Middlesex Centre’s Stormwater Tax based on a Fraud, Part Five

We live in a strange world today.  A world were feelings dominate everything.  It doesn’t matter what the physical evidence says, if it hurts someone’s feelings it can’t be true, and can’t even be allowed to be shown.

When I was at the meeting last month at Town Counsel I talked to a few people from the Municipality at the door as we were leaving.  The claim of there was more rain and heaver downpours kept coming up.  I objected saying the data from Environment Canada says no, that is not true.

It was suggested to me that I call Environment Canada for clarification.  Clarification of what?  What would someone at EC tell me that is different from their own data?  They have different data than is on line for the public?  Of course not.  The inference must have been that I was misinterpreting that data.

It is common for those who have their views challenged with real world data to have that someone then challenge my abilities at crunching the numbers.  It’s not rocket science.  Anyone with basic high school math can do what I did.  Oh, but of course, we live in a world of Liberal New Math…

But that isn’t what’s going on here.

Council has made their decision about implementing this new tax, based on what they assumed was valid data.  But now that this has been shown to be false.  That in fact the reports out right lied, as well as used computer programs to make predictions, predictions of which violate the laws of physics.  In short, the tax was based on fraudulent data.

So will Council reverse this and drop the tax?  Nope.  Not a chance.  Feelings are involved here.  Council feels that they need this tax, even if they actually don’t need it, and likely will never use it, and today feelings trumps everything.  Including what is the reality.

Here is more reality that Council needs to consider, but won’t.  How long will they keep this tax going?  How much money do they need in the bank for something that is never going to happen?   And in 20 years time, when little of that money was actually used because the predictions didn’t pan out, what happens to that money?

It will be used for other things, that you can be sure of.   Why?  Because we are also living in another fantasy world, that of ever growing government deficits and increasing debt.    And not just in Canada.

For the first time ever in human history we have negative interest rates.  That’s right.  Japan, Switzerland and a number of other countries, their central banks are paying governments to borrow money.

There is fear that if interest rates go up, that people, corporations and government will see higher interest costs.  Not going to happen.  If interest rates were to just double, which is only from 1% to 2%, still significantly low by historical standards, just about every government around the world would go bankrupt almost immediately.

As you have seen in the news, many European Union countries are on the verge of economic collapse.  Greece for example, but Italy has a very high rate of debt defaults, and Spain is within 18 months of not be able to make their social security payments.

Hence the negative interest rates.  Interest rates are not going up.

But still, with all the taxes governments take from us, including here in Canada, they don’t have enough and are going into deficit on a huge scale.  Ontario has been driving that road for 13 years now, with no end in sight of ending deficit financing, and the Federal government is tagging along already.  People actually voted for the Liberals who ran on a platform of deficit financing. I shake my head in disbelief.

But Municipal governments can’t go into deficit, so they raise taxes to deal with their cost increases.  Couple this with another factor of our society that is unique.  Infrastructure is getting old and has to be replaced.    But there’s no money to fix it.

Raising taxes isn’t the solution either.  For every dime governments take from us, is a dime that isn’t spent in the general economy.  Oh, but, they say, that money is spent on the economy.  Government spending creates jobs.

Again, feelings is trumping reality.  There are two types of jobs in a modern society: Wealth creating jobs and wealth leaching jobs.  Most jobs of the private sector that make things create wealth, and hence those jobs are wealth creating jobs.  All other jobs, and most, if not all, service sector jobs are wealth leaching jobs.  They consume wealth, not create it.  But those service sector jobs and government jobs are required to keep the wealth creating jobs going.

Except there has to be a balance.  That is, the taxes imposed on the wealth creating jobs pays for the wealth leaching jobs.  For an economy to grow, there has to be more wealth created than is consumed.  But that isn’t what is happening today.  Today, the government is leaching more and more of wealth creation jobs by imposing taxes, and taxes upon taxes (the Carbon Tax).  Couple that with policies, such as energy and climate, that drive businesses out, reducing the wealth creation jobs even more.

Eventually, the system collapses.  Don’t believe me?  Have a look at what happened in Venezuela.  It is in total economic collapse.  People are starving because they can’t get food produced, and their economic activity is so destroyed by socialist policies, they don’t have the funds to buy aboard.  It is a humanitarian disaster that the Main Stream Media is completely ignoring.  When was the last time you saw on the news about the daily rioting happening in Caracas?

Never. Why not?

Because it hurts the feelings of those who claim a socialized society, with large government, is the best society.  Many in Notely’s NDP government once touted Hugo Chavez as a great man implementing the perfect society through socialism.  The NDP’s LEAP Manifesto was based on Chavez’ vision.  Now they are silent.

Society today is run by people who have the following feelings.

  • Big government is better,
  • Humans are a scourge on the planet and need to be highly controlled (climate change and energy are examples, plus UN Agenda 2030),
  • There are too many people on the planet.  Well, too many Western people anyway,
  • Western people screwed up civilization and need to feel guilty and pay for their past sins.

I would have expected this Council to be more conservative and not fall into the trap of socialism-is-better mentality.  But it seems they have elected to go that route (such as accepting, blindly without question, that humans are causing catastrophic climate change, regardless of the science papers that rebuke that theory).

There may be a ray of hope on the horizon, however.  There is a lawsuit making its way through the courts, and should be heading to the Supreme Court of Canada soon, against the Bank of Canada.

The Bank of Canada was set up in 1935 in the wake of the Great Depression to provide a means for settling international accounts and to provide interest-free loans to government to finance infrastructure investments.

We can hope this gets a positive ruling, which would force the Federal Government to reinstate the Bank of Canada’s role of funding infrastructure.  The argument against this is that it would cause inflation.  In fact, the Venezuelan situation was largely because the government was just printing money for everything.  But that isn’t what this would do.

Governments borrowing money is doing the exact same thing.  By borrowing money in the market place (your Canada Savings Bonds for example) is putting new fiat money into the economy for projects anyway.  Yet that new money isn’t causing inflation.  So the Bank of Canada funding projects with new fiat money also won’t cause inflation when used for infrastructure projects.    The difference would be profound.  Governments wouldn’t have to pay the money back.  They wouldn’t have interest payments to make.  And they wouldn’t need to tax us so much, freeing money to be spent on wealth creating jobs as people buy more things.

But don’t hold your breath for this relief.  Feelings will continue to rule our lives, regardless of reality.  Personally, I feel that the insane are running the world.

About J. Richard Wakefield

J. Richard Wakefield has published three fiction novels, Blinding White Flash, Blinding White Flash Invasion and The Barn. The sequel to The Barn, The Cunningham Arrests, is going to the publisher in 2015. He was a firefighter for 22 years in Toronto, and a professional computer programmer for 25 years. He lives with his wife, Dorothy, in Southwestern Ontario.
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