You Can't Win, Mall

As wallets and purses around the world snap shut in close unison, there is yet another eerily titled phenomenon upon us.

"Ghost Malls" are becoming an increasingly common sight, pockmarking the retail landscapes of countries around the world. As consumer preferences shift toward thrift and keeping a roof over their heads in troubled times, shopping malls find themselves deprived of lease-paying retail tenants. Some might argue that aside from the obvious large scale contractions in consumer retail spending, there are certain transformational shifts occurring that consign malls to a fate most certain.

As anybody not stuck in solitary confinement for the previous decade might know, the internet has created incredible potentials in every sector of the economy. The astronomical growth of web-based businesses, the immense wealth created through the entrepreneurial spirit and the spread of information are all fine and dandy. Now, when I said "potentials" two sentences back, I was not referring solely to the positive potentials.

Everybody likes a deal and no-one likes to pay more than somebody else for a product or service. The great variances of housing price, median income, and cost of living does vary substantially from Wheeling, West Virginia to - say, Malibu, California - but Cletus and Barbie both pay pretty much the same price for identical items in their respective areas. The great equaliser is the access to decentralised "virtual" retail outlets.

Now, thanks to the Internet, there is significantly less need for physical "bricks and mortar" storefronts. Freed from the fiscal constraints of having to rent or lease property and employ higher numbers of front-line staff, these web-based retailers can offer goods at prices that very few traditional retailers can effectively compete with. What we are left with is evident. A handful of large companies controlling most of the retail business, and lack of diversification of retail outlets. In Cambridge, Ontario, where I live - I have seen 3 Starbucks coffee joints open in the last year or so. My Wife is of the opinion that Starbucks, having researched Cambridge, found out that we are supporting 11 full service Tim Hortons as well as 3 kiosk locations with a population of approximately 125,000. I would bet you a large regular that this type of growth pattern will not be sustained, and that within a few years at the outside, some of these retailers will be unable to eke out a living selling their wares. Did anybody see over-saturation becoming a potential deal-breaker?

I came across this article that provided me a few ponderances on this trend.

Once burgeoning centres of cultural identity throughout the western world, Malls are pre-deceased by "Mom&Pop" corner stores and Farmers. Donations can be made, via Paypal to Amazon.com's Ebay Powerseller account.

All Your Juice Are Belong To Us!

Surprise!


According to recently published articles, there seems to be critical vulnerabilities within the integrity of the US power supply infrastructure. Allegations that Chinese and Russian hackers have embedded code within the systems that provide electricity to the United States have put into question the reliability and stability of the power supply. The Chinese State News Agency, Xinhua released a statement from a Chinese Foreign Ministry spokesperson that altogether denies the situations existance. We have been well primed in scapegoating the Chinese for all of the problems faced by the Western world. It seems only natural that this compromise of America's energy security would be carried out by the perennial nemesi "Sneaky Chinamen" and their beloved buddies the "Evil" Russians.

I have more faith in the espionage capabilities of Russia than to believe they would leave their marks all over a covert operation of this scale. Who is perpetrating the act? Can't say I could rule out anyone. Given the crash-burn of international relations that the US has experienced under their prior regime, any scenario could be plausible. I guess the classical approach to solving this mystery may be to apply the question of motive..


Who would have something to gain from instability in the US power supply?

• Canada, fed up with perceived unfair treatment surrounding Softwood Lumber the BSE crisis and SARS, infiltrates the American network through CSIS, using Chinese proficient sabatouers..

• Iran, peeved at constant critiqing of its nuclear power program, enlists sympathetic hackers to..

• Taiwanese separatist groups, looking to create a deep rift between the two Mega Powers, instigate a false-flag attack on US cyber-infrastructure and interests..

It may sound smug or contemptuous to some, but I never thought of the Bush Administration as vanguards of either technological advancement or protectors of the interests of the American people. From attempting to sell ports to the UAE in the Dubai Ports controversy, to the imposition of puritanical beliefs on the Spirit of Justice by John Ashcroft. At some points, I found myself just waiting for these guys to ban computers altogether and institute sime kind of decree completely banning progress of any kind - save for military advancement.. Kind of like a Christianised Sharia Law is what I was thinking.


