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IMF says Canada will likely outperform this year, sees slower growth in 2011
Thu Jul 8, 9:57 AM
Joe Mcdonald, The Associated Press
Email StoryIM StoryPrintable View.By Joe Mcdonald, The Associated Press
BEIJING, China - Canada's economy is on track to grow more quickly this year than previously expected, putting it ahead of the United States and most other advanced economies, according to new estimates from International Monetary Fund.
The IMF said Thursday it's raising the 2010 growth forecast for Canada to 3.6 per cent from its previous estimate of 3.1 per cent, issued in April.
The IMF's July report also raised its U.S. growth estimate to 3.3 per cent, up from 3.1 per cent and its world estimate to 4.6 per cent from 4.2 per cent.
Asian countries with rapidly maturing economies will grow more quickly than the United States, Japan and European countries that have historically been more advanced.
China's growth for this year, for instance, is now projected at 10.5 per cent, up five percentage points, while the IMF expects India's economy will advance 9.4 per cent this year (up six percentage points from the April projection.)
Next year isn't looking so rosey for Canada, however.
The IMF has lowered its projection for 2011 growth by four percentage points to 2.8 per cent. Also notable was a reduction in the IMF's 2011 projection for China, which has been reduced by three percentage points from April's.
In contrast, the U.S. growth projection for next year was raised by three percentage points to 2.9 per cent, slightly ahead of Canada, while the world outlook for 2011 was raised by eight percentage points to 4.3 per cent.
The IMF, a Washington-based multnational organization affiliated with the United Nations and the World Bank, said Europe's debt crisis might stall the global rebound and governments need to shore up shaky public confidence.
Its quarterly World Economic Outlook warned that "risks have risen sharply" and Europe has to quickly resolve debt problems and restore confidence in its banks.
Europe's problems "could spill over to other regions and stall the global recovery," said Jose Vinals, director of the fund's monetary and capital markets department, at a news conference in Hong Kong.
"Further credible and decisive policy action is needed to resume progress on financial stability and keep the economic recovery on track," Vinals said.
Risks so far are limited to financial markets and activity in other fields stabilized at a high level in May, the IMF said. It said industrial output and trade grew by double digits and there was a modest but steady recovery in developed economies and strong growth in emerging nations.
"The numbers for economic activity have come in strong — in fact, stronger than we have forecast," said Olivier Blanchard, director of the IMF's research department.
The fund raised this year's U.S. growth forecast from 2.7 per cent to 3.3 per cent. The outlook for Germany and other European nations that use the euro common currency was unchanged at 1 per cent.
A global "double dip," or relapse into recession, is "very unlikely," Blanchard said.
Asian economies recovered strongly this year, driven by buoyant exports and stronger domestic demand, the IMF said.
The fund raised its 2010 growth forecast for Japan to 2.4 per cent from 1.9 per cent and for India to 9.4 per cent from 8.8 per cent. The estimate of the Asia region's growth rose to 7.5 per cent from seven per cent.
However, it warned that weakness in Europe "would affect Asia through both trade and financial channels."
Weak data from major economies in recent weeks have diminished confidence in a strong rebound from last year's recession.
The fund's forecast for 2011 growth was unchanged at 4.3 per cent, a decline from this year's rate.
In a move that might fuel concern the recovery is fading, the fund lowered its 2011 growth forecast for Japan from two per cent to 1.8 per cent and for Britain to 2.1 per centfrom 2.5 per cent.
In Europe, the IMF said governments must resolve uncertainty about banks' exposure to sovereign debt and other risks and make sure lenders have enough capital and markets have adequate liquidity.
It said many advanced economies urgently need to push ahead financial reforms including recapitalizing banks, restructuring and consolidating banking industries and overhauling regulation.
"In the absence of complete banking sector recapitalization and restructuring, the flow of credit to the economy will continue to be impaired," the IMF said.
30 Kasım 2012 Cuma
BMO's 5 year 2.99% Mortgage Offering
To contact us Click HERE
On first glance this looks like a great deal. 2.99% for a 5 year mortgage- the lowest 5 year rate ever.
However a closer analysis offers some of the points to be aware of.
Consider:
This is a two-week promo (at the moment) valid until JANUARY 25TH.
There are conditions to their offer. The main terms of BMO's special are as follows:
Maximum Amortization: 25 years
Rate Hold: Up to 90 days
Pre-Approvals: Allowed
Lump-sum Pre-payments: 10% maximum per year (1/2 of the 20% that BMO normally allows)
Optional Payment increase: 10% maximum per year (again, 1/2 of the 20% that BMO normally allows)
Term: Fully closed unless you sell the property, refinance (with BMO only), or early renew into another BMO mortgage.
BMO Mortgage Cash Account: Not available with the Low-Rate
BMO Skip-a-Payment: Not available with the Low-Rate
BMO ReadiLine: Not available with the Low-Rate
Other Details: Not applicable to non-owner occupied rental properties
Most importantly, the client is tied to BMO for the entire 5 year term of their mortgage, even if they want to break it and pay a penalty, they are forced to stay with BMO at whatever rate BMO offers. Client loses negotiating power.
This rate and mortgage is great if you plan to live in the house for many years and will not need to refinace during the term.
However a closer analysis offers some of the points to be aware of.
Consider:
This is a two-week promo (at the moment) valid until JANUARY 25TH.
There are conditions to their offer. The main terms of BMO's special are as follows:
Maximum Amortization: 25 years
Rate Hold: Up to 90 days
Pre-Approvals: Allowed
Lump-sum Pre-payments: 10% maximum per year (1/2 of the 20% that BMO normally allows)
Optional Payment increase: 10% maximum per year (again, 1/2 of the 20% that BMO normally allows)
Term: Fully closed unless you sell the property, refinance (with BMO only), or early renew into another BMO mortgage.
BMO Mortgage Cash Account: Not available with the Low-Rate
BMO Skip-a-Payment: Not available with the Low-Rate
BMO ReadiLine: Not available with the Low-Rate
Other Details: Not applicable to non-owner occupied rental properties
Most importantly, the client is tied to BMO for the entire 5 year term of their mortgage, even if they want to break it and pay a penalty, they are forced to stay with BMO at whatever rate BMO offers. Client loses negotiating power.
This rate and mortgage is great if you plan to live in the house for many years and will not need to refinace during the term.
CAAMP'S VIEW ON TODAY's MORTGAGE ISSUES
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BASED ON OUR RESEARCH AND KNOWLEDGE OF THE SECTOR, WE SEE NO REASON TO TIGHTEN OR RESTRICT ACCESS TO RESIDENTIAL MORTGAGES AT THIS TIME1. CURRENT ENVIRONMENT Canada has a well-earned reputation for exercising economic prudence. As a result, we have managed to avoid a mortgage or housing market meltdown. Our banks are stable and our economy, while impacted by the general global economic slowdown, remains healthier than most. CAAMP’s extensive industry research indicates that the Canadian mortgage industry is healthy. We must continue to “stress test” our own financial sector to determine how it would withstand potential weakening of the economy. The more educated we are about the debt we incur (mortgages, credit cards, lines of credit), the better off we will be2. FEDERAL GOVERNMENT ACTIONS TAKEN The federal government responded promptly when it was determined changes were needed in the mortgage market. There have been three significant sets of changes in the past 36 months: - Amortization periods shortened to 30 years from 35 and 40 years - Minimum down payment increased to 5 per cent of purchase price. No 100% LTV mortgages - Homeowners refinancing their mortgage may borrow up to 85 per cent of the equity in their home; down from 90% and 95% - These changes have impacted the mortgage market; re-financings have decreased dramatically and mortgage credit growth has slowed Based on our extensive research and knowledge of the sector, we see no reason to further tighten or restrict access to mortgages at this time3. REASONS FOR CURRENT CONCERN1) Housing Market Prolonged low interest rates are making it more attractive to purchase a home Research shows that the vast majority of homeowners can accommodate rate increases (84 per cent surveyed in CAAMP’s fall 2011 research said they could handle a $200/month increase) CAAMP’s fall 2011 survey indicates mortgage borrowers are prudent, increasing their lump sum payments and paying down their mortgage faster than required Supply and demand drive housing prices – provinces and municipalities should be more aware of their land-use policies and how they impact housing supply2) Media Focus on Insurance Ceiling - Changes in Some Banks’ Lending Practices It is a fact that CMHC is approaching its $600 billion government-imposed limit on mortgage default insurance. Private insurers have a $300 billion limit. This has nothing to do with mortgage insurers being responsible for an increasing number of higher risk mortgages Lenders are buying portfolio insurance against defaults on low risk mortgages - cases where homeowners have more than 20 per cent equity in their homes. These are not high risk mortgages. CMHC is approaching its limit because the number of mortgage holders has grown, the population and housing units have increased and lenders have been insuring low risk mortgages, leveraging the government’s triple A credit rating for other bank business Residential mortgage credit in Canada continues to expand. During the past five years, outstanding residential mortgage credit has expanded by 53%, or an average rate of 8.9% per year. The growth rate is slowing The volume of outstanding residential mortgage credit passed the $1 trillion threshold in July 2010, and as of August 2011, it reached $1.079 trillion Increased homeownership results in an increase in mortgage default insurance However, mortgage defaults are rare. CMHC reported it paid out $454 million in the first nine months of 2011 which represents a 0.42 per cent default rate Overall mortgage arrears rates in Canada are declining and never approached the level of the early 1990s. The housing market in Canada is growing organically and safely There is no parallel in Canada to the subprime default problems that plagued the US market3. FURTHER RESTRICTIONS ON ACCESS TO MORTGAGESWho will be affected? Self-employed borrowers who represent a growing portion of our labour force (currently 2.67 million people, or 15% of employment in Canada) New Canadians who can afford a down payment but have yet to build credit and employment history First time homebuyers who want to enter the homeownership market and build equity These are not the people who fall in to a sub-prime loan category like we saw in the US; yet these changes will impact them The housing industry is an engine of growth in Canada. If we impede its growth, we will add to unemployment and depress the economy If fewer mortgage lenders are able to insure their loans simply because the insurance program has not kept pace with the growth in the mortgage market, then consumers will have less choice when it comes to negotiating a mortgage. Less choice, or less competition, will inevitably lead to higher borrowing costs for the Canadian consumer Likewise, if mortgage brokers are restricted in the mortgage products they can offer, consumer choice will be diminished and costs will increase This reduced access to capital will make it more difficult for people who can legitimately afford to buy a home4)What are the Risks of Further Restricting Access to Mortgages?CAAMP has one of the most comprehensive collections of research on the mortgage industry. It includes original data on borrowers and the characteristics of mortgage loans. This research has revealed repeatedly that borrowers and lenders in Canada have been prudent, and only a very small share of borrowers would have trouble affording future rises in mortgage rates.There are risks, but most are related to the broader economy through two channels:UnemploymentThe broader economic data suggests that the Canadian economy is slowing. If that results in job losses, the housing market would be negatively affected, and there would be impacts on mortgages held by people who lose jobs and then struggle to make payments.Declining Housing PricesHousing prices could decline in a weaker market. In a recession, there is the threat of a downward spiral: a weak economy harming the housing market which negatively affects the broader economy. We believe and trust that the federal government will act to mitigate such a negative scenario.These risks have nothing to do with mortgage products themselves.Risks to the Canadian mortgage market are dependent on the performance of the broader economy. In that light, the best means to control mortgage market risk is through strong economic management. In particular, care must be taken not to take any measures in the mortgage market that unnecessarily reduce housing activity that would be damaging to the economy.
