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By Guest Blogger Ryan Lewenza
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Can someone explain this to me? I feel like I’m taking crazy pills as no one else seems concerned about the massive increase in government spending, our spiraling deficits and debt and the harm this could to our economy in the future.
I’m definitely slowly turning into my father, and I guess moving more to the ‘right’ as I fixate on these very progressive policies from this left-of-centre federal Liberal party. Today I’m obviously going to review the recent budget, the major program announcements and what it means for our government balance sheet, growth, taxes and who we are as a nation.
In the recent budget we saw much of the same that we’ve become accustomed from this current government with new policy announcements/programs, massive spending, and little focus on addressing our deficits and debt load (inflated GDP growth expectations in their budget numbers don’t really count for magically balancing the deficits in the future).
Our Minister of Finance and Deputy Prime Minister, Chyrstia Freeland, outlined in the 2022 federal budget that the government would introduce new spending of $56 billion across a number of new areas.
A few notable new or expanded programs include allocating $5.3 billion to a new dental program for low income Canadians, over $10 billion in various housing programs, and billons of new spending on spurring innovation. The new programs are too multitudinous to review in detail but essentially we’re talking about major increases in spending on new and existing programs that are putting us further in the hole and adding to our debt load.
In total, the government projects a deficit of $52 billion for 2022/23 and a deficit of $40 billion for 2023/24. When added to the $372 billion deficit for 2020/21 and the $113 billion for 2021/22, we’re talking about a cumulative deficit of $577 billion over a four year period. To put this into context, it took the current government four years to rack up the same amount of debt that it took previous governments to incur over a 50 year period!
Let’s dig a bit deeper by doing a lookback to see how we got to over a trillion dollars in Federal government debt.
I’ll say at the outset that both political parties have incurred deficits and added to our debt load but my analysis shows that most (over 50%) of our existing debt is largely due to one important Canadian political family. Of course I’m talking about the Trudeau’s.
Following the Great Depression and WWII, Canada’s Federal debt significantly increased to $11 billion by 1945. Debt continued to grow but at a more reasonable pace rising to $20 billion by 1970. Then it really started to ramp-up during the 1970s growing at 20% per year over a 12-year period. It broke the $100 billion mark in 1981 and $200 billion by 1985. This was during Pierre Trudeau’s time in office, which based on my numbers adds up to cumulative deficits of over $150 billion.
Once Trudeaumania faded Brian Mulroney took over the reins and while he was dealt a bad hand with the high inherited debt and interest rates, Mulroney and the Conservative government still racked up a number of years of deficits and added $300 billion in debt over his two terms.
After decades of deficits and our debt surging this is when the rubber hit the road, and our politicians finally found some religion and rationality. Jean Chretien and Paul Martin both worked diligently to address the deficits by cutting spending (yes they did offload some costs to the provinces) and getting us back to a balanced budget. I’ve repeatedly said Paul Martin was our greatest Minister of Finance as he made the tough decisions that we’re needed at the time and got our fiscal house in order.
Finally, Steven Harper took over and delivered a few years of surpluses before the Great Recession hit and the government racked up a few years of big deficits. Harper’s critics like to highlight these deficits but often fail to recognize: 1) that the Canadian/global economy experienced its deepest economic contraction in decades; and 2) there was an international coordination of G7 nations to increase government spending to help stimulate the global economy. Despite the large deficits over this period he was able to get us back to a balanced budget by the end of his time in office.
Justin Trudeau then took over and while initially promising surpluses we soon started racking up huge deficits as a result of the increased spending and Covid-19 programs, resulting in a total of $580 billion in deficits over the last few years.
Canadian Federal Government Debt Level
Source: Trading Economics
But wait you say, the US and every other country increased spending and recorded big deficits during Covid but, as I’ve covered in past blogs, we spent a lot more. And the programs were too broad, which lead to abuse by both individuals and companies.
So that’s how we get to $1.16 trillion in debt. Now here’s the rub.
Currently, the interest charges on our debt as a percentage of our overall government spending equates to roughly 8%. But this is when interest rates are at record low levels. If interest rates were to rise to say 5% then this same metric – interest expense as a percentage of government spending – would rise to 20%.
That’s an interesting statistic since this is the exact percentage that we hit in the 1990s and we had a full-blown fiscal crisis. This is what I’m afraid of! That we’ll repeat our mistakes from the past and leave ourselves saddled with high debt and potentially higher interest rates.
Now Justin Trudeau likes to say we’re making ‘investments’ with these new programs and higher spending but I’m sorry, providing free dental care or offering tax-free savings accounts for first-time homebuyers, while noble, doesn’t do much to stimulate economic growth and improve our long-term growth prospects. Investing in roads, improving ports, increasingly productivity, skills retraining and encouraging foreign investment does.
And what has all this spending and deficits done for economic growth? Not much!
Over the period that T2 and the Federal government racked up $580 billion in new deficits and debt, our economy has grown at a lackluster 2%, below our long-term average of 3%. Even if we exclude the Covid-19 recession our economy has still only grown at an average rate of 2.2% over Justin’s time in office.
In summary, all this spending has done little to spur economic growth, has racked up billions of dollars of deficits and debt leaving us vulnerable to rising interest rates, and likely will lead to higher taxes down the road.
So, can someone please explain to me why this is the right course of action and why no one else seems concerned about this path? I know I am.
Ryan Lewenza, CFA, CMT is a Partner and Portfolio Manager with Turner Investments, and a Senior Investment Advisor, Private Client Group, of Raymond James Ltd.
163 comments ↓
Until the rest of Canadians feel the economic pain of massive government overspending, it’s best to LQAtM. Sorry Ryan!
I’m definitely concerned as well. And we are stuck on this course until 2025. Even then, will we get to vote for someone who has a chance of winning that will change this destructive course the Liberals/ NDP have put us on? I fear things will have to get indescribably tough for the average Canadian before the majority wakes up. Buckle up!!!
Ryan,
You just let the hounds loose.
There will be carnage.
Thanks for this post Ryan.
Hopefully inflation will fix all our problems and make governments accountable to spending tax payers funds the right way and also keep surpluses for a rainy day. I can’t wait to see the coming financial tsunami wake people up to realize there is no free lunch and the ones we were getting from China and other countries is now coming to an end.
It’s a basic failure of democracy. People will vote for whoever promises the most. Trudeau and gang have taken it to a whole new level.
I’ve been arguing about the need to have balanced budgets for most of my life, no one wants to listen. Most of these folks I speak with are university educated, and can provide plenty of reasons that deficits apparently don’t matter. Keynesian this, Roosevelt that, it’s an investment, I deserve, I need, blah, blah, blah. Hopeless.
I’m definitely slowly turning into my father, and I guess moving more to the ‘right’ as I fixate on these very progressive policies…
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When I was 18 my father, unlike me, had no clue about anything. It was shocking to see how much smarter the old geezer became by the time I was 35.
I could have done without the photo of the non finance Finance Minister.
Ranks up there with Putin on the disagreeable scale.
Great topic to remind everyone how this govt of incompetent Wokesters has destroyed Canada.
Interest rates up. Canada’s debt up.
Thanks Trudeau.
Why isnt a balanced budget….the Law?
Why are politicians allowed to squander OUR tax dollars on their pet projects year after year after year with impunity.
It should be illegal and banned.
Charlie Munger about the dangers of money printing:
https://www.youtube.com/watch?v=uxpL4fhIEAg
13 minutes of pure wisdom.
We elected these drunken sailors did’nt we? By we I mean the non-readers who have never heard of this esteemed blog. I am sure most of the blog readers voted for the hapless opposition.
Ryan, great post. Thank you.
I knew we were in trouble when our future Dear Leader proclaimed that “the budget will balance itself” back in ~2015 before he was elected. The infatuation with his lovely hair amongst my female co-workers at the time (all of them accomplished, intelligent people) was also cause for worry.
The only thing that’s going to put an end to this incredible sense of entitlement that has been allowed to take root throughout our society is pain in the form of a massive recession and sky rocketing debt service costs, much like we had in the early to mid nineties.
Many will be schooled on the concept of “reversion to the mean” sometime in the future. Such is life.
I worry for our kids and their future but pain and failure remain great teachers. In the meantime, fiscally responsible liberal dinosaurs like myself will continue living quietly amongst the masses.
Thank you for all that you, Garth and the rest of the Turner team do. Your posts are my daily dose of angst but much needed sanity.
Great post, as always. I’m 100% for financial responsibility and keep Fed debt repayment on track. However as a pedestrian who often walks in downtown Toronto I must say I noticed more people now scramble thru recycle bins from buildings, even garbage bin on parks. Then I see what’s happening in other large US cities where number of homeless have dramatically increased. So, despite my responsible finance self doesn’t agree with reckless spending I wonder if the government had not spent all those trillions, how harder life be for the ordinary person finance illiterate.
Most people don’t care because they live paycheque-to-paycheque and have larger immediate challenges.
Considering the confluence of factors (fiscal, environmental, existential), there really is no recourse. I suspect those in power realize we are marching through the anthropocene with such haste that it really won’t matter in few decades anyway. May we live in interesting times (which is actually an ancient curse).
So, can someone please explain to me why this is the right course of action and why no one else seems concerned about this path? I know I am.
I can’t. This government seems hell-bent at destroying Canada.
DELETED
There’s nothing new under the sun. Everything that’s happening now has happened before (dilution of the Roman Denarius as one of many examples over history) and what’s happening now will eventually happen again in future eras when we are long gone. Same governments, same problems, same human nature will continue. People wearing ripped jeans today think they started something new but we were tearing up our jeans in the early 80’s. People wearing them today have no idea just like the people wearing ripped jeans in the future won’t have any idea it’s happened before. And so it goes.