Hopefully this gets resolved and the systems patched so that we don't have a repeat of that nasty incident in August 2003..

My Favorite Def Leppard Album? I'd Have to Say "HST-eria"

"Don't do it, Dalton!!"

This was roughly my initial reaction to the announcement made within the 2009 Ontario Provincial Budget. The announcement of another financial burden for all Ontarians on the Liberals' watch did not really surprise me, it was more the sheer size of the financial impact that this announcement carries. When I say "another" I am referring to The "Ontario Health Premium" unveiled by the Libs in the '04 budget, has been eating away at the incomes of working people to the tune of $300-900/year. This premium, much like the ancient "Trojan Horse" stealthily sneaks into your paycheque without you actually seeing the deduction from your earnings. Dalton's reasoning for this premium was ostensibly the unexpectedly large deficit inherited by the slash-burn practices of the Progressive Conservative tag-team of Harris & Eves.

To some people, although probably not many -the harmonization of Provincial and Federal sales taxes seems benign. I think if George Orwell were around today, he would quickly point out the "new speak"present in the term "Harmonized Tax". The expression reeks of the scariest parts of "1984".

Will we ever learn to see through these types of misleading and dishonest treatment of our resources? This tax has some elements of fairness, in that it excludes from harmonization, previously exempted goods like diapers, kids clothes, and books. I guess the Liberals could have gone a couple of steps farther, and taxed staple foods; or imposed an environmental levy on breathing (the levy might only apply to exhaling, in order to be fair).

In a time where jobs are being cut wholesale at an increasingly rapid pace, many people are feeling the barbed walls of economic misery closing in. People are apparently not full of optimism that their futures are bound to get brighter financially.

A lucky person right now is still on the receiving end of a raise. For many, the picture is probably a little more nerve-wracking. Pay cuts, wage freezes and erosion of other employment benefits (supplemental financial, health benefits) are leaving many people looking for the proverbial silver lining to their financial strife. The setbacks are immense for a great many folks right now. RSPs in the crapper, nest eggs and rainy day jars pillaged to make the next months payments - everyone has been impacted in some way. Even those insulated by supple, inflation-adjusted pensions, and life-long good saving habits are seeing the increases at the grocery store and on the utility bills. Time can act as a middle-weight inflationary pressure all on its own, without adding fuel to it.

As of July 1/2010, things are going to get more expensive.

Now, we can enjoy some added expenses, like:

+8% on Hydro Bills, Hair Cuts

+8% on Gas Bills (Heating and Vehicular)

+8% on Internet/Cable/Phone et al.

+8% on the Morning Timmies

But, hey - couples are getting three cheques totalling $1000.00 over a period of one year. Singles can expect to cha-ching in for a mere $300. A cap of $160,000 has been put in place on the income of couples receiving the rebate, in a valiant act of Social Justice by the Liberals.. $1000.00 before taxes. This amount, I would imagine would be taxed as income, much the same as the Federal Universal Child-care Benefit. I love being taxed on tax rebates. What a scam. This is Real Politik, Dalton - feeding people their own tax monies while acting as if your doing it to help them weather the migration to the HST is not morally fair, nor will it make the pill much easier to ingest for Ontarians.

Eyes on the Prize

For the first time this year I have had the opportunity to invoke the Scanning Code of Conduct on a retailer. Over the past couple of years, I've experienced more than a few instances where the price of an item was incorrectly advertised (either at the store or the flyer-price level). In these cases, the method of remedy that I usually pursue is to request that the item be free because it has been improperly priced (the code does not discriminate as to whether the scanned price is higher or lower than the advertised price). A list of major companies who subscribe to the Scanning Code of Practice can be found here.

My reasoning for paying attention to price-scanning (along with money saving potential) is that it serves to increase diligence and expedience on the part of the store. If this money were coming out of an individuals pocket, or resulted in some type of tangible hardship to a person, I would be quite reluctant to call them on it. I don't mind taking a large company to task though; as, unlike the laws of certain countries, I do not consider corporations to be persons or even pseudo-people. Yes, people count on the share-performance of a company to create wealth for themselves, but I have been purchasing groceries for years and god-willing, I fully intend to continue this trend. An old saying goes: "the house always wins." I'm more than certain that in this case, the house of Loblaw has won back its losses - thousands of times over. I'm sure that the number of people who pay attention to their thrift is certain to increase mani-fold as the economy continues its unyielding march toward the pits of hell.