VIEWS ON BANK of MONTREAL'S 5 YEAR RATE
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A good explainatory article by Robert McLister of Canadian Mortgage Trends explaining the pros and cons of Bank of Montreal's just announced 5 year 2.99% rate:BMO Cranks Up the Heat AgainBMO is dead-set on winning mind share among consumers.It's coming back to the market with two new deep-discount rate promos: A 5-year fixed at 2.99% (which starts Thursday, March 8, 2012) A 10-year fixed at 3.99% (which starts Sunday, March 11, 2012) Both of these specials are low-frills, meaning: A Lower Maximum Amortization: 25 years versus 30-40 years elsewhere Less Lump-sum Pre-payment Ability: 10% maximum per year (i.e., 1/2 of the 20% that BMO normally allows) A Smaller Payment Increase Option: Up to 10%, once per year (again, 1/2 of the 20% that BMO normally allows) A Locked Term: The Low-rate Mortgage is fully closed unless you sell the property, refinance (with BMO only), or early renew into another BMO mortgage. In other words, unless you sell, you're not leaving BMO for 5 years, like it or not. Both the 5-year and 10-year promos run for 3 weeks, until March 28, 2012.We've heard talk that TD and RBC will not match BMO's pricing on the 5-year term. We'll see. The last time BMO ran this special, its competitors quickly responded with 4-year rates of 2.99%. Despite the one less year, those competing offers came with all the normal bells and whistles.Unfortunately for competitors, a 2.99% five-year rate makes more headlines than a four-year promo at the same price, and BMO knows it. This deal has garnered almost a dozen major media stories already, and the press release only came out four hours ago.As for BMO's 10-year deal, it is 146 basis points below the nearest Big 6 bank competitors' advertised rates. It is BMO's lowest 10-year rate ever, and it matches ING's current 3.99% offer. (ING was the first bank in Canada to advertise 10-year rates below 4.00%.)With these rates, BMO is starting to make other big banks look increasingly silly. CIBC, National Bank, RBC, and TD are currently promoting 5-year "special offer" rates of 4.04%. That's 105 basis points above BMO (albeit with more flexibility). Those rates border on ridiculous, and they insult the intelligence of increasingly savvy consumers who know that well-qualified borrowers rarely pay anything close to those rates.Yes, we say that knowing that BMO's Low-rate mortgage is highly restrictive and not suitable for most.It is, however, suitable for some. The target market includes many: First-time buyers Rental property owners Owners of 2nd homes The customer should have no foreseeable need to break, increase or aggressively prepay his/her mortgage for five years.In posting more transparent rates than its peers, BMO is taking a page from brokers and smaller rivals. In doing so, it's building credibility with consumers at its competitors' expense.Frank Techar, BMO's Canadian banking head, tells Bloomberg: "The reaction to our January offer was fantastic." With a mortgage market that BMO CEO William Downe admits is "slowing," 2.99% is a big fat worm on a hook. It is bait that gets BMO's phones ringing.It also gives BMO's sales force a chance to upsell people into higher margin mortgages without all the restrictions of BMO's Low-rate product. (There's a lot of that going on, according to the BMO mortgage specialists we've talked to.)With this rate sale, BMO is certain to take flak for fuelling consumer borrowing at a time when high debt levels are worrying policymakers.To that end, Techar maintains that BMO is not fuelling the fire. He tells the Financial Post that these rates "are consistent with the debate around the need to reduce consumer debt levels."In an interview with Reuters, he said: "People are not going to stretch to get the largest mortgage they can with a 25-year amortization product. Because the monthly payments are higher, they...will go to a 30-year amortization product." (He's right.)Downe recently said this to analysts about BMO's Low-rate Mortgage:"We think that's a product that is good for Canadians; it's good for Canada; it's good for our customers, and we intend to continue to promote it in this environment.It's a product that we believe addresses all of the risks that are currently being debated, whether or not the consumer debt levels that are too high in Canada and a possible fallout from economic slowdown and rising interest rates. It helps our customers pay less interest. It mitigates their interest rate risk for five years. It helps them retire debt free by paying off their balance faster, and it works against market price appreciation. In fact, it helps with...house price appreciation, because the shorter amortization reduces the maximum purchase price people can afford."Being a 5-year fixed, this product does mitigate some risk. A 200 basis point rate increase by 2017 would only lift payments $133/month on the average Canadian mortgage of $151,000.As for rumours that policymakers are ticked off by BMO's pricing, the last time anyone looked, it's still a free market. BMO can price as it sees fit within regulations. As long as underwriting standards remain high, God bless it for bringing down rates industry-wide.Even if rates like 2.99% do spur more interest in mortgages, it doesn't mean lenders will approve high-risk borrowers. BMO's average loan-to-value (LTV) is just 60%. More notably, BMO's residential mortgage portfolio has a long-run loss rate of less than 2 basis points (i.e., exceptionally low).Barring a run-up in bond yields, we could now start seeing competitors (like mortgage brokers) respond with full-frills 5-year offers that are just a pittance above BMO's rate. Some might even match or beat it.We'd strongly encourage most folks to consider paying a bit more to avoid the low-rate mortgage restrictions—especially if the premium is small (0.05%-0.10%) and especially if you can benefit from the service and extras that come with a standard mortgage.Side Note: Here are a few more details about BMO's Low-rate Mortgage: Rate Hold: Up to 90 days Pre-Approvals?: Yes BMO Mortgage Cash Account: Not available with the Low-Rate mortgage BMO Skip-a-Payment: Not available with the Low-Rate mortgage BMO ReadiLine: Not available with the Low-Rate mortgage Rentals Allowed? Yes 2nd Homes Allowed? Yes
Children's art amount
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Happy spring. At the office we are busy meeting personal clients, completing corporate year ends and excited for yet another personal tax season. It's nice to see everyone this time of year and do a little catching up.
With the 2011 personal tax season here, there are some additional credits available in 2011. Probably the most common credit will be the children's art amount.
All the details can be found by following this link: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns360-390/370/menu-eng.html
For clarification or just to arrange a personal tax meeting please get in touch with us.
Have a great week
With the 2011 personal tax season here, there are some additional credits available in 2011. Probably the most common credit will be the children's art amount.
All the details can be found by following this link: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns360-390/370/menu-eng.html
For clarification or just to arrange a personal tax meeting please get in touch with us.
Have a great week
29 Kasım 2012 Perşembe
Thanksgiving Day November 22nd, 2012
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The Collect for Thanksgiving Day
O MOST merciful Father, who hast blessed the labours of the husbandman in the returns of the fruits of the earth; We give thee humble and hearty thanks for this thy bounty; beseeching thee to continue thy loving-kindness to us, that our land may still yield her increase, to thy glory and our comfort; through Jesus Christ our Lord. Amen.
- from the 1928 Book of Common Prayer
The Epistle
Do not be deceived, my beloved brethren. Every good endowment and every perfect gift is from above, coming down from the Father of lights with whom there is no variation or shadow due to change. Of his own will he brought us forth by the word of truth that we should be a kind of first fruits of his creatures. Know this, my beloved brethren. Let every man be quick to hear, slow to speak, slow to anger, for the anger of man does not work the righteousness of God. Therefore put away all filthiness and rank growth of wickedness and receive with meekness the implanted word, which is able to save your souls. But be doers of the word, and not hearers only, deceiving yourselves. For if any one is a hearer of the word and not a doer, he is like a man who observes his natural face in a mirror; for he observes himself and goes away and at once forgets what he was like. But he who looks into the perfect law, the law of liberty, and perseveres, being no hearer that forgets but a doer that acts, he shall be blessed in his doing. If any one thinks he is religious, and does not bridle his tongue but deceives his heart, this man's religion is vain. Religion that is pure and undefiled before God and the Father is this: to visit orphans and widows in their affliction, and to keep oneself unstained from the world.
- James 1. 16-27, RSV
The Gospel
"Therefore I tell you, do not be anxious about your life, what you shall eat or what you shall drink, nor about your body, what you shall put on. Is not life more than food, and the body more than clothing? Look at the birds of the air: they neither sow nor reap nor gather into barns, and yet your heavenly Father feeds them. Are you not of more value than they? And which of you by being anxious can add one cubit to his span of life? And why are you anxious about clothing? Consider the lilies of the field, how they grow; they neither toil nor spin; yet I tell you, even Solomon in all his glory was not arrayed like one of these. But if God so clothes the grass of the field, which today is alive and tomorrow is thrown into the oven, will he not much more clothe you, O men of little faith? Therefore do not be anxious, saying, 'What shall we eat?' or'What shall we drink?' or 'What shall we wear?' For the Gentiles seek all these things; and your heavenly Father knows that you need them all. But seek first his kingdom and his righteousness, and all these things shall be yours as well. "Therefore do not be anxious about tomorrow, for tomorrow will be anxious for itself. Let the day's own trouble be sufficient for the day.
- Matthew 6. 25-34, RSV
+++++++++++++++++++++++++
An additional reading
As therefore you received Christ Jesus the Lord, so live in him, rooted and built up in him and established in the faith, just as you were taught, abounding in thanksgiving. See to it that no one makes a prey of you by philosophy and empty deceit, according to human tradition, according to the elemental spirits of the universe, and not according to Christ. For in him the whole fulness of deity dwells bodily, and you have come to fulness of life in him, who is the head of all rule and authority. In him also you were circumcised with a circumcision made without hands, by putting off the body of flesh in the circumcision of Christ; and you were buried with him in baptism, in which you were also raised with him through faith in the working of God, who raised him from the dead.
- Colossians 2.6-12, RSV
The Collect for Thanksgiving DayO MOST merciful Father, who hast blessed the labours of the husbandman in the returns of the fruits of the earth; We give thee humble and hearty thanks for this thy bounty; beseeching thee to continue thy loving-kindness to us, that our land may still yield her increase, to thy glory and our comfort; through Jesus Christ our Lord. Amen.
- from the 1928 Book of Common Prayer
The Epistle
Do not be deceived, my beloved brethren. Every good endowment and every perfect gift is from above, coming down from the Father of lights with whom there is no variation or shadow due to change. Of his own will he brought us forth by the word of truth that we should be a kind of first fruits of his creatures. Know this, my beloved brethren. Let every man be quick to hear, slow to speak, slow to anger, for the anger of man does not work the righteousness of God. Therefore put away all filthiness and rank growth of wickedness and receive with meekness the implanted word, which is able to save your souls. But be doers of the word, and not hearers only, deceiving yourselves. For if any one is a hearer of the word and not a doer, he is like a man who observes his natural face in a mirror; for he observes himself and goes away and at once forgets what he was like. But he who looks into the perfect law, the law of liberty, and perseveres, being no hearer that forgets but a doer that acts, he shall be blessed in his doing. If any one thinks he is religious, and does not bridle his tongue but deceives his heart, this man's religion is vain. Religion that is pure and undefiled before God and the Father is this: to visit orphans and widows in their affliction, and to keep oneself unstained from the world.
- James 1. 16-27, RSV
The Gospel
"Therefore I tell you, do not be anxious about your life, what you shall eat or what you shall drink, nor about your body, what you shall put on. Is not life more than food, and the body more than clothing? Look at the birds of the air: they neither sow nor reap nor gather into barns, and yet your heavenly Father feeds them. Are you not of more value than they? And which of you by being anxious can add one cubit to his span of life? And why are you anxious about clothing? Consider the lilies of the field, how they grow; they neither toil nor spin; yet I tell you, even Solomon in all his glory was not arrayed like one of these. But if God so clothes the grass of the field, which today is alive and tomorrow is thrown into the oven, will he not much more clothe you, O men of little faith? Therefore do not be anxious, saying, 'What shall we eat?' or'What shall we drink?' or 'What shall we wear?' For the Gentiles seek all these things; and your heavenly Father knows that you need them all. But seek first his kingdom and his righteousness, and all these things shall be yours as well. "Therefore do not be anxious about tomorrow, for tomorrow will be anxious for itself. Let the day's own trouble be sufficient for the day.
- Matthew 6. 25-34, RSV
+++++++++++++++++++++++++
An additional reading
As therefore you received Christ Jesus the Lord, so live in him, rooted and built up in him and established in the faith, just as you were taught, abounding in thanksgiving. See to it that no one makes a prey of you by philosophy and empty deceit, according to human tradition, according to the elemental spirits of the universe, and not according to Christ. For in him the whole fulness of deity dwells bodily, and you have come to fulness of life in him, who is the head of all rule and authority. In him also you were circumcised with a circumcision made without hands, by putting off the body of flesh in the circumcision of Christ; and you were buried with him in baptism, in which you were also raised with him through faith in the working of God, who raised him from the dead.
- Colossians 2.6-12, RSV
What to be most thankful for on Thanksgiving Day
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A General Thanksgiving (offered for Thanksgiving Day). "ABOVE ALL FOR THINE INESTIMABLE LOVE IN THE REDEMPTION OF THE WORLD BY OUR LORD JESUS CHRIST..." I was feeling rather blue this morning, I was trying to feel thankful, and list in my mind the things I wanted to be thankful for. There are friends to be thankful for, relatively good health, that I have food and shelter, but most of all, because of God's love for me, and his action in the Lord Jesus Christ to come and die for me and bring me into his fellowship. I have been reminded recently by teachers such as Joseph Prince and Gregory Boyd that all my blessings flow from Jesus, that I am complete in him. My status in Christ is more important than status of wealth, career, relationship, or anything else. Amen!
+++++++++++++++++++++++++++
ALMIGHTY God, Father of all mercies, we, thine unworthy servants, do give thee most humble and hearty thanks for all thy goodness and loving-kindness to us and to all men; [*particularly to those who desire now to offer up their praises and thanksgivings for thy late mercies vouchsafed unto them.] We bless thee for our creation, preservation, and all the blessings of this life; but above all, for thine inestimable love in the redemption of the world by our Lord Jesus Christ; for the means of grace, and for the hope of glory. And, we beseech thee, give us that due sense of all thy mercies, that our hearts may he unfeignedly thankful; and that we show forth thy praise, not only with our lips, but in our lives, by giving up our selves to thy service, and by walking before thee in holiness and righteousness all our days; through Jesus Christ our Lord, to whom, with thee and the Holy Ghost, be all honour and glory, world without end. Amen.
- from the 1928 Book of Common Prayer
A General Thanksgiving (offered for Thanksgiving Day). "ABOVE ALL FOR THINE INESTIMABLE LOVE IN THE REDEMPTION OF THE WORLD BY OUR LORD JESUS CHRIST..." I was feeling rather blue this morning, I was trying to feel thankful, and list in my mind the things I wanted to be thankful for. There are friends to be thankful for, relatively good health, that I have food and shelter, but most of all, because of God's love for me, and his action in the Lord Jesus Christ to come and die for me and bring me into his fellowship. I have been reminded recently by teachers such as Joseph Prince and Gregory Boyd that all my blessings flow from Jesus, that I am complete in him. My status in Christ is more important than status of wealth, career, relationship, or anything else. Amen!
