Canada is Now #1 In the World

[bdub]

They all appear to have the same problems with spending our money.

Sure are starting to hear a lot of talk by governments and central banks on introducing digital currencies. When that process is complete comes there will be no place to hide assets. They will be able to confiscate and tax at will and leave most of us with just enough to get by on.

[IronNoggin]

Liberals face probe into pandemic response after losing House vote

Opposition parties won their bid Monday to launch a probe of the Liberals' handling of the COVID-19 pandemic following a week of parliamentary turbulence over how to review their management of the crisis.

MPs from all four opposition parties voted to pass a motion that orders the Trudeau government to turn over to the House of Commons health committee all records on a raft of issues related to the coronavirus response.

The more recent motion zooms out from the WE controversy to focus more broadly on Ottawa's reaction to COVID-19, but the probe can still examine documents tied to the embattled charity.

https://www.halifaxtoday.ca/national...e-vote-2821898

[Positrac]

Originally Posted by KegRiver

I would ask Mr T who is going to pay for that debt. Will it be him and his cabinet, or will the people pay for it through taxes.

Who do you think will ultimately pay for it...?

[RandyBoBandy]

Originally Posted by zabbo

I read a comment the other day, think it was on here somewhere;

It's funny how so many Canadians are so quick to jump all over the Donald and American politics in general, yet they stand idly by and say absolutely nothing at all while the turd destroys Canada.

[oldgutpile]

I heard years back that Trudeau senior put a clause in place enabling the gov't to dip into personal RRSP's to bail out the country if such a need existed.
If Junior gets re-elected, I predict he will declare such an emergency. He needs to continue to find ways to line his conspirators pockets.

[KinAlberta]

After the global financial crisis various countries brought in back-in / bail-in laws/regs. so that shareholders and possibly depositors would have to pay the price of bailing out banks. Gets government/taxpayers off the hook.




Found this:

How bail-in works - cdic.ca

https://www.cdic.ca/what-happens-in-...bail-in-works/

Why Bank Bail-Ins Will Be the New Bailouts

Heeding the public's displeasure over the use of their tax dollars in such a way, Congress passed the Dodd-Frank Wall Street Reform and Consumer Act of January 2010, which eliminated the option of bank bailouts but opened the door for bank bail-ins. ...”

“ With a bank bail-in, the bank uses the money of its unsecured creditors, including depositors and bondholders, to restructure their capital so it can stay afloat. In effect, the bank is allowed to convert its debt into equity for the purpose of increasing its capital requirements. A bank can undergo a bail-in quickly through a resolution proceeding, which provides immediate relief to the bank. The obvious risk to bank depositors is the possibility of losing a portion of their deposits. However, ...”

https://www.investopedia.com/article...w-bailouts.asp

It Can Happen Here: The Confiscation Scheme Planned for US and UK Depositors | HuffPost

https://m.huffpost.com/us/entry/us_2957937

[IronNoggin]

Trudeau Liberals spending Canada into a massive hole

Canadians who have a hunch — because a hunch is all they’ve got to work with — that the Trudeau Liberals have been spending like spoiled, entitled legislators with no real idea how many billions they’ve sent out the door are unfortunately dead on.

The Trudeau Liberals’ spending is off the charts.

The International Monetary Fund (IMF) recently released its semi-annual Fiscal Monitor report which projected bigger deficits for all countries as 2020 draws to a close.

But spendthrift Canada outdid itself. It led the way.

It won the dubious recognition of running the largest deficit in the entire world, beating out all countries — large and small, advanced or Third World — with a whopping 19.9% of GDP.

This almost doubles the average deficit of European Union countries, and beats out the United States that had the second-highest deficit forecasted to come in at 18.7% of GDP.

Worse, before the year comes to an end, Canada— via all levels of the Trudeau Liberals’ government— is projected to hit 57.3% of GDP.
This is more than any time in our history, and that includes the funding of two world wars from scratch, much like is happening today by the Liberals throwing multi-billions without an articulated rhyme or reason at the COVID-19 pandemic’s impacts on our economy.

https://torontosun.com/opinion/colum...a-massive-hole

[Cageyc]

Something to brag about, NOT!!!!.

The useless ones gotta go.

[IronNoggin]

Liberals’ plan to replace fossil fuel with wind and solar is technically impossible and economically disastrous

Trying to solve any problem with a fix that defies the laws of physics is bound to fail.

https://financialpost.com/opinion/gw...lly-disastrous

[Sundog57]

In 1887 Alexander Tyler, a Scottish history professor at the University of Edinburgh, had this to say about the fall of the Athenian Republic some 2,000 years prior:

"A democracy is always temporary in nature; it simply cannot exist as a permanent form of government. A democracy will continue to exist up until the time that voters discover that they can vote themselves generous gifts from the public treasury. From that moment on, the majority always votes for the candidates who promise the most benefits from the public treasury, with the result that every democracy will finally collapse over loose fiscal policy, (which is) always followed by a Dictatorship."

[Sundog57]

I am also very sceptical about wind and solar for all of the usual reasons
I did read an extremely interesting article the other day on geothermal power - not heat pump power, but scaled up, real geothermal.
There is a huge amount of expertise in western Canada for drilling HPHT wells as well a similarly huge amount of idle equipment.
These guys in SK are having a go at it. https://deepcorp.ca/about-deep/
All along the Eastern Slope, Alberta has an immense resource that is simply waiting for someone to step up. This is a space in which the Alberta government could really have an impact - imagine if some of the $ spent on the Keystone or the Transmountain had been targeted at this...

