2009 Deficit could hit $14 billion

BC_chick · November 20, 2008

OTTAWA–An independent parliamentary review of the Harper government's finances concludes the federal Conservatives are likely to run budget deficits "in the near term," possibly beginning this year.
The report by Kevin Page, the new Parliamentary Budget Officer, says the weaker economic outlook poses a risk to the government's attempts to achieve its "short-term and medium-term fiscal targets."

http://www.thestar.com/business/article/540348

The Tories themselves predict anywhere from zero to 3 or 4 billion, but I don't have any faith in any conservative government anymore. They want to cut taxes cause that's what they're supposed to do as conservatives, but they also want to spend like liberals because that's what people like. The end result - Mulroney, Bush Sr., Bush Jr, Harper, all the same.... no fiscal responsibility.

From $12 billion surplus to this in just a couple of years is just ridiculous.

BC_chick · November 20, 2008

LOL, nice proof-read... no, not definit. That's supposed to be deficit.

Oleg Bach · November 20, 2008

LOL, nice proof-read... no, not definit. That's supposed to be deficit.

Deficit? Doesn't that mean to pay twenty bucks for an object that is worth ten? Is it not the intentional creation of debt that only enriches those that are already rich? It's a bad idea. It makes no sense to walk into the store and by a loaf of bread and pay more than it's worth in hope of getting it for it's real market value..who is going ot come out on top with this plan anyway?

bush_cheney2004 · November 20, 2008

....The end result - Mulroney, Bush Sr., Bush Jr, Harper, all the same.... no fiscal responsibility.

Gee...life without Bushes would be very boring in Canada. In any event, Bush Sr. actually reneged on his own lips and raised taxes to address growing budget deficits. Probably cost him re-election in 1992. But what the hell, his name was Bush, so may as well lump him in with all the rest.

From $12 billion surplus to this in just a couple of years is just ridiculous.

"This" is only chump change....wait till it gets really expensive.

Oleg Bach · November 20, 2008

Gee...life without Bushes would be very boring in Canada. In any event, Bush Sr. actually reneged on his own lips and raised taxes to address growing budget deficits. Probably cost him re-election in 1992. But what the hell, his name was Bush, so may as well lump him in with all the rest.
"This" is only chump change....wait till it gets really expensive.

Sorry but that is as expensive as you are permitted to get...stop showing off- your pride will put you in the poor house. Don't forget it is the planet earth that makes you wealthy - and the rest of the world might stop taking you seriously...and we would not want that - who would support you? :unsure:

bush_cheney2004 · November 20, 2008

Sorry but that is as expensive as you are permitted to get...stop showing off- your pride will put you in the poor house. Don't forget it is the planet earth that makes you wealthy - and the rest of the world might stop taking you seriously...and we would not want that - who would support you?

Nope....that's the beauty of it....if America goes tits up, you go with us (Canada is firmly attached to our economic teats). The rest fall like.....dominoes!

I think I will start saving my soap slivers in a jar and re-use wax paper....ah...those were the days. Cash is piling up!

Wilber · November 20, 2008

Keynesian economics calls for the government to take up the slack in a failing economy by increasing spending and cutting taxes. They cite that governments reluctance to go into deficit was a major contributor to the onset and severity of the Great Depression. Whether that policy will work or not is an unknown but it seems governments are not willing to take a chance on making the same mistake again.

I agree, the hardships imposed by a government returning a budget to surplus will be nothing compared to those of a full blow depression.

Wilber · November 20, 2008

Nope....that's the beauty of it....if America goes tits up, you go with us (Canada is firmly attached to our economic teats). The rest fall like.....dominoes!
I think I will start saving my soap slivers in a jar and re-use wax paper....ah...those were the days. Cash is piling up!

True, the two countries effected the most by the Depression were the US and Canada.

Oleg Bach · November 20, 2008

Nope....that's the beauty of it....if America goes tits up, you go with us (Canada is firmly attached to our economic teats). The rest fall like.....dominoes!
I think I will start saving my soap slivers in a jar and re-use wax paper....ah...those were the days. Cash is piling up!

The only person I have some connection with that is super high on the food chain is this old investment banker...He once said to me that you are in a powerful position because you have absolutely nothing....well - I have free speech and he does not. This person was responsive for a recent 4 billion dollar merger - and when we discussed the plight of the American economy and the run on the banks - I sensed concern...."it will spread up here" -No matter how well our banking system is managed and no matter how much honour is within our system - note- the only system that has not collapsed - He understands that we are joined at the hip and is worried about you guys - a selfish worry perhaps - Yes we depend on you..so don't screw up!

bush_cheney2004 · November 20, 2008

Keynesian economics calls for the government to take up the slack in a failing economy by increasing spending and cutting taxes. They cite that governments reluctance to go into deficit was a major contributor to the onset and severity of the Great Depression. Whether that policy will work or not is an unknown but it seems governments are not willing to take a chance on making the same mistake again.

Right....Bretton Woods cemented this approach and there will be no turning back.

I agree, the hardships imposed by a government returning a budget to surplus will be nothing compared to those of a full blow depression.