+++++++++++++++++++++++++++
ALMIGHTY God, Father of all mercies, we, thine unworthy servants, do give thee most humble and hearty thanks for all thy goodness and loving-kindness to us and to all men; [*particularly to those who desire now to offer up their praises and thanksgivings for thy late mercies vouchsafed unto them.] We bless thee for our creation, preservation, and all the blessings of this life; but above all, for thine inestimable love in the redemption of the world by our Lord Jesus Christ; for the means of grace, and for the hope of glory. And, we beseech thee, give us that due sense of all thy mercies, that our hearts may he unfeignedly thankful; and that we show forth thy praise, not only with our lips, but in our lives, by giving up our selves to thy service, and by walking before thee in holiness and righteousness all our days; through Jesus Christ our Lord, to whom, with thee and the Holy Ghost, be all honour and glory, world without end. Amen.
- from the 1928 Book of Common Prayer
Christ the King - The Sunday Before Advent
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"To be a subject of Christ is to be a priest."
Below are New Testament readings for Christ the KingSunday, the Sunday before Advent.
We read in Revelation that Jesus has washed us in his bloodand made us a Kingdom of priests! We have a royal and priestly dignity,and we have direct access to God!
In the Gospel, Jesus says His Kingdom does notbelong to this world; rather, he came into this world to proclaimthe Truth. "Whoever belongs to the Truth," Jesus says,"listens to [His] voice."
On Christ the King Sunday, we are reminded of our membership in Christ's Kingdom. We are reminded of our redemption, and our vocation as priests to offer God's love to the world. To be a subject of Christ is to be a priest.
We also anticipate the coming of Christ into the world to reign in glory.
- Lance
NEW TESTAMENT READINGS FOR CHRIST THEKING (SEPT 25, 2012, THE SUNDAY BEFORE ADVENT)
Grace and peace be yours, from him whois, and ever was, and is still to come, and from the seven spiritsthat stand before his throne; and from Jesus Christ, the faithfulwitness, first-born of the risen dead, who rules over all earthlykings. He has proved his love for us, by washing us clean from oursins in his own blood, and made us a royal race of priests, to serveGod, his Father; glory and power be his through endless ages, Amen.Behold, he comes with clouds about him, seen by every eye, seen bythose who wounded him, and he shall bring lamentation to all thetribes of earth. So it must be, Amen. I am Alpha, I am Omega, thebeginning of all things and their end, says the Lord God; he who is,and ever was, and is still to come, the Almighty.
- Apocalypse 1.4-8
So Pilate went back into the palace,and summoned Jesus; Art thou the king of the Jews? he asked. Dostthou say this of thy own accord, Jesus answered, or is it what othershave told thee of me? And Pilate answered, Am I a Jew? It is thy ownnation, and its chief priests, who have given thee up to me. Whatoffence hast thou committed? My kingdom, said Jesus, does not belongto this world. If my kingdom were one which belonged to this world,my servants would be fighting, to prevent my falling into the handsof the Jews; but no, my kingdom does not take its origin here. Thouart a king, then? Pilate asked. And Jesus answered, It is thy ownlips that have called me a king. What I was born for, what I cameinto the world for, is to bear witness of the truth. Whoever belongsto the truth, listens to my voice.
- John 18.33-37
 |
| Ethiopian Icon of Christ as King |
"To be a subject of Christ is to be a priest."
Below are New Testament readings for Christ the KingSunday, the Sunday before Advent.
We read in Revelation that Jesus has washed us in his bloodand made us a Kingdom of priests! We have a royal and priestly dignity,and we have direct access to God!
In the Gospel, Jesus says His Kingdom does notbelong to this world; rather, he came into this world to proclaimthe Truth. "Whoever belongs to the Truth," Jesus says,"listens to [His] voice."
On Christ the King Sunday, we are reminded of our membership in Christ's Kingdom. We are reminded of our redemption, and our vocation as priests to offer God's love to the world. To be a subject of Christ is to be a priest.
We also anticipate the coming of Christ into the world to reign in glory.
- Lance
NEW TESTAMENT READINGS FOR CHRIST THEKING (SEPT 25, 2012, THE SUNDAY BEFORE ADVENT)
Grace and peace be yours, from him whois, and ever was, and is still to come, and from the seven spiritsthat stand before his throne; and from Jesus Christ, the faithfulwitness, first-born of the risen dead, who rules over all earthlykings. He has proved his love for us, by washing us clean from oursins in his own blood, and made us a royal race of priests, to serveGod, his Father; glory and power be his through endless ages, Amen.Behold, he comes with clouds about him, seen by every eye, seen bythose who wounded him, and he shall bring lamentation to all thetribes of earth. So it must be, Amen. I am Alpha, I am Omega, thebeginning of all things and their end, says the Lord God; he who is,and ever was, and is still to come, the Almighty.
- Apocalypse 1.4-8
So Pilate went back into the palace,and summoned Jesus; Art thou the king of the Jews? he asked. Dostthou say this of thy own accord, Jesus answered, or is it what othershave told thee of me? And Pilate answered, Am I a Jew? It is thy ownnation, and its chief priests, who have given thee up to me. Whatoffence hast thou committed? My kingdom, said Jesus, does not belongto this world. If my kingdom were one which belonged to this world,my servants would be fighting, to prevent my falling into the handsof the Jews; but no, my kingdom does not take its origin here. Thouart a king, then? Pilate asked. And Jesus answered, It is thy ownlips that have called me a king. What I was born for, what I cameinto the world for, is to bear witness of the truth. Whoever belongsto the truth, listens to my voice.
- John 18.33-37
ANOTHER TRAYVON: Jordan Russell Davis, 17, shot to death
To contact us Click HERE
Another TRAYVON- another shooting pretexted on the "Stand your ground law." Jordan Russell Davis, an African-American teenager 17, was shot to death in Florida by a white businessman, Michael David Dunn. The shooter objected to the teenager playing his music to loud in his own vehicle. Dunn shot at Davis 8-9 times, hitting him twice. What do African American people have to do to be treated like human beings? Are we going to be able to have a sane discussion about gun laws again in this country? I have some links to the story below for more information. I just want to register my outrage here, and offer my prayers for Jordan's family.
Think Progress: White Man Shoots And Kills Black Student In Florida After Argument Over Loud Music
HE HAS A NAME: Jordan Russell Davis Shot Dead For Playing Loud Music (PHOTOS)
 |
| Left: Jordan Russell Davis (1995-2012); Right: accused murderer Michael David Dunn |
Another TRAYVON- another shooting pretexted on the "Stand your ground law." Jordan Russell Davis, an African-American teenager 17, was shot to death in Florida by a white businessman, Michael David Dunn. The shooter objected to the teenager playing his music to loud in his own vehicle. Dunn shot at Davis 8-9 times, hitting him twice. What do African American people have to do to be treated like human beings? Are we going to be able to have a sane discussion about gun laws again in this country? I have some links to the story below for more information. I just want to register my outrage here, and offer my prayers for Jordan's family.
Think Progress: White Man Shoots And Kills Black Student In Florida After Argument Over Loud Music
HE HAS A NAME: Jordan Russell Davis Shot Dead For Playing Loud Music (PHOTOS)
J.B. Phillips, Translator of the New Testament
To contact us Click HERE
John Bertram (J.B.) Phillips (16September 1906 – 21 July 1982) was a minister in the Church ofEngland who is mostly known for his dynamic translation of the NewTestament, The New Testament in Modern English. During the air raidsof London in World War II, Phillips found himself in a bomb shelterwith members of his Youth Group. He felt that the young people in hischurch did not understand the Authorized version of the Bible, so hebegan to translate portions of the New Testament in order to make itmore accessible to them. The project continued after the war, andwith the help of C.S. Lewis, he got first his Epistles, andeventually the entire New Testament published. The New Testament inModern English anticipated later dynamic, thought-for-thoughttranslations. It was a popular version, and gladly, still fairly easyto obtain. Phillip's New Testament is a delightful read, and althoughparaphrasistic, is faithful to the text.
Phillips translation was published instages, with Letters to the Young Church appearing in 1947,the Gospels in 1952, the Acts (Young Church in Action), 1955,and the Book of Revelation in 1957. The entire New Testament wasoriginally published in 1958, and revised in 1961 and 1972. Phillipsalso published Four Prophets: Amos, Hosea, First Isaiah and Micah:A Modern Translation from the Hebrew in 1963, but did not publishanymore of the Old Testament.
J.B. Phillips wrote and publishedseveral other books besides his New Testament, the most well-knownbeing Your God is Too Small in 1961.
You may read the New Testament inModern English by J.B. Phillips on line:
J.B. Phillips New Testament (1961 text)
J.B. Phillips New Testament (1972 text)
Passages from the the NewTestament in Modern English by J.B. Phillips
At the beginning God expressed himself.That personal expression, that word, was with God, and was God, andhe existed with God from the beginning. All creation took placethrough him, and none took place without him. In him appeared lifeand this life was the light of mankind. The light still shines in thedarkness and the darkness has never put it out.
- John 1.1-5
No condemnation now hangs over the headof those who are “in” Jesus Christ. For the new spiritualprinciple of life “in” Christ lifts me out of the old viciouscircle of sin and death.
- Romans 8.1-2
With eyes wide open to the mercies ofGod, I beg you, my brothers, as an act of intelligent worship, togive him your bodies, as a living sacrifice, consecrated to him andacceptable by him. Don’t let the world around you squeeze you intoits own mould, but let God re-mould your minds from within, so thatyou may prove in practice that the plan of God for you is good, meetsall his demands and moves towards the goal of true maturity.
- Romans 12.1-2
Never damp the fire of the Spirit, andnever despise what is spoken in the name of the Lord. By all meansuse your judgement, and hold on to whatever is really good, Steerclear of evil in any form.
- 1 Thessalonians 5.19
J.B. Phillips Quotes
From the crude cry which we have sooften heard during the war years: "If there is a God, whydoesn't He stop Hitler?," to the unspoken questioning in many aChristian heart when a devoted servant of Christ dies from accidentor disease at what seems to us a most inopportune moment, there isthis universal longing for God to intervene, to show His hand, tovindicate His purpose. I do not pretend to understand the ways of Godany more than the next man; but it is surely more fitting as well asmore sensible for us to study what God does do and what He does notdo as He works in and through the complex fabric of thisdisintegrated world, than to postulate what we think God ought to doand then feel demoralized and bitterly disappointed because He failsto fulfill what we expect of Him.
Following the way of Jesus Christ anddoing all we can for His cause and for our fellow men expressessomething of our worship in action. But how to give Him a present toexpress our love is a bit of a problem. How can you give God anythingwhen He owns everything? But does He? How about that power to choose,that precious free will that He has given to every living personalityand which He so greatly respects? That is the only present we cangive - our selves, with all our powers of spirit, mind, and body,willingly, freely given because we love Him. That is the best andhighest worship that you and I can offer, and I am sure that it isthis above all that God most highly appreciates.
Suppose Christianity is not a religionbut a way of life, a falling in love with God, and, through Him, afalling in love with our fellows. Of course, such a way is hard andcostly, but it is also joyous and rewarding even in the here-and-now.People who follow that Way know beyond all possible argument thatthey are in harmony with the purpose of God, that Christ is with themand in them as they set about His work in our disordered world. Ifanyone thinks this is perilous and revolutionary teaching, so muchthe better. That is exactly what they thought of the teaching ofJesus Christ. The light He brought to bear upon human affairs isalmost unbearably brilliant: but it is the light of Truth, and inthat light human problems can be solved.
Source: When God Was Man
Jesus once declared that God is "goodto the ungrateful and the wicked" (St. Luke 6:35), and Iremember preaching a sermon on this text to a horrified and evenastonished congregation who simply refused to believe (so I gatheredafterwards) in this astounding liberality of God. That God should bein a state of constant fury with the wicked seemed to them only rightand proper, but that God should be kind towards those who weredefying or disobeying His laws seemed to them a monstrous injustice.Yet I was but quoting the Son of God Himself, and I only comment herethat the terrifying risks that God takes are part of His Nature. Wedo not need to explain or modify His unremitting love towardsmankind.
It is a singularly unpleasant thoughtthat a book about Holy Communion is more likely to producedisagreement and controversy than one written on almost any otherChristian subject. It seems a truly terrible thing that this SacredAppointment, which was surely meant to unite, in actual practicedivides Christians more sharply than any other part of their worship.Christians of various denominations may, and frequently do, worktogether on social projects, they may study the Scripture together,and they may ... pray together. But the moment attendance at theLord's Table is suggested, up go the denominational barriers...
Source: Appointment with God
This astonishing sense of spiritualattack which, it seems to me, must inevitably follow the continualreading of the four Gospels, without preconception but with an alertmind, is not the sole privilege of the translator. It can happen toanyone who is prepared to abandon proof-texts and a closed attitudeof mind, and allow not merely the stories but the quality of theFigure Who exists behind the stories to meet him afresh. Neatsnippets of a few verses are of course useful in their way, but theoverall sweep and much of the significance of the Gospel narrativesare lost to us unless we are prepared to read the Gospels through,not once but several times.
