The latest G20 Summit is scheduled to take place in Toronto June 26–27, 2010. The event is being held at the Toronto Convention Centre—adjacent the CN Tower and the Rogers Center, home of the Toronto Blue Jays baseball team—in the city’s downtown core.
Toronto Convention Centre
Perhaps it's just a sign of our economic times, but it seems that the G20 meets with much more frequency these days. Gone are the days when this illustrious group met only once a year. Nowadays, these confabs are held with such increasing regularity that the "perceived need to meet" in and unto itself sends a mixed message of cooperation/unity and that of desperation in that so much in our global economy needs fixing.
Over the past couple of months in the run up to the summit Toronto residents have been repeatedly "conditioned" by the media to expect both protests and violence.
In response to these expectations the security bill has already surpassed 1.2 billion. To put that into perspective:
- the March 2009 London G20 Summit security costs were approximately 20.6 million pounds
- the fall 2009 Summit in Pittsburg had security costs of approximately 18 million
Yet, we’re all relentlessly reminded that there is no inflation.
Disruptions Abound
One might think that an expenditure of 1.2 billion would have positive economic spin-offs or consequences for the local economy, but this is not so:
- What was supposed to be 3 game weekend "home series" for the Toronto Blue Jays baseball team [against the Philadelphia] was shifted to Philadelphia.
- The Ontario Legislature [Queens Park], located in close proximity to the Toronto Convention Centre, is being shuttered on Friday, June 25.
- A portion of University of Toronto’s campus will be shuttered from June 21 to 27 due to its proximity to the Queen’s Park designated protest area.
- Toronto’s theatre district is also in close proximity to the Convention Centre. Productions of Rock of Ages and Mamma Mia! will be cancelled for a week because of the G20 summit.
- The CN Tower will close its doors for the entire weekend of the summit.
- The City of Toronto will remove 1000 pieces of street furniture [bus shelters, newspaper boxes, trash cans and street vendors] around the G20 security perimeter.
- Manhole covers in security perimeter to be welded shut.
- Law firms headquartered downtown are making plans such as booking hotel rooms for crucial "deal teams" who are working on time-sensitive negotiations that can't stop for protests. Financial behemoths such as Royal Bank of Canada and Bank of Montreal are prepared to move hundreds of their traders to secret backup locations scattered around Toronto, where full trading floors are ready and waiting for just such an evacuation.
- VIA Rail Canada announced that trains will not reach Union Station between June 24 and 27, but will instead turn around at suburban stations in Oshawa, Brampton and Oakville.
While Toronto is going to be playing host to 20,000ish delegates and foreign journalists over the course of the Summit, exactly how much of the city any of them are going to get to see and/or report on is a good question.
That such extreme measures are being taken with such increasing regularity speak volumes about the precarious nature of our debt based global financial system. Such an environment continues to make precious metals a must for the preservation of wealth.
Today’s Market
Overseas equity markets began the week on a sour note with Japan’s Nikkei Index losing 380 points to close at 9,520. North American markets stumbled as well with the DOW off 115.40 to 9,816.60, the NASDAQ losing 45.27 to 2,173.90 and the S & P giving up 14.45 to 1,050.45. NYMEX crude oil futures lost .47 to finish the day at 71.04 per barrel.
On foreign exchange markets the U.S. Dollar Index added .16 to close at 88.42.
Benchmark interest rates, the 5 yr. government bond ended the day at 1.93% while the 10 yr. bond finished at 3.14%.
The precious metals complex advanced broadly with COMEX gold futures adding 23.10 to 1,244.10 while COMEX silver futures added .80 to 18.23. The XAU Index added 3.61 to 172.67 while the HUI Index gained 12.43 to 456.89.
Wishing you all a pleasant evening!
