE YOUNGER GENERATION. IF WE WERE TO FACE AN ECONOMIC TSUNAMI, WE'VE ALREADY GOT WATER UP TO OUR ANKLES. THE ISSUE IS COMPLICATED, BY THE FACT THE LEVEL OF ECONOMIC VULNERABILITY IS INVISIBLE TO MOST OF US. TEACHERS KNOW WHAT'S GOING ON, WITH STUDENTS WHO AREN'T GETTING ENOUGH TO EAT. THOSE WHO PROVIDE BREAKFAST PROGRAMS, KNOW UP CLOSE AND PERSONAL, HOW THE NUMBERS ARE TRENDING. THE POINT OF ME NOTING THIS, IS THAT ECONOMIC DISASTER, ON AN INTERNATIONAL SCALE, IS GOING TO SWAMP EVEN THE WEALTHY. SO HOW WILL THE POOR SURVIVE EVEN WORSE CONDITIONS. IF NICK THE GREEK WAS STILL ALIVE, WHAT WOULD HE SET THE ODDS AT? ARE WE IN BIG TROUBLE? OR IS THIS JUST A BLIP ON THE RADAR? NOT A PROBLEM? BIG HONKING PROBLEM? CAN WE AFFORD TO SIT BACK, AND AVOID CONTINGENCY PLANS ON A LOCAL LEVEL AS WELL. IF THE FEDS ARE WORRIED…..THAT'S GOOD ENOUGH FOR ME TO START PRE-PLANNING. 
     AS I WRITE THIS, G-8 BRASS ARE WEIGHING OVER THE OPTIONS. THERE SEEM TO BE A LOT FEWER OPTIONS THESE DAYS, AS GOVERNMENTAL CHAOS IN GREECE, THREATENS THE ENTIRE EURO-ZONE. I'VE GOT FRIENDS WHO OWN A VINEYARD THERE, AND I'M SURE ON THEIR NEXT VISIT TO MUSKOKA, THEY'LL HAVE A LOT TO CHAT ABOUT……THE DIFFERENCES BETWEEN THE ECONOMY OF CANADA, AND A FORMER ECONOMY IN GREECE. WE'VE ALL GOT A LOT TO BE CONCERNED ABOUT, BUT WE'RE NOT SURE WHAT THE HELL TO DO. I KNOW MOST FOLKS GOT CAUGHT FLAT-FOOTED WHEN THE STOCK MARKET CRASHED, AT THE ONSET OF THE GREAT DEPRESSION, BUT I'M NOT SURE WHAT TO MAKE OF GREECE, ITALY AND SPAIN RIGHT NOW……..AND WHAT IT WILL LOOK LIKE WHEN THE DOMINOES START FALLING. I WAS A LITTLE CONCERNED THIS WEEK, WHEN I HEARD A BUSINESS REPORT THAT CANADIAN BANKING INSTITUTIONS WERE WARNED BY AN UPPER TIER, ABOUT MAKING SURE THEIR FINANCIAL HOUSES ARE IN ORDER…….AND THEIR RISKS ARE MANAGED. WHY DOES THAT SEND A CHILL THROUGH MY BODY? WHY DO I GET THIS FEELING, ONCE AGAIN, THEY'RE NOT TELLING US EVERYTHING. JUST THE NEWS THAT THIS WEEK, OUR BANKS WERE GIVEN THIS STERN WARNING, MAKES ME WONDER ABOUT BAGGING-UP SOME MONEY MYSELF OR CONVERTING TO GOLD. THOSE OF US WITH A FEW MILES ON THE TIRES, KNOW WHAT "A RUN ON THE BANK" MEANS, AND FOR THOSE WITH HIGH BLOOD PRESSURE, OR JUST BAD NERVES, IT'S KIND OF PRECARIOUS STAYING HEALTHY, FOLLOWING ALL THE LATEST DEVELOPMENTS.