I really am surprised that people are surprised that we have such high inflation. It was inevitable as soon as the printing scaled up when Covid hit.
I’m just as confused as you are Ryan.
Higher taxes for sure.
Tax the high earners more to make it look like they’re doing something about the debt when we all know there isn’t enough there to tax to really make a difference.
And furzt???………
TurnerNation, this Bud’s for you.
https://ca.finance.yahoo.com/news/twitter-bans-ads-contradict-science-092216217.html
Thank you for clearly and cogently articulating my matching concerns. As a seasoned financial professional (FCA and FCBV), I foresee a similarly dim future lacking investment and productivity growth. I encourage my children to consider a future outside of Canada, which is sad but true given our current trajectory.
#13 T on 04.23.22 at 11:12 am
Most people don’t care because they live paycheque-to-paycheque and have larger immediate challenges.
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Agreed!
All the younger couples I know are grappling with inflation.
“[it] took the current government four years to rack up the same amount of debt that it took previous governments to incur over a 50 year period!”
Your above statement has dramatic effect, but it doesn’t deserve serious rebuttal.
“So, can someone please explain to me why this is the right course of action and why no one else seems concerned about this path? I know I am”
This is the correct action. Right wing ideology hates it because of its blind spot and insatiable gluttony for self-centered materialism.
When government spending became politically unpalatable, even left leaning politicians knew it was expedient to endorse balanced budgets.
So, they shifted gears, reduced government spending, and let the monetarist take charge. The central bankers lowered interest rates below inflation, spurring private spending.
Now we have private debt equaling or surpassing GDP, asset inflation, misallocation of capital, and a bunch of indebted households who don’t have the power to tax their way out of the debt trap.
The current government had no choice but to act to avoid a depression, the consumer was tapped out given the inducement provided by the artificially low interest rates that have been in place for decades.
You right wingers made your bed- now sleep in it.
Morning Rhino, back in the summer of 2020, when I was a flourishing 46 year old, I wrote this post below.
Maybe in the 2022 version The Liberal’s need to start saying “Hiiiiyaaaaa” to the budget to chop it down to size.
I wouldn’t lose too much sleep over all this, as The Conservative’s are hard at work finding someone electable to govern from just the right side of centre.
Any day now, any day.
To go with party colours, The Liberals got rid of all the black and blue pens in Ottawa, that’s why there’s so much red ink…
M47BC
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#17 Flop… on 08.22.20 at 10:23 am
When I saw Chrystia throwing the tresses around the other day, I knew exactly who she reminded me of.
Miss Piggy had the same hair and swagger.
The only thing to work out is Kermit The Frog, Justin Trudeau, or is it Canada itself she is about to karate chop.
Hiiiiyaaaa…
M46BC
https://m.youtube.com/watch?v=qfJiPPsHJEQ
Thanks for the blog Garth
Thanks for the post Ryan
Yes I totally agree with you that this spending is crazy.
But who cares?
Hey Ryan don’t take this personally but you should read Garth’s blogs for the last ten years
Basically Canadians feel that house debt and other debt is the answer, so why would governments think differently?
And blaming T2 for the mess is silly you should blame the voters, but hey they love debt so we get what we sow.
I don’t have the figures but I believe you are right about rising internet rates will increase debt service charges but I think you are wrong in the percentage.
From what I read the federal government is issuing more debt in the 10 year and 30 year range which would indicate longer term lower debt costs? As interest rates rise?
I believe more analysis is need to calculate how much percent increase in rates equates to a percentage rise in debt service costs.
But your comment is well taken bottom line rising rates will force government to pay more in interest costs.
Perhaps that is Trudeau plan to put more of the NDP plans on the back burner by saying we cannot afford this? Because we need to service the debt
And you forgot defender spending going up as well
Who knows?
Have a great weekend.
“That’s an interesting statistic since this is the exact percentage that we hit in the 1990s and we had a full-blown fiscal crisis. This is what I’m afraid of!”
This might have a few of your clients calling in wanting to sell everything! :)
The recklessness with which our current government spends is terrifying. Trudeau is currently in the planning stages of building himself a palace (google “plans for new canadian prime minister official residence” and you will see what I mean).
However, an historic buying opportunity seems to be presenting itself.
Right now people are dumping bond funds (particularly govt bonds) because of the inverted yield curve.
These funds are ridiculously cheap. Long term govt debt is the most stable investment imaginable. I can purchase a number of long term govt debt bond funds currently with yields over 3.5%.
What is likely to happen next, is a stock market correction. High interest rates will reduce profits, depressing share prices.
High interest rates will also make people sell their stocks to pay down their debts, further depressing share prices.
We may end up with a run on the markets, with people selling to get out or due to margin calls.
When that happens, everyone will rush into bonds, with govt debt being the first choice.
And these govt debt funds, currently being almost given away, are going to experience upward price pressure.
I am buying them up right now. They are dirt cheap.
Multitudinous? Best word I have heard in a while.
I’m not smart enough to comment on your question but if you’re concerned then I’ll send some good vibes your way today.
Og
Thanks for your excellent post. I agree 100%. My concern is about being in the crosshairs when governments realize that they need more money. I wouldn’t admit to being wealthy but having being an eager beaver saver, I now expect higher personal tax rates, a wealth tax, an increased HST and perhaps government interest in my RRIF and TFSA’s as potential targets. And this after having been a productive Canadian who paid all required taxes over a lifetime.
Ryan you’re crazy.
The government will never “let interest rates rise” because household and government debt is so high. Trust me- people with too much debt and who are way over leveraged tell me this all the time! They’re to be trusted on such matters.
In all seriousness, watching the pace of interest rates increases is sobering. I think a lot of people have been accustomed to ever lowering interest rates and have determined in their minds that interest rates will never, ever rise. I suspect many people are going to learn a hard lesson.
My impression is we’ve become a society that operates our personal and national finances based on making monthly payments. Look at car commercials- they never talk about the cost of a vehicle and financing, they just state the monthly payment. I have a suspicion that over the next couple years, people and governments are going to be surprised as rates continue to increase and those monthly payments begin to inflate, especially as inflation is eating away at their disposable dollars on top of rising rates.
It is never about the money Ryan. It is about power, control & dynasty.
@#12 Pizzaguy
“walks in downtown Toronto I must say I noticed more people now scramble thru recycle bins from buildings, even garbage bin on parks. ”
++++
i had to sign some documents to finalize my 2021 tax returns yesterday.
I made a quick trip into downtown Vancouver at about 11am.
Traffic was detoured around a large “heritage” apartment building that had burnt the previous week. The entire structure is being dragged down due to its instability ( economic comparisons to our debt are entirely intended ).
Anywho.
After I finished signing off at the accountants and paying bills away I went
Traffic was diverted from Gastown (the demolition) to Hastings street ( the detritus of humanity).
It was quite an eye opener.
A rare beautiful, sunny Friday morning in the Downtown East Side…. so the sidewalks’ were busy.
Traffic speeds on this main road are posted at 30kmh so that wandering, oblivious, drugged zombies dont get run over by cars as often.
Block after block ( Starting at Hastings and Abbott heading east) of people opening smoking crack,( I lost count) dealing drugs, trading stolen merchandise, or unconscious in a heap… At least 8 blocks of misery on both sides of the street until the sidewalks cleared out.
It boggles my mind as to how any business other than a needle exchange survives in that lawless anarchy.
And this 8 blocks of misery is only 2 blocks from the Vancouver Canada Place Cruise ship terminal.
Hold onto your purse and luggage while waiting for a cab….
https://www.google.com/maps/place/West+Hastings+Street+%26+Carrall+Street,+Vancouver,+BC/@49.2814702,-123.1043342,3a,75y,278.36h,90t/data=!3m4!1e1!3m2!1sdTX2Eu8WQrf-rC5iaG5dJA!2e0!4m2!3m1!1s0x5486717a0ca76b93:0xb214c25fb925b9b9?sa=X&ved=2ahUKEwi8hbWFxKr3AhXDHjQIHZOvC6UQxB16BAgLEAI
Default is on the cards along with all the joys that brings. They cannot pay off the debt and have no intention of slowing their spending.
I’ve been trying to look into opening a foreign saving account, so I can transfer money out of Canada. It is next to impossible to do so without leaving the country.
It might help to note that we still have not paid off World War Two, and as a result Canada did not turn into a Banana Republic/failed nation state
Ryan, you’re preaching to the choir on this forum.
Thanks Ryan. Yes, those chickens keep growing and will very likely eventually come home to roost.
Some bright points:
1. Canadians have nearly full access to US markets. There is no need to tie our finances to this bloated debt whale.
2. The natural resources not being exploited due to woke-ism gain value while remaining in reserve.
3. It is quite easy right now to set a net for all this cash being firehosed around. I’d suggest (and am, myself) moving it into USD and US investments while it still holds value.
As with many things: calamity may not strike, but it never hurts to prepare.
Great post!
The only way out of this is electing a conservative government.
And the only way the conservatives can win is with a center-right leader like Jean Charest.
Zero chance convincing moderate voters from Ontario and eastern Canada to vote conservative with P. Poilievre.
I’ve been bitching about what you spoke about today Ryan for awhile now.
Lone Ranger no longer, thank you Ryan.
Nobody in Canada seems to care. All out for themselves. ME, ME and ME.
It’s called ECONOMIC DRAG caused by free spending Govs like Canada.
3% – 2% = 1% and that’s 1/3 of GDP gone due to money diverted to Gov coffers and spent on vanity programs to get re-elected.