Source: New Testament Christianity
But let a man once see his God down inthe arena as a Man, suffering, tempted, sweating, and agonized -finally dying a criminal's death, he is a hard man indeed who isuntouched.
Source: Your God is Too Small
John Bertram (J.B.) Phillips (16September 1906 – 21 July 1982) was a minister in the Church ofEngland who is mostly known for his dynamic translation of the NewTestament, The New Testament in Modern English. During the air raidsof London in World War II, Phillips found himself in a bomb shelterwith members of his Youth Group. He felt that the young people in hischurch did not understand the Authorized version of the Bible, so hebegan to translate portions of the New Testament in order to make itmore accessible to them. The project continued after the war, andwith the help of C.S. Lewis, he got first his Epistles, andeventually the entire New Testament published. The New Testament inModern English anticipated later dynamic, thought-for-thoughttranslations. It was a popular version, and gladly, still fairly easyto obtain. Phillip's New Testament is a delightful read, and althoughparaphrasistic, is faithful to the text. Phillips translation was published instages, with Letters to the Young Church appearing in 1947,the Gospels in 1952, the Acts (Young Church in Action), 1955,and the Book of Revelation in 1957. The entire New Testament wasoriginally published in 1958, and revised in 1961 and 1972. Phillipsalso published Four Prophets: Amos, Hosea, First Isaiah and Micah:A Modern Translation from the Hebrew in 1963, but did not publishanymore of the Old Testament.
J.B. Phillips wrote and publishedseveral other books besides his New Testament, the most well-knownbeing Your God is Too Small in 1961.
You may read the New Testament inModern English by J.B. Phillips on line:
J.B. Phillips New Testament (1961 text)
J.B. Phillips New Testament (1972 text)
Passages from the the NewTestament in Modern English by J.B. Phillips
At the beginning God expressed himself.That personal expression, that word, was with God, and was God, andhe existed with God from the beginning. All creation took placethrough him, and none took place without him. In him appeared lifeand this life was the light of mankind. The light still shines in thedarkness and the darkness has never put it out.
- John 1.1-5
No condemnation now hangs over the headof those who are “in” Jesus Christ. For the new spiritualprinciple of life “in” Christ lifts me out of the old viciouscircle of sin and death.
- Romans 8.1-2
With eyes wide open to the mercies ofGod, I beg you, my brothers, as an act of intelligent worship, togive him your bodies, as a living sacrifice, consecrated to him andacceptable by him. Don’t let the world around you squeeze you intoits own mould, but let God re-mould your minds from within, so thatyou may prove in practice that the plan of God for you is good, meetsall his demands and moves towards the goal of true maturity.
- Romans 12.1-2
Never damp the fire of the Spirit, andnever despise what is spoken in the name of the Lord. By all meansuse your judgement, and hold on to whatever is really good, Steerclear of evil in any form.
- 1 Thessalonians 5.19
J.B. Phillips Quotes
From the crude cry which we have sooften heard during the war years: "If there is a God, whydoesn't He stop Hitler?," to the unspoken questioning in many aChristian heart when a devoted servant of Christ dies from accidentor disease at what seems to us a most inopportune moment, there isthis universal longing for God to intervene, to show His hand, tovindicate His purpose. I do not pretend to understand the ways of Godany more than the next man; but it is surely more fitting as well asmore sensible for us to study what God does do and what He does notdo as He works in and through the complex fabric of thisdisintegrated world, than to postulate what we think God ought to doand then feel demoralized and bitterly disappointed because He failsto fulfill what we expect of Him.
Following the way of Jesus Christ anddoing all we can for His cause and for our fellow men expressessomething of our worship in action. But how to give Him a present toexpress our love is a bit of a problem. How can you give God anythingwhen He owns everything? But does He? How about that power to choose,that precious free will that He has given to every living personalityand which He so greatly respects? That is the only present we cangive - our selves, with all our powers of spirit, mind, and body,willingly, freely given because we love Him. That is the best andhighest worship that you and I can offer, and I am sure that it isthis above all that God most highly appreciates.
Suppose Christianity is not a religionbut a way of life, a falling in love with God, and, through Him, afalling in love with our fellows. Of course, such a way is hard andcostly, but it is also joyous and rewarding even in the here-and-now.People who follow that Way know beyond all possible argument thatthey are in harmony with the purpose of God, that Christ is with themand in them as they set about His work in our disordered world. Ifanyone thinks this is perilous and revolutionary teaching, so muchthe better. That is exactly what they thought of the teaching ofJesus Christ. The light He brought to bear upon human affairs isalmost unbearably brilliant: but it is the light of Truth, and inthat light human problems can be solved.
Source: When God Was Man
Jesus once declared that God is "goodto the ungrateful and the wicked" (St. Luke 6:35), and Iremember preaching a sermon on this text to a horrified and evenastonished congregation who simply refused to believe (so I gatheredafterwards) in this astounding liberality of God. That God should bein a state of constant fury with the wicked seemed to them only rightand proper, but that God should be kind towards those who weredefying or disobeying His laws seemed to them a monstrous injustice.Yet I was but quoting the Son of God Himself, and I only comment herethat the terrifying risks that God takes are part of His Nature. Wedo not need to explain or modify His unremitting love towardsmankind.
It is a singularly unpleasant thoughtthat a book about Holy Communion is more likely to producedisagreement and controversy than one written on almost any otherChristian subject. It seems a truly terrible thing that this SacredAppointment, which was surely meant to unite, in actual practicedivides Christians more sharply than any other part of their worship.Christians of various denominations may, and frequently do, worktogether on social projects, they may study the Scripture together,and they may ... pray together. But the moment attendance at theLord's Table is suggested, up go the denominational barriers...
Source: Appointment with God
This astonishing sense of spiritualattack which, it seems to me, must inevitably follow the continualreading of the four Gospels, without preconception but with an alertmind, is not the sole privilege of the translator. It can happen toanyone who is prepared to abandon proof-texts and a closed attitudeof mind, and allow not merely the stories but the quality of theFigure Who exists behind the stories to meet him afresh. Neatsnippets of a few verses are of course useful in their way, but theoverall sweep and much of the significance of the Gospel narrativesare lost to us unless we are prepared to read the Gospels through,not once but several times.
Source: New Testament Christianity
But let a man once see his God down inthe arena as a Man, suffering, tempted, sweating, and agonized -finally dying a criminal's death, he is a hard man indeed who isuntouched.
Source: Your God is Too Small
28 Kasım 2012 Çarşamba
CANADA'S ECONOMY OUTPACING THE US
To contact us Click HERE
IMF says Canada will likely outperform this year, sees slower growth in 2011
Thu Jul 8, 9:57 AM
Joe Mcdonald, The Associated Press
Email StoryIM StoryPrintable View.By Joe Mcdonald, The Associated Press
BEIJING, China - Canada's economy is on track to grow more quickly this year than previously expected, putting it ahead of the United States and most other advanced economies, according to new estimates from International Monetary Fund.
The IMF said Thursday it's raising the 2010 growth forecast for Canada to 3.6 per cent from its previous estimate of 3.1 per cent, issued in April.
The IMF's July report also raised its U.S. growth estimate to 3.3 per cent, up from 3.1 per cent and its world estimate to 4.6 per cent from 4.2 per cent.
Asian countries with rapidly maturing economies will grow more quickly than the United States, Japan and European countries that have historically been more advanced.
China's growth for this year, for instance, is now projected at 10.5 per cent, up five percentage points, while the IMF expects India's economy will advance 9.4 per cent this year (up six percentage points from the April projection.)
Next year isn't looking so rosey for Canada, however.
The IMF has lowered its projection for 2011 growth by four percentage points to 2.8 per cent. Also notable was a reduction in the IMF's 2011 projection for China, which has been reduced by three percentage points from April's.
In contrast, the U.S. growth projection for next year was raised by three percentage points to 2.9 per cent, slightly ahead of Canada, while the world outlook for 2011 was raised by eight percentage points to 4.3 per cent.
The IMF, a Washington-based multnational organization affiliated with the United Nations and the World Bank, said Europe's debt crisis might stall the global rebound and governments need to shore up shaky public confidence.
Its quarterly World Economic Outlook warned that "risks have risen sharply" and Europe has to quickly resolve debt problems and restore confidence in its banks.
Europe's problems "could spill over to other regions and stall the global recovery," said Jose Vinals, director of the fund's monetary and capital markets department, at a news conference in Hong Kong.
"Further credible and decisive policy action is needed to resume progress on financial stability and keep the economic recovery on track," Vinals said.
Risks so far are limited to financial markets and activity in other fields stabilized at a high level in May, the IMF said. It said industrial output and trade grew by double digits and there was a modest but steady recovery in developed economies and strong growth in emerging nations.
"The numbers for economic activity have come in strong — in fact, stronger than we have forecast," said Olivier Blanchard, director of the IMF's research department.
The fund raised this year's U.S. growth forecast from 2.7 per cent to 3.3 per cent. The outlook for Germany and other European nations that use the euro common currency was unchanged at 1 per cent.
A global "double dip," or relapse into recession, is "very unlikely," Blanchard said.
Asian economies recovered strongly this year, driven by buoyant exports and stronger domestic demand, the IMF said.
The fund raised its 2010 growth forecast for Japan to 2.4 per cent from 1.9 per cent and for India to 9.4 per cent from 8.8 per cent. The estimate of the Asia region's growth rose to 7.5 per cent from seven per cent.
However, it warned that weakness in Europe "would affect Asia through both trade and financial channels."
Weak data from major economies in recent weeks have diminished confidence in a strong rebound from last year's recession.
The fund's forecast for 2011 growth was unchanged at 4.3 per cent, a decline from this year's rate.
In a move that might fuel concern the recovery is fading, the fund lowered its 2011 growth forecast for Japan from two per cent to 1.8 per cent and for Britain to 2.1 per centfrom 2.5 per cent.
In Europe, the IMF said governments must resolve uncertainty about banks' exposure to sovereign debt and other risks and make sure lenders have enough capital and markets have adequate liquidity.
It said many advanced economies urgently need to push ahead financial reforms including recapitalizing banks, restructuring and consolidating banking industries and overhauling regulation.
"In the absence of complete banking sector recapitalization and restructuring, the flow of credit to the economy will continue to be impaired," the IMF said.
Thu Jul 8, 9:57 AM
Joe Mcdonald, The Associated Press
Email StoryIM StoryPrintable View.By Joe Mcdonald, The Associated Press
BEIJING, China - Canada's economy is on track to grow more quickly this year than previously expected, putting it ahead of the United States and most other advanced economies, according to new estimates from International Monetary Fund.
The IMF said Thursday it's raising the 2010 growth forecast for Canada to 3.6 per cent from its previous estimate of 3.1 per cent, issued in April.
The IMF's July report also raised its U.S. growth estimate to 3.3 per cent, up from 3.1 per cent and its world estimate to 4.6 per cent from 4.2 per cent.
Asian countries with rapidly maturing economies will grow more quickly than the United States, Japan and European countries that have historically been more advanced.
China's growth for this year, for instance, is now projected at 10.5 per cent, up five percentage points, while the IMF expects India's economy will advance 9.4 per cent this year (up six percentage points from the April projection.)
Next year isn't looking so rosey for Canada, however.
The IMF has lowered its projection for 2011 growth by four percentage points to 2.8 per cent. Also notable was a reduction in the IMF's 2011 projection for China, which has been reduced by three percentage points from April's.
In contrast, the U.S. growth projection for next year was raised by three percentage points to 2.9 per cent, slightly ahead of Canada, while the world outlook for 2011 was raised by eight percentage points to 4.3 per cent.
The IMF, a Washington-based multnational organization affiliated with the United Nations and the World Bank, said Europe's debt crisis might stall the global rebound and governments need to shore up shaky public confidence.
Its quarterly World Economic Outlook warned that "risks have risen sharply" and Europe has to quickly resolve debt problems and restore confidence in its banks.
Europe's problems "could spill over to other regions and stall the global recovery," said Jose Vinals, director of the fund's monetary and capital markets department, at a news conference in Hong Kong.
"Further credible and decisive policy action is needed to resume progress on financial stability and keep the economic recovery on track," Vinals said.
Risks so far are limited to financial markets and activity in other fields stabilized at a high level in May, the IMF said. It said industrial output and trade grew by double digits and there was a modest but steady recovery in developed economies and strong growth in emerging nations.
"The numbers for economic activity have come in strong — in fact, stronger than we have forecast," said Olivier Blanchard, director of the IMF's research department.
The fund raised this year's U.S. growth forecast from 2.7 per cent to 3.3 per cent. The outlook for Germany and other European nations that use the euro common currency was unchanged at 1 per cent.
A global "double dip," or relapse into recession, is "very unlikely," Blanchard said.
Asian economies recovered strongly this year, driven by buoyant exports and stronger domestic demand, the IMF said.
