BILLS UE BUSINESS

 

Optimistic Clubman

Mr. Trudeau does not really subscribe, it seems. to the
conclusion of the Club of Rome's study, The Limits to

Growth, that all economic growth must gear down to

aera) Tr ieee ae zero in a very few years. If he did, it would make for
irae aa ae HG } Be > some interesting economic policies — and interesting
vanes politics — in Canada. The PM is more optimistic. He

Ja; thinks the problems of pollution, population and limited

; {4 resources can be met by eliminating waste and allowing

“organic growth’: to continue.

The Salzburg meeting Mr. Trudeau attended last
week seems to have been somewhat detached from the
real, short-term problems to which the two presidents,
four prime ministers and assorted lesser lights have now
returned in their own countries. We are not likely to hear
much about “‘the spirit of Salzburg” in the future.

The Salzburg meeting was notable for its poor
arrangements. The Club, it seems, is better at warning
other people to prepare to meet their doom than at
preparing its own conference.

Floating island

fee : As successive, Nova Scotian governments have
_ ia found out, the price of keeping Cape Breton Island afloat
ders : is high. The notorious heavy water plant at Glace Bay
probably will absorb some $200 million before it is
through: Now it looks as if the cost of the Sydney Steel
Corp. will be even higher — perhaps $500 million to make

“Rubens is the only one ‘of these bums who ever the old Dosco plant a going concern.
met a payroll.” Consultants confirm that the plant could be profitable.
But it is alarming that the province feels pressed to go
ahead because. it has already guaranteed $70 tillion in
Sysco. debt. That sounds horribly like one of the reasons:
why, Nova Scotia kept pouring money into the heavy
water plant: too much had already been spent to write it

  

ANA

 

 

 

 

off. ‘
INFLATION
o So far in 1974 food prices ‘are TRENDS

moving up at an annual rate of 13%,
consumer prices at 10%, housing and

o Some bank hed
txmiepobration at Us: ome banks pushed aggressively in 1973

to encourage us to spend. The Royal
Bank, for example, offered $25 cash to
anyone taking out a loan to buy a car.
Now the Bank of Canada has put its foot
down so thes money marketing campaigns
will cease.

o Many people are buying gold and silver
as an inflation hedge, driving prices
for these metals up at rates much
faster than other commodities.

If you are interested, you can buy
-999 fine one-ounce gold bars at

$150 or 25-ounce silver bars at $148.
Silver is riskier; since much of the
metal demand depends on consumer pro-
duction levels, a recession could drop
prices substantially.

o The Canadian dollar keeps rising. Its
presently worth U.S. 1.023. May be a
good time to buy U.S. funds,

 

o One of out of every two chief executive
officers of the 500 leading U.S. corpor-
ations will be replaced before mid-1974
(when first-half financial results are
published). 40% of these will. be normal
retirements and job-switching. The. rest
will be due to corporate problems and
the putting an end to corporate power
structures closely allied to the Nixon
administration. Nixon himself will
probably go out, of business.

yy in ; tp mete. spe z :
Beeen 3 66 oe 2G
22. ARCHIVES MAW

o Inflation could mean that your house
and contents are under-insured. Av-
erage home-owner values have risen
about $10,000 in the past five years.
Take care of this now before insurance
rates rise.

wes a

 

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