Bruce Dowbiggin
The Debt Pipeline: Canada Is Drowning In Debt
“How did you go bankrupt?” Bill asked.
“Two ways,” Mike said. “Gradually and then suddenly.”— The Sun Also Rises, Ernest Hemingway, 1926
For those outside Calgary, the rupture of the major water-carrying pipe is a local annoyance, divorced from their lives. The fact that it now appears it will take 3-5 weeks to restore normal water delivery in the city— original estimates from the mayor said 3-5 days— is tough luck for inhabitants of Canada’s energy city.
Even that estimate is being treated skeptically by a public who were manipulated and abused by the political structure during the recent Covid years. Testing shows that this same pipe— it’s large enough to drive a car through— has five more “hot spots” that could lead to further trouble. In short, repairing and maintaining the infrastructure in Calgary is going to be a huge investment. Married to the city’s debt crisis, a new transit line and the need for other infrastructure projects it’s daunting.
But it’s not a localized problem. Toronto’s new crosstown subway project is years over budget even as the city punts on repairing / replacing its vital Gardiner Expressway. Montreal’s bridges are a construction meltdown. Vancouver, Edmonton, Halifax— name the city. They’re all faced with crushing repairs while looking down the barrel of the debt gun.
How bad is the debt bomb? The voice on the other end of the line was grave. This retired financial executive says Canada is effectively bankrupt. He’s seen this coming after his almost 50 years in the Canadian industry. A decade of profligate government spending, Canada’s massive debts and electing activist politicians have brought Canada to a nasty place.
The weak spot in Canada’s wall is government debt, he says, and when the inflection point arrives it will happen in a hurry. As Mike Campbell said in The Sun Also Rises about what brought on his bankruptcy, “Friends. I had a lot of friends. False friends. Then I had creditors, too. Probably had more creditors than anybody in England.”
Canada has friends. Allegedly. Successive Liberal governments have allowed “friendly” China to acquire Canadian debt during a period of accelerated buying in the past decade. Meanwhile, China still owes Canada $371 million in loans it incurred decades ago, and it is not expected to repay them in full until 2045.
But recently it’s been revealed that “friendly” China has also been actively interfering in Canada’s elections. It placed spies in Canada’s top-secret biolabs in Winnipeg. It is buying up farmland in PEI and other Canadian provinces.
That has left Canada’s PM, the one who said he admired China’s ability to get things done outside democracy, stammering and obfuscating. He knows that in his current predicament he can’t afford to rile the Chinese, who blithely let Canadians die of Covid-19, a virus they spread to the world.
Already, Canada pays C$46 B a year to service its debt, more than Ottawa expects to spend on childcare benefits ($31.2 billion) and almost as much as the cost of the Canada Health Transfer ($49.4 billion). Hard to believe Canada’s GDP per capita was actually higher than the US. Now, there is a $30.5k USD gap.
Should China decide to push the go button and pull back its bond paper in Canada, the result, says this executive, will be seismic. To rescue a credit-choked economy interest rates could jump back as high as the 18 percent rates of the 1980s. To say nothing of boosting personal tax rates. In case you’re part of the Denial Squad, here’s the take governments exact at the moment. Think they can take more?
NL – 54.8%
NS – 54%
ON – 53.53%
BC – 53.50%
QC – 53.31%
NB – 52.50%
PEI- 51.37%
MB – 50.4%
AB – 48%
YT – 48%
SK – 47.5%
NT – 47.05%
Not good. Canadians who think the warning signs will give them time to adjust are badly mistaken. Paraphrasing the words of Mike Campbell, the long debt descent will happen “suddenly”. Within 48 hours of China (or any other Canadian bondholder) employing the poison pill much of Canadians’ savings will be wiped out. The real estate market— which is the default savings account for millions— will implode.
You won’t hear any this from finance minister Chrystia Freeland who claims her debt-financed spending (based on international comparisons) shows Canada with the lowest level of debt in the G7. But the Fraser Institute points out, “By using net debt as a share of the economy (GDP), Canada ranks 11th lowest of 29 countries and lowest amongst the G7. By using gross debt as a share of the economy, Canada falls to 25th of 29 countries and 4th in the G7”.
If you don’t like statistics you can always just pop down to the grocery store to check out how $4.99 blueberries cost $7.99 now. The debt crisis should lead the newscasts each night. It will when reality strikes suddenly. But for now, Trudeau’s purchased media are more interested in Pierre Poilievre fear stories and TikTok videos of cats.