Instead of being spent on productivity and efficiency programs that will eventually yield an ROI or cut costs and so forth.
2021 GDP grew 4.6%.
[TOEFL for the “6.4%” crowd read 2nd sentence, 1st para:
https://www150.statcan.gc.ca/n1/daily-quotidien/220301/dq220301a-eng.htm?HPA=1&indid=3278-1&indgeo=0%5D
Forecasts are in the 2% range, eyeballed, thereabouts to 2026.
Download “budget-2022-en.pdf” and peruse Chart 18, p. 37.
Lower economic growth, LESS WEALTH for the people.
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That’s called Economic Drag.
What happens with a Nation of:
It’s ALL about ME…and I vote for the HIGHEST BIDDER.
Well, at least they’ll have nice smiles for their Selfies taken in front of their multi-million $ home soon to be worth much, much less.
And I get no OAS.
The Libs just don’t ‘get’ the economy. The Lib voters, by and large don’t either, or don’t care because it’s all about the payments and ‘free’ stuff they get from government. This Lib government is all about buying their votes. That’s it.
Hence we have this mess, only to be corrected when these same voters receive some significant economic and interest rate pain.
Bring it on I say – this painful lesson is long overdue for many Canucks.
Unfortunately most voters are in it for themselves, get free stuff, vote that guy! Which is why I’ll never vote for the one who promises the most to the least productive individuals
I feel the lack of journalistic integrity by the main street media (especially CBC) and the governments influence to control the messaging plays a significant part in why “one seems concerned about the massive increase in government spending, our spiraling deficits and debt”
The Canadian state sponsored media is not better than the Russian State Media.
#35 Sail Away
Your…
1. ✅ Lame WebBroker but it gets the job done at $10 a pop.
2. ✅ Go Woke. Go Broke.
3. ✅ sort of. All the way U-S-A save a Maple ETF. I keep it in Cdn ’cause the numbers bigger on exchange and I use my Momentum Visa Card with % purchase discounts from Italia honored in Canada. Less complicated in other words.
[The Italians don’t believe me when I tell them that on my grocery bill I get 4% cash back]
Well I would support some social spending if the programs were actually implemented in a meaningful fashion instead of just wasting away money and admin. For example, everyone should have a family doctor. Maybe some money up front, but will save the health care system when everyone stops showing up in the hospital with totally preventable problems. This is a pay now or pay later scenario.
Housing well this is just a complete disaster on all levels. Someone needs a master plan, and fast. On top of normal immigration, we’re currently bringing unlimited Ukrainians in (150000 or so applied so far and it’s just the beginning) and they all need somewhere to live. This is unlikely to be “temporary” until they go back.
But then as we can see Leslyn Lewis conservative candidate running on her “anti vaccine mandate, anti-abortion” social conservative platform. You either want government involved in your health decisions, or you don’t. Why bother with this? Have your beliefs all you want but be smart enough to realize you’ll never win with them. Conservatives should focus on finding an electable leader and go from there. If they’re not strategic enough to do that (as previous) then let the gravy train continue!
Ryan, you are not the only one concerned about what these massive deficits/debt increases will end up costing us. The problem seems to be that those who are making the decisions for Canada’s finances don’t share those concerns. Their focus is continuing to provide the bread & circuses largesse to the masses which thus far has seen them continue to remain in power.
Add in financial illiteracy among the masses. They embrace theories that promise a free lunch & a unicorn for all. Those old fashioned values of living within one’s means, paying off debt etc. are boring. Also they prevent one from acquiring the much desired goodie right now. Plus ‘everyone’ is doing the same, so why not belly up to the bar & get your ‘free’ drink too? YOLO, baby.
Eventually of course that party ends & the bill is presented. I expect much angst/regret & fervent declarations of never again. Rinse & repeat. Learning from the past doesn’t seem to be in our toolkit. Sad but true.
#8 crowdedelevatorfartz on 04.23.22 at 10:59 am
Great topic to remind everyone how this govt of incompetent Wokesters has destroyed Canada.
Interest rates up. Canada’s debt up.
Thanks Trudeau.
Why isnt a balanced budget….the Law?
Why are politicians allowed to squander OUR tax dollars on their pet projects year after year after year with impunity.
It should be illegal and banned.
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Honestly, I agree with this. Why are governments just allowed to bleed us all dry if and when they please. There should at minimum be rules as to how much they are allowed to be in deficit or something. It can’t just be unlimited.
Canadians seem to believe in MMT (magic money tree) and the wisdom of Jagmeet Singh that the evil rich corporations can pay for it all.
When 40% of Canadians pay zero net tax this is what you end up with.
Due to inflation:
Avoid investing your wealth in money?
Love to see this weblog performing the mental gymnastics inherent to educated people.
This is why we needed Smoking Man.
Anyone paying even remote attention realized, in March 2020 this is the engineered take down in the Former First World Countries.
We were told ‘they [overseas peeps] hate our way of life’.
Flip our rulers’ words 180 deg. to make sense. Now we see it.
But we almost back to 2019 Normal. Any day now!?!
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#92 tc-contra
^TLT ain’t acting right. That is to say it’s acting in line with expectations. You’d be better scaling into a Preferred share ETF?
https://finviz.com/quote.ashx?t=TLT&ty=c&ta=1&p=w&tas=0
The government will never “let interest rates rise” because household and government debt is so high. #29 Rogerhomeinspector
No doubt the temptation will be there. And I do believe this generation of politicians are irresponsible enough to try it!
But that would mean printing more money and letting inflation run.
What would be the consequence of that? Would it be less catastrophic than high interest rates.
Reading today’s blog made me feel like I’m not losing it for once. This has helped my mental health. I really thought no one else cares…all we talk about is houses and car salesmen…I mean Realtors…
#31 crowdedelevatorfartz
Try, for about a decade, driving down Powell St. to get back home from work to the DT and early in the morning driving down East Cordova St. to go to work where you still have some local color “lingering” from the night before.
At the East Cordova/Hawkes light most everyone seems to turn right for some strange reason?
Both ways you hope that around Oppenheimer you don’t get a flat for the needles and PRAY the Dunlevy/Powell light does not go red or at Powell and Gore where the Oppenheimer crowd duke it out with the Sunrise Mkt. crowd.
At the Cordova Diversion, Eastbound you are happy to see Starbucks, not happy Westbound.
I looked at your photo and thought…
no biggie.
#41 Søren Angst on 04.23.22 at 12:47 pm
#35 Sail Away
Your…
1. ✅ Lame WebBroker but it gets the job done at $10 a pop.
———
We like TD.
We hold accounts there in both Canada and the US, with direct one-click transfer between jurisdictions. Many US financial transactions such as real estate, trusts, taxes and US Treasury are far simpler when done from a US-domiciled bank.
Keeps everything simple. $10/trade is definitely worth the convenience for our fairly low volume.
#106 Phylis on 04.23.22 at 9:31 am
#88 Stone on 04.22.22 at 9:27 pm
…….It’s why, even at -3.83% ytd for my B&D portfolio, I feel pretty good. If you consider that a poor return ytd for 2022, I welcome your feedback indicating that.
Xxxxxxx
Did you bake a little inflation into that number too?
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No, I didn’t. I’m curious why you ask. Could you elaborate? Thanks in advance.
We should drag Chretien out of retirement. There is a budget that needs balancing and a few protesters that could use a good choking.
#42 Father’s Daughter on 04.23.22 at 12:49 pm
Conservatives should focus on finding an electable leader …
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There will never be an electable CPC leader. No matter who they put forward State Media (as described by #40 LSC ) will tear them down. #TrumpTrumpTrump or #PopulistPopulistPopulist!!! Charest may be an exception because he probably wouldn’t disturb the MSM gravy train. The gravy train needs to be eliminated.
Forgot yesterday was Earth Day, it looks like my only contribution is to recycle a few posts.
Canada Debt to GDP, 110%
Chances of anything changing anytime soon, 0%…
Visualizing the State of Global Debt, by Country
https://www.visualcapitalist.com/global-debt-to-gdp-ratio/
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#30 Flop… on 04.03.22 at 4:33 pm
So after I show the most expensive countries to live in this year, Uncle Ponzie tells me you can’t eat the sunshine in the tropical countries.
Maybe they can munch on debt, then?
Barbados clocks in at 138%, debt to gdp ratio.
Bahamas is a third tier debtster like Canada, north of 100%, maybe it’s all those crop farmers getting the sun munchies on the Prairies.
Conveniently, places like Venezuela, Argentina and Afghanistan didn’t even bother try to cook any books.
Jamaica get deep into debt?
No Sir, she did it of her own accord…
M47BC
https://www.visualcapitalist.com/global-debt-to-gdp-ratio/
The politicians that exacerbate the problem wont be around to deal with it. As in the 90’s it will take external agencies to identify the problem, bring pressure to bear.
I don’t see this LNDP spendthrift fiscally incompetent government taking any corrective action. As in the past, It will be imposed by external forces and a FM with the maturity and common sense to address this fiscal madness head on.
Paul Martin “Not to act now to put our fiscal house in order would be to abandon the purposes for which … this government stands – competence, compassion, reform and hope,”
https://www.reuters.com/article/us-crisis-timeline-idUSTRE7AK0FF20111121
Truman in Trieste.
https://www.rainews.it/tgr/fvg/video/2022/04/fvg-portaerei-truman-usa-trieste-rada-mercoled-capitaneria-porto-eb2e3975-43a2-4d67-87f3-2ae2b2458446.html
She’s going to be there until Wed. Going to see her either Mon. or Tue. 1h 47 min by train. 27€ round trip, worth it!