The fund raised its 2010 growth forecast for Japan to 2.4 per cent from 1.9 per cent and for India to 9.4 per cent from 8.8 per cent. The estimate of the Asia region's growth rose to 7.5 per cent from seven per cent.
However, it warned that weakness in Europe "would affect Asia through both trade and financial channels."
Weak data from major economies in recent weeks have diminished confidence in a strong rebound from last year's recession.
The fund's forecast for 2011 growth was unchanged at 4.3 per cent, a decline from this year's rate.
In a move that might fuel concern the recovery is fading, the fund lowered its 2011 growth forecast for Japan from two per cent to 1.8 per cent and for Britain to 2.1 per centfrom 2.5 per cent.
In Europe, the IMF said governments must resolve uncertainty about banks' exposure to sovereign debt and other risks and make sure lenders have enough capital and markets have adequate liquidity.
It said many advanced economies urgently need to push ahead financial reforms including recapitalizing banks, restructuring and consolidating banking industries and overhauling regulation.
"In the absence of complete banking sector recapitalization and restructuring, the flow of credit to the economy will continue to be impaired," the IMF said.
BMO's 5 year 2.99% Mortgage Offering
To contact us Click HERE
On first glance this looks like a great deal. 2.99% for a 5 year mortgage- the lowest 5 year rate ever.
However a closer analysis offers some of the points to be aware of.
Consider:
This is a two-week promo (at the moment) valid until JANUARY 25TH.
There are conditions to their offer. The main terms of BMO's special are as follows:
Maximum Amortization: 25 years
Rate Hold: Up to 90 days
Pre-Approvals: Allowed
Lump-sum Pre-payments: 10% maximum per year (1/2 of the 20% that BMO normally allows)
Optional Payment increase: 10% maximum per year (again, 1/2 of the 20% that BMO normally allows)
Term: Fully closed unless you sell the property, refinance (with BMO only), or early renew into another BMO mortgage.
BMO Mortgage Cash Account: Not available with the Low-Rate
BMO Skip-a-Payment: Not available with the Low-Rate
BMO ReadiLine: Not available with the Low-Rate
Other Details: Not applicable to non-owner occupied rental properties
Most importantly, the client is tied to BMO for the entire 5 year term of their mortgage, even if they want to break it and pay a penalty, they are forced to stay with BMO at whatever rate BMO offers. Client loses negotiating power.
This rate and mortgage is great if you plan to live in the house for many years and will not need to refinace during the term.
However a closer analysis offers some of the points to be aware of.
Consider:
This is a two-week promo (at the moment) valid until JANUARY 25TH.
There are conditions to their offer. The main terms of BMO's special are as follows:
Maximum Amortization: 25 years
Rate Hold: Up to 90 days
Pre-Approvals: Allowed
Lump-sum Pre-payments: 10% maximum per year (1/2 of the 20% that BMO normally allows)
Optional Payment increase: 10% maximum per year (again, 1/2 of the 20% that BMO normally allows)
Term: Fully closed unless you sell the property, refinance (with BMO only), or early renew into another BMO mortgage.
BMO Mortgage Cash Account: Not available with the Low-Rate
BMO Skip-a-Payment: Not available with the Low-Rate
BMO ReadiLine: Not available with the Low-Rate
Other Details: Not applicable to non-owner occupied rental properties
Most importantly, the client is tied to BMO for the entire 5 year term of their mortgage, even if they want to break it and pay a penalty, they are forced to stay with BMO at whatever rate BMO offers. Client loses negotiating power.
This rate and mortgage is great if you plan to live in the house for many years and will not need to refinace during the term.
CAAMP'S VIEW ON TODAY's MORTGAGE ISSUES
To contact us Click HERE
BASED ON OUR RESEARCH AND KNOWLEDGE OF THE SECTOR, WE SEE NO REASON TO TIGHTEN OR RESTRICT ACCESS TO RESIDENTIAL MORTGAGES AT THIS TIME1. CURRENT ENVIRONMENT Canada has a well-earned reputation for exercising economic prudence. As a result, we have managed to avoid a mortgage or housing market meltdown. Our banks are stable and our economy, while impacted by the general global economic slowdown, remains healthier than most. CAAMP’s extensive industry research indicates that the Canadian mortgage industry is healthy. We must continue to “stress test” our own financial sector to determine how it would withstand potential weakening of the economy. The more educated we are about the debt we incur (mortgages, credit cards, lines of credit), the better off we will be2. FEDERAL GOVERNMENT ACTIONS TAKEN The federal government responded promptly when it was determined changes were needed in the mortgage market. There have been three significant sets of changes in the past 36 months: - Amortization periods shortened to 30 years from 35 and 40 years - Minimum down payment increased to 5 per cent of purchase price. No 100% LTV mortgages - Homeowners refinancing their mortgage may borrow up to 85 per cent of the equity in their home; down from 90% and 95% - These changes have impacted the mortgage market; re-financings have decreased dramatically and mortgage credit growth has slowed Based on our extensive research and knowledge of the sector, we see no reason to further tighten or restrict access to mortgages at this time3. REASONS FOR CURRENT CONCERN1) Housing Market Prolonged low interest rates are making it more attractive to purchase a home Research shows that the vast majority of homeowners can accommodate rate increases (84 per cent surveyed in CAAMP’s fall 2011 research said they could handle a $200/month increase) CAAMP’s fall 2011 survey indicates mortgage borrowers are prudent, increasing their lump sum payments and paying down their mortgage faster than required Supply and demand drive housing prices – provinces and municipalities should be more aware of their land-use policies and how they impact housing supply2) Media Focus on Insurance Ceiling - Changes in Some Banks’ Lending Practices It is a fact that CMHC is approaching its $600 billion government-imposed limit on mortgage default insurance. Private insurers have a $300 billion limit. This has nothing to do with mortgage insurers being responsible for an increasing number of higher risk mortgages Lenders are buying portfolio insurance against defaults on low risk mortgages - cases where homeowners have more than 20 per cent equity in their homes. These are not high risk mortgages. CMHC is approaching its limit because the number of mortgage holders has grown, the population and housing units have increased and lenders have been insuring low risk mortgages, leveraging the government’s triple A credit rating for other bank business Residential mortgage credit in Canada continues to expand. During the past five years, outstanding residential mortgage credit has expanded by 53%, or an average rate of 8.9% per year. The growth rate is slowing The volume of outstanding residential mortgage credit passed the $1 trillion threshold in July 2010, and as of August 2011, it reached $1.079 trillion Increased homeownership results in an increase in mortgage default insurance However, mortgage defaults are rare. CMHC reported it paid out $454 million in the first nine months of 2011 which represents a 0.42 per cent default rate Overall mortgage arrears rates in Canada are declining and never approached the level of the early 1990s. The housing market in Canada is growing organically and safely There is no parallel in Canada to the subprime default problems that plagued the US market3. FURTHER RESTRICTIONS ON ACCESS TO MORTGAGESWho will be affected? Self-employed borrowers who represent a growing portion of our labour force (currently 2.67 million people, or 15% of employment in Canada) New Canadians who can afford a down payment but have yet to build credit and employment history First time homebuyers who want to enter the homeownership market and build equity These are not the people who fall in to a sub-prime loan category like we saw in the US; yet these changes will impact them The housing industry is an engine of growth in Canada. If we impede its growth, we will add to unemployment and depress the economy If fewer mortgage lenders are able to insure their loans simply because the insurance program has not kept pace with the growth in the mortgage market, then consumers will have less choice when it comes to negotiating a mortgage. Less choice, or less competition, will inevitably lead to higher borrowing costs for the Canadian consumer Likewise, if mortgage brokers are restricted in the mortgage products they can offer, consumer choice will be diminished and costs will increase This reduced access to capital will make it more difficult for people who can legitimately afford to buy a home4)What are the Risks of Further Restricting Access to Mortgages?CAAMP has one of the most comprehensive collections of research on the mortgage industry. It includes original data on borrowers and the characteristics of mortgage loans. This research has revealed repeatedly that borrowers and lenders in Canada have been prudent, and only a very small share of borrowers would have trouble affording future rises in mortgage rates.There are risks, but most are related to the broader economy through two channels:UnemploymentThe broader economic data suggests that the Canadian economy is slowing. If that results in job losses, the housing market would be negatively affected, and there would be impacts on mortgages held by people who lose jobs and then struggle to make payments.Declining Housing PricesHousing prices could decline in a weaker market. In a recession, there is the threat of a downward spiral: a weak economy harming the housing market which negatively affects the broader economy. We believe and trust that the federal government will act to mitigate such a negative scenario.These risks have nothing to do with mortgage products themselves.Risks to the Canadian mortgage market are dependent on the performance of the broader economy. In that light, the best means to control mortgage market risk is through strong economic management. In particular, care must be taken not to take any measures in the mortgage market that unnecessarily reduce housing activity that would be damaging to the economy.
VIEWS ON BANK of MONTREAL'S 5 YEAR RATE
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A good explainatory article by Robert McLister of Canadian Mortgage Trends explaining the pros and cons of Bank of Montreal's just announced 5 year 2.99% rate:BMO Cranks Up the Heat AgainBMO is dead-set on winning mind share among consumers.It's coming back to the market with two new deep-discount rate promos: A 5-year fixed at 2.99% (which starts Thursday, March 8, 2012) A 10-year fixed at 3.99% (which starts Sunday, March 11, 2012) Both of these specials are low-frills, meaning: A Lower Maximum Amortization: 25 years versus 30-40 years elsewhere Less Lump-sum Pre-payment Ability: 10% maximum per year (i.e., 1/2 of the 20% that BMO normally allows) A Smaller Payment Increase Option: Up to 10%, once per year (again, 1/2 of the 20% that BMO normally allows) A Locked Term: The Low-rate Mortgage is fully closed unless you sell the property, refinance (with BMO only), or early renew into another BMO mortgage. In other words, unless you sell, you're not leaving BMO for 5 years, like it or not. Both the 5-year and 10-year promos run for 3 weeks, until March 28, 2012.We've heard talk that TD and RBC will not match BMO's pricing on the 5-year term. We'll see. The last time BMO ran this special, its competitors quickly responded with 4-year rates of 2.99%. Despite the one less year, those competing offers came with all the normal bells and whistles.Unfortunately for competitors, a 2.99% five-year rate makes more headlines than a four-year promo at the same price, and BMO knows it. This deal has garnered almost a dozen major media stories already, and the press release only came out four hours ago.As for BMO's 10-year deal, it is 146 basis points below the nearest Big 6 bank competitors' advertised rates. It is BMO's lowest 10-year rate ever, and it matches ING's current 3.99% offer. (ING was the first bank in Canada to advertise 10-year rates below 4.00%.)With these rates, BMO is starting to make other big banks look increasingly silly. CIBC, National Bank, RBC, and TD are currently promoting 5-year "special offer" rates of 4.04%. That's 105 basis points above BMO (albeit with more flexibility). Those rates border on ridiculous, and they insult the intelligence of increasingly savvy consumers who know that well-qualified borrowers rarely pay anything close to those rates.Yes, we say that knowing that BMO's Low-rate mortgage is highly restrictive and not suitable for most.It is, however, suitable for some. The target market includes many: First-time buyers Rental property owners Owners of 2nd homes The customer should have no foreseeable need to break, increase or aggressively prepay his/her mortgage for five years.In posting more transparent rates than its peers, BMO is taking a page from brokers and smaller rivals. In doing so, it's building credibility with consumers at its competitors' expense.Frank Techar, BMO's Canadian banking head, tells Bloomberg: "The reaction to our January offer was fantastic." With a mortgage market that BMO CEO William Downe admits is "slowing," 2.99% is a big fat worm on a hook. It is bait that gets BMO's phones ringing.It also gives BMO's sales force a chance to upsell people into higher margin mortgages without all the restrictions of BMO's Low-rate product. (There's a lot of that going on, according to the BMO mortgage specialists we've talked to.)With this rate sale, BMO is certain to take flak for fuelling consumer borrowing at a time when high debt levels are worrying policymakers.To that end, Techar maintains that BMO is not fuelling the fire. He tells the Financial Post that these rates "are consistent with the debate around the need to reduce consumer debt levels."In an interview with Reuters, he said: "People are not going to stretch to get the largest mortgage they can with a 25-year amortization product. Because the monthly payments are higher, they...will go to a 30-year amortization product." (He's right.)Downe recently said this to analysts about BMO's Low-rate Mortgage:"We think that's a product that is good for Canadians; it's good for Canada; it's good for our customers, and we intend to continue to promote it in this environment.It's a product that we believe addresses all of the risks that are currently being debated, whether or not the consumer debt levels that are too high in Canada and a possible fallout from economic slowdown and rising interest rates. It helps our customers pay less interest. It mitigates their interest rate risk for five years. It helps them retire debt free by paying off their balance faster, and it works against market price appreciation. In fact, it helps with...house price appreciation, because the shorter amortization reduces the maximum purchase price people can afford."Being a 5-year fixed, this product does mitigate some risk. A 200 basis point rate increase by 2017 would only lift payments $133/month on the average Canadian mortgage of $151,000.As for rumours that policymakers are ticked off by BMO's pricing, the last time anyone looked, it's still a free market. BMO can price as it sees fit within regulations. As long as underwriting standards remain high, God bless it for bringing down rates industry-wide.Even if rates like 2.99% do spur more interest in mortgages, it doesn't mean lenders will approve high-risk borrowers. BMO's average loan-to-value (LTV) is just 60%. More notably, BMO's residential mortgage portfolio has a long-run loss rate of less than 2 basis points (i.e., exceptionally low).Barring a run-up in bond yields, we could now start seeing competitors (like mortgage brokers) respond with full-frills 5-year offers that are just a pittance above BMO's rate. Some might even match or beat it.We'd strongly encourage most folks to consider paying a bit more to avoid the low-rate mortgage restrictions—especially if the premium is small (0.05%-0.10%) and especially if you can benefit from the service and extras that come with a standard mortgage.Side Note: Here are a few more details about BMO's Low-rate Mortgage: Rate Hold: Up to 90 days Pre-Approvals?: Yes BMO Mortgage Cash Account: Not available with the Low-Rate mortgage BMO Skip-a-Payment: Not available with the Low-Rate mortgage BMO ReadiLine: Not available with the Low-Rate mortgage Rentals Allowed? Yes 2nd Homes Allowed? Yes
Children's art amount
To contact us Click HERE
Happy spring. At the office we are busy meeting personal clients, completing corporate year ends and excited for yet another personal tax season. It's nice to see everyone this time of year and do a little catching up.