Some retail institutions/cashiers have a habit of turning the display away from the customer while inputting prices, which occasionally results in some neck-craning or manoeuvering to have a clear line of sight to the display. In some cases this is probably for viewability/ergo. In the back of my mind I imagine a morning meeting where the Store Manager, after telling his Cashiers "really push the reward-points credit card today, guys", reminds everyone to "keep the Code claims to a minimum - we got eaten alive last quarter.."


This is some of what our friend, the Competition Bureau has to say about the Code:

"There is no federal legislation governing the question of price scanning accuracy per se. However, some types of price representations that result in overcharges to consumers may be examined under the Competition Act. In addition, it should be noted that the Bureau has endorsed the Scanner Price Accuracy Voluntary Code, which provides participating retailers of four major associations with a mechanism to provide redress to consumers when there is a scanner error. When the scanned price of an item without a price tag is higher than the shelf price, or any other displayed price, the customer is entitled to receive the item free when it is worth less than $10, or receive a $10 reduction for more expensive items. The Bureau regards scanner price accuracy as an important element of maintaining consumer confidence."

This v. That - 1st Edition

Three Rounds - One Victor

Tonight's Feature Bout:

Kid Rock v. Ralph "Karate Kid" Macchio


Round 1: The Cool Factor

The Karate Kid is as emblematic of the 1980's as any film could be. The crane kick entered the broader lexicon of young men, and served to drive enrollment levels in martial arts classes across the western world. The Karate Kid predated today's mainstream MMA competitions, showcased previously unfathomed uses for chopsticks and broadened the horticultural awareness of a generation through its showcase of the grooming of a bonsai by Mr. Miyagi. Mr. Miyagi, by way of his love of trees, would have made a great environmentalist tag-team with David Suzuki. Mr. Macchio rubbed shoulders with Steve Vai, as well as the late-great Stevie Ray Vaughan during the filming of the movie Crossroads.

Kid Rock is a self proclaimed "Rock'n Roll Jesus" with years of experience inside the arena of gritty rock-rap/metal. His trademark unkempt appearance, combined with his hard partying ways have inspired a legion of devout, (if somewhat greasy) fans. Kid Rock's ascencion into the folds of the mega rockers has coincided with a sharp rise in wallet-chain ownership and
a spike in the clientele of North American tattoo parlours. Kid Rock has given shout-outs to legendary musicians including Bod Seger, Johnny Cash and Grand Master Flash and has even gone so far as a crafting a Michiganized mash-up entitled "All Summer Long". The bulk of the music is derived from Lynrd Skynrd's "Sweet Home Alabama" and the late Warren Zevon's "Werewolves of London". I don't know if the Skynrd crew or Mr. Zevon would be that ecstatic at the results of this endeavour.


Round 2: Risk Tolerance

Kid Rock entered into wedded bliss with a past best-before-date Pamela Anderson, proving that love is not only blind, but that Kid Rock is just as "American Badass" wreckless about his health and wellness as his media persona portrays. He's got cred.


Ralphy (as Daniel, of course) took on the Cobra Kai - 'nuff said.



Round 3: Cultural Significance in 50 years time



Will our childrens children be interested in things from our era? I wonder if they will be any more interested in 1980's movies, such as The Karate Kid than the average person now 30 is interested in Charlie Chaplin films. Kid Rock may still be rocking in 50 years, at the ripe age of 88 - but he'll have to change his moniker to Old As Rocks or Kid Rockingchair.

Who is the winner?

Answer the Poll at the bottom of this page to decide!

Costco + Value = BFF

Costco's store brand, Kirkland Signature seems to be a strong label, with a focus on quality and satisfaction in the vein of President's Choice. The big diff is that with Costco's modus operandi as a wholesaler, the products generally have a much lower price per unit cost, and hence a better proposition of value for money.