All the way, U-S-A.
Can someone explain this to me? I feel like I’m taking crazy pills as no one else seems concerned about the massive increase in government spending, our spiraling deficits and debt and the harm this could to our economy in the future.
———
You can only focus on what you actually control, which is mainly yourself. The rest…not so much.
I just try to invest in my B&D portfolio and minimize my tax exposure while also keeping expenses within my allocated budget for the year.
Also, I’m more outraged that Costco soft serve ice cream has gone up. I think it was $2.29 + tax previously and just very recently has gone to $2.99 + tax. Now THAT is a crime!
The debt to GDP ratio hit 70% under Mulroney, which made the fiscal situation so serious the Chretien/Martin Liberals were able to take unprecedented action on the deficit. I don’t recall any other administration that reduced the size of the government and dramatically increased taxes. Harsh medicine but it worked.
Under Chretien, federal spending was reduced to 12.8%
of GDP, and the suspension of indexing the basic income tax exemption increased federal income tax dramatically. The current administration has increased the federal spend to 16.2% of GDP, apparently an all time high. Everyone wants something from the taxpayer.
Right wing governments struggle with fiscal balance because they won’t increase taxes, and like to cut taxes while running a deficit. In my lifetime, the economy has never grown fast enough to pay for tax cuts, but there is a strange belief that it will.
Left wing governments invest in people, which takes a long time to pay off in reduced medical, incarceration and social spending and increased tax revenue. Investing in people is difficult, as programs try to address a wide range of issues with a necessarily narrow approach – a lot of money falls on fallow ground.
What I find interesting is the demands on government now come from all over society – business lobbyists scream for more taxpayer dollars for their industry. We have some extreme corruption with disastrous consequences.
There is an eleven acre site in a prime Vancouver location, that used to have the Little Mountain housing co op. There were 224 townhouse style units in a neighbourhood with all the shopping, transit and recreation you could ask for. The housing stock got old, and the province sold it to a developer for 226 million and loaned the developer the money at no interest. In 2011, when there was no need to provide such a ridiculous subsidy.
The site was rezoned for a massive increase in density, in exchange for replacing the 224 units of housing – not a singe unit of increased affordability in exchange for increased traffic, increased population pressure on public services, more shadowing.
The deal was so good not a single unit has been started. The developer is sitting on the land as the value of what they can build is increasing so quickly, that the holding costs with free money are so low they can afford to wait. In a city crying for affordable non market rental housing.
Governments take real action when doing less or nothing is no longer an alternative. When we hit the fiscal wall, we will go through the nineties all over again. We survived it before, we’ll survive it again. There are several western countries with debt to GDP ratios much higher than Canada, France’s most recent surplus was in the seventies.
People are always demanding government services, more and new ones, but rarely offer real specific costs and a route to pay for them. Right wingers demand tax cuts always, but rarely specify the amount of revenue lost and what they would cut in order to finance them. It’s a world of sophistry.
Leaders = Meatheads.
I always despised Trudeau.
As for me he goosed my balance sheet MILLLIONs.
My retired neighbor are hurting.
I didn’t need more.
All you T2 lovers need your brains checked out.
Free lunches are coming home to roost.
Hey Ryan
Found the post by Garth
https://www.greaterfool.ca/2020/08/27/freeconomics/
And read the second paragraph
In 1993 I carried the debt clock around Parliament hill
So 30 years on nobody cares.
Banana republic and 50 cent dollar here we come.
Great post again Ryan. Thank you !
This government will not and can not last until intended time in 2025. There is not enough economic road ahead of them…..
Sad truth is that we have already hit the ice berg and presently taking water very fast, while current administration is rearranging deck chairs and conducting the string quartet playing sonatas.
Alas it is not patriotic to point these things since anyone doing it will be accused of exacerbating the situation. The thing is that people did not cause the problems, (maybe by voting ) rather it is the current administration that caused all of this and it continues to cause the wreck in peoples lives.
I believe in the government (that is smart and fiscally prudent) I just can not bring my self to believe in the current administration and their ability or willingness to make correct economic decisions for the benefit of the Canadian nation. I am just waiting for the day (its coming probably sooner rather then later) where they are going to announce it is patriotic to take a plunge and buy real estate in Canada.
Anyhow I just hope for the sake of my children that balanced and diversified portfolio is built to weather this calamity. Otherwise people will just YOLO many, many different things in life and create weird society where nothing matters anymore.
Thank you again for the fantastic and to the point post.
Ryan, I have to say the main thrust of your article is great and I expect the bias towards the fiscal.
However…
to quote …”To put this into context, it took the current government four years to rack up the same amount of debt that it took previous governments to incur over a 50 year period!”
Though this statement is factually correct it needs either correct context or an important caveat; especially coming from a finance guy. Since the context can be a little hard to follow for many, an important caveat should be… “…though in fairness the statement does not factor inflation nor population growth over the 50 year period.” Or quote the same figure on an inflation adjusted per capita basis. Minor quibble but still important.
The Right vs. Left context would include they myriad of government programs that are post-war creations that would also skew discussions regarding government spending vs. deficits/debt.
Otherwise I think your post is timely and necessary. My bias tilts towards the infrastructure side of the ledger sheet which is the usual split between engineering people and finance people.
If you think your side of the ledger is terrifying stop and take a gander at my side and the sleepless nights will surely multiply.
So though you rightly point out the Trudeau/Mulrouney years of debt padding I will counter with this; at least hard tangible long-terms assets were being built/acquired. Despite the high interest rates of the era F-18s, frigates, ice-breakers were being built and acquired.
T2? Aside from the financialization of everything and cutting literally everyone a cheque (whether they need it or not) I don’t see the hard assets on the side of the ledger sheet that I look at.
In conclusion Ryan, I think you’re being a tad optimistic in your assessment. The infrastructure deficit is real and growing and we’ve run out of room on the finance side of the ledger sheet to pay for it.
Those tangible assets are still very much fundamental and foundational for creating the wealth needed to address the deficits on the finance side of the ledger sheet.
Now where did I put that bottle of Scotch? Strictly medicinal purposes…
Deficit spending has a good track record.
So let’s not throw out the baby with the bathwater.
The “Balanced Budget” crowd forgets that Government needs some flexibility to deal with emergencies.
Just like the average tax payer when an emergency arises.
Of course, the debt is far too high.
So let’s work on getting it down.
I for one, have quite a few suggestions on how to do that.
But mentioning it will just incite the CEFs on this blog.
But one thing is for sure, taxes will have to rise.
But we’re lucky not to live in The Great State of Texas.
Low taxes in the State have led to neglect of vital infrastructure, such a power stations, bridges etc.
And their dependence on oil as fuel is not helping the situation.
The only way out will be to raise taxes.
And that will not go down well in a right wing State.
Yep.
Pitchforks.
#58 Stone on 04.23.22 at 1:31 pm
Can someone explain this to me? I feel like I’m taking crazy pills as no one else seems concerned about the massive increase in government spending, our spiraling deficits and debt and the harm this could to our economy in the future.
———
You can only focus on what you actually control, which is mainly yourself. The rest…not so much.
I just try to invest in my B&D portfolio and minimize my tax exposure while also keeping expenses within my allocated budget for the year.
Also, I’m more outraged that Costco soft serve ice cream has gone up. I think it was $2.29 + tax previously and just very recently has gone to $2.99 + tax. Now THAT is a crime!
————-
I agree.
But I can assure you, the 1.50 Hot Dog deal wil outlive even the next recession.
I think that deal has been around for at least 20 years.
#51 Sail Away
I bitch about the $10 each time but you know, I buy enough $ at a time that it’s a small price to pay for what they provide. Their Research section is pretty good.
Customer service not bad though you have to bitch via secure message from EasyWeb:
Bitched at them they weren’t calculating Projected Income from Divs correctly, and they weren’t, they got all indignant (I asked them if the IT person that does that calculation died from Covid ’cause the new person hasn’t a clue?) and then a couple of weeks later, low and behold, Div projections calculating correctly.
Sent them the formula, sample calcs for them to peruse vs. their Math challenged effort.
All that for $10 a trade. I like it when I buy and sell and before you can click close in the “sure you want to buy that?” window you see the little bubbles come and that say buy went thru and at what price.
You know, so much for the confirmation window. Poor TD. Still, I love them. Banking with them since I was in High School and the 1st year I had a Summer Job.
Pretty good outfit.
————————-
I have a US accnt active too and I should move the US stuff there and not exchange to Cdn then buy in US from Cdn Cash account but ahhh..too lazy and set in my Cdn ways.
I ponder that every time I go to WebBroker and see my US flag cash accnt.
I just don’t trust the Americans. I worry they will tax me from US accnt. Pay enough in Cdn taxes as it is. Don’t want to add another country to the Dance Card.
Thanks for the post Ryan. I am concerned as well, but perhaps to answer your own question, quite from the New Economics perspective next time – It would be interesting to see if you can find any insights to share by taking that position. For the record, I voted liberal and always will as long as Conservative platforms are socially conservative as well as fiscally conservative. I like old school – Socially Progressive and Fiscally Conservative, but that is no longer on offer.
correction, that was “write” not “quite”
Easy answer Ryan.
NDP controls and supports liberal government today and foreseeable future. Trudeau will have little choice but to come to certain spending investments asked by NDP. And the way Trudeau and many Canadians see it. our debt isn’t as bad as USA. See https://commodity.com/data/debt-clock/
OH CANADA what in the world happend to you – people voted this hodge podge government in and suffer we will – good work dummies
Conversing with Sail Away about WebBroker I noted that for the past 30 days my Threadbare Portfolio was up:
+1.9%
In light of Friday’s Mr. Market bloodbath implosion, not bad for an Amateur like me.
