Tag Archive for DRIC

Gordie Howe Bridge On A Slow Roll to Oblivion

Canadian Economic Collapse and Extravagant Liberal Party Campaign Promises Doom Governor Snyder's Bridge

The estimated cost of constructing the NITC DRIC Gordie Howe Bridge between Detroit and Windsor has now more than tripled since the Canada agreed to fund the entire cost back in June 2012. Its total cost, including interest payments, is now over four times the 2012 estimate. The recent, sharp collapse in the value of the Loonie – the Canadian currency – is being blamed. But it appears that deliberate lying cost underestimation in 2012 and project creep over the last 30 months play a much bigger role in the eyepopping new cost estimates.USDCAD

Financial markets trade the U.S. Dollar and the Canadian Dollar back and forth as ‘USDCAD‘, which is the equal value ratio of Loonies per greenback. The higher USDCAD is, the weaker the Loonie. USDCAD is now quoted around 1.40 (1.4 Loonies per greenback). The Loonie was 37% stronger back in June 2012 when Governor Snyder and then Canadian Prime Minister Harper worked out their agreement; USDCAD was then about 1.02.

Direct construction costs are now estimated to be C$ 2 billion ($ 1.43 billion USD) higher than the C$ 973 million ($ 950 million USD) estimate touted back in 2012. A 37% increase due to currency adjustments would be only $ 360 million (USD), so we know the 2012 deliberate lie underestimation was in the vicinity of $ 1.64 billion (USD). Additionally, the collapse of the Loonie now requires the establishment of a C$ 1.5 billion ($ 1.07 billion USD) reserve to offset the expected rise in Canadian dollar denominated bond interest rates. The Canadian government bond yield curve has doubled at its short end since the middle of September 2015 in response to the collapse of the Loonie. The Gordie Howe Bridge will be financed at those higher Canadian bond interest rates. The total Canadian government cost estimate is now C$ 4.8 billion ($ 3.43 billion USD).Snyder Harper Image

Harper’s Conservative government was defeated in October of last year after NDP voters abandoned their own party for the elysian promises of Justin Trudeau and his Liberal Party. Virtually the same promises our Dear Leader made in 2008 – ‘Hope and Change’ recycled for a northern audience. Harsh reality is already wrecking the promises Trudeau made to win the October election, so will the Canadian government continue to throw money at an unneeded bridge?

You Betcha! (14)Nuh Uh.(3)

Extortion And …

potholeseasonSo what does a government do when it lacks popular support for raising taxes?

It provides more basis for support by allowing all the bad things those taxes would supposedly end, to happen. From the Detroit News:

Deteriorating road conditions have “gotten a lot more attention in Lansing” than other issues in recent weeks as this year’s harsh winter winds down and pavement cracks and holes begin forming, said Kirk Steudle, director of the Michigan Department of Transportation.

“I think, finally, they’re realizing what we told them is going to happen is actually going to happen,” Steudle said Wednesday at a conference of county road commission leaders.

The great big “I told you so” is coming out in an effort to raise taxes and license fees, rather than keep existing road generated monies in the roads.  You were warned, and the holes in the roads will serve their intended purpose of proving you need to pay more.
And funny that we haven’t heard or seen Steudle comment on the $41 Million already spent on this, (when it was not supposed to cost us a dime) nor on the efficacy of pumping another $250 million into a bridge project that is merely punishment to a Michigan business, and a giveaway to a foreign nation.
You Betcha! (0)Nuh Uh.(0)

Feds: “Maybe If You Were A Democrat”

Not stated directly, but it would probably help him out.

Implied by Tim Skubick, and more directly stated by a commenter; “Snyder is a Republican, so he will not get the $250 million for the customs plaza necessary to complete his end-around bridge play.”  Tim says:

Can’t you see it now? The governor shows up with shovel in hand, let’s say in October, one month before the election, for the launch of the bridge project. He could boast – although he says he does not take credit – that 20,000 jobs are being created with a whole host of them aimed at union workers in vote-rich southeast Michigan.

The Democrats want this state back.  And even though Michigan’s Governor Rick Snyder has ‘progressed’ their goals in many ways, he still wears the R flag, and is by association to it; the enemy.

A solution of course, would be for Mr Snyder to own up to his meandering left of center on so many issues, and simply switch.

You Betcha! (1)Nuh Uh.(0)