On our last trip to Costco, we noticed a flurry of cross-branding between Kirkland Signature and such products as Kettle Brand Chips, Jelly Belly jelly beans and Kirkland Signature brand fair-trade coffee, roasted by Starbucks where the package contains both the logos of KS and the major label brand. This is an interesting development to me, because it not only elevates the brand cache of KS, but also exposes products from the "name-brand" producers to a potentially new market for their wares.




As many of us know, name brand producers are often behind store brands, sometimes with the exact same product specifications (most notably ingredients & packaging format). The flip side of the coin can come when store brand products are made with inputs of different qualitative properties, such as, in the case of processed meats, the meat/filler balance, natural smoking vs. smoke extract, lean/fat allowances.



Recently, the Maple Leaf tainted meat scandal exposed the extent of production sharing between brands. Brands under Maple Leaf's corporate umbrella such as Schneider's, Shopsy's and Burns as well as products from store-brands such as No Name, Equality, and Compliments were affected during the scare. The pooling of resources to produce goods represents the best opportunity for capacity utilization and cost-control, but if not subject to stringent quality oversight, can run amok in a manner that compromises the safety of a broad strata of consumers



Costco Pro/Con Breakdown:



Pros:

• Kirkland Signature Brand is great for consumable household goods that a family is sure to plow through (think laundry detergent, garbage bags, batteries, paper towels)
  
  
• If at any point during your membership, you are not "satisfied", you can obtain a refund of your membership fee

• Free warranty extension (to 2 years) on certain electronic items (including televisions and computers) at no charge, in addition to a 90-day return policy on most consumer electronics
  
• For the social activist inside all of us, Costco employees sport a badge complete with not just their name, but their start year. From the badges I observed, it is not uncommon to see start-dates going back many years, with a few dating back to the early 1990's. This is increasingly uncommon within most modern retail operations, who seem to engineer (through low pay, lack of affordable benefits, lack of hours) rapid turnover of staff. Pay rates in Canada are much higher than their main competitor Sam's Club (owned by guess-who). Despite this great wage/benefit disparity, Costco manages to be the dominant force in wholesale retailing. Some people may find it re-assuring that Costco's business model does not take the view that success and decent remuneration must be mutually exclusive. I find a bit of satisfaction in the idea that I am supporting a company that allows it's workers and their families a fighting chance at a reasonable standard of living, all the while offering very competitive pricing. If employees earn a decent income they pay these things called taxes, that apparently contribute to sustaining the benefits we enjoy as Canadians. Kind of like a karma of consumerism, no? The trendy adage of "voting" with one's wallet comes to mind..
  

Here is simple example of the money saving power of Costco:

5% Cream (1L container)

Costco: $2.44
Sobey's: $3.89
If a couple of coffee fiends consume a 1L jug of cream in a bi-weekly period, they would save:

26 jugs x $1.45 = $37.70 per annum

Cons:

• Close proximity parking is definitely at a premium, especially on Saturdays (my family doesn't mind a little trot though)

• Membership fee of $55 applies to "Gold Star" annual pass, and Executive Membership comes with a price tag of $100 (both figures are pre-tax). Executive Membership offers a 2% annual rebate on almost all purchases (excluding postage stamps and a few other items) to a maximum rebate of $500. I obtained a discounted Executive Membership through my work, so the decision wasn't too hard. If you fail to reach the difference between membership levels ($43) Costco will cut you a cheque for the amount difference. Bear in mind that to reach the tantalising $500 rebate, a person would have to spend $25,000 within one year.
  


• Lack of organic food selection
  


• Brand breadth is limited (necessitated by volume purchasing approach)
  Risk of spoilage or expiry of perishables, if one succumbs to eyes-bigger-than-stomachitis
  Methods of payment are limited to cash, Costco Cash Card, debit or American Express
  
  

For historical disclosure purposes, The Wife and I were members of Costco years ago, when a previous employer also had a discounted membership available. We had switched to Sam's Club, because it is closer in proximity, and found the product selection to be substantially more narrow than Costco's. Sam's had the main advantages of abundant parking and a slightly less costly membership rate. In retrospect, I now understand the surplus of parking spots at Sam's Club.