Garth et. al. admonitions + Paleo Me high div ETFs/ETNs or go home
=
salvation in troubled times (so far, touch wood).
—————-
Je vous remercie Garth, Doug, Ryan and other long name guy.
Everyone in Canada should have gotten nothing like the great depression days. I hope the government makes everyone pay back the stimulus money they should have never gotten during Covid.
I used to see billboards from citz for responsible government addressing the deficit.
Now the focus is on social injustice, anti vax. Tear those statues down and pothole blitz.
Oh land of the thickies.
#36 Progressive conservative on 04.23.22 at 12:25 pm
Great post!
The only way out of this is electing a conservative government.
And the only way the conservatives can win is with a center-right leader like Jean Charest.
Zero chance convincing moderate voters from Ontario and eastern Canada to vote conservative with P. Poilievre.
^^^^^^^^^^^^^^^^
Agreed. Would love to vote Conservative next election but won’t if PP is the leader.
Wonderful post Ryan. Thank you!
I have been worried about this for some time. No one else seems to care about it though Ryan. Illustrating how it handcuffs Canada in the future is a start – that message needs to get out over and over for it to sink in. Then people will start to think about it and react, hopefully. Good start Ryan, thanks.
Ryan,
Great post! It’s depressing – Trudeau is killing the middle class. What’s the future for my kids?
The mismanagement in the UK led to Thatcher, the US got Reagan…perhaps Poilievre will put things right?
Otherwise…time to move to the US???
Re: #28 Eyeguy on 04.23.22 at 11:51 am
You forgot gift tax.
Trudeau’s government has a large part to blame for inflation.
So all the people who are suffering due to high inflation, can look at him as one of the reasons.
Due to technology advances today, we don’t have to do a guessing of our country’s resources.
Just went off of our governments studies which were mostly guessing estimates.
WE REALLY NEED TO DO AN INVENTORY!
Billions of dollars worth of them is consumed by fire or killed by invasive species.
So much of Canada really hasn’t been explored.
Mapped yes, but it’s really a huge country that our politicians haven’t done any proper investigation or inventory of.
Thousands of lakes never been inventoried as well for the multiple fish species we have on land.
None of the species is really endangered of extinction as we hardly hunted the inventory of animals.
I WANT AN AUDIT!
#70 Doug t on 04.23.22 at 2:14 pm
OH CANADA what in the world happend to you – people voted this hodge podge government in and suffer we will – good work dummies
—————-
Nothing “happened” to Canada.
She just moved a little further to the left from the center.
It’s you what “happened”.
You’ve become more and more like your father.
Infortunately for you, the far right is not a good place to be right now.
I’ve decided to help you out Ryan. It’s all here. The bit about Modern Monetary Theory starts near the end at 1:09 :45.
But every word in this interview is gold.
https://www.youtube.com/watch?v=mU3rPTxev-o
It’s like being punch drunk… Everything you think is right, you’re told is wrong…
All we can do is ride it out… I know there’s a lot of talk of Pierre Poilievre being a populist on here, but you can’t say populist, without invoking the Trudeau or Ford names. Compared to those two, Pierre is small potatoes…
#22 Quintilian on 04.23.22 at 11:36 am
Complete and utter BS… You are, quite possibly, an absolute idiot…
At least the kids are getting lot of financial education in public schools and personal taxes are easy to understand, right? Right?
If the current CPI was measured as in the 80-es we would have official inflation of 15 % + that in the 80-es would translate to 18 % + interest rates.
That would translate to 200 billion + in annual interest payments on the federal debt alone that would render any deficit spending mission impossible and will cut significantly all spending programs which is how the things should work in the real world.
Now in the fantasy made up fake world, we have federal statisticians with made up fake numbers about the inflation combined with central ‘bankers’ suppressing rates and ‘buying’ bonds and MBS with money from nothing lying to ourselves about the true state of the affairs.
These non-paid by government interest money will be paid through the inflation and destruction of savers and reduced benefits as there is never free lunch.
#65 Ponzius Pilatus on 04.23.22 at 1:59 pm
Re: Costco
But I can assure you, the 1.50 Hot Dog deal wil outlive even the next recession.
I think that deal has been around for at least 20 years.
———–
I used to love their roasted rutabaga but was apparently the only one.
#22 Quintilian on 04.23.22 at 11:36 am
My experience is whenever someone uses the term (or identifies with) “left wing” or “right wing”, that person has some pre-determined and warped worldview that colours all their opinions and probably should be ignored.
It’s dogmatic, and ultimately boils down to the tired Us versus Them narrative that the lowest common denominator is so easily fooled by (and which is damaging to the cohesiveness of our society). This is ignoring that the “left” and “right” often overlap, and any one individual can hold opinions from both camps at the same time. It’s a false narrative.
Anyways, governments of the past did what they thought would be the best at the time. The same is true today. Globally, Canada’s standard of living is envied and our political parties are comfortably centrist, where they have always been. It’s only on social media that the differences are exaggerated…purposefully.
IDK
Talking about paying the Piper:
I hear about Ukraine’s collateral estimated damage so far beiing around 80 billion.
This could easily go into the stratosphere.
Who’s gonna pay for the rebuild?
Ukraine is not a rich country.
I think we can count out Russia.
So, that leaves mostly the US, Canada and the EU.
This could cause a rift in the Western Alliance.
The British Boris is already saying that “there is a distinct possibility” that Putin will get his way.
So JT, let’s put some money aside for helping Ukraine rebuilt.
There goes another balanced budget.
But the good news iTweaks weapons and tank manufacturers and dealers are celebrating.
Wars, as usual, are good for business.
Repeating mistakes is human nature. A period of the roaring twenties seems the current norm until things get ugly.
Hope for the better and prepare for tough times.
It doesn’t take an economist to figure it out.
DELETED
“Every nation gets the government it deserves.”
– Joseph de Maistre
There is a noticeable divide in steerage. There are those who argue that “everything is fine” pointing to “social biases” and “echo chambers” as dissatisfaction starts to become existential issues for this nation. The ecclesiastical elements of this government’s platform will crumble as poverty wracks this nation.
Having said that, there is no “conspiracy theory”, “establishments” or “illuminati” that is purposefully responsible – the population of Canada (noticeably in urban centers of Eastern Canada) has done this to themselves. It was too easy for too long, complacency and malaise are dangerous head states.
The middle of society erodes with the middle class. Freeland’s left and Poilievre’s right are both bad places to be.
Not sure there is going to be the kind of “collapse” or “revolution” the extremists call for in steerage however, rapid political movement to either extreme is coming up whether middle of society wants it, or not.
History, and the consequences, are impossible to predict.
Good entry today Mr. Lewenza.
https://financialpost.com/personal-finance/family-finance/ontario-couple-needs-to-plug-a-leak-in-their-finances-before-settling-in-to-a-five-star-retirement
In Ontario, a couple we’ll call Robert and Elly, both 50, are raising three children ages 16, 18 and 20. The parents are civil servants with combined take-home incomes of $12,000 per month, which they top up with $1,420 in investment income. Each will have a defined-benefit pension at retirement, but until then they are in the peculiar position of using $10,269 per month in after-tax income to subsidize two rental properties.
Thank you Garth for correcting my sloppy typing errors.
Don’t know if ‘Under the Radar’ is reading/reviewing blog comments this weekend, but if so would be interested to know his/her thoughts on this recent commentary from OSFI in its annual risk assessment paper just released as it relates to the Canadian housing market :
……..” Recent supervisory reviews identified several common issues around underwriting, specifically income verification in areas that have been raised as being problematic in the past including business for self, rentals, exceptions to income sustainability as well as collateral management.”
“Jokes aside, I would say 60-70% of realtors I spoke to would ask me if I could make docs. That’s based on a cross section of brampton, mississauga, Caledon, vaughan, and etobicoke based realtors.”
https://twitter.com/sm_cmc/status/1517506734671245314
Yes Ryan we agree giving 8 million people CERB was a big mistake there should have been a means test. Some of these people will never go back to work again they will figure out ways to have the the government support them. There are people my age getting income assistance, GST cheques and rental supplement because they never worked when they had a chance to. We have temporary workers do the work
that my parents and we did from early morning till late at night in our own fields and orchards in the Okanagan. Also our tax system does not reward those who work hard it just puts you in a higher tax bracket.
No Ryan, you’re not crazy.
#81 ponzi
lol if you say so
I’ve very concerned (hey, it’s in my name!) about all this new government spending, the accumulated debt load, and the clear lack of economic literacy in the federal cabinet. It’s not the federal debt that is alarming though, so much as it is the combination of federal and provincial debt. Going by federal debt relative to GDP, we’re in decent shape. Add in provincial debt, and we’re in abysmal shape.
That being said, one key difference between now and the 90s is that all western countries have been deficit spending and monetizing debt (i.e., printing money to buy government debt). If we were the only ones doing it, CAD would be trading at 50 cents to the USD right now. That being said, the U.S. has more levers to get their debt under control, since their taxes are so much lower than Canada’s (e.g., no national sales tax). As interest rates increase, where is Canada going to find the money to maintain our existing programs – most of which I strongly support, BTW – while paying the higher bill on the interest?
‘So that’s how we get to $1.16 trillion in debt. Now here’s the rub’
————————————————————–
the top 1% of our society own 35% of all those assets
the top 20% of households own 80% of all assets
the bottom 50% whatever they own, is considered a rounding error.
the other % are too ‘multitudinous’ to review in detail but let’s just say they have a few $1k invested in their trading accounts.
wtf is my point? These massive deficits and spending programs have been and always will be created to further increase the asset values of the wealthiest in our societies.
