- The longest serving the most successful Conservative finance minister in Canadian federal history, Jim Flaherty, has resigned his post effective immediately and leaves the country's finances in a state that makes it the envy of the G7 countries and the rest of the world.
- Even NDP leader Tom Mulcair managed to both show some class and to bow before reality and say a few nice things about Jim Flaherty to mark his departure.
- The most important of the long list of prominent political and financial leaders praises of Flaherty came from his former Bank of Canada colleague and current governor of the Bank of England Mark Carney.
- Oh yes, it wasn't all a chorus of commendations and praise. Empress Sewage the deranged left wing lunatic host of Sewage.com made her usual unbiased and in depth analysis which included "don't let the door hit you on your ass on the way out" and blaming Flaherty because she is a minimum wage part time retail salesclerk and some of her shifts were cancelled this week!
- Hey, Empress Sewage was so crazy on this one that she has inspired me to say nothing but merely to let the experts speak for themselves about the redoubtable and impressive Jim Flaherty's stellar career in politics and particularly as finance minister of Ontario and then Canada:
Here are some of the quotes of people who know and who matter concerning Jim Flaherty and his departure as found on the CTV news service last night. True, these views actually are based on knowledge instead of Empress Sewage's bile and bullshit so you might find them a bit unsettling but they are actually fully defensible. Shit, even Sewage's ideological soul mate praises Flaherty!
- "Harper issued a statement of his own Tuesday, saying he accepted Flaherty’s resignation “with great reluctance.”"In a political career of almost 20 years, Minister Flaherty has exemplified the best qualities of those who enter public life: a true commitment to service, and a sincere desire to leave the country in better shape than it was when he entered politics,” Harper said.The prime minister praised Flaherty, saying he has “been a steady hand, ably guiding Canada through the most challenging economic times since the Great Depression and gaining the country a solid global reputation for economic management.”Harper thanked Flaherty for his “long and dedicated service to his constituents and to Canada.”
- Flaherty had previously said he would run again in 2015, but had also said he only wanted to usher the federal books back to balance before deciding on his future.In his latest and, as it turns out, last budget, unveiled last month, Flaherty projected not only balance but a surplus in 2015.“Canada’s fiscal position is the envy of the developed world,” Flaherty said in his statement. “All Canadians can be proud of the country’s performance.”Flaherty denied that his health factored into his decision. He has been coping with a painful skin condition that required him to take powerful medications that left him appearing bloated, and looking and sounding at times extremely fatigued.Flaherty said that he is “on the road to a full recovery.”
- NDP Leader Tom Mulcair paid tribute to Flaherty in a brief statement issued Tuesday evening.“In the past year, Mr. Flaherty continued to serve in one of Canada’s most difficult jobs despite facing health challenges. He did so with the same strength of character and sense of humour that has characterized his tenure as the finance minister of Canada. I am happy that in his statement today, Mr. Flaherty has announced that he is on the road to a full recovery,” Mulcair said.“Despite our disagreements about the best way to manage Canada’s economy, I have always respected Mr. Flaherty’s commitment to serving our country.”
- Former Ontario premier Mike Harris called Flaherty’s resignation “a huge loss for the government and a huge loss for Canada.”Harris praised Flaherty and Harper for “steering Canada through some very challenging times,” and said Flaherty “has been pretty compassionate, as well,” through his initiatives for families and for people with disabilities.“He’s a caring, decent, good guy, and he should be remembered that way,” Harris told CTV News Channel.
- Foreign Affairs Minister John Baird, considered a possible candidate to replace Flaherty, tweeted his “congratulations” to Flaherty “for his years of public service. A great friend, and an exceptional public servant.”
- In a statement, former Bank of Canada governor Mark Carney said Flaherty “exhibited the very best of Canadian virtues” in service to the country and said he had the “privilege” of working with him during some of “the most turbulent times in Canada’s and the world’s economic history.”Carney said one of the high points in Flaherty’s career as finance minister was hosting the G7 meeting in Iqaluit during the global recession.“Canada stood literally and figuratively at the top of the world given its economic and financial performance. That year Canada re-established the G7 and helped put in place the conditions for recovery. Much of that was down to Jim Flaherty, my colleague and friend," said Carney, who is currently governor of the Bank of England.
Read more: http://www.ctvnews.ca/politics/finance-minister-jim-flaherty-resigns-joe-oliver-to-take-over-post-1.1734996#ixzz2wQ9cx96p
AND THE REACTION FROM LEADING ECONOMISTS:
SEBASTIEN LAVOIE, ECONOMIST AT LAURENTIAN BANK OF CANADA BLC SECURITIES:
“He has left the fiscal balance on a very good trend and I think he did an obviously tremendous job to reinforce Canada AAA rating, and to reinforce the credibility of the fiscal objectives that were set post-recession.”
“We cannot forget his contribution prior to the crisis, where he … certainly contributed to economic growth over all these years.”
“Now, it’s the end of a long, I would say good fiscal era under Flaherty. He’s certainly one of the finance ministers – I’m also think about Paul Martin – that really had a major impact on public finance.”
“It remains to be seen what will be the transition, but I think the transition will be quite smooth, in the sense that the budget was just released about a month ago and the plan is well on track.”
“So regardless of who will take the lead, I think it will be easily manageable given the contribution of Flaherty and the way he leaves things.”
“The first name that came into mind (to succeed) was Tony Clement.”
MARK CHANDLER, HEAD OF CANADIAN FIXED INCOME AND CURRENCY STRATEGY, ROYAL BANK OF CANADA:
“We know nothing that would suggest that there’s any schism between himself and anybody else in the party on policy, so I would say that this is not policy related. There’s nothing in the statement that would suggest so.”
“What’s left open still is, if the Conservatives are to secure another victory once they balance the budget, the question that remains open is how is it going to be spent? So whoever’s coming in will be, definitely, a big part of that discussion.”
DOUG PORTER, CHIEF ECONOMIST, BMO CAPITAL MARKETS:
“It’s not a complete shock, the only question was over the timing. I think the conventional wisdom was he’d hang in there for another budget to show he had balanced the books, but obviously he didn’t, he decided now was the time.”
“I would say continuity (is what the market wants). Whoever steps into the role, they don’t have to be a carbon copy of Mr. Flaherty, nobody could be, but in terms of the broad policy thrust I think it was appropriate from a policy perspective, and most people would like to see that continue.”
“He was at the tiller during what was arguably the most tumultuous period for the Canadian economy in the last 50 years, and helped guide the country through in relatively good shape.”
“There might be a little ripple (in the markets), notably in the Canadian dollar, which already took a big step back because of other remarks by another Ottawa policymaker. I don’t think there is a major implication.”
“I think this gives the next finance minister enough time, the next federal election is a little bit more than 18 months away. That’s a long time in politics. It would give the next finance minister a budget and the fall update as well, so I think they will have time to properly plant their feet.”
AVERY SHENFELD, CHIEF ECONOMIST, CIBC WORLD MARKETS
“It’s an opportunity for him to make a graceful exit, he’s apparently got some opportunities in private sector. I don’t see this as indicating any significant change in Canadian fiscal policy.”
“The only issue is that there was obviously some division within cabinet over whether income splitting would be the best tax cut to offer pre-election, and he was on the side of looking at other options. So we’ll see if that tilts the balance one way or the other.”
“I don’t think there will be any market reaction.”
