the Wealthy Canadian

Another exciting week..

First off, three blogs posts that I want to share.  All three are on the same theme, that is on downsizing your lifestyle.  I think that this is an important topic as our wants is what keeps us in debt and on the treadmill (hamster ball?).  These guys are not saying that we shouldn’t enjoy life, just to shake off the constant wanting.

• Zen Habits provides nine tips to throw off the chains of  consumerism.
• Canadian Dream gives his five steps to try to live without wants.
• JD over at Get Rich Slowly talks about how he no longer loves his big house and longs for the simpler days of his smaller house.

Stats Canada released the September CPI.  Inflation rose a bit led by an increase in gasoline prices.  The prairies are still above the national average for inflation, however Alberta saw housing cool off while Saskatchewan still showed strong housing.

The Bank of Canada kept interest rates untouched again and released their Monetary Policy Report.  In it the Bank predicts a roughly balanced market where inflation may peak at 3% by the end of the year but will taper off again into 2008.  Expect that the interest rates will remain the same.

Meanwhile in the U.S., the Federal Reserve Board released their commentary on the economy, the Beige Book.  They confirm that American housing situation is still bad and will likely get worse.  An interesting contrast to the doom and gloom is that there are still labour shortages and robust consumerism – perhaps things aren’t all the bad after all.

Energy prices rose a bit this week with oil touching $90/ BBL.  Related to that is the hullabaloo surrounding the upcoming Alberta royalty review decision.  The big oil companies have publicly stated that they will pull out of Alberta if the royalties increase and the small players have said they’d close up shop while the premier has said that he won’t be pushed around.  It may just be sabre rattling but there is a potential that for unfavourable conditions in the oil patch would force the players to find greener pastures.  I’m betting Danny Williams (Premier of Newfoundland & Labrador) is drooling at the prospect of the oil companies leaving Alberta – where will they go, a likely candidate for further investment is Newfoundland.  “Calgary East” is starting to look like a possibility.