So liberals party-on!
#89 Ponzius Pilatus on 04.23.22 at 4:21 pm
Talking about paying the Piper:
I hear about Ukraine’s collateral estimated damage so far beiing around 80 billion.
This could easily go into the stratosphere.
Who’s gonna pay for the rebuild?
Ukraine is not a rich country.
++++++++++++++++++++
I have a feeling that Russia’s frozen assets/gold/foreign reserves/ revenue streams from energy exports will go a long way towards rebuilding Ukraine.
This is not the right course of action and some of us are very concerned about this path.
Unfortunately we’re stuck on the crazy train thats about to derail… against our will of course.
RE: #63 db on 04.23.22 at 1:53 pm
Ryan, I have to say the main thrust of your article is great and I expect the bias towards the fiscal.
However…
to quote …”To put this into context, it took the current government four years to rack up the same amount of debt that it took previous governments to incur over a 50 year period!”
Though this statement is factually correct it needs either correct context or an important caveat; especially coming from a finance guy. Since the context can be a little hard to follow for many, an important caveat should be… “…though in fairness the statement does not factor inflation nor population growth over the 50 year period.” Or quote the same figure on an inflation adjusted per capita basis. Minor quibble but still important.
=======================================
I have to agree. It’s a bit like millennials complaining about how boomers had it easy with “cheap” house prices without taking into account inflation, single vs dual incomes, square footage, etc.
We share the same concerns. Everyone I know is too busy to worry about government finances. The sad thing is that once it becomes a crisis, it will be painful.
The liberals will blame the circumstances, see accepting responsibility is not their character.
MMT,
Increased fiscal without the labour or resources = inflation. Now you start increasing rates and paying interest on the gov debt coupled with business having to charge more to cover there debt cost = more inflation. So watch MMT live in action as governments chase inflation by raising rates causing more inflation. Venezuela 2.0 here we come. Ryan make sure to take out your note pad to learn MMT in action.
Rhino, what are you up to in 2025?
I am proposing a trip to Antarctica, Amazon Jungle or someplace else that it is hard to see a television or get internet connection.
Preliminary dates are scheduled for when the Invictus Games are scheduled to be held in Vancouver in 2025.
Seeing Prince Harry and The Metrosexual Messiah shaking hands with that same smug grin on the faces might just about finish me off.
Open to suggestions.
Hemingway recommends Idaho, when things get too much…
M47BC
Hey Ryan, you said once that you used to analyze preferred shares. I was wondering if you could give your thoughts on why preferred share etf’s ZPR & CPD are losing value in the current rising interest rate environment.
The pharma/dental care is long overdue and means tested. It starts for children who go without it. My wife who is now retired used to work at a pharmacy as a cashier. Not a week would go by without her telling another story of customers coming in with a prescription not knowing the cost only to leave without filling it because they couldn’t afford it.
This country has money for wars around the world but we can’t afford universal pharma/dental? I don’t believe that. It’s long overdue. Hats off to Jagmeet for forcing the government hand.
#11 just a dude on 04.23.22 at 11:08 am
Ryan, great post. Thank you.
I knew we were in trouble when our future Dear Leader proclaimed that “the budget will balance itself” back in ~2015 before he was elected. The infatuation with his lovely hair amongst my female co-workers at the time (all of them accomplished, intelligent people) was also cause for worry.
__________________________________________________________
Pretty well sums it up in a nutshell!
I had even pointed these two items out to my wife while they were happening ….
I’m upset that the Liberals are dragging their heels at the Student loan repayment threshold.
How else can I pay my Toronto landlord the $600 a month to rent a bed inside a room with six other people. I’m believing that prison is more spacious and secure than my current living standards.
I saw this listing the other day, thought it might have been a typo, but they haven’t changed it, so I guess they are for real.
When I first got here in 2002, you could get a decent starter house for somewhere in the 300-350k range, I don’t think the top of the Eastside market had reached a million yet, that likely happened around 2006- ish
So we went through that barrier, sped up to the next million marker thanks to the Olympic surge and then the 2016 uptick.
People want 2 million just for anything liveable now, early 3’s for new builds.
These guys want 5.2 million for a 2 year old house in a so-so part of town, in an environmentalist’s nightmare known as the Knight Street corridor.
Nice house, don’t get me wrong, spent a decade and a half working on houses similar to this on the more tony Westside, even if it is more sedated over there nowadays this listing would have been gone pronto over there at the same price at the relevant time in real estate history.
So let’s be generous and say they get the 5 million, that means in roughly 15 years I witnessed the top of the East Vancouver market go from around a million to five million.
All the current comps and recent sold comps they pair it up with are on the Westside but it is assessed at 3.84 million, but if you say the assessment is whack, then nowadays they all are.
There are other houses on the Eastside asking 4.something, mainly looking for a development opportunity.
Development can be good, just don’t want to see my hood hollowed out like the Westside.
So far it is holding strong.
Speaking of strong, witnessing all of this sober is hard to take, Green Tea is not doing it for me, maybe in a moment of weakness I will reach for the Hard Lemonade…
M47BC
https://www.zealty.ca/mls-R2679045/1185-E-17TH-AVENUE-Vancouver-BC/
RE # 107 Flop:
Florida, Florida and nothing but Florida.
They just tore down Disney land for being too woke, and it is illegal to wear a COVID mask there.
Paradise.
Rogerhomeinspector “Ryan you’re crazy. The government will never “let interest rates rise” because household and government debt is so high. Trust me- people with too much debt and who are way over leveraged tell me this all the time!”
I agree with this point that the high debtload could help to put a ceiling on interest rates but even if they move up to 3-4% then this will drive interest costs materially higher. But with inflation running at 40 year highs rates have to go higher from here. I’m really interested to see where rates peak in this tightening cycle. – Ryan L
this is exactly why fiat money systems always fail and why shiny yellow rocks were a far better monetary system. it’s as simple as that. without the discipline of a hard monetary system, … well, let’s not belabour the point.
#113 T Rex and the dinosaur clique on 04.23.22 at 7:33 pm
———
Can we borrow Gov Ron DeSantis for a couple months. God help us and our woke choke….arrrgh
The CBs don’t have to actually raise rates that much from this point; the world stock markets are down 10+% from their high (except resources markets) and RE is freezing up and that is what is needed.
All it took is some belated strong talk about raising rates and about controling inflation.
I think that the CBs will be happy with the stock markets going down another 10% to cool the wealth effect and the higher interest rates (2% more) to reduce the crazyness in RE worldwide.
As for T2 and C, they are just completly out of their league managing people’s money and lives.
tkid “Default is on the cards along with all the joys that brings. They cannot pay off the debt and have no intention of slowing their spending.”
Well I wouldn’t go that far. First, the Fed government debt to GDP ratio is still in the 40% range so the current balance sheet is not that bad (US is at 110% for comparison). Second, they can continue to issue bonds and investors would buy them so there’s no real risk of default. My main message is that I’m seeing the same things from the 70s and 80s and that if we don’t address this then it will create problems down the road. Lastly, the whole world is pickled in debt so be careful who you go with for that foreign savings account. – Ryan L
“Currently, the interest charges on our debt as a percentage of our overall government spending equates to roughly 8%. But this is when interest rates are at record low levels. If interest rates were to rise to say 5% then this same metric – interest expense as a percentage of government spending – would rise to 20%.”
====================================
For the reasons you mentioned above and others, the bush league loonie Is heading to $0.50, even with $100.00 + Oil.
104 kk
Does this help?
https://tradingeconomics.com/canada/government-debt-to-gdp
@#106 Flop.
Yep.
The Invictus Games in 2025 when the 2010 Vancouver Owe Limp Ick debt will still be stealing money from homeless shelters.
I’m sure the Trudeau feds will be lavishing billions $$$$ on the Aboriginal side of the games venues because they gave their permission to hold them here.
The waterfall of tax payer money will be nauseating.
My relative has just had his 40 yr old, never updated centre unit townhouse in Mississauga appraised by the bank in March for $1M. It’s a dump. Built in the 70’s. Nothing renovated, nad. Same ugly kitchen. Are you kidding me? It’s a block off the freeway and the tiny backyard view is the cement wall of a crappy old plaza. He’s taken a variable $675,000, mortgage but hasn’t paid his many years past due income taxes. And he has to replace the 40 yr old toilets and pink carpet. Btw he’s been there 25 yrs+, never paid down a dime. He thinks he’s rich. This is how typical Canadians think. His mortgage will soon be triple or quadruple what he was approved for, as it’s variable because that’s all he could afford, and he sure won’t be able to pay it. Greater fools are not just among us, but also the lenders who hand out such incredibly precarious loans. We are sunk!
@#108 Marc
“I was wondering if you could give your thoughts on why preferred share etf’s ZPR & CPD are losing value in the current rising interest rate environment.”
++++
Free investment advice?
ok.
It’s because the managers at those ETF’s know you own shares and they don’t like you.
The real Kip (Ret) “The pharma/dental care is long overdue and means tested.”
