Political Earthquake
Research for Online Investors

by John Dalt

5/03/11

The earth might as well have shook on Monday.  You have probably heard the news.  I have to chime in with my take.  This is the biggest news that has happened in almost eight years!  There are recriminations to go around inside the government.  Were they hiding criminals?

The answer is maybe.  Canadian voters turned out the liberals that supported cap and trade and other socialist policies and elected a conservative government, giving them a clear majority!  The home of the “loonie” is free again.

For much of my memory, books have always had two prices on them.  Go into any bookstore and see a book might be $9.95 in U.S. dollars, but $10.95 Canadian.  Not any more, today the loonie is worth $1.04 in U.S. dollars, not the historical $0.90.  How long will it be before we see book prices adjusted to the new exchange rates?

Canada has become an energy exporter because of their western tar sands, and natural resource producer.  Their banks escaped much of the credit crisis.  They have minded the store, while Bernanke has cheapened the U.S. buck and the U.S. Congress has larded on more deficit spending.

The separatist Bloc Quebecois were defeated soundly; their leader didn’t even get re-elected and is now out of the government!  The Liberal party, which has ruled for seven years, came in third place.

Conservatives won by promising to keep taxes low, balance the budget within four years and concentrate on improving the economy.  Conservative candidates won 167 seats out of 308 seats in the House of Commons.  Reuter’s reports that Liberal leader Michael Ignatieff said, “It’s tough to lose like this.”

Conservative Prime Minister Stephen Harper told a victory night crowd, “Canadian’s have chosen hope, a united Canada, a strong Canada.  We must be the government of all Canadians.”

The market looks soft this morning, crude oil, gold and silver are all down.  The dollar is getting a bounce.  We wonder if we need to test resistance. It took a lot of effort to get through 1244. This should act as good support for us if we dip that far.

Editor’s note:  A year and four months ago, we encouraged our subscribers to consider Hospital Albert Schweitzer (HAS) for charitable contributions to help after the earthquake.  Many of our subscribers responded to help these selfless volunteers.  I received a follow-up letter last weekend that the needs in Haiti continue.  They had an outbreak of cholera in the last year.  There is much suffering in the world.  We are inundated with news of natural disasters and needs beyond our comprehension.  Hospital Albert Schweitzer is based out of Pennsylvania.  It was opened in 1956 by Larry and Gwen Mellon.  It became their life’s work.  If you wish, you may help HAS at http://www.hashaiti.org

The information presented in this newsletter is based on generally available news releases, corporate filings, current events, interviews and the editor’s opinions.  It may contain errors and you should not make investment decisions based solely on what you believe you have read here.  Do your own research, it is your money.  If you lose it, it is your responsibility, not ours or your grandmothers!  The editor may or may not have a position in any securities discussed.  The editor may have held a position in a security earlier, or in the future.

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