Bruce Dowbiggin @dowbboy is the editor of Not The Public Broadcaster A two-time winner of the Gemini Award as Canada’s top television sports broadcaster, he’s a regular contributor to Sirius XM Canada Talks Ch. 167. His new book Deal With It: The Trades That Stunned The NHL And Changed hockey is now available on Amazon. Inexact Science: The Six Most Compelling Draft Years In NHL History, his previous book with his son Evan, was voted the seventh-best professional hockey book of all time by bookauthority.org . His 2004 book Money Players was voted sixth best on the same list, and is available via brucedowbigginbooks.ca.
Bruce Dowbiggin
MLB’s Exploding Chequebook: Parity Is Now For Suckers
MLB has seen parity and proclaimed, “We don’t give a damn!” Okay, they didn’t say that. In fact they insist the opposite is true. They’re all about competition and smaller markets getting a shot at a title. But as the 2024 offseason spending shows, believe none of what you hear and half of what you see in MLB.
Here’s the skinny: Juan Soto‘s contract with the NY Mets — 15 years and guaranteeing $765 million, not a penny of which is deferred. Max Fried signed an eight-year, $218 million deal with the New York Yankees. Later, Nathan Eovaldi secured a three-year, $75 million contract to return to the Texas Rangers. Blake Snell (five years, $182 million with the Los Angeles Dodgers) and Matthew Boyd (two years, $29 million with the Chicago Cubs) added to the splurge.
There’s one more thing that stands out. MLB has no trouble with the financial big boys in New York, Los Angles, Texas, Toronto, Atlanta and Chicago shelling out money no small market dare pay. In the MLB cheap seats, Tampa, Pittsburgh and Miami can’t send out quality players fast enough. But MLB is cool with that, too, as those paupers get a healthy slice of TV money.
So yes, they’re all about talking parity with their luxury tax system. But to keep the TV, digital, betting and marketing lucre flowing they have to have large media markets swinging the heaviest bats come postseason. The question is, do MLB fans care the way they used to about parity? It says here they don’t. More want to seed best-on-best more often. Which is brutal but refreshing.
Their sister leagues, married to draconian salary cap systems, are still pushing parity, even as they expand beyond recognition. In our 2004 book Money Players, legendary Boston Bruins coach/ GM Harry Sinden noted, “The problem with teams in the league, is that there were (then) 20 teams who all think they are going to win the Stanley Cup and they all are going to share it. But only one team is going to win it. The rest are chasing a rainbow.”
And that was before the expansion Vegas Golden Knights won a Cup within five years while the third-year Seattle Kraken made a run in those same 2023 playoffs. There are currently 32 teams in the league, each chasing Sinden’s rainbow of a Stanley Cup. That means 31 cranky fan bases every year. And 31 management teams trying to avoid getting fired.
Maybe we’ve reached peak franchise level? Uh, no. Not so long as salary-capped leagues can use the dream of parity to sell more franchises. As we wrote in October of 2023, “If you believe the innuendo coming from commissioner Gary Bettman there is a steady appetite for getting a piece of the NHL operation. “The best answer I can give you is that we have continuous expressions of interest from places like Houston, Atlanta, Quebec City, Salt Lake City, but expansion isn’t on the agenda.” In the next breath Bettman was predicting that any new teams will cost “A lot, a lot.”
Deputy commissioner Bill Daly echoed Bettman’s caution about a sudden expansion but added, ”Having said that, particularly with the success of the Vegas and Seattle expansions, there are more people who want to own professional hockey teams.” Translation: If the NHL can get a billion for a new team, the heck with competitive excellence, the clock might start ticking sooner. After all, small-market Ottawa just went for $950.”
It’s not just the expansion-obsessed NHL talking more teams. MLB is looking to add franchises. Abandoned Montreal is once more getting palpitations over rumours that the league wants to return to the city that lost its Expos in 2005. Recent reports indicate that while MLB might prefer Salt Lake City and Nashville it also feels it must right the wrong left when the Expos moved to Washington DC 19 years ago.
The city needs a new ballpark to replace disastrous Olympic Stadium. They’ll also need more than Tom Brady to fund the franchise fee and operating costs. And Quebec corporate support— always transitory in the Expos years— will need to be strong. But two more MLB franchises within five years is a lock.
While the NBA is mum on going past 30 teams it has not shut the door on expansion after seeing the NHL cashing in. Neither has the cash-generating monster known as the NFL where teams currently sell for over six billion US. The NFL is eyeing Europe for its next moves.