With the 2011 personal tax season here, there are some additional credits available in 2011. Probably the most common credit will be the children's art amount.
All the details can be found by following this link: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns360-390/370/menu-eng.html
For clarification or just to arrange a personal tax meeting please get in touch with us.
Have a great week
With the 2011 personal tax season here, there are some additional credits available in 2011. Probably the most common credit will be the children's art amount.
All the details can be found by following this link: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns360-390/370/menu-eng.html
For clarification or just to arrange a personal tax meeting please get in touch with us.
Have a great week
27 Kasım 2012 Salı
One Gospel Only: Faith in Christ and Social Justice
To contact us Click HERE
There is no contradiction in the Biblebetween an evangelical gospel and a social gospel. The Bible calls usto faith in Christ, but also, to preach liberation to the oppressed.There are not two gospels, but one gospel. Personal devotion toChrist is closely linked with social justice.
Some Evangelical or conservativeChristians ignore or downplay the social justice message in theBible. They preach a personal relationship with Christ, but ignorethe social implications of the gospel. They spiritualize the gospel.Christians like this sat on the sidelines of the great struggle forcivil rights in our country, or even sided with the oppressors.Today, they ignore, down play, or are in denial about issues ofeconomic justice, the continued presence of racism, genderinequality, the environmental crisis, and other social injustices.
Some liberal or progressive Christiansdo the opposite. They reduce the gospel to social justice only. Thereare even some extreme examples of those who are rationalists, whohave jettisoned the supernatural aspects of the faith altogether.They do not call for a life-giving relationship with Christ. Theyonly are left with a social justice message, that frankly might bepresented in a more straight-forward manner by a secular Marxist.
Both sides of this divide areunbalanced, and do not have a complete gospel. The Gospel calls us tofaith in Christ, but also, to solidarity with the oppressed. TheGospel calls us to love God and neighbor.
All Christians give lip service tocharity, but the Bible calls us beyond charity to justice. A classicBible text for the social gospel is from Isaiah:
“learn to do good;seek justice,correct oppression;defend the fatherless,plead for the widow.”
- Isaiah 1.17, RSV
“Correct oppression,” theRSV text has; in the New King James Version, this same phrase isrendered “rebuke the oppressor.” God calls us to preach aprophetic word, to challenge the powers, to speak the truth to power.I am glad for our charity. But we are not fulfilling our task asChristians unless we preach justice and work for it. We arerecalcitrant in our duties if we do not speak against oppression, ifwe don't “rebuke the oppressor.”
But rebuke does not mean that wenecessarily do so in anger. St. Paul enjoins us to “speak the truthin love.”
Take for example the rich young rulerMark's Gospel, chapter 10. The rich young ruler was likely anoppressor, he collaborated with the Roman occupiers. In order to haveor maintain wealth in first century Palestine, one had to have somebusiness or political relationship to the Romans.
The rich young ruler came to Jesus andasked him, “what must I do to inherit eternal life?” Jesus toldhim to keep the commandments, “Do not kill, Do not commit adultery,Do not steal, Do not bear false witness, Do not defraud, Honor yourfather and mother.” The rich young ruler answers, “Teacher, allthese I have observed from my youth.” But had he?
First, as I mentioned, the rich youngruler was probably an oppressor. Secondly, the early fathers of theChurch teach that whatever superfluous wealth we have belongs byright to the poor. When we fail to share with the poor, we arerobbing them. “Property is theft,” St. Basil says. The rich youngruler probably did not realize that by hoarding his wealth, and thatby the means with which he acquired it, he was in fact breaking thecommandments- “do not defraud!”
Jesus for his part, spoke the truth inlove to the rich young ruler. When the rich young ruler came toJesus, the Gospel says that “Jesus look upon him and loved him.”Yet, he enjoined him to sell everything he had and give the proceedsto the poor. Jesus said to the rich young ruler, “sell what youhave, give the proceeds to the poor, and then come follow me.”Jesus is the source of eternal life. The rich young ruler mustrepent- that is, change his mind; he must stop oppressing the poor,and give them his wealth instead. But he also must come to Christ. Itwould not have helped the young ruler have eternal life withoutcoming to Christ. St. Paul says “that if I give away all that Ihave and have not love, I am nothing.” We must all come to Christand be devoted to him. Christ in this passage, makes a strongconnection between devotion to himself and solidarity with thepoor, as he does in the famous parable of the Last Judgment inMatthew 25.
The story of the rich young ruler is aperfect example of “rebuking the oppressor” in love. It wouldhave been a good example of “correcting oppression,” if the richyoung ruler would have done as Jesus asked of him. It is a sublimeexample of a complete gospel, which calls us to social justice anddevotion to the Person of Christ.
There is no contradiction between theevangelical message of faith in Christ and the social Gospel. It isall one gospel. As John Wesley says, “There is no holiness, butsocial holiness.”
- Lance
There is no contradiction in the Biblebetween an evangelical gospel and a social gospel. The Bible calls usto faith in Christ, but also, to preach liberation to the oppressed.There are not two gospels, but one gospel. Personal devotion toChrist is closely linked with social justice. Some Evangelical or conservativeChristians ignore or downplay the social justice message in theBible. They preach a personal relationship with Christ, but ignorethe social implications of the gospel. They spiritualize the gospel.Christians like this sat on the sidelines of the great struggle forcivil rights in our country, or even sided with the oppressors.Today, they ignore, down play, or are in denial about issues ofeconomic justice, the continued presence of racism, genderinequality, the environmental crisis, and other social injustices.
Some liberal or progressive Christiansdo the opposite. They reduce the gospel to social justice only. Thereare even some extreme examples of those who are rationalists, whohave jettisoned the supernatural aspects of the faith altogether.They do not call for a life-giving relationship with Christ. Theyonly are left with a social justice message, that frankly might bepresented in a more straight-forward manner by a secular Marxist.
Both sides of this divide areunbalanced, and do not have a complete gospel. The Gospel calls us tofaith in Christ, but also, to solidarity with the oppressed. TheGospel calls us to love God and neighbor.
All Christians give lip service tocharity, but the Bible calls us beyond charity to justice. A classicBible text for the social gospel is from Isaiah:
“learn to do good;seek justice,correct oppression;defend the fatherless,plead for the widow.”
- Isaiah 1.17, RSV
“Correct oppression,” theRSV text has; in the New King James Version, this same phrase isrendered “rebuke the oppressor.” God calls us to preach aprophetic word, to challenge the powers, to speak the truth to power.I am glad for our charity. But we are not fulfilling our task asChristians unless we preach justice and work for it. We arerecalcitrant in our duties if we do not speak against oppression, ifwe don't “rebuke the oppressor.”
But rebuke does not mean that wenecessarily do so in anger. St. Paul enjoins us to “speak the truthin love.”
Take for example the rich young rulerMark's Gospel, chapter 10. The rich young ruler was likely anoppressor, he collaborated with the Roman occupiers. In order to haveor maintain wealth in first century Palestine, one had to have somebusiness or political relationship to the Romans.
The rich young ruler came to Jesus andasked him, “what must I do to inherit eternal life?” Jesus toldhim to keep the commandments, “Do not kill, Do not commit adultery,Do not steal, Do not bear false witness, Do not defraud, Honor yourfather and mother.” The rich young ruler answers, “Teacher, allthese I have observed from my youth.” But had he?
First, as I mentioned, the rich youngruler was probably an oppressor. Secondly, the early fathers of theChurch teach that whatever superfluous wealth we have belongs byright to the poor. When we fail to share with the poor, we arerobbing them. “Property is theft,” St. Basil says. The rich youngruler probably did not realize that by hoarding his wealth, and thatby the means with which he acquired it, he was in fact breaking thecommandments- “do not defraud!”
Jesus for his part, spoke the truth inlove to the rich young ruler. When the rich young ruler came toJesus, the Gospel says that “Jesus look upon him and loved him.”Yet, he enjoined him to sell everything he had and give the proceedsto the poor. Jesus said to the rich young ruler, “sell what youhave, give the proceeds to the poor, and then come follow me.”Jesus is the source of eternal life. The rich young ruler mustrepent- that is, change his mind; he must stop oppressing the poor,and give them his wealth instead. But he also must come to Christ. Itwould not have helped the young ruler have eternal life withoutcoming to Christ. St. Paul says “that if I give away all that Ihave and have not love, I am nothing.” We must all come to Christand be devoted to him. Christ in this passage, makes a strongconnection between devotion to himself and solidarity with thepoor, as he does in the famous parable of the Last Judgment inMatthew 25.
The story of the rich young ruler is aperfect example of “rebuking the oppressor” in love. It wouldhave been a good example of “correcting oppression,” if the richyoung ruler would have done as Jesus asked of him. It is a sublimeexample of a complete gospel, which calls us to social justice anddevotion to the Person of Christ.
There is no contradiction between theevangelical message of faith in Christ and the social Gospel. It isall one gospel. As John Wesley says, “There is no holiness, butsocial holiness.”
- Lance
CANADA'S ECONOMY OUTPACING THE US
To contact us Click HERE
IMF says Canada will likely outperform this year, sees slower growth in 2011
Thu Jul 8, 9:57 AM
Joe Mcdonald, The Associated Press
Email StoryIM StoryPrintable View.By Joe Mcdonald, The Associated Press
BEIJING, China - Canada's economy is on track to grow more quickly this year than previously expected, putting it ahead of the United States and most other advanced economies, according to new estimates from International Monetary Fund.
The IMF said Thursday it's raising the 2010 growth forecast for Canada to 3.6 per cent from its previous estimate of 3.1 per cent, issued in April.
The IMF's July report also raised its U.S. growth estimate to 3.3 per cent, up from 3.1 per cent and its world estimate to 4.6 per cent from 4.2 per cent.
Asian countries with rapidly maturing economies will grow more quickly than the United States, Japan and European countries that have historically been more advanced.
China's growth for this year, for instance, is now projected at 10.5 per cent, up five percentage points, while the IMF expects India's economy will advance 9.4 per cent this year (up six percentage points from the April projection.)
Next year isn't looking so rosey for Canada, however.
The IMF has lowered its projection for 2011 growth by four percentage points to 2.8 per cent. Also notable was a reduction in the IMF's 2011 projection for China, which has been reduced by three percentage points from April's.
In contrast, the U.S. growth projection for next year was raised by three percentage points to 2.9 per cent, slightly ahead of Canada, while the world outlook for 2011 was raised by eight percentage points to 4.3 per cent.
The IMF, a Washington-based multnational organization affiliated with the United Nations and the World Bank, said Europe's debt crisis might stall the global rebound and governments need to shore up shaky public confidence.
Its quarterly World Economic Outlook warned that "risks have risen sharply" and Europe has to quickly resolve debt problems and restore confidence in its banks.
Europe's problems "could spill over to other regions and stall the global recovery," said Jose Vinals, director of the fund's monetary and capital markets department, at a news conference in Hong Kong.
"Further credible and decisive policy action is needed to resume progress on financial stability and keep the economic recovery on track," Vinals said.
Risks so far are limited to financial markets and activity in other fields stabilized at a high level in May, the IMF said. It said industrial output and trade grew by double digits and there was a modest but steady recovery in developed economies and strong growth in emerging nations.
"The numbers for economic activity have come in strong — in fact, stronger than we have forecast," said Olivier Blanchard, director of the IMF's research department.
The fund raised this year's U.S. growth forecast from 2.7 per cent to 3.3 per cent. The outlook for Germany and other European nations that use the euro common currency was unchanged at 1 per cent.
A global "double dip," or relapse into recession, is "very unlikely," Blanchard said.
Asian economies recovered strongly this year, driven by buoyant exports and stronger domestic demand, the IMF said.
