If this is run anything like the CPP, it will underperform both the market and their own benchmarks yet lead to executives awarding themselves huge bonuses.
In contrast, the PSPF (federal public sector pension) has over-performed.
Canada's first sovereign wealth fund
71–80 of 120 posts
Re: Canada's first sovereign wealth fund
#72Earlier quoted context omitted.
I guess we should do stupid corrupt things because Trump exists.
What’s Trump got to do with this? If you invest anything in the Canadian market you probably hold some Brookfield. Carney’s investments are in a blind trust. What more could be done, in your view?
Perhaps I would have simply had someone different represent Canadians.
Is this too much to ask?
Re: Canada's first sovereign wealth fund
#73Earlier quoted context omitted.
What’s Trump got to do with this? If you invest anything in the Canadian market you probably hold some Brookfield. Carney’s investments are in a blind trust. What more could be done, in your view?
Perhaps I would have simply had someone different represent Canadians. Is this too much to ask?
Apparently!
Re: Canada's first sovereign wealth fund
#74Earlier quoted context omitted.
Yea really. Feels like a bit of a communications exercise and effort to create arms length distance from the Federal government and spending on major projects. Now it's not the Federal government and taxpayers propping up the oil industry by buying yet another oil pipeline, but rather a "sovereign wealth fund" (funded by Canadian taxpayers).
Yeah and like, if they want to use it for infrastructure, mining, and LNG development, isn't that at odds with retail investors who require more liquidity? Doesn't it require the fund to either hold massive cash reserves to manage redemptions or rely on government bailouts if retail sentiment sours before projects mature? To me it sounds less like a "sovereign wealth fund" and more like a domestic infrastructure bank…
And we already have an infrastructure bank! Trudeau started it. And Carney was the financial advisor to Trudeau, so it was probably his idea too! lol.
Re: Canada's first sovereign wealth fund
#75Earlier quoted context omitted.
> Future payments in the short term are covered by inflows. is that similar to the Ponzi scheme pattern, though?
Ponzi schemes always make current payments out of current inflows. The first 10 people get paid from the inflows from the next 100 people who get paid from the next 1000 people and so on, until you run out of people to sign up and the last group is left holding the bag. This is how Social Security works in the US because it started out by making payments to people who never paid in and was premised on the early 20th…
kudos for a thoughtful and clear explanation: useful indeed as my question was genuine, not snarky.
Re: Canada's first sovereign wealth fund
#76Earlier quoted context omitted.
Yeah and like, if they want to use it for infrastructure, mining, and LNG development, isn't that at odds with retail investors who require more liquidity? Doesn't it require the fund to either hold massive cash reserves to manage redemptions or rely on government bailouts if retail sentiment sours before projects mature? To me it sounds less like a "sovereign wealth fund" and more like a domestic infrastructure bank…
And we already have an infrastructure bank! Trudeau started it. And Carney was the financial advisor to Trudeau, so it was probably his idea too! lol.
We do?!?!? Why don't we ever build any infrastructure with it lmao
Re: Canada's first sovereign wealth fund
#77This makes sense once you see the list of Canadian companies https://en.wikipedia.org/wiki/List_of_largest_companies_in_C... #1 is Brookfield Corporation. The now prime minister of Canada headed the ESG there. He is also an international central banker.
Wow! This guy knew a lot about working in an environmental/social/governance framework, AND he knows enough about money to have been an international central banker?
I knew Carney was great, but I didn't know he was so well-qualified too.
Re: Canada's first sovereign wealth fund
#78Earlier quoted context omitted.
What’s Trump got to do with this? If you invest anything in the Canadian market you probably hold some Brookfield. Carney’s investments are in a blind trust. What more could be done, in your view?
Perhaps I would have simply had someone different represent Canadians. Is this too much to ask?
Yes, considering everyone else was either utterly incompetent, didn't want the job, or screwed the pooch under pressure.
Re: Canada's first sovereign wealth fund
#79Earlier quoted context omitted.
>Usually a sovereign wealth fund is funded by excess profits, like Norway for example. If Canada ran resources like Norway does, it would have an enormous "excess profit". Norway's royalty rates and "profits" are dramatically higher than Canada where decades of American psyops fooled a bunch of very foolish people that the primary purpose of Canada is to ensure maximum profits for US orgs. But really, international e…
>But really, international economics is just mostly made up, and if enough people go along with it then it's as real as real can be. What is not made up is that if you need to import things from other countries, then you need to export things from your country in proportional value, or else the country as a whole loses purchasing power (i.e. gets poorer). In this case, if Canada is increasing its money supply, then t…
>What is not made up is that if you need to import things from other countries, then you need to export things from your country in proportional value, or else the country as a whole loses purchasing power (i.e. gets poorer).
So the US is the world's poorest nation, by far, right? Country has a two trillion dollar+ deficit, a one trillion dollar trade deficit, absolutely no end in sight of spiralling to bankruptcy (it's only getting worse), and lets the money printer go brrrr.
Most of international economics are made up, and often are nonsensical. There is no master book of records that dictates cause and effect (there simply isn't, so at best we get "but if you do this...that maybe will happen...or maybe it won't", but mostly it's people looking around and trying to figure out what other people will go along with.
Re: Canada's first sovereign wealth fund
#80This makes sense once you see the list of Canadian companies https://en.wikipedia.org/wiki/List_of_largest_companies_in_C... #1 is Brookfield Corporation. The now prime minister of Canada headed the ESG there. He is also an international central banker.
Wow! This guy knew a lot about working in an environmental/social/governance framework, AND he knows enough about money to have been an international central banker? I knew Carney was great, but I didn't know he was so well-qualified too.
Carney was the governor of the Bank of Canada through the financial crisis and Canada was one of the least affected developed countries. To be fair, Canada’s insular banking system also helped limit exposure, but Carney’s handling of the situation was good enough that the UK made him the first non British governor of the Bank of England, during which period he oversaw the whole Brexit saga, where again his handling of the UK economy was extremely highly regarded.
There are justifiable question about whether he will be a good PM but he is probably one of the most successful central bankers of all time.