Magic 8 Ball: Nobel Laureate For Economics?

The traditional definition that economists find consensus with, is that a recession is constituted by: "two consecutive quarters of negative growth". This is where consensus apparently decided to exit; onto a poorly-lit series of side-streets, and finally a dark, foul-smelling back alley known to those who live there as: "2009".

We have witnessed the uncanny knack possessed by the all-knowing stars of the financial world to predict the future as far as the economy goes. Apparently the Economist has become the Weather-Man, because these days transparency and predictability are two luxuries clearly amiss from the financial system. Conflicting opinions and constant revisions of forecast rule the day. One would find more insight from a "Magic 8 Ball" than from these flip-flopping Chicken-Littles/Polyannas we call "Economists".



Unlike these financial gurus who have seemingly been asleep at the wheel for many months, I propose that we form our judgements by a mix of what we observe in our own immediate surroundings and what is occurring in the wider economy.




Here are some of my observations as of late:

• Inventories of produce are literally rotting in the grocery store, as people pare down their grocery expenditures. Coincidentally, Kraft Dinner, a perennial bellwether of economic malaise - has shot up to $1.69/box.
  
• Despite the crash and subsequent stabilisation of crude oil prices, gasoline has settled into a holding pattern in the neighbourhood of 80 cents. Obviously, enough people are still somehow able to purchase gasoline to enable this retailing behaviour to continue. Although there exist pockets of resistance to the obvious price gouging taking place, these companies know full-well that we haven't the collective ability to avoid their tills for any meaningful period of time.

• Certain vehicle dealerships in the United States are resorting to drastic measures to rid themselves of excess inventory. I found this unsettling ad posted on motherjones.com. Looks like the right time to take the leap and buy a truck - as long as you aren't hoping to finance it.
  
  
• On my trip to Future Shop this weekend, I saw two people walk out with large televisions. Nice to see some people are ignoring all this fire and brimstone talk. I also saw the home installation crew loading some equipment into the ConnectPro van. Somebody is still coughing up the few hundred bucks to have their television set-up through the ConnectPro service.

The silver lining to all this crud is that we live in a country as immense and diversified as Canada. We have the fortunate ability to shift stance more rapidly than most other countries in the world. If oil is not doing so hot, we will survive it. If newspapers are rendered fully obsolete, we will be fine. If some other countries, in the rush toward world-dominating industrialisation, ruin their water supplies, contaminate their farms and exhaust their mineral resources, we will still be open for business, with the wisdom and sage guidance of our Magic 8 Ball.

It's US Against the World

The brand-spanking-new $819 billion stimulus passed Wednesday in the United States has politicians and captains of industry north of the 49th parallel crapping ice blocks.

At issue is the declaration that monies destined for infrastructure improvements must be spent on American materials - instead of sourcing the materials from foreign countries who can usually provide these materials for much less money. A dramatic departure from "business as usual" is unfolding, and the potential economic fall-out could be catastrophic.
I, personally don't equate the word "America" with the word "protectionism". The USA is for certain the country who has done the most to drive and broaden the spread of free-market ideologies throughout the world. Even those stodgy Europeans, after decades of convincing by the US, are finally on board with the idea of collapsing the old-fashioned "barriers to prosperity". The poor Europeans are now following the US into the figurative "20,000 leagues" under the sea.

Institutions like the World Trade Organisation and the World Bank are all dependent on the growth of free and unobstructed trade throughout the nations to grow their power. Countries around the world have spent decades tearing down the old ways of doing business to make way for the new, only to find that as Dylan said "the times... they are a changin' ".

This now unwelcome change in direction by the US may not sit so well with those citizens of the world who have tolerated or supported expanded liberalisations of trade on the premise that free-trade is the best key to prosperity. It looks to me like either an acknowledgement by the Democrats that globalisation has frankensteined or that there was too much divestiture of jobs that payed "living" (and tax-base creating/sustaining) wages. Perhaps some people are starting to wonder if the wholesale flushing of jobs down the Rio Grande was such a smart move in retrospect.