     THE REAL PROBLEM TODAY, IS THAT WE ARE SO MANY DECADES PAST WORLD WAR, AND THE GREAT DEPRESSION, THAT OUTSIDE OF THE HISTORY BOOKS, AND THE PRINTED AND VISUAL RECORDS WE CAN SCAN, FOR MANY OF THE YOUNGER GENERATION, MUCH OF THIS IS UNCHARTED WATERS. MANY HAVE HEARD OF THE DEPRESSION, BUT THEY DON'T KNOW FROM PERSONAL EXPERIENCE, WHAT IT WAS LIKE RIDING A BOXCAR, LIVING IN A HOBO JUNGLE, EATING BEANS FROM A CAN, AND LOOKING FURTHER DOWN THE RAIL-LINE, FOR EVEN A DAY'S WORK. WHO REALLY KNOWS WHAT CAN HAPPEN IF GREECE DEFAULTS, SENDING TWO OR THREE OTHER EUROPEAN ECONOMIES INTO THE POOPER? IT SHOULD BE RE-ASSURING THAT THE G-8 FOLKS ARE TALKING ABOUT CONTINGENCY PLANS. JUST THE FACT THAT THEY'RE LOOKING AT MITIGATING THE DAMAGE, MEANS THERE WILL BE CONSIDERABLE COLLATERAL IMPACT TO SOMEONE, SOMEWHERE, BEYOND THE COUNTRIES IMMEDIATELY AFFECTED. WHAT DOES THE AVERAGE MUGGLE DO, IF THERE IS A SIGNIFICANT ECONOMIC FALL OUT, THAT GROWS OUTWARD FROM GREECE, AND INTEREST RATES HAVE TO BE JACKED-UP? FOR THOSE REAL ESTATE PEOPLE, WHO REFUSE TO ADMIT THERE IS A BUBBLE IN THE MARKET, I'M PRETTY SURE AN INCREASE IN INTEREST RATES, WILL HAVE A LOT MORE PEOPLE TRYING TO RID THEMSELVES OF MONSTROUSLY HUGE MORTGAGES. IS THIS HOW THE BUBBLE BURSTS? WHAT GOES BANG IN GREECE, GOES BANG, BANG, BANG, IN CANADA, WHERE PERSONAL DEBT IS IN THE NOSE BLEED SECTION. THE MORE STRESS CAUSE BY RISING INTEREST RATES, THE MORE HOUSES ARE LISTED, AND AS WITH THE 1990s, SALES BEGIN TO DWINDLE. LOOK AT THE HOUSING CRISIS IN UNITED STATES. ARE WE SO MUCH DIFFERENT HERE……ESPECIALLY IN THE CONDO MARKET? A LITTLE FROTHY." THE REAL ESTATE INDUSTRY WON'T SAY MUCH ABOUT THAT…..BUT THE ASTUTE ECONOMIST MIGHT WONDER JUST HOW LONG PRICES CAN KEEP HITTING ALMOST OBSCENE LEVELS…….ESPECIALLY AS THOUSANDS UPON THOUSANDS OF NEW CONDO UNITS, WILL SOON BECOME AVAILABLE IN TORONTO? TAKE A DRIVE AROUND OUR TOWN AND COUNT THE NUMBER OF PROPERTIES FOR SALE. IS IT THE SPRING RUSH? THE SEASONAL TREND? OR ARE OWNERS SMELLING DANGER HERE, WANTING TO CAPITALIZE ON THE LAST DAYS OF THE BIG BUCKS.
     WHEN I WROTE A BLOG-ATORIAL ABOUT THE HAIGHT BEQUEATH, IN GRAVENHURST, OF A MILLION DOLLARS, I WAS OUTRAGED TO LEARN FROM A RATEPAYER COUNCIL UPDATE, THAT THE TOWN WAS SERIOUSLY CONSIDERING A PLAN, TO DROP THE INHERITANCE ONTO THE MUNICIPAL DEBT……TO SEE IF IT MIGHT SLOW THE SIMMER OF FROTHING INTEREST WE OWE. NOW AS SOMEONE WHO ADVOCATES FOR DEBT REDUCTION, AND BELIEVES THE TOWN HAS BEEN OVER-SPENDING LIKE A TWO DRUNKEN SAILORS, IT DOES SOUND CONTRADICTORY ON MY PART, TO POO-POO THE IDEA OF A MILLION DOLLAR PAYMENT, TO DECREASE THE DEBT-LOAD. THERE ARE A LOT OF US FRUSTRATED TAXPAYERS, WHO KNOW HOW PRECARIOUS WE'VE BEEN LIVING HERE, IN GOD'S COUNTRY, SPENDING MONEY WHEN WE SHOULD HAVE BEEN SAVING IT. WE SHOULD HAVE HELD OFF ON THE POOL AND ARENA CONSTRUCTION, UNTIL WE HAD MORE MONEY, AND BETTER PLANS, WITHOUT HAVING THE HURRY-UP OFFENSE THAT WORKS SOMETIMES IN FOOTBALL, BUT NOT IN TOWN PLANNING, OR POOL BUILDING. THERE'S LITTLE DOUBT NOW, WITH A PROBLEM ROOF ON THE TAJ MAHAL (REC. CENTRE), THAT WITH ENGINEERING AND MATERIALS, AND SOME RECONSTRUCTION, THE PRICE TAG TO KEEP THE WEATHER OUTSIDE, IS LIKELY TO BE EXPENSIVE. SO OF COURSE, IT DOES SEEM LOGICAL TO USE WHATEVER LOOSE CHANGE IS HANGING AROUND, TO GET SOME OF THE OLD DEBT PARED DOWN; BEFORE WE GET THE BILL FOR THE NEXT ROUND OF REPAIRS. THE ISSUE HOWEVER, IS THAT THE MONEY WAS LEFT IN CARE OF THE MUNICIPALITY, FOR THE BENEFIT OF THE CITIZENS OF THE TOWN. WE ARE THE TOWN. WHILE TOWN COUNCILLORS MIGHT PARADE UP AND DOWN IN FRONT OF THE TOWN HALL MIRRORS, AND THINK THEY'RE "THE TOWN," WE BEG TO DIFFER ABOUT THAT FAULTY LOGIC.