Do you know how much a new pharma and dental care program will cost? I love how they provided $5 billion for 5 years. What about every other year after that since these are permanent programs that will not just end in 5 years. Yes I would love to offer free dental and pharma care, give more money to seniors to deal with the higher inflation, provide funds to first nations for reconciliation, and spend billions on climate change initiatives. Heck throw in a new EV car for everyone. But who is going to pay for it? Where is the money going to come from? That’s the point. A government in many ways should be run like a household that spends the money they earn and not just put everything on the credit card. One day this will just pop if we continue on this path. But I concede that means testing was a good idea for the dental program. – Ryan L
so it is saturday and I went to 2 restaurants, both were closed today due to staff shortages. The wages don’t qualify for the ability to get an apartment- You can’t get a job if you don’t have an apartment? I say we are in a situation? Privilaged families are to good to work in service? And nobody cares about the ones that will do the work. Your welcome to live here just come from money. A 52 year old took his life last week, he had a good job, but people judge….so he was a renter, all his house owning relatives put him down to the point of no return. What’s a few more billions in debt. Money is everything until it is worthless. An old women won 3 million last july 649 and died 6 months later, no will 4 kids at war over the estate! Good times
#102 Yukon Elvis on 04.23.22 at 5:53 pm
#89 Ponzius Pilatus on 04.23.22 at 4:21 pm
Talking about paying the Piper:
I hear about Ukraine’s collateral estimated damage so far beiing around 80 billion.
This could easily go into the stratosphere.
Who’s gonna pay for the rebuild?
Ukraine is not a rich country.
++++++++++++++++++++
I have a feeling that Russia’s frozen assets/gold/foreign reserves/ revenue streams from energy exports will go a long way towards rebuilding Ukraine.
————
Interesting point.
I’m not sure what the legal precedents are, but this could be a mess.
I think the Oligarch’s assets would be safe.
But one thing is for sure, the lawyers are already rubbing their hands.
You’re not taking crazy pills. This government was elected in 2015 on promises to spend too much and they’ve delivered on those promises like they don’t know where their next meal is coming from. I was a Chretien/Martin Liberal but couldn’t in good conscience vote for these Liberals.
Have the kids gone to bed yet?
At work yesterday some guys somehow managed to get PornHub and CoinHub mixed up.
It’s not that hard to tell the difference.
One is where everyone sits around waiting inevitably for someone to get screwed, while separating people that should know better from their money.
The other one is PornHub…
M47BC
Ryan – I’m really interested to see where rates peak in this tightening cycle.
********************************************
SocGen Analyst Albert Edwards believes interest rates in the US cannot go over 1% without blowing the full debt bubble. It might be pessimistic, but I would be surprised if we go pass 2%, especially with QT…It will simply be too painful to move higher.
Recession definition (for fun and laughs to brighten the mood):
https://www.facebook.com/PierrePoilievreMP/videos/what-is-a-recession/1208203409567639/
I’m really interested to see where rates peak in this tightening cycle. – Ryan L
~ 2.5% on the Fed funds rate is the absolute ceiling looking at the historical chart, but I think the Fed will reverse course and we’re back to ZIRP and QE bfore well before we hit 2%.
If you think they will raise rates to crush the economy, what purpose does that serve, to then need more QE and drop them? If it is done, it will only be done to make people more dependent on government which seems like the end game of every action. Canada is not a place that encourages individual effort or achievement.
Per Buffett, deficit hawks have preached doom for decades. They have never been proven correct.
https://www.berkshirehathaway.com/letters/2018ltr.pdf
Hi Ryan, here is the answer to your question:
Governments spend way more than what they collect in taxes. Always.
They use tools at their disposes to cover the difference most notably issue bonds and expand supply of money (akin to money printer).
There is no intent to pay back this debt. I believe the only country who tried historically was Italy and they even abandoned it. (Going on memory here)
So now what mr obvious? Well here is where inflation comes as a hidden tax which as long as it is running few points above interest rates bond issuance and money press can continue.
Yes it devalues the currency however degradation can take a while, unless there is war, sanctions etc.
So, can govt continue this behaviour, yes. Should they do it, no.
Why are they doing it, to stay in power like any other government in history irrespective of whether it is democracy, autocracy, monarchy etc.
Does it matter from the investment point of view, no if you are properly diversified across countries and industries, currencies.
If all of the above fails, then they can reset the whole thing and say 1 new dollar equals a billion old ones or peg against another stronger currency or precious metal.
Then probably hundred other things they can do as long there is govt and stable army and police to support it.
Why? Because it happened may times during the past, for an accelerated timeline look at countries in conflict during the last 30 years if ww2 is too far back.
Thank you.
Under MMT (modern monetary theory) where government just prints the money it wants to spend and monetize the debt. Fine and dandy as long as inflation is benign. However, when inflation eventually rears it ugly head, under MMT government is supposed to raise taxes to bring demand into balance with supply. The ball is your court T2. I saw T2 shed a tear while he was speaking about the flower. What a ham.
It is about time than money has a cost. Enough of feel good policies. Improved productivity is important for supply issues. We have got to learn how to use the tools we have – innovation. R&D takes a lower ranking particularly when you can steal it. Patent laws need to be revisited.
I am itching to punt power hungry bureaucrats but I don’t need the people of Canada to be burdened by severance lawsuits. Bureaucrats give public servants a bad name although many deserve it. Nobody is irreplaceable. Short term pain for long term gain.
I looks to me investors are closing down their loans by selling investments because money now has a cost. I is set to get worse. There are margin calls involved.
By some miracle, Elon Musk continues to hang in there. He may be the genius I have not acknowledged. I still see a salesperson – I can be politically correct. I do like to call things as I see them.
As for myself, I am working on paying down my debts, personal ones first – self financed car loan does not help. Investment should continue to fall under the current environment. Given the cost of money, I don’t see a quick rebound. It is going to be a long grind to keep what I got.
Jack be nimble and quick..
Life in the Former First World Countries.
Were you paying attention that cold week of March 2020 when rights to private ownerships were stripped away? That masterful national campaign, “Keep your rent”.
https://www.thejournal.ie/ogorman-grouped-accommodation-ukrainian-refugees-5743718-Apr2022/
“We’re not going to put a cap on the number of people,” McEntee said.
She said “every option” is being explored.
“We want to encourage people to come forwards, not to force anybody to have to give up their property or accommodation.””
—-
—-
Life in Kanada. This must be kept going. Think 2023-24/25.
Hey don’t take my word for this. Good thing T2 signed those pharma contracts last year for years to come eh?
“Another COVID wave likely this fall after ‘honeymoon’ summer: Ont. scientific director
The Ontario Science Advisory Table’s Dr. Peter Juni said on Saturday that while Canadians need to be aware of an upcoming fall wave, there is hope for a ‘honeymoon period’ this summer as long as no new COVID-19 variants emerge. (ctvnews.ca)
95-.” Recent supervisory reviews identified several common issues around underwriting, specifically income verification in areas that have been raised as being problematic in the past including business for self, rentals, exceptions to income sustainability as well as collateral management.”
Lending to these folks was and still is , under serviced which gave rise to alt lenders who get high rates and big up front fees. Tremendous amount of fraud, fake gift letters, bogus financial statements, etc. Most underwriters go through their list and are pretty diligent but there is always those insiders who find a way for mortgages to get approved. An envelope usually from the agent gets to their “mortgage person” For me , when we lend we don’t bother with any of that, straight equity, they either have skin in the game or they don’t pass go. We don’t care where their equity comes from as long as its subordinate to our mortgage. Funny thing is, these borrowers have a very high compliance rate.
Gee.
27% voter turn out.
Are the voters in France so disgusted with the choices they decided to stay home?
https://www.reuters.com/world/europe/french-election-turnout-2641-1200-cet-down-2017-2022-04-24/
With 3 more years of Justin and Jagmeet, financial crisis is practically guaranteed
Time to dust off an old copy of Alex Doulis’ Take the Money and Run, to have an exit strategy to get out of dodge, once the Feds impose a wealth tax, Real Estate implodes, and the anemic free health care remains as the only “benefit to paying into the system as an indentured a corporate welfare bum
#84 ImGonnaBeSick
Ditto to your comment….Absolutely!
Aside , you can tell this bunch a 1000 times the true facts about current debt , what’s next and where its headed . A few along the way pick up on them but the rest/most stay oblivious .
The number of comments in error of the machinations of the debt picture now and looking ahead are astounding and just too many to address.
Knowledge and understanding of the true debt picture and its future implications is infinitesimally limited around here at best by most.
I don’t try to here anymore. Waist of time.
The fish rots from the head down.
“Of course I’m talking about the Trudeau’s.”
Come on, Ryan, at your level of education you should be able to make the plural of nouns correctly! My second grade daughter knows that the use of the apostrophe here means genitive and not plural.
The correct spelling if you want to refer to the Trudeau family is “the Trudeaus”.
If the government needs to balance the budget, they could just mine all the salt from Ryan’s post, when that runs dry there is always the deep salt reservoir in the comments. Truly an under-exploited Canadian resource.
Do you think “Blue Canadian Salt” could be the new premium culinary trend on the tables of the Prairie elites? Maybe it already is.
It’s disappointing to see the insane levels of debt we have with no real plan to pay this off. At this point, Canada’s unemployment rate is 5.3% which means you can basically get a job anywhere. Even McDonalds and Amazon provide healthcare and dental benefits for workers. We don’t need a socialized dental program… we need to pay down our debt and create an environment where businesses will invest in Canada.
#52 Stone on 04.23.22 at 1:21 pm
#106 Phylis on 04.23.22 at 9:31 am
#88 Stone on 04.22.22 at 9:27 pm
…….It’s why, even at -3.83% ytd for my B&D portfolio, I feel pretty good. If you consider that a poor return ytd for 2022, I welcome your feedback indicating that.
Xxxxxxx
Did you bake a little inflation into that number too?
———
No, I didn’t. I’m curious why you ask. Could you elaborate? Thanks in advance.
Xxxxxx
Just wondering, most people don’t calculate real returns (inflation adjusted), self included.
