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Canada's Sovereign Wealth Fund



March 11, 2008 – Comments (6)

Well, I didn't know we had one...

Yes I did, but I call it the Canada Pension Plan.  I was attracted to the headline about various wealth funds, and Canada's name was there


They are supposed to answer to me, one of 17 million... 

6 Comments – Post Your Own

#1) On March 11, 2008 at 2:33 AM, dwot (28.81) wrote:

This is an older post, but a very good one...

 Seems our cost of living is not related to food, energy or housing...

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#2) On March 11, 2008 at 3:25 AM, AnomaLee (28.87) wrote:

Sounds far better than having your government "investing" your money by issuing itself more debt. 

OR we can invest our savings ourself. Which is how I would prefer it, but unfortunately we have ridiculous capital gains tax that actually discourage investing.

Since most people are incapable of doing this anyway they'll turn their money over to fund managers where 80% of them will underperform their own defined benchmarks and could cost you more in fees than five years of active day trading. This is supposed to be the better alternative because there is no government plan that will help anyone in my generation achieve enough wealth to retire comfortably in the U.S.

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#3) On March 11, 2008 at 4:49 AM, EScroogeJr (< 20) wrote:

"Sounds far better than having your government "investing" your money by issuing itself more debt. "

Come on, AnomaLee. Who needs this money? You'll be paid in speed improvements of personal computers. It will work like this. Social Security: $3500. Loaf of bread: $150. CPU speed: 1 trillion operations per second. CPI inflation since 2008: 65%.  

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#4) On March 11, 2008 at 9:38 AM, dwot (28.81) wrote:

AnormaLee, instead of the government having $467 billion of debt, or what ever it is, I'd prefer $347 billion of debt.

The downside of reducing debt and being a strong government is that there is always some moron elected who constantly comes up with steal from the next generation plans.

If anyone looked at the link about the Canada Pension Plan, there was a circle pie graph that showed 18% of senior's income comes from CPP.  Another 23% comes Old Age Security and Guaranteed Income Supplement, which aren't funded at all and you get to make $111k before those amounts are completely clawed back... insane when you consider we have so many youth that are under employee, getting only mininimum wage for the work they do get and they have to contribute 9.9%.

There is a plan to ensure that what you have to pay to the CPP goes up, but nothing to ensure that the lower end of wages goes up and they haven't gone up for about 10 years now, and in BC they actually lowered wages in that an employer can pay you 25% less for the first 500 hours of work.  I am so sick of the countless ways we transfer wealth from youth to age. 

And what really irks me is that where I am in the demographic under attack for constant cuts.  Things that existed for youth, who are now those qualifying to retire at age 60, are things like being able to save up to $10k and claim it on your income tax towards a home.  That was when a one bedroom condo could still be had for under $30k.  They had a marriage exemption for the first year you got married which enabled you to claim your spouse as well as your spouse being able to claim themselves.  University tuition could be paid for with about 5 hours of work per credit hour at minimum wage whereas now it is about 20 hours of work per credit hour.  They had a tax averaging over 5 years which gave youth a strong preference in that when they started to work they had 4 zero earnings previous years.

There was tons of support to help youth get a start and now it is like, take a sledge hammer and slaughter them.  I saw these things disappearing ahead of me, or got some benefit from them, like I was old enough to manage to get $2k of deductions from the home ownership savings plan, but only because I was with it enough at age 18 to start making contributions.  But, I'd have to say the cuts have consistently disproportionately attacked youth and the excesses and increases have been in favour of age.  Allowing seniors to start collecting at age 60 is just one example that would probably pay for everything they took away from youth. 

That 23% we pay to seniors that has never been paid for by seniors is huge and ought to be under identical requirements as a welfare program. 

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#5) On March 11, 2008 at 10:38 AM, Jro81 (< 20) wrote:


I have seen the holdings of the CPP, it is just a glorified index fund ... It is not like the OTPP where they behave like a "sovergn" fund .... They own huge stakes in Nexen & BCE ... You can get the holdings on the web for both .... I real don't have any issues with them investing our money ....

Secondly, the idea of giving the CPP money to the people will never fly in Canada .... We are a semi-socialist republic ... Unlike, the US which claims to be a capitalistic country .... When infact they they are more socialist then we are .... They just hide behind the helicopters of cash flying overhead.


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#6) On March 11, 2008 at 11:01 AM, AnomaLee (28.87) wrote:

I was going to vent about the let downs in American policies, but I'm having a happy morning trading.

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