     WHAT CONCERNS ME AS A FELLA VERY INTERESTED IN THE ACTIVITIES OF OUR MUNICIPAL REPRESENTATIVES, IS THAT THEY APPEAR TO GENUINELY SUPPORT AND ENDORSE TRANSPARENCY AND OPEN COMMUNICATION, BUT ONLY WHEN IT FALLS WITHIN THEIR PARAMETERS. WE THINK THEY SHOULD PAY ATTENTION TO OUR DEFINITION OF DEMOCRACY, TRANSPARENCY AND OPEN COMMUNICATION. LET US BE THE JUDGE OF JUST HOW WELL DEMOCRACY IS BEING SERVED. IF REQUESTS FOR PUBLIC INPUT, ON THE USE OF THE HAIGHT BEQUEATH WERE RECEIVED, AND A PORTION OF THE SUBMISSIONS WERE INTERESTING, AND POTENTIALLY THE RIGHT MOVE TO MAKE, WHY WOULD THE TOWN TREASURY BE ABLE TO STICK THEIR OAR IN, AND BUMP THE CITIZENS OF GRAVENHURST? WHAT WERE THE OTHER IDEAS FOR THE MONEY?
     IN MY OPINION, THE HAIGHT FUND SHOULD BE BANKED, AND THE INTEREST EACH YEAR, USED AS A PUBLIC BURSARY, TO HELP STUDENTS ACHIEVE THEIR EDUCATIONAL GOALS, BY REMOVING FINANCIAL BARRIERS…..AS AN EXAMPLE. EACH YEAR THERE ARE QUITE A NUMBER OF OUR GRADUATING STUDENTS, WHO CAN'T GO OFF TO UNIVERSITY OR COLLEGE, BECAUSE OF FINANCIAL LIMITATIONS. WITH RISING COSTS OF POST SECONDARY EDUCATION, AND LOW PAYING JOBS FOR YOUNG PEOPLE, THERE ARE GOING TO BE A LOT MORE STAY-AT-HOME GRADUATES IN THE FUTURE. THOSE WHO QUALIFY FOR ASSISTANCE, COULD RECEIVE SEVERAL THOUSAND DOLLARS AS A TOWN BURSARY. YOU KNOW, WE COMPLAIN IN THIS TOWN, BECAUSE OUR SONS AND DAUGHTERS HAVE TO LEAVE HERE TO FIND WORK. MAYBE IF WE SHOWED JUST WHAT KIND OF CARING HOMETOWN WE ARE, AND HOW MUCH WE'D LIKE STUDENTS TO RETURN HERE, AFTER GRADUATION AND RE-INVEST IN OUR LOCAL ECONOMY. IF YOU THINK THIS IS AN IMPOSSIBILITY, YOU ARE WELCOME TO VISIT MY SONS, ANDREW AND ROBERT AT THEIR MUSIC SHOP, IN UPTOWN GRAVENHURST. ASK THEM IF THEY MADE THE RIGHT DECISION RE-INVESTING IN THEIR COMMUNITY. THEY GREW UP HERE, WENT TO SCHOOL HERE, AND FOUND REASON TO ESTABLISH A BUSINESS HERE. THEY ARE JUST TWO OF A GROWING NUMBER, WHO HAVE STAYED HOME AND DECIDED TO CULTIVATE THEIR OWN ECONOMIES. MAYBE WE CAN USE THE HAIGHT FUND, TO ENCOURAGE THIS TREND, OF LOCAL YOUTH LOOKING AT SOUTH MUSKOKA AS A PLACE OF GREAT POSSIBILITY AND POTENTIAL.  AS IT HAS ALWAYS BEEN, DATING BACK TO THOSE BRAVE ENTREPRENEURS, WHO INVESTED HERE WHEN THERE WASN'T MUCH MORE THAN FOREST, WATER, ROCK AND SWAMP.