The fund raised its 2010 growth forecast for Japan to 2.4 per cent from 1.9 per cent and for India to 9.4 per cent from 8.8 per cent. The estimate of the Asia region's growth rose to 7.5 per cent from seven per cent.
However, it warned that weakness in Europe "would affect Asia through both trade and financial channels."
Weak data from major economies in recent weeks have diminished confidence in a strong rebound from last year's recession.
The fund's forecast for 2011 growth was unchanged at 4.3 per cent, a decline from this year's rate.
In a move that might fuel concern the recovery is fading, the fund lowered its 2011 growth forecast for Japan from two per cent to 1.8 per cent and for Britain to 2.1 per centfrom 2.5 per cent.
In Europe, the IMF said governments must resolve uncertainty about banks' exposure to sovereign debt and other risks and make sure lenders have enough capital and markets have adequate liquidity.
It said many advanced economies urgently need to push ahead financial reforms including recapitalizing banks, restructuring and consolidating banking industries and overhauling regulation.
"In the absence of complete banking sector recapitalization and restructuring, the flow of credit to the economy will continue to be impaired," the IMF said.
Thu Jul 8, 9:57 AM
Joe Mcdonald, The Associated Press
Email StoryIM StoryPrintable View.By Joe Mcdonald, The Associated Press
BEIJING, China - Canada's economy is on track to grow more quickly this year than previously expected, putting it ahead of the United States and most other advanced economies, according to new estimates from International Monetary Fund.
The IMF said Thursday it's raising the 2010 growth forecast for Canada to 3.6 per cent from its previous estimate of 3.1 per cent, issued in April.
The IMF's July report also raised its U.S. growth estimate to 3.3 per cent, up from 3.1 per cent and its world estimate to 4.6 per cent from 4.2 per cent.
Asian countries with rapidly maturing economies will grow more quickly than the United States, Japan and European countries that have historically been more advanced.
China's growth for this year, for instance, is now projected at 10.5 per cent, up five percentage points, while the IMF expects India's economy will advance 9.4 per cent this year (up six percentage points from the April projection.)
Next year isn't looking so rosey for Canada, however.
The IMF has lowered its projection for 2011 growth by four percentage points to 2.8 per cent. Also notable was a reduction in the IMF's 2011 projection for China, which has been reduced by three percentage points from April's.
In contrast, the U.S. growth projection for next year was raised by three percentage points to 2.9 per cent, slightly ahead of Canada, while the world outlook for 2011 was raised by eight percentage points to 4.3 per cent.
The IMF, a Washington-based multnational organization affiliated with the United Nations and the World Bank, said Europe's debt crisis might stall the global rebound and governments need to shore up shaky public confidence.
Its quarterly World Economic Outlook warned that "risks have risen sharply" and Europe has to quickly resolve debt problems and restore confidence in its banks.
Europe's problems "could spill over to other regions and stall the global recovery," said Jose Vinals, director of the fund's monetary and capital markets department, at a news conference in Hong Kong.
"Further credible and decisive policy action is needed to resume progress on financial stability and keep the economic recovery on track," Vinals said.
Risks so far are limited to financial markets and activity in other fields stabilized at a high level in May, the IMF said. It said industrial output and trade grew by double digits and there was a modest but steady recovery in developed economies and strong growth in emerging nations.
"The numbers for economic activity have come in strong — in fact, stronger than we have forecast," said Olivier Blanchard, director of the IMF's research department.
The fund raised this year's U.S. growth forecast from 2.7 per cent to 3.3 per cent. The outlook for Germany and other European nations that use the euro common currency was unchanged at 1 per cent.
A global "double dip," or relapse into recession, is "very unlikely," Blanchard said.
Asian economies recovered strongly this year, driven by buoyant exports and stronger domestic demand, the IMF said.
The fund raised its 2010 growth forecast for Japan to 2.4 per cent from 1.9 per cent and for India to 9.4 per cent from 8.8 per cent. The estimate of the Asia region's growth rose to 7.5 per cent from seven per cent.
However, it warned that weakness in Europe "would affect Asia through both trade and financial channels."
Weak data from major economies in recent weeks have diminished confidence in a strong rebound from last year's recession.
The fund's forecast for 2011 growth was unchanged at 4.3 per cent, a decline from this year's rate.
In a move that might fuel concern the recovery is fading, the fund lowered its 2011 growth forecast for Japan from two per cent to 1.8 per cent and for Britain to 2.1 per centfrom 2.5 per cent.
In Europe, the IMF said governments must resolve uncertainty about banks' exposure to sovereign debt and other risks and make sure lenders have enough capital and markets have adequate liquidity.
It said many advanced economies urgently need to push ahead financial reforms including recapitalizing banks, restructuring and consolidating banking industries and overhauling regulation.
"In the absence of complete banking sector recapitalization and restructuring, the flow of credit to the economy will continue to be impaired," the IMF said.
BMO's 5 year 2.99% Mortgage Offering
To contact us Click HERE
On first glance this looks like a great deal. 2.99% for a 5 year mortgage- the lowest 5 year rate ever.
However a closer analysis offers some of the points to be aware of.
Consider:
This is a two-week promo (at the moment) valid until JANUARY 25TH.
There are conditions to their offer. The main terms of BMO's special are as follows:
Maximum Amortization: 25 years
Rate Hold: Up to 90 days
Pre-Approvals: Allowed
Lump-sum Pre-payments: 10% maximum per year (1/2 of the 20% that BMO normally allows)
Optional Payment increase: 10% maximum per year (again, 1/2 of the 20% that BMO normally allows)
Term: Fully closed unless you sell the property, refinance (with BMO only), or early renew into another BMO mortgage.
BMO Mortgage Cash Account: Not available with the Low-Rate
BMO Skip-a-Payment: Not available with the Low-Rate
BMO ReadiLine: Not available with the Low-Rate
Other Details: Not applicable to non-owner occupied rental properties
Most importantly, the client is tied to BMO for the entire 5 year term of their mortgage, even if they want to break it and pay a penalty, they are forced to stay with BMO at whatever rate BMO offers. Client loses negotiating power.
This rate and mortgage is great if you plan to live in the house for many years and will not need to refinace during the term.
However a closer analysis offers some of the points to be aware of.
Consider:
This is a two-week promo (at the moment) valid until JANUARY 25TH.
There are conditions to their offer. The main terms of BMO's special are as follows:
Maximum Amortization: 25 years
Rate Hold: Up to 90 days
Pre-Approvals: Allowed
Lump-sum Pre-payments: 10% maximum per year (1/2 of the 20% that BMO normally allows)
Optional Payment increase: 10% maximum per year (again, 1/2 of the 20% that BMO normally allows)
Term: Fully closed unless you sell the property, refinance (with BMO only), or early renew into another BMO mortgage.
BMO Mortgage Cash Account: Not available with the Low-Rate
BMO Skip-a-Payment: Not available with the Low-Rate
BMO ReadiLine: Not available with the Low-Rate
Other Details: Not applicable to non-owner occupied rental properties
Most importantly, the client is tied to BMO for the entire 5 year term of their mortgage, even if they want to break it and pay a penalty, they are forced to stay with BMO at whatever rate BMO offers. Client loses negotiating power.
This rate and mortgage is great if you plan to live in the house for many years and will not need to refinace during the term.
CAAMP'S VIEW ON TODAY's MORTGAGE ISSUES
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BASED ON OUR RESEARCH AND KNOWLEDGE OF THE SECTOR, WE SEE NO REASON TO TIGHTEN OR RESTRICT ACCESS TO RESIDENTIAL MORTGAGES AT THIS TIME1. CURRENT ENVIRONMENT Canada has a well-earned reputation for exercising economic prudence. As a result, we have managed to avoid a mortgage or housing market meltdown. Our banks are stable and our economy, while impacted by the general global economic slowdown, remains healthier than most. CAAMP’s extensive industry research indicates that the Canadian mortgage industry is healthy. We must continue to “stress test” our own financial sector to determine how it would withstand potential weakening of the economy. The more educated we are about the debt we incur (mortgages, credit cards, lines of credit), the better off we will be2. FEDERAL GOVERNMENT ACTIONS TAKEN The federal government responded promptly when it was determined changes were needed in the mortgage market. There have been three significant sets of changes in the past 36 months: - Amortization periods shortened to 30 years from 35 and 40 years - Minimum down payment increased to 5 per cent of purchase price. No 100% LTV mortgages - Homeowners refinancing their mortgage may borrow up to 85 per cent of the equity in their home; down from 90% and 95% - These changes have impacted the mortgage market; re-financings have decreased dramatically and mortgage credit growth has slowed Based on our extensive research and knowledge of the sector, we see no reason to further tighten or restrict access to mortgages at this time3. REASONS FOR CURRENT CONCERN1) Housing Market Prolonged low interest rates are making it more attractive to purchase a home Research shows that the vast majority of homeowners can accommodate rate increases (84 per cent surveyed in CAAMP’s fall 2011 research said they could handle a $200/month increase) CAAMP’s fall 2011 survey indicates mortgage borrowers are prudent, increasing their lump sum payments and paying down their mortgage faster than required Supply and demand drive housing prices – provinces and municipalities should be more aware of their land-use policies and how they impact housing supply2) Media Focus on Insurance Ceiling - Changes in Some Banks’ Lending Practices It is a fact that CMHC is approaching its $600 billion government-imposed limit on mortgage default insurance. Private insurers have a $300 billion limit. This has nothing to do with mortgage insurers being responsible for an increasing number of higher risk mortgages Lenders are buying portfolio insurance against defaults on low risk mortgages - cases where homeowners have more than 20 per cent equity in their homes. These are not high risk mortgages. CMHC is approaching its limit because the number of mortgage holders has grown, the population and housing units have increased and lenders have been insuring low risk mortgages, leveraging the government’s triple A credit rating for other bank business Residential mortgage credit in Canada continues to expand. During the past five years, outstanding residential mortgage credit has expanded by 53%, or an average rate of 8.9% per year. The growth rate is slowing The volume of outstanding residential mortgage credit passed the $1 trillion threshold in July 2010, and as of August 2011, it reached $1.079 trillion Increased homeownership results in an increase in mortgage default insurance However, mortgage defaults are rare. CMHC reported it paid out $454 million in the first nine months of 2011 which represents a 0.42 per cent default rate Overall mortgage arrears rates in Canada are declining and never approached the level of the early 1990s. The housing market in Canada is growing organically and safely There is no parallel in Canada to the subprime default problems that plagued the US market3. FURTHER RESTRICTIONS ON ACCESS TO MORTGAGESWho will be affected? Self-employed borrowers who represent a growing portion of our labour force (currently 2.67 million people, or 15% of employment in Canada) New Canadians who can afford a down payment but have yet to build credit and employment history First time homebuyers who want to enter the homeownership market and build equity These are not the people who fall in to a sub-prime loan category like we saw in the US; yet these changes will impact them The housing industry is an engine of growth in Canada. If we impede its growth, we will add to unemployment and depress the economy If fewer mortgage lenders are able to insure their loans simply because the insurance program has not kept pace with the growth in the mortgage market, then consumers will have less choice when it comes to negotiating a mortgage. Less choice, or less competition, will inevitably lead to higher borrowing costs for the Canadian consumer Likewise, if mortgage brokers are restricted in the mortgage products they can offer, consumer choice will be diminished and costs will increase This reduced access to capital will make it more difficult for people who can legitimately afford to buy a home4)What are the Risks of Further Restricting Access to Mortgages?CAAMP has one of the most comprehensive collections of research on the mortgage industry. It includes original data on borrowers and the characteristics of mortgage loans. This research has revealed repeatedly that borrowers and lenders in Canada have been prudent, and only a very small share of borrowers would have trouble affording future rises in mortgage rates.There are risks, but most are related to the broader economy through two channels:UnemploymentThe broader economic data suggests that the Canadian economy is slowing. If that results in job losses, the housing market would be negatively affected, and there would be impacts on mortgages held by people who lose jobs and then struggle to make payments.Declining Housing PricesHousing prices could decline in a weaker market. In a recession, there is the threat of a downward spiral: a weak economy harming the housing market which negatively affects the broader economy. We believe and trust that the federal government will act to mitigate such a negative scenario.These risks have nothing to do with mortgage products themselves.Risks to the Canadian mortgage market are dependent on the performance of the broader economy. In that light, the best means to control mortgage market risk is through strong economic management. In particular, care must be taken not to take any measures in the mortgage market that unnecessarily reduce housing activity that would be damaging to the economy.