Canadian politicians, surely thought that Mr. Obama's fiery rhetoric about international trade issues (specifically re-negotiating NAFTA) was merely a political ploy to court blue collar workers.. I mean, hey - our politicians were even told that the intentions of Mr. Obama were: "more reflective of political manoeuvring than policy." Isn't that enough assurance?



It's hard for me to imagine a complete undoing of NAFTA, but if this plan to exclude foreign competition is carried out, the ensuing trade-war will get downright nasty. You don't like Canadian steel? Fine - but are you content to do without our oil, natural gas, metals, wood and water? Should be a fine predicament.

Federal Budget 2009 - Who wrote this thing?

A "Socialist", A Lame Duck and a Separatist walk into a bar.. My thoughts toward the budget have been generally supportive, although I see a number of items that still reflect a classist approach to helping Canadians through this time of economic tumult and fear. For the most part, I think the methods of relief were well thought out. Reductions in taxability (bracket shifts) and increases to various Government benefits to low and mid-income Canadians showed a much more egalitarian approach, versus the previous measure of a meager increase to the personal basic amount and reduction of the GST. The Conservatives took the hard road into deficit spending, a marked departure from the tough talk of recent months, albeit with their hands forced a bit. The way money is being thrown around these days, especially by means of corporate welfare, the least the Feds could do is throw a dog a bone right?

The bones keep getting smaller though don't they?

The Home Buyers Program, introduced under the Mulroney Government in 1992, is one item that was selected for enhancement. When the program was implemented, the housing market was in the doldrums, unemployment was sky-high and the real-estate purchasing power of a dollar was much greater than today.

In 1992, according to Royal Lepage Canada's House Pricing Search, in the period January to March 1992, a two-storey house in Kitchener, Ontario would have an average price of $143,250. As of the July to September 2008 period, the same two-storey house would cost $252,000 - A difference of $108,750.

The Conservatives have increased the maximum amount of down-payment obtainable through the HBP to $25,000 in 2009 and future years, from 20,000 in 1992. It is a nice perk, but if the goal of government is to maintain the valuations in the housing market, shouldn't there be other mechanisms to support homeowners? Come on Jim; what is $5,000 going to do in this real-estate market? It's like dropping a popsicle into a bonfire essentially.

Enter the HRTC, or Home Renovation Tax Credit.

In an effort to increase both consumer spending and the construction trades hurt by the decline of new housing starts across the country, the Harper Government has enacted a refundable tax credit of up to $1,350 on work deemed suitable by the government. Exclusions of things like appliances, maintenance and repair of pre-existing items (furnaces etc.). This tax credit is granted subject to provision of receipts.. So for the under-the-table guys out there, it may mean a loss of business to those establishments who are providing remittances to the Gov't coffers. I guess if there is a tax credit for renting, there may as well be one for home-ownership.

The Road to Hell is Paved with Tech Inventions

It never ceases to amaze me, the amount and scale of change that consumer electronics are constantly undergoing. The speed at which the changes are occurring and the seemingly impossible task of assigning true "value" to any given piece of equipment are giving those in search of the latest/greatest gadgetry conundrums aplenty.

I guess some people like myself, (whose vehicle was long ago towed to the side of the info-superhighway) may be overwhelmed by choices and could be having some trouble identifying that oh-so important balance of performance, price, durability, reliability and form factor. I suppose the challenge holds allure to some folks because of the potential of harnessing a perfectly seamless interoperability of devices - bringing the whole world to their figurative doorstep. Count me in!

The market for consumer electronics is growing on a global scale, particularly in Africa where cell phone ownership greatly exceeds that of land-lines and has for years. Africa certainly has come to the party (later than fashionably), but like other groups throughout history I think they will prove to be quite the innovators in their own right. The meld of existing technologies and knowledge brought by connection to their fellow Africans and to the greater world community will empower the youth. Eventually the spread of language translation software will permeate previously isolated areas and contribute to a higher enlightenment and bring Africa toward further integration with the rest of the world.

