Wednesday, March 20, 2013

The coming collapse of the Canadian economy

The news that Native Peoples across the continent are uniting to stop proposed tar-sands pipeline projects should be the writing on the wall that even the dimmest of politicians on both sides of the border cannot fail to see.

Alberta will be hit first and hit hardest. But since tar sands development has been the little engine that could keep dragging the Canadian economy into positive numbers for the past generation, the impending collapse of tar sands development will bode ill for the entire country.

The fundamental problem is that the market for tar-sands oil is shrinking while dozens of tar-sands development projects are in various states of completion.

At the same time, there is a world-wide glut of fossil fuels.

Look for huge cancellations in Alberta development projects in the months ahead.

Opposition to tar-sands development is approaching critical mass. The Native population is overwhelmingly against, no matter how many grand promises are made them about employment opportunities and future royalties.

Pipelines have become a political hot potato in the US. Obama can't afford to be the guy left holding the hot potato.

Prestigious international research institutes are  severing ties with oil-sands research because they fear the association is ruining their reputations.

It'll hit the Fort Mac real estate bubble first. Then Alberta, then the entire economy.

Buckle up; there's a bumpy road ahead.

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