VIEWS ON BANK of MONTREAL'S 5 YEAR RATE
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A good explainatory article by Robert McLister of Canadian Mortgage Trends explaining the pros and cons of Bank of Montreal's just announced 5 year 2.99% rate:BMO Cranks Up the Heat AgainBMO is dead-set on winning mind share among consumers.It's coming back to the market with two new deep-discount rate promos: A 5-year fixed at 2.99% (which starts Thursday, March 8, 2012) A 10-year fixed at 3.99% (which starts Sunday, March 11, 2012) Both of these specials are low-frills, meaning: A Lower Maximum Amortization: 25 years versus 30-40 years elsewhere Less Lump-sum Pre-payment Ability: 10% maximum per year (i.e., 1/2 of the 20% that BMO normally allows) A Smaller Payment Increase Option: Up to 10%, once per year (again, 1/2 of the 20% that BMO normally allows) A Locked Term: The Low-rate Mortgage is fully closed unless you sell the property, refinance (with BMO only), or early renew into another BMO mortgage. In other words, unless you sell, you're not leaving BMO for 5 years, like it or not. Both the 5-year and 10-year promos run for 3 weeks, until March 28, 2012.We've heard talk that TD and RBC will not match BMO's pricing on the 5-year term. We'll see. The last time BMO ran this special, its competitors quickly responded with 4-year rates of 2.99%. Despite the one less year, those competing offers came with all the normal bells and whistles.Unfortunately for competitors, a 2.99% five-year rate makes more headlines than a four-year promo at the same price, and BMO knows it. This deal has garnered almost a dozen major media stories already, and the press release only came out four hours ago.As for BMO's 10-year deal, it is 146 basis points below the nearest Big 6 bank competitors' advertised rates. It is BMO's lowest 10-year rate ever, and it matches ING's current 3.99% offer. (ING was the first bank in Canada to advertise 10-year rates below 4.00%.)With these rates, BMO is starting to make other big banks look increasingly silly. CIBC, National Bank, RBC, and TD are currently promoting 5-year "special offer" rates of 4.04%. That's 105 basis points above BMO (albeit with more flexibility). Those rates border on ridiculous, and they insult the intelligence of increasingly savvy consumers who know that well-qualified borrowers rarely pay anything close to those rates.Yes, we say that knowing that BMO's Low-rate mortgage is highly restrictive and not suitable for most.It is, however, suitable for some. The target market includes many: First-time buyers Rental property owners Owners of 2nd homes The customer should have no foreseeable need to break, increase or aggressively prepay his/her mortgage for five years.In posting more transparent rates than its peers, BMO is taking a page from brokers and smaller rivals. In doing so, it's building credibility with consumers at its competitors' expense.Frank Techar, BMO's Canadian banking head, tells Bloomberg: "The reaction to our January offer was fantastic." With a mortgage market that BMO CEO William Downe admits is "slowing," 2.99% is a big fat worm on a hook. It is bait that gets BMO's phones ringing.It also gives BMO's sales force a chance to upsell people into higher margin mortgages without all the restrictions of BMO's Low-rate product. (There's a lot of that going on, according to the BMO mortgage specialists we've talked to.)With this rate sale, BMO is certain to take flak for fuelling consumer borrowing at a time when high debt levels are worrying policymakers.To that end, Techar maintains that BMO is not fuelling the fire. He tells the Financial Post that these rates "are consistent with the debate around the need to reduce consumer debt levels."In an interview with Reuters, he said: "People are not going to stretch to get the largest mortgage they can with a 25-year amortization product. Because the monthly payments are higher, they...will go to a 30-year amortization product." (He's right.)Downe recently said this to analysts about BMO's Low-rate Mortgage:"We think that's a product that is good for Canadians; it's good for Canada; it's good for our customers, and we intend to continue to promote it in this environment.It's a product that we believe addresses all of the risks that are currently being debated, whether or not the consumer debt levels that are too high in Canada and a possible fallout from economic slowdown and rising interest rates. It helps our customers pay less interest. It mitigates their interest rate risk for five years. It helps them retire debt free by paying off their balance faster, and it works against market price appreciation. In fact, it helps with...house price appreciation, because the shorter amortization reduces the maximum purchase price people can afford."Being a 5-year fixed, this product does mitigate some risk. A 200 basis point rate increase by 2017 would only lift payments $133/month on the average Canadian mortgage of $151,000.As for rumours that policymakers are ticked off by BMO's pricing, the last time anyone looked, it's still a free market. BMO can price as it sees fit within regulations. As long as underwriting standards remain high, God bless it for bringing down rates industry-wide.Even if rates like 2.99% do spur more interest in mortgages, it doesn't mean lenders will approve high-risk borrowers. BMO's average loan-to-value (LTV) is just 60%. More notably, BMO's residential mortgage portfolio has a long-run loss rate of less than 2 basis points (i.e., exceptionally low).Barring a run-up in bond yields, we could now start seeing competitors (like mortgage brokers) respond with full-frills 5-year offers that are just a pittance above BMO's rate. Some might even match or beat it.We'd strongly encourage most folks to consider paying a bit more to avoid the low-rate mortgage restrictions—especially if the premium is small (0.05%-0.10%) and especially if you can benefit from the service and extras that come with a standard mortgage.Side Note: Here are a few more details about BMO's Low-rate Mortgage: Rate Hold: Up to 90 days Pre-Approvals?: Yes BMO Mortgage Cash Account: Not available with the Low-Rate mortgage BMO Skip-a-Payment: Not available with the Low-Rate mortgage BMO ReadiLine: Not available with the Low-Rate mortgage Rentals Allowed? Yes 2nd Homes Allowed? Yes
26 Kasım 2012 Pazartesi
Children's art amount
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Happy spring. At the office we are busy meeting personal clients, completing corporate year ends and excited for yet another personal tax season. It's nice to see everyone this time of year and do a little catching up.
With the 2011 personal tax season here, there are some additional credits available in 2011. Probably the most common credit will be the children's art amount.
All the details can be found by following this link: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns360-390/370/menu-eng.html
For clarification or just to arrange a personal tax meeting please get in touch with us.
Have a great week
With the 2011 personal tax season here, there are some additional credits available in 2011. Probably the most common credit will be the children's art amount.
All the details can be found by following this link: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns360-390/370/menu-eng.html
For clarification or just to arrange a personal tax meeting please get in touch with us.
Have a great week
CANADA'S ECONOMY OUTPACING THE US
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IMF says Canada will likely outperform this year, sees slower growth in 2011
Thu Jul 8, 9:57 AM
Joe Mcdonald, The Associated Press
Email StoryIM StoryPrintable View.By Joe Mcdonald, The Associated Press
BEIJING, China - Canada's economy is on track to grow more quickly this year than previously expected, putting it ahead of the United States and most other advanced economies, according to new estimates from International Monetary Fund.
The IMF said Thursday it's raising the 2010 growth forecast for Canada to 3.6 per cent from its previous estimate of 3.1 per cent, issued in April.
The IMF's July report also raised its U.S. growth estimate to 3.3 per cent, up from 3.1 per cent and its world estimate to 4.6 per cent from 4.2 per cent.
Asian countries with rapidly maturing economies will grow more quickly than the United States, Japan and European countries that have historically been more advanced.
China's growth for this year, for instance, is now projected at 10.5 per cent, up five percentage points, while the IMF expects India's economy will advance 9.4 per cent this year (up six percentage points from the April projection.)
Next year isn't looking so rosey for Canada, however.
The IMF has lowered its projection for 2011 growth by four percentage points to 2.8 per cent. Also notable was a reduction in the IMF's 2011 projection for China, which has been reduced by three percentage points from April's.
In contrast, the U.S. growth projection for next year was raised by three percentage points to 2.9 per cent, slightly ahead of Canada, while the world outlook for 2011 was raised by eight percentage points to 4.3 per cent.
The IMF, a Washington-based multnational organization affiliated with the United Nations and the World Bank, said Europe's debt crisis might stall the global rebound and governments need to shore up shaky public confidence.
Its quarterly World Economic Outlook warned that "risks have risen sharply" and Europe has to quickly resolve debt problems and restore confidence in its banks.
Europe's problems "could spill over to other regions and stall the global recovery," said Jose Vinals, director of the fund's monetary and capital markets department, at a news conference in Hong Kong.
"Further credible and decisive policy action is needed to resume progress on financial stability and keep the economic recovery on track," Vinals said.
Risks so far are limited to financial markets and activity in other fields stabilized at a high level in May, the IMF said. It said industrial output and trade grew by double digits and there was a modest but steady recovery in developed economies and strong growth in emerging nations.
"The numbers for economic activity have come in strong — in fact, stronger than we have forecast," said Olivier Blanchard, director of the IMF's research department.
The fund raised this year's U.S. growth forecast from 2.7 per cent to 3.3 per cent. The outlook for Germany and other European nations that use the euro common currency was unchanged at 1 per cent.
A global "double dip," or relapse into recession, is "very unlikely," Blanchard said.
Asian economies recovered strongly this year, driven by buoyant exports and stronger domestic demand, the IMF said.
The fund raised its 2010 growth forecast for Japan to 2.4 per cent from 1.9 per cent and for India to 9.4 per cent from 8.8 per cent. The estimate of the Asia region's growth rose to 7.5 per cent from seven per cent.
However, it warned that weakness in Europe "would affect Asia through both trade and financial channels."
Weak data from major economies in recent weeks have diminished confidence in a strong rebound from last year's recession.
The fund's forecast for 2011 growth was unchanged at 4.3 per cent, a decline from this year's rate.
In a move that might fuel concern the recovery is fading, the fund lowered its 2011 growth forecast for Japan from two per cent to 1.8 per cent and for Britain to 2.1 per centfrom 2.5 per cent.
In Europe, the IMF said governments must resolve uncertainty about banks' exposure to sovereign debt and other risks and make sure lenders have enough capital and markets have adequate liquidity.
It said many advanced economies urgently need to push ahead financial reforms including recapitalizing banks, restructuring and consolidating banking industries and overhauling regulation.
"In the absence of complete banking sector recapitalization and restructuring, the flow of credit to the economy will continue to be impaired," the IMF said.
Thu Jul 8, 9:57 AM
Joe Mcdonald, The Associated Press
Email StoryIM StoryPrintable View.By Joe Mcdonald, The Associated Press
BEIJING, China - Canada's economy is on track to grow more quickly this year than previously expected, putting it ahead of the United States and most other advanced economies, according to new estimates from International Monetary Fund.
The IMF said Thursday it's raising the 2010 growth forecast for Canada to 3.6 per cent from its previous estimate of 3.1 per cent, issued in April.
The IMF's July report also raised its U.S. growth estimate to 3.3 per cent, up from 3.1 per cent and its world estimate to 4.6 per cent from 4.2 per cent.
Asian countries with rapidly maturing economies will grow more quickly than the United States, Japan and European countries that have historically been more advanced.
China's growth for this year, for instance, is now projected at 10.5 per cent, up five percentage points, while the IMF expects India's economy will advance 9.4 per cent this year (up six percentage points from the April projection.)
Next year isn't looking so rosey for Canada, however.
The IMF has lowered its projection for 2011 growth by four percentage points to 2.8 per cent. Also notable was a reduction in the IMF's 2011 projection for China, which has been reduced by three percentage points from April's.
In contrast, the U.S. growth projection for next year was raised by three percentage points to 2.9 per cent, slightly ahead of Canada, while the world outlook for 2011 was raised by eight percentage points to 4.3 per cent.
The IMF, a Washington-based multnational organization affiliated with the United Nations and the World Bank, said Europe's debt crisis might stall the global rebound and governments need to shore up shaky public confidence.
Its quarterly World Economic Outlook warned that "risks have risen sharply" and Europe has to quickly resolve debt problems and restore confidence in its banks.
Europe's problems "could spill over to other regions and stall the global recovery," said Jose Vinals, director of the fund's monetary and capital markets department, at a news conference in Hong Kong.
"Further credible and decisive policy action is needed to resume progress on financial stability and keep the economic recovery on track," Vinals said.
Risks so far are limited to financial markets and activity in other fields stabilized at a high level in May, the IMF said. It said industrial output and trade grew by double digits and there was a modest but steady recovery in developed economies and strong growth in emerging nations.
"The numbers for economic activity have come in strong — in fact, stronger than we have forecast," said Olivier Blanchard, director of the IMF's research department.
The fund raised this year's U.S. growth forecast from 2.7 per cent to 3.3 per cent. The outlook for Germany and other European nations that use the euro common currency was unchanged at 1 per cent.
A global "double dip," or relapse into recession, is "very unlikely," Blanchard said.
Asian economies recovered strongly this year, driven by buoyant exports and stronger domestic demand, the IMF said.
The fund raised its 2010 growth forecast for Japan to 2.4 per cent from 1.9 per cent and for India to 9.4 per cent from 8.8 per cent. The estimate of the Asia region's growth rose to 7.5 per cent from seven per cent.
However, it warned that weakness in Europe "would affect Asia through both trade and financial channels."
Weak data from major economies in recent weeks have diminished confidence in a strong rebound from last year's recession.
The fund's forecast for 2011 growth was unchanged at 4.3 per cent, a decline from this year's rate.
In a move that might fuel concern the recovery is fading, the fund lowered its 2011 growth forecast for Japan from two per cent to 1.8 per cent and for Britain to 2.1 per centfrom 2.5 per cent.
In Europe, the IMF said governments must resolve uncertainty about banks' exposure to sovereign debt and other risks and make sure lenders have enough capital and markets have adequate liquidity.
It said many advanced economies urgently need to push ahead financial reforms including recapitalizing banks, restructuring and consolidating banking industries and overhauling regulation.
"In the absence of complete banking sector recapitalization and restructuring, the flow of credit to the economy will continue to be impaired," the IMF said.
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