The kryptonite to consumer electronics seems to be the general lack of tangible value as an asset, when compared with some other asset classes like real-estate, financial investments or even snow tires in colder climes. Let me elaborate a touch:

• The "buy and hold" philosophy can not generally increase the value of a television set, (not that this approach has done much for equity or real-estate investors lately either)

• In Ontario, where I live new homes are entitled to receive a TARION warranty that covers major items against major structural defects and various other defects to specified degrees. Compare this against most electronics, which enjoy anywhere from 90-days coverage up to a couple of years, and the investment can quickly leave you with a room full of e-waste

• A blue-tooth enabled GPS will do nothing to prevent your vehicle from skidding of into a ditch or taking out a country road mailbox
  
  

If Nostradamus were still with us, I'm sure he'd be most giddy about the abundance of opportunities for a great see'er that exist these days. If he was as accurate as some of his proponents claim, he could made a mint or two on retainer to any deep pocketed individual, corporation or government.

Surely, at the dawn of the Internet age, ol' Nostradamus would have foreseen the meteoric rise of "netbooks", the re-birth of Apple, the market dominance of e-Bay and the world shrinking effects of P2P, the Blackberry or Facebook. The guy would have made someone trillions. His Quatrains devoted to 3G, the iPod, and his solemn prose (envisioned below) on "The Tragedy of Vista" would be required reading for the movers and shakers in the early 1990's.

The Tragedy of Vista ~ channelled by Steve van der Planet

An over-bearing Sentry plunders the resource vast..

Reviled by the commoners- who have not systems fast..

For those who know his wrath - will beg for his predecessor..

Instead, the peasants doomed - will be forced to upgrade in two-thousand ten.

Change and Challenge

With the inauguration of President Barack Obama taking place recently, I thought it timely to make a few predictions related to his presidency.



The incoming president, whose eloquent and passionate oratory on the potentials of America and Americans, has lifted the hopes of many people not only in the US, but also world-wide. Even pre-eminent political observer Montell Williams agrees, stating: "this has already been one of the most influential Presidents of all-time, giving Americans hope and touting the common cause of all persons, regardless of economic standing or other divisions. These coins deliver a stunning picture of the President Elect complete with authentic gold plating."


Obama, the man whose charm, delivery and intellectual prowess have propelled him into the most powerful chair in the world will undoubtedly face many very tough decisions within his time as Commander in Chief.



Here are my predictions:

• By May 1st, the Dow Jones Industrial Avg. will be below 6500 points with oil prices hovering around $25/barrel $US
  
  
• A major military provocation or skirmish by a foreign power (likely Russia) will occur in early 2010 when Eastern Europe deepens defence integration with the US

• Within 4 months of US departure from Iraq, Iran will control the majority of the country by proxy and Iraq will spend the next 5 or so years in a civil war

No pressure though, Barack..

Know Thy Customer

What does it say about the part of my city that I live in that the end-caps at my local Zehrs grocery store are stacked eight feet high with 20kg (~50lb) boxes of cat litter? Other Zehrs stores have things like Nabob Dark Roast, French's Mustard, maybe some President's Choice potato chips - and our Zehrs gives the best seat in the house to gravel that cats use as a toilet.


Is it possible that the main thing drawing people to the Preston Zehrs store is actually not even a food product? It is probably not the ambience.

I have wondered for some time if the store management has ever given thought to the idea of modernizing the store. With some effort, surely this location could experience a renaissance of sales and customer loyalty. It seems that sometimes people shop at this store because they have to, rather than it being their first choice. Personally, I would rather shop close to home, but find myself often put-off by lack of selection and quality of goods, especially produce. If I was a single guy who didn't eat vegetables, and lived out of the microwave this wouldn't be such a frustrating situation..


Some of the low-lights of this location I have observed:

• myriad neglected, hand-me-down carts, complete with lack of manoeuvrability and original-looking paint




• expiry dates on many goods are drastically sooner than other locations (do they ship perishables from other locations as the foods approach spoilage)?




• higher prices for certain produce than other locations (even though this location is not in a swank part of town some of us still enjoy the odd salad or citrus fruit)

I understand that the other stores likely do exponentially more volume than the Preston location. The recent economic climate could actually benefit Zehrs with stock analysts pointing to Loblaw's becoming more profitable as people elect to eat at home more often. There is no desire on my behalf to see "self-check-out" stations added. With Waterloo Region already experiencing an abysmal 7.7% unemployment rate, I can wait in line for 5 minutes for a human to process my purchase. I don't think I'm asking for the moon here; just a nice clean interface where I can find the foods that my family needs to make it through the week.

