Canada Debates Its Economic Future 🇨🇦

^{“There isn’t really a Canadian economy anymore. It is a global economy.”}

— Stephen Harper

👋 Friends, Rallie here. The newsletter bringing you the latest on crypto, finance, and tech news.

On the menu:

• 🇨🇦 Canada Debates Its Economic Future

• 🗞️ Headlines That Hit

• 📈 Refresh: Securities

• 🤓 Trivia Thursday

• 💯 Top Tweets

The Rallie Recap

⛔ Far from bipartisan. Canada’s Conservatives look to block the Liberals’ budget implementation bill (C-47) with outrage over what the opposition has called a “inflationary train wreck” of a bill. How does C-47 affect you? Here’s what you need to know: 

• Canada’s federal budget has three highlights, make life affordable; stronger public health and dental care; and growing a green economy. Key points include:

1. Targeted inflation relief for 11 million low- and modest-income Canadians

2. The launch of the Tax-Free First Home Savings Account

3. $198.3 billion to reduce backlogs, expand access to family health services and ensure provinces and territories can provide the quality and timely healthcare

4. Implementing the 988 Suicide Prevention Line

5. Increasing Canada Student Grants and raising the interest-free Canada Student Loan Limit

6. Investing in low-cost clean electricity

7. $13 billion plan to expand dental care to families earning less than 90K a year

• “Canada must either meet this historic moment, this remarkable opportunity before us, or we will be left behind as the world’s democracies build the clean economy of the 21st century,” said Deputy Prime Minister and Finance Minister Chrystia Freeland. 

• 900 amendments to the bill by Conservatives. The head of the opposition filibustered for hours last night to delay the budget implementation bill, representing mixed feedback from Canadians.

• Will it matter? The bill is expected to be voted on today with expectations that it will pass with NDP support before it is sent to the Senate.

• But Canadians who may need these critical supports from the budget bill will suffer without this implementation; the Bank of Canada announced the highest interest rate (4.75%) in 22 years.

• Poilievre’s conditions. The Conservative Leader has two issues with the bill, the budget does not reduce inflation and interest rates because of the unequal distribution in priorities, and the future increases to the carbon price.

• The fiscal plan projects a deficit of $40.1 billion in 2023-2024, a $10 billion increase than originally predicted, Freeland reasons it is because of a worsening economy and new spending on initiatives.

• With the widespread impact of 2023’s budget, the implementation of the plan and Canadians’ responses are critical. Will 2023 be the year of positive change?

Headlines That Hit

• 👽 171 unexplained sightings. The first international UFO briefing rekindling controversial debate about the US’s alleged possession of extraterrestrial materials.

• 🏛 $74.6 billion deficit. US’s concerning trade gap at its highest level in six months while its exports experience its largest drop in three years.

• ₿ Good for business. Ark Invest’s CEO says Binance’s legal issues reduces Coinbase’s competition and remains confident in her $1 million target for Bitcoin.

• 🙄 An undesirable anomaly. Coinbase CEO implies the SEC Chair does not give “an opportunity for a real conversation” about crypto regulation in comparison to his peers.

• 😮 Revenge?! Binance’s lawyers claim the head of SEC offered to be an advisor at the company, the same guy who is cracking down on the crypto industry… 😶

• 👋 AI’s job market. Open AI’s CEO expects job loss and innovative career paths as a result of the rising tech revolution.

Rallie Refresh: Securities

🔎 The term, “security” is a common phrase in finance, but what does it mean? From understanding complex lawsuits against crypto to serving your financial goals, we are here to help! 💡

😎 What are securities?

• Securities are financial instruments, with some monetary value, used to raise capital in public and private markets in primarily three tradable variations. 

• The main variations are debt (loans repaid with periodic payments), equity (provides ownership rights to holders) and hybrids (a combination between debt and equity).

🕵🏻 The “ultimate” test!

The Howey Test establishes the baseline for investments to be regulated as a security even without evidence of a stock or bond.

1. There is an investment of money.

2. The investment is made into a “common enterprise” aka a business venture involving at least two parties’ efforts and resources to achieve a common goal.

3. The investors expect profit from their investment.

4. Any expected profits or returns are the result of a third party or promoter’s actions.

P.S. Any type of investment offering can be a security even if it was not formalized with a legal contract or stock certificates.

✋ But wait! There are regulations…

• While the regulatory enforcers vary from country to country, it is critical for any industry players like exchanges to list any qualifying investments as securities.

• It gets thorough. 🥃 Even whisky, beavers and chinchillas have been assets enforced by the courts.

• However, crypto is having a rough time… Crypto exchanges have been hit with lawsuit after lawsuit because they do not register their assets as securities, but they argue blockchain crypto does not fit the definition of what securities are.

• As a result, crypto is currently in the process of creating legal precedents across the world. Because of the legal battles with these exchanges, find out if you could be affected by these lawsuits.

✅ We hope you feel secure in what you have learned today! Reach out for any questions and suggestions for the next refresh.

Fun Fact

📈 The answer for Tuesday’s newsletter (what is the highest market cap today?) is $2.8 trillion! Tune in next time for today’s fun fact answer.

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That's all for today. Stay hungry & we'll catch you next time. ✌️

DISCLAIMER: This is not financial or legal advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions.