Baby, it's cold outside.

Economic outlook? (Taken from here)

I'm sitting here, tea in hand, laughing to myself at the grumbles from lotus land at the snow that surrounds us. (While also reliving my childhood habits of snowballs, sliding on icy sidewalks, and thanking my grandmother for those gloves she knit.) It seems the weather is taking its cue from the financial news (an ice storm in the eastern US and a chill across the entire country).

The original economic chill in Ottawa is moving towards the budget that we all hope will thaw our problems. With Ignatieff as (a popular) leader of the Liberals, we are (thankfully) seeing some amount of compromise on the horizon. While he is not forgoing the coalition, he is not operating inside it either. Instead he seems to be using it as a club, keeping the PM in his place as it were. Harper has maintained attacks on the very idea of a coalition, (which certainly has its flaws, as it did when he tried it,) it has already changed the tune being played.

Basically this means there will probably be stimulus in the budget. The Liberals were demanding it, others were suggesting it, and the provinces (who are meeting with the government Wednesday) also seem to be fairly on board with money being spent. This will also push the needs of other industries which are hurting all over the country. Forestry, which has been hurting for a while, is one of the big ones. While NAFTA limits options (as money would be a subsidy), drastic measures are already being taken in some of the more desperate areas. One tough sell will be any Conservative hopes to change equalization. (After all, what is the point of the system now that Alberta pays in and Ontario (finally) gets payed?) Quebec for one is already against it (French story).

Considering that demands are mostly for credit, tax breaks, and extensions/accelerations for existing programs, I'm really hoping that reason prevails and we see some serious spending wisely allocated. Were this country a business, a temporary deficit to see a long term profit wouldn't even be a question. I would personally like to see some money for agriculture, and some commitment to long term investment in things that generate wealth, like science. I'll admit to being biased on both accounts, but both have been neglected under the current administration. Besides, novel ideas have a habit of generating revenues.

In the end though, it is really the health of our primary trading partner that matters. I have high hopes for the stimulus planned by the president in waiting, and recent drastic action may actually stick this time. Sadly, unlike the ice storm, this is not something we can go into the US and fix ourselves.

My advice: grab a nice cup of your favorite hot beverage, and bundle up against the cold. Sooner or later, we will see the sun. (Or at least the one in the sky.)