The Big Lie: If you repeat it frequently enough people will sooner or later believe it. Source: Wikipedia
Dan Miles is the Director of Communications in the office of the Federal Minister of Finance, Jim Flaherty. So it's no surprise that Dan Miles would attempt to spin a tale to make Jim Flaherty look good. Today's Regina Leader-Post quotes Mr. Miles:
"When he [Garth Turner] says the markets lost $25 billion in value following the income trust announcement on Oct. 31, 2006, he fails to mention the market subsequently recovered much of that value."
The problem is the market-based facts don't match the Department of Finance fantasy. Since Jim Flaherty announced a surprise 31.5% tax on October 31/06, Income Trusts continue to lag the broader market. Where is the 'value recovery' Dan Miles is talking about?
The following two charts tell essentially the same story:
- The TSX index is up 12.1% since October 31/06.
- The TSX Income Trust Index is down 10.5%, lagging the TSX by 22.6%.
- REITS have fared somewhat better, only lagging the TSX by 13.0%. Notice that after the March Federal budget, REITS began their Flaherty-induced descent as well.
- The most damage is in the TSX Energy Trust sector,down 16.3% and lagging the TSX by 28.4% since October 31st last year. This at a time when oil prices are nearing $80 US a barrel.
At best Dan Miles doesn't understand the issue or hopes nobody will verify his story. At worst he is a yet another practitioner of 'Big Lie' tactics.
You know the 'Big Lie' strategy I'm talking about, perpetuated by a failed politician from another era:
- Never allow the public to cool off;
- Never admit a fault or wrong;
- Never concede that there may be some good in your enemy;
- Never leave room for alternatives;
- Never accept blame;
- Concentrate on one enemy at a time and blame him for everything that goes wrong;
- People will believe a big lie sooner than a little one; and
- If you repeat it frequently enough people will sooner or later believe it. Source: Wikipedia
PerfChart ($TSX,$RTRE,$RTEN,$RTCM) Interactive Performance Comparison Chart
Critic's flipflop on trusts - Leader Post