Come on Zehrs, I'm rooting for ya'.

Barbercued Wisdoms 3/$1.00

Like many twenty and thirty-something Canadians, a virtual right of passage into responsible adulthood was the reading of David Chilton's personal finance classic "The Wealthy Barber". I remember reading it perhaps ten years ago and finding it to be a pretty clear presentation of basic financial knowledge, wrapped up in a non-descript, somewhat campy storyline. Although my overall memory of the book is quite fuzzy, I remember a few concepts and details from it:

1. 10% of everything you earn is yours to keep (outside of retirement savings and for long term growth)




2. Canadian government bonds had insanely high yields by today's standard (try to find a Canadian gov't bond that pays 12% these days)




3. The quote: "the car loan is the black hole of personal finance"

Like many people, I do not have enough cash flow to accomplish number 1, although my wife and I try to make sure we are saving sufficiently for retirement. I find the double dip of retirement savings and a hefty income-tax refund more appealing than the idea of saving money after said money has been reduced by the sticky fingers of government. The best path is not always the easiest to travel and or the best marked I suppose.

If yields were even close to 10% on a stable investment like a gov't bond I would consider saving much more money outside of retirement savings. I'm sure that many people after weighing the merits of paying income taxes and then investing post tax come to a similar conclusion. Is it beneficial, for instance to lose 30% of your income to taxes only to realize a 2.75% gain on your investment in a secure investment? Even with the advent of the Tax Free Savings Account, it still benefits a person minimally to invest with post-tax dollars, until they have maxed out their RSP contribution room unless that person expects to see a substantial increase in annual earnings going forward. That said, if one could fill all of their available RSP room and have surplus funds to invest the TFSA would be in the words of the timeless philosopher J.J. Walker: "Dyn-o-mite!" I find some aspects of the account quite attractive, first and foremost the fact that regardless of whether one decides to contribute or not contribute to the TFSA, the annual savings room accumulates indefinitely. Doesn't hurt that the account's principal and proceeds can never be taxed or result in any detrimental effects such as the Boomer curse-word "clawback" of C.P.P. benefits or any supplemental or income-based allowances. An idea being bandied about in web forums is that the TFSA will likely become an increasingly common method of wealth-transfer from parents to their adult children, skirting probate and other estate taxes entirely. This scheme will take years to bear big fruit, but in the year 2029, a person could inherit 100,000 (20 years x $5,000) from an estate and not pay a penny in tax on the amount, or any proceeds from the inheritance's subsequent investment.

Number three is something that I find creeping into my consciousness whenever the thought of undertaking a vehicular purchase arises. Our family vehicle is a newer vehicle that we use for trips to the grocery store and about town. We bought the family vehicle a couple of years ago, when my wife traded in her vehicle. My personal vehicle (not used for family transport) is an older sedan that has been very reliable and cheap to operate thus far. It is as economical as they come, costing me an average of $30-35 dollars in gas per month for my short commute to work and the odd trip around town.

I have been incredibly fortunate in my experience with this older vehicle, but I would prefer to modernize soon, for a couple of reasons: safety and family capacity (post 2002 vehicles are mandated to have the LATCH/Canfix system of child seat tethers which are favoured versus the old "throw the seat belt through it and shoot a bolt into your back deck beside the brake light".

Perhaps it was rock-metal legends Gun's N' Roses who said it best - "nothing
lasts forever.. even cold November Rain".

Welcome to Chinese Garlic

"It's like merging onto the information super-highway on a uni-cycle.." - Steve van der Planet

As a relative newcomer to today's tech-central environment, I must warn you that what you are about to witness will not be pretty, well laid-out or overly coherent.

What it will be is a journey into the abyss of unknown mediocrities, laced with onerous grammar and a strong chance of headbutting you in the face with my insights. You may lose teeth.

So, without further adieu; please enjoy a suggested serving size of Chinese Garlic!