The question that has to be asked in this is, WTF, quality of competition? The more teams in a league the lower the chances of even getting to a semifinal series let alone a championship. Fans in cities starved for a championship— the NFL’s Detroit Lions or Cleveland Browns are entering their seventh decade without a title or the Toronto Maple Leafs title-less since 1967— know how corrosive it can be.
Getting to 34, 36, maybe 40 teams makes for a short-term score for owners, but it could leave leagues with an entire strata of loser teams that no one—least of all networks, carriers and advertisers—wants to see. Generations of fans will be like Canuck supporters, going their entire lives without a championship.
In addition, as we’ve argued in our 2018 book Cap In Hand: How Salary Caps Are Killing Pro Sports and How The Free Market Can Save Them, watering down the product with a lot of teams no one wants to watch nationally or globally seems counter productive. The move away from quality toward quantity serves only the gambling industry. But since when has Gary Bettman Truly cared about quality of the product? So long as he gets to say, “We have a trade to announce” at the Draft, he’s a happy guy.
When we published Cap In Hand we proposed a system like soccer with ranked divisions using promotion and relegation to ensure competition, not parity. Most of the interviewers we spoke to were skeptical of the idea. But as MLB steams closer to economic Darwinism our proposal is looking more credible every day. Play at the level you can afford. Or just watch Ted Lasso. Your choice.
Bruce Dowbiggin @dowbboy is the editor of Not The Public Broadcaster A two-time winner of the Gemini Award as Canada’s top television sports broadcaster, he’s a regular contributor to Sirius XM Canada Talks Ch. 167. His new book Deal With It: The Trades That Stunned The NHL And Changed hockey is now available on Amazon. Inexact Science: The Six Most Compelling Draft Years In NHL History, his previous book with his son Evan, was voted the seventh-best professional hockey book of all time by bookauthority.org . His 2004 book Money Players was voted sixth best on the same list, and is available via brucedowbigginbooks.ca.
Bruce Dowbiggin
Bordering On Legend: Why Josh Allen Is Hero to Two Nations
Headline: Josh Allen sets NFL mark with 3 TD passes and 3 TD runs, but Matthew Stafford’s Rams hold off Buffalo Bills 44-42
Canada has no NFL teams to its name. But different parts of the country have a fervent rooting interest in a team. Often it’s because of the local American markets that have been piped in by cable TV companies. The Lower Mainland of B.C. is fertile Seattle Seahawks territory. Alberta is partial to the Denver Broncos (owned for a long time by an Albertan). Manitoba and Saskatchewan get Detroit stations on their cable but are equally invested in the Minnesota Vikings.
In the East, Quebec and the Maritimes have plenty of New York Giants (older) and New England Patriots (Tom Brady) fandom. In southern Ontario, where the locals grew up on a diet of Buffalo TV icons Irv Weinstein and Tom Joles, there is little question that the Buffalo Bills are top of mind. As many as 20 percent of the crowd on game day comes south across the Peace Bridge. TSN and Sportsnet closely cover the Bills closely.
Not so long ago Rogers thought playing Bills games in Toronto might be a thing. For reasons ranging from ticket prices to the Bills ineptitude the gamble flopped. So they gave up the plan just as the franchise’s fortunes were to take a great leap forward in the name of quarterback Josh Allen, a raw talent from Wyoming, of all places. Opinions on whether his athletic ability and size (6-foot-5, 240 pounds) would translate in the NFL were many.
After all, while his QB rivals played in the Rose Bowl or the Orange Bowl, Allen had starred in the Great Idaho Potato Bowl. Using a pick obtained from Tampa, the Bills got him seventh in the loaded 2018 draft behind more heralded prospects Baker Mayfield and Sam Darnold. He was considered the riskiest pick in the top seven. While none of the players taken before Allen have flopped, Mayfield and Arnold have wandered in the wilderness before finding success. Saquon Barkley has finally reached superstardom with a second team.
But not one of that septet has had quite the career arc of Allen. In just two years he took them to their first postseason since 1995. The next season he led them to the AFC Championship game where he lost to his future kryptonite, Patrick Mahomes and the Kansas City Chiefs. During his Buffalo tenure, he has led the team to a total of six playoff appearances, five consecutive division titles, and five postseason victories. Only a Super Bowl trip has eluded him.
