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.

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