The more the government spends the higher interest rates will have to go to tame inflation because spending increases demand and thus inflation. The more interest rates go up the more the government will have to spend on interest as well. Anybody see the problem here?
Excellent blog Mr. L. I’m worried too. The more I look back in time, the more I credit our success to the fiscally prudent PM’s we lived under at the time, Chrétien, Martin, and Harper. We were lucky to get three great PM’s in a row. All the work they did was undone by Trudeau, then made worse. He’s still making it worse. My second Gen Canadian kids will probably need to really think outside the box to prosper in post-Trudeau Canada. Either that, or leave.
It’s truly shocking at the stupidity of Western leaders.
Don’t poke the bear. The Bear bites back.
Ya … Pay in Euros or Dollars, and then convert to Rubles. Keep Russian oil and gas flowing to Europe. Take quicker showers to stick it to Putin. bunch of idiots.
European Commission says EU companies can pay for gas in rubles
The European Commission said Friday that EU companies may be able to comply with Russia’s proposed gas payment system, without running afoul of sanctions against Moscow.
https://www.reuters.com/business/energy/eu-says-gas-payments-may-be-possible-under-russian-roubles-proposal-without-2022-04-22/
Is that Federal Debt Chart Alarming? Not Really!
A look at Ryan’s debt chart above shows that Canada’s federal debt was not much above the level of 20 years earlier as we entered the pandemic.
While the entire world and cerrtainly millions of Canadians gorged on debt, the Canadian Federal government had a very slow rate of increase in its debt.
From 1999 to 2019 the debt went from about 550 billion to about 700 billion. That’s an increase of just 1.2% per year. That’s almost unbelievable!
And we know full well that countries do not have to EVER pay off or pay down their debt unless it has become excessive.
So unless the debt level in 1999 was dangerous it certainly was not dangerous in 2019. In fact by accounts it was very manageable indeed.
Looking at the spike in 2020. It’s no higher than a trend line going back to 1980. In fact it’s lower. And this is on an arithmetic scale that usually “hockey sticks’ when you look at 40 years of almost any growing data. Log scales are needed to interpret long run trends.
So, if the Canadian federal government has a debt emergency looming it’s not very much indicated in this chart.
Millions of Canadians may have personal debt emergencies. But the federal government does not appear to face any debt emergency despite the recent mega deficits.
Leo Tollstroy “Per Buffett, deficit hawks have preached doom for decades. They have never been proven correct.”
Well this isn’t entirely accurate. There have been numerous government defaults on their debt as a result of the accumulated deficits. Greece, Russia and Argentina to name just a few. You’re correct that the US and many other nations have been able to run these deficits without much financial repercussions but to think they can continue to do this in perpetuity is nonsensical. Look up Minsky Moment which is well creditors finally realize the company/government cannot meet its obligations and we see a credit crisis unfold. If we keep on this current path then we’ll see these Minsky Moments playing out in years ahead. No individual, company or government can continue to borrow indefinitely with no repercussions. – Ryan L
Justin said the budget will balance itself. To Quote Bob Dylan. “It balances like a mattress balances on a bottle of wine: 1966 Blonde On Blonde Album, Song- Leopard Skin Pillbox Hat.
IHCTD9 “Excellent blog Mr. L. I’m worried too. The more I look back in time, the more I credit our success to the fiscally prudent PM’s we lived under at the time, Chrétien, Martin, and Harper. We were lucky to get three great PM’s in a row.”
Here, here. I completely agree. We had a good run of fiscal prudence with Chrétien, Martin and Harper. Ironically, it’s my view that our very strong balance sheet and fiscal strength due to these PMs is why T2 today can so easily spend and rack up these deficits. Trudeau likes to say we’re in a good position to take on this debt but fails to recognize/explain that the reason Canada was in good shape is due to the fiscal prudence his predecessors exhibited. – Ryan L
@#116 Ponzie’s Payment Ponderings.
“Interesting point.
I’m not sure what the legal precedents are, but this could be a mess.”
+++
Seriously?
Think Germany’s war reparations after WWI
( Versailles Treaty ) that most historians now believe were so punitive it drove Germany onto it’s knees and then the Great Depression hit….ultimately fostering the rise of the German ultra nationalists hatred for Europe…ie Hitler.
https://en.wikipedia.org/wiki/Treaty_of_Versailles
Putin has just skipped a few steps on the way to Russia’s “deserved” glory.
It will be many many years before Russia digs themselves out of this hole.
Unless the appeasement monkeys rush in immediately after hostilities are over ( Putin’s dead) to buy oil, wheat and vodka at cut rate prices.
I am concerned, very concerned.
But I think the majority has either drunk the Kool-Aid and indebted themselves to nosebleed levels, re-assured that the party can and must go on, while the rest are so hard hit by inflation and the high cost of living that they are fearfully clinging to government promises since they don’t really have any other options.
So far those two camps have been able to convince themselves they are right, but don’t realize they have actually been paying all the hidden costs. Actually, we all have, and those costs are probably going to continue to rise but in a surreptitious way.
For instance, that juicy wage raise will be cancelled out and then some by a double whopper of higher inflation and taxes. And it will enable you to borrow more and for longer… hence indebting yourself more and further into the future!
Hate the game and the players?
@#148 Don’t poke bears
“The European Commission said Friday that EU companies may be able to comply with Russia’s proposed gas payment system, without running afoul of sanctions against Moscow.”
+++
Another nail in the EU political process coffin.
The voter turnout for that blithering , politically correct bureaucracy is even worse than a French election.
A major reason why the Brits voted to leave the EU was the self important, oblivious, donkeys of the EU parliament constantly interfering with new, unpopular, Laws ( Too many coat hangers in the closet at an EU Bed and Breakfast will get you an EU fine).
#31 crowdedelevatorfartz on 04.23.22 at 11:55 am
@#12 Pizzaguy
“walks in downtown Toronto I must say I noticed more people now scramble thru recycle bins from buildings, even garbage bin on parks. ”
++++
Downtown Vancouver has always had Hastings, and it has grown. Trudeau made pot legal, is decriminalizing drugs and growing Mental Health and Addiction programs. What they are not doing, teach kids about drugs and mental health issues… and so it grows.
For every one person who dies from overdose (which by the way, Fentanyl is mostly made in China), there are ten new people lined up with an addiction.
These ‘homeless’ people… have always been there, but the in-unit, or treatment facilities have been closed. If you have an addiction, and come clean, you lose some of your abilities. So to pay bills, cook or rent, might be some of them.
Our hospitals house these people, some for years, then they are discharged. Just like people are discharged from surgery. What we need is not more needle exchanges but more facilities to deal with patients requiring care, similar to seniors with dementia… there are thousand upon thousands with permanent brain damage from drugs…. AND it has ZIP to do with the housing issue.
The problem is not housing, the problem is care. People think, give the homeless an apartment and the problem is fixed. Nope, far from it. It’s just like giving a demented seniors a place to live – it means nothing, unless they have care. Some of these ex-addicts can’t remember where they live. Of course, not all, but the majority have done themselves such harm they are incapable of handling a basic life. Forever.
@#84 I’m gonna be sick
“#22 Quintilian on 04.23.22 at 11:36 am
Complete and utter BS… You are, quite possibly, an absolute idiot…”
+++
Nah, Quinty’s a self absorbed, overly educated child of the new way of thinking.
Dabbled in philosophy, economics, English.
Smart, smug and still so young.
“Blame the old because you’re young.” mantra, works every time until…..you’re old.
Just wait until the higher and higher taxes, user fees and cancelled govt programs hit him in the face again and again and again…..
Canadian’s debt is not Canadians’ debt.
And that is a very good thing. Good luck to the over-indebted masses.
#74 Observer on 04.23.22 at 2:39 pm
#36 Progressive conservative on 04.23.22 at 12:25 pm
Great post!
The only way out of this is electing a conservative government.
And the only way the conservatives can win is with a center-right leader like Jean Charest.
Zero chance convincing moderate voters from Ontario and eastern Canada to vote conservative with P. Poilievre.
^^^^^^^^^^^^^^^^
Agreed. Would love to vote Conservative next election but won’t if PP is the leader.
————
Yep. Charest recently held a rally in a nearby town, and he said all the right things. Ms. IH (a dyed in the wool NDP voter) would vote for him. My boss is a total partisan Lib, but he’s had enough of the total financial destruction wrought on Canadians by Trudeau. He will vote C if Charest wins. Neither will vote PP.
The CPC needs to understand that Charest is their guy if they want to win. I love PP myself, but I don’t want him anywhere near the helm of the party – I’ve had more than enough of Trudeau’s “leadership”, and IMHO – that’s where we’re going to go with PP.
Thanks Ryan. I share your concerns as well as our PM and Finance Minister (who both lack finance and business backgrounds) rapidly burn through Canada’s finances. As an Albertan this will benefit us in the end as a broke Canada will badly need our $20 trillion in energy reserves to support Canada. Trudeau will send in the army to build more pipelines.
The Great Canadian Deleveraging has begun!
How does a Minister of Finance have no background in Finance…
It’s so often forgotten that the person in control of the countries finances has a Bachelor’s degree in Russian history and literature and Masters in Slavonic studies… How did she get this job?
#160 Okotoks Matt
“Canada will badly need our $20 trillion in energy reserves to support Canada. Trudeau will send in the army to build more pipelines.”
………………………………………………………………………………………………………….
That’s great thinking and reasoning , but it won’t happen in time to save Canada before foreign invaders take over North America and take it for themselves to compensate for un-payable US debt the US will eventually default on.
As the US goes , so will Canada.