But statistics don’t capture Allen’s dual-threat impact on the NFL. He’s not been alone. In our in 2022 column NFL Run/ Pass Maestros: Can’t Catch This, we wrote about the move to more mobile, improvisational QBs . Players such as Allen, Mahomes and Lamar Jackson of Baltimore, the two-time NFL MVP. Stick-in-the-pockets like Jared Goff, Kirk Cousins and Matthews Stafford are still viable threats, but it’s clear that to stay one step ahead of defensive coordinators a QB needs the option of rolling out, isolating a defender and making him choose between the run or pass.
Where it was rare for QBs to gain more than a few years running it’s now common to see six or seven QBs in the Top 50 rushers in the NFL. Currently six QBs are in the Top 50 rushers in the league. But where the competition have been race cars, Allen has been a snow plow, going through, not around, defenders.
His feats of strength would impress George Costanza’s father. Week after week he makes single-handed plays that deliver the Bills victory. His weekly highlight reel of mad dashes and bazooka-liken throws had led the Bills to six straight wins before’s Sunday’s loss. Two weeks ago it was a hook-and-ladder TD lateral in the snow from teammate Amari Cooper in which he received credit for a TD pass and a TD reception on the same play. On Sunday in Los Angeles, he added 82 yards rushing to a mighty 342 yards passing.
This has led his fans to cover their eyes as he smashes into opponents or the turf. Bills fans know that their success is untranslatable without Allen, who’s now considered the favourite for MVP with four games left. Career backup Mitch Trubisky sits behind Allen, which is like Pete Buttigieg backing up Elon Musk.
Allen has been the beneficiary of the NFL taking the target off QBs as the 2020s dawned. “In act of mercy or perhaps to juice offence, the NFL took pity on the athletic QBs. ‘It feels like the NFL is in a moment when a defender can get called for roughing the passer or unnecessary roughness simply by breathing hard on the QB,” writes Joe Mahoney of SB Nation. “It’s a reason why the career longevity for running QBs like Lamar Jackson, Kyler Murray, Jalen Hurts, Justin Fields, Josh Allen, and Taysom Hill should be much longer the career lengths of some of the previous elite dual-threat QBs’”.
This was all written before Sunday’s epic personal offence total in a losing effort against the Rams— just the third defeat all season for the Bills. At one point they trailed by 17 before rallying to lose by just two.
Perhaps the only thing holding back Allen from a title now is the game strategy of HC Sean McDermott and the coaches of the Bills— as their fans know only too well since the last-second disaster against KC in the 2022 AFC final when McDermott couldn’t kill off 13 seconds at the end of the game. Allowing the Chiefs to come back for a win and a trip to the Super Bowl.
Sunday he and his OC Joe Brady wasted a time-out at the conclusion of a monumental comeback that prevented the Bills getting a shot at a game-winning field goal. It was not the first time the seventh-year head coach had muffed game-ending strategy this season. Losses to Houston and Baltimore also featured faulty game management. Otherwise the Bills might be undefeated in 2024.
But we won’t know for a month, at least, whether that’s enough of a drag on Superman’s cape to prevent a Super Bowl appearance. For now, Bills fans in Canada and the U.S. can only marvel at what’s happened to the farm boy from rural California who is both irresistible object and unstoppable force in the same body.
Bruce Dowbiggin @dowbboy is the editor of Not The Public Broadcaster A two-time winner of the Gemini Award as Canada’s top television sports broadcaster, he’s a regular contributor to Sirius XM Canada Talks Ch. 167. His new book Deal With It: The Trades That Stunned The NHL And Changed hockey is now available on Amazon. Inexact Science: The Six Most Compelling Draft Years In NHL History, his previous book with his son Evan, was voted the seventh-best professional hockey book of all time by bookauthority.org . His 2004 book Money Players was voted sixth best on the same list, and is available via brucedowbigginbooks.ca.
-
conflict1 day ago
Trump has started negotiations to end the war in Ukraine
-
Housing1 day ago
Trudeau loses another cabinet member as Housing Minister Sean Fraser resigns
-
illegal immigration2 days ago
Delusional Rumour Driving Some Migrants in Mexico to Reach US Border
-
Business2 days ago
Fiscal update reveals extent of federal government mismanagement
-
Economy1 day ago
The White Pill: Big Government Can Be Defeated (Just Ask the Soviet Union)
-
Energy2 days ago
Dig, Baby, Dig: Making Coal Great Again. A Convincing Case for Coal
-
Business2 days ago
‘There Are No Sacred Cows’: Charles Payne Predicts DOGE Will Take Bite Out Of Military Industrial Complex
-
Brownstone Institute1 day ago
A Potpourri of the World’s Unexposed Scandals