[Positrac]

Originally Posted by Sundog57

In 1887 Alexander Tyler, a Scottish history professor at the University of Edinburgh, had this to say about the fall of the Athenian Republic some 2,000 years prior:

"A democracy is always temporary in nature; it simply cannot exist as a permanent form of government. A democracy will continue to exist up until the time that voters discover that they can vote themselves generous gifts from the public treasury. From that moment on, the majority always votes for the candidates who promise the most benefits from the public treasury, with the result that every democracy will finally collapse over loose fiscal policy, (which is) always followed by a Dictatorship."

So, which one are we in? It’s feeling a bit like a Dictatorship...

[saskbooknut]

Unfortunately, the Alexander Tyler quote is a fraud, which you will find on Snopes.com

[Sundog57]

Originally Posted by saskbooknut

Unfortunately, the Alexander Tyler quote is a fraud, which you will find on Snopes.com

Also from Snopes
The “Alexander Tyler” quoted at the head of the article is actually Lord Woodhouselee, Alexander Fraser Tytler

The mis-attribution of the quote does not make it any less valid/interesting

[KinAlberta]

So based on that quote are we supposed to believe that all our predecessors were idiots? That they didn't know where the money was coming from?


Here’s a summary of the debt side:
(The pandemic of course has changed everything.)

25 Countries with the Most Debt Per Capita and Debt to GDP: 2020 Rankings

“ I will also list each country’s total debt, total debt per capita, and total debt to GDP ratios so that you can find country with the highest debt or highest debt per person. We used IMF’s October 2019 World Economic Outlook Update for our data. We excluded economies that are smaller than $25 billion in GDP from our list. We should also note that Debt/GDP ratios increased by 20-33% for most countries because of pandemic induced contraction in GDPs and fiscal stimulus measures taken to counter the economic effects of the pandemic.

Initially we will share the statistics for the major economies that weren't among our top 25 list and then we will list the statistics for the top 25 countries that have more serious debt problems:

84. Australia

Debt (Billions): $574.71 Debt Per Person ($): $22,476.85 2019 Gross Debt/GDP (%): 41.76

77. China

Debt (Billions): $7,857.26 Debt Per Person ($): $5,611.64 2019 Gross Debt/GDP (%): 55.57

75. Germany

Debt (Billions): $2,263.03 Debt Per Person ($): $27,275.79 2019 Gross Debt/GDP (%): 58.58

56. United Kingdom

Debt (Billions): $2,347.25 Debt Per Person ($): $35,103.00 2019 Gross Debt/GDP (%): 85.55

54. Canada

Debt (Billions): $1,514.38 Debt Per Person ($): $40,431.62 2019 Gross Debt/GDP (%): 87.49

48. France

Debt (Billions): $2,688.37 Debt Per Person ($): $41,472.04 2019 Gross Debt/GDP (%): 99.31

39. United States

Debt (Billions): $22,773.20 Debt Per Person ($): $69,162.19 2019 Gross Debt/GDP (%): 106.22

25. Israel

....

https://finance.yahoo.com/news/25-co...000637020.html

Bolding mine

[bdub]

Originally Posted by KinAlberta

Here’s a summary of the debt side:
(The pandemic of course has changed everything.)

Those numbers say we are in for sub par growth for a long time. We are all going to be worse off in real terms in ten years than we are today. Lower wages, lower disposable income. Yeah we’re screwed lol.

[KinAlberta]

Probably.

Ever more people competing for relatively fewer jobs I’d say is the bigger driver of any decline in living standards. (automation, onlining of everything is a huge threat to jobs unless it continually offers more for less through innovation. You can’t keep destroying more environment to support an ever larger population or you will hit various walls that lower not raise standards of living. )

Inflation though can wipe out the ill effects of debt on borrowers. Screws the over lenders.

Moreover any debt borrowed domestically has the potential to just re-circulate within the domestic economy.

So if you owned GofC bonds the interest you earned would likely just flow right back into the economy. Canadian pension, endowment, mutual and other domestic funds that are partly financing the growth in government debt will collect the interest and pay it into the economy.

[bdub]

Lacy Hunt has some good reading on high debt levels and where we are headed. His quarterly reports are really interesting.

Not dismissing the effects of automation etc on demand for specific types of labour. I don’t think it is the driver of declining real incomes that excessive debt is. High debt results in more people competing for fewer jobs via the lack of investment in productive assets to employ said people. The adverse effects of high debt to gdp become more severe as the ratio grows past 60% according to Hunt.

https://hoisingtonmgt.com.

[KinAlberta]

Originally Posted by bdub

Lacy Hunt has some good reading on high debt levels and where we are headed. His quarterly reports are really interesting.

Not dismissing the effects of automation etc on demand for specific types of labour. I don’t think it is the driver of declining real incomes that excessive debt is. High debt results in more people competing for fewer jobs via the lack of investment in productive assets to employ said people. The adverse effects of high debt to gdp become more severe as the ratio grows past 60% according to Hunt.

https://hoisingtonmgt.com.

Since businesses compete for capital it will be a relative issue. If all nations increase debt then investors will adjust expectations accordingly. Extremely low rates allow a much larger massing of debt. The double digit rates of the 1980s imposed immediate consequences on the high debts.

That said, the big risk is if when when the debt must be rolled. All eyes need to be on any need for reoccurring renewals of existing debt like a mortgage holder renewing a mortgage at the end of a term or a business relying on debt financing to continue operations. Using government debt for program spending or reoccurring capital needs is rather insane.

[KinAlberta]

One to read:

Canada is having a much better crisis than the U.S., though some fret about debt and deficits

https://financialpost.com/news/econo...t-and-deficits