     In my opinion, Council has been shaken by the controversies of the past year and a half. They look like they're leaning back on the ropes, trying to regain composure, and strike back with a few more vigorous punches, so we'll know they're still in the ring. But to make such a decision, as to use this kindly willed money, to erase what might be considered mistakes the town has made, in the past, seems like they have grown weary of making progressive, sensible choices, and are just waiting for the bell to get themselves out of this term of office. When they offer such a diminished tribute, to the late Mr. Haight, who offered this amazing inheritance, and disregard what may be good for the spirit here in Gravenhurst, it just seems weak-willed; an admission, council has run out of creative energy….preferring to just defer and slip by the real challenging stuff…….that was supposedly what they were interested in, when they ran for office in the first place. I'm sure council business has been straining, this term, and nobody who has watched what's been going on at town hall, and with the rec. centre, would suggest for a moment, that the going has been easy……or routine. If some of them are fed-up with this elected-representative thing, then they should resign and make way for willing citizens, waiting in the wings. And they are waiting. You must believe me on this.
     The state of the world economy, and the perils of bankruptcy of entire nations, will to some, seem like 9-11 was to us, sitting at home, in front of the television, watching the disaster unfold. It wasn't until a few weeks after the tragic events, that we started to understand what the new-normal was going to be…..especially if you happened to be of Middle-Eastern ancestry, or you looked like a terrorist. I look like a terrorist. So I don't fly. But if you are a frequent traveller, you appreciate what it was like immediately after 9-11, and whenever there is a terror alert today. So if the economic crisis worsens, and the run on banks widens, in Europe, (where our banks are exposed), we should expect that the stress on Gravenhurst Council will increase proportionally, because there is a good chance interest rates will be going up. The responsibility to look after our town, is going to increase substantially, you see, because there are going to be many more demands on social services, and the food bank, which of course is run by the Salvation Army. If the G-8 leaders are talking about contingency plans, in case Greece does default, and Spain follows with its own adverse circumstance, then it's worth looking at the durability of our town council at present, and just how prepared they are to have another ten rounds to box.
     What we know, as ratepayers, is that the Recreation Centre is going to cost us a lot more money. The first year operating expenses have undoubtedly been pumped-up to allow for shit to happen. It will. It did in Bracebridge, during the first year of operation for their new centre…..as the pool was losing water, and there were operational issues to adjust into a budget pocket. So we expect there will be a bulge, but we think there will be even more unanticipated expenses to cover. Finding out about the roof problem, was pretty rough news. We are watching the local press closely, for updates on just who is responsible for the shortfall, and leak proofing, and where the buck will stop this time. Me thinks they're holding the cards pretty close, on this, and I hope they appreciate just how many are watching from the sidelines. By the way, I remember a former councillor telling me that public apathy in Gravenhurst was huge, and that public and special meetings are always poorly attended. The last one, which was a glossy affair, with tours of the rec. centre, was seen as a public relations foray, rather than an opportunity to grill council, about the state of the union. It would be a serious mistake, to believe attendance is the barometer of concern in our community. There are a lot of armchair critics with their fingers gouging through the fabric, every time there's another report of town dumping more money to keep the rec. centre operational…..and leak free.
     Despite the calamity going on overseas, we need to find a better plan for the Haight bequeath, that helps the citizens of this fine community. Council needs to sort its own business, and come up with better plans, than hogging a memorial meant for something far more progressive and memorable. I hope they will change their minds about this……and prove to cynics like me, our elected officials do regard the will of the people as being……..well, relevant. At least that's what we'd like to believe.
   Thank you for joining today's blog. Please join me again soon.
    By the way. It was a great Saturday to be hustling about in Gravenhurst. The yard sales were superb, I got some great art work, and Suzanne found some early century infant's clothing, and the boys got a whack of vintage vinyl for their shop. Suzanne also bought lots of perennials from plants sales around town, and I found a great vintage trunk that had been used on the Canadian rails. We had some Quebec Poutine from our newest chip wagon, located in the South End, and it was delicious. We were impressed by the whole day, and it was fantastic to see all the visitors who have come to see our district once again. And just this weekend, we decided to join our boys for another expansion of their shop, by adding an antique wing to what they already have as inventory. We said we'd never do this again, after two previous shops, but because they've offered to sell our pieces for us…..well, that's what we'd been waiting to here. As for their first day of the tourist season……it was fabulous. Feel free to ask them personally.  I think this is going to be a good summer for business. If we can only just hold off the crash of other nations, on our little sunshine parade.
     See you.

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