Thursday, November 4, 2010

A few words on Potash...

There's a sense of economic nationalism in this country, that our natural resources or commodities or corporations should be owned by Canadians instead of foreigners.

It's absolute nonsense.

If foreign companies can offer better management than local Canadian companies then there is no reason why Potash (or a company like it) should be owned by a Canadian or a foreign corporation. Whoever does the better job. Let the market have the final word.

Remember that foreign companies have to use our currency to conduct business here. As long as our currency is strong there shouldn't be a problem... perhaps the issue should be the firing of Mark Carney from the Bank of Canada rather than blocking BHP Billiton's bid for control of Potash Corp.

From the Globe & Mail
Peter Brown, chairman of Toronto-based Canaccord Financial Inc. and one of Canada’s most experienced mining bankers, said Ottawa’s decision to block the deal is “very harmful.”

“Peoples’ political ambitions are interfering with fundamental economic principles that are quite important to Canada,” he said.

To quote the big Lebowski "Truer words were never spoken"

Contrast that to Frank Aquila, an American lawyer with a very wrong opinion:

“Everybody recognizes that governments have the right to step in when they see their national interests being threatened,”

Everybody? I can think of a whole bunch of people that don't recognize government 'rights'.

But I'm getting off topic. Point is -- Harper and his government have abandoned their free market principles in regard to Potash... but considering that this government has abandoned every free market principle since they got into office four years ago, I can't say that I'm surprised.

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