Maybe we should have gold plated tombstones for those who die in the black.

bush_cheney2004 · November 20, 2008

.... He understands that we are joined at the hip and is worried about you guys - a selfish worry perhaps - Yes we depend on you..so don't screw up!

That's more like it....self interest is the purest form of motivation.

But don't worry....we'll have Brittney shaking her ass again in no time.

"Greed.... is good" - Gordon Gecko Wall Street

Edited November 20, 2008 by bush_cheney2004

Oleg Bach · November 20, 2008

Right....Bretton Woods cemented this approach and there will be no turning back.
Maybe we should have gold plated tombstones for those who die in the black.

As was said the other day - we are all insignificant in comparison to the millions that came before us...having said that perhaps some humilty and common sense can come..we don't live for ever and what has to be done must be done - like racking up your dying mother inlaws credit cards to ensure the payment of rent and cigarettes...She on her death bed actually believes that if she dies with bad credit - she will not enter into heaven to be with her second husband - or is it the third - I forget. :lol: Money will not matter much in the end...besides - the stuff is not real anyway. It is wealth by decree...and I declare that I am the richest man in the world so there!

noahbody · November 20, 2008

The Tories themselves predict anywhere from zero to 3 or 4 billion, but I don't have any faith in any conservative government anymore.

Who I don't have faith in anymore is the media. Page isn't predicting a deficit of $14 Billion, he's predicting modest deficits for the next 3 years followed by modest surpluses.

The report also projects "modest deficits" of $3.9 billion in 2009-10 and $1.4 billion in 2010-11, with a return to modest surpluses of $1.6 billion in 2011-12 and $3 billion in 2012-13.

In a worst-case scenario, Canada could see deficits peak at roughly $14 billion in the next fiscal year, the report says. On the other end of the spectrum, its most optimistic projection foresees a balanced budget this year.

The link to the above is on the other thread on this topic.

Edited November 20, 2008 by noahbody

Wilber · November 20, 2008

Maybe we should have gold plated tombstones for those who die in the black.

What did gold do today, maybe we could make them solid.

Oleg Bach · November 20, 2008

What did gold do today, maybe we could make them solid.

Gold caskets too? You can take it with you - apparently the sucking of wealth upward into material heaven has caused ecomomic dispair...they are making a grand attempt at taking it with them and by doing so the walking dead greed bastards cause grief to those that just want to live and enjoy.

Leafless · November 20, 2008

From $12 billion surplus to this in just a couple of years is just ridiculous.

Your ridiculous.

Blame the deficit on the slides in the U.S. market and the recent DROP in oil prices.

Oleg Bach · November 20, 2008

Your ridiculous.
Blame the deficit on the slides in the U.S. market and the recent DROP in oil prices.

So who is the person or persons that caused the slide in the market - and who is the guy that dropped the oil prices - must have been a human being - machines don't do it and it God has no part in it - Blame the man who did it - if you can find the SOB - makes you wonder where they hide and if they are quietly masterbating in self endulgent egomania?

jdobbin · November 20, 2008

Keynesian economics calls for the government to take up the slack in a failing economy by increasing spending and cutting taxes.

And when the economy is up you cut spending and raise taxes?

jdobbin · November 20, 2008

Your ridiculous.
Blame the deficit on the slides in the U.S. market and the recent DROP in oil prices.

The tax decreases and spending have nothing to do wit it?

jdobbin · November 20, 2008

Who I don't have faith in anymore is the media. Page isn't predicting a deficit of $14 Billion, he's predicting modest deficits for

I don't consider $4 billion modest. A billion here and a billion there and we are talking about real money.

And if it is $4 billion, surely the Tories can find something to cut to balance the budget.

BC_chick · November 20, 2008

Your ridiculous.
Blame the deficit on the slides in the U.S. market and the recent DROP in oil prices.

You would have a point if the surpluses weren't gutted way before any of these recent developments. In fact, that was the purpose of holding on it... for a rainy day like today. Now instead, we go back to deficits like the last time we had a conservative government.

Edited November 20, 2008 by BC_chick

noahbody · November 20, 2008

I don't consider $4 billion modest. A billion here and a billion there and we are talking about real money.

"Modest" is how it is described by the author of the report. He's also predicting 'modest' surpluses in the next few years. Over a four year period, the predicted deficit is $700 Million.

And if it is $4 billion, surely the Tories can find something to cut to balance the budget.

If not, they can always ask Dion. He was going to find $12 Billion in savings. We need to tap this valuable resource while he's still around.

Smallc · November 20, 2008

If not, they can always ask Dion. He was going to find $12 Billion in savings. We need to tap this valuable resource while he's still around.

According to what I heard on politics yesterday, they are going to ask him.

Smallc · November 20, 2008

Who I don't have faith in anymore is the media. Page isn't predicting a deficit of $14 Billion, he's predicting modest deficits for

Actually, he did say it could be $14B at the high end for next year.

Jerry J. Fortin · November 20, 2008

I would suggest that the sky isn't falling. The end isn't near, and we should avoid running away at the drop of the next hat.

Welcome to the new world order, organized chaos is what we have. Crap happens folks, get over it and lets not bank on the governments doing what is good or right for us. Lets start using our heads here. As long as you still have a job you can be okay, in fact you could be a whole lot worse off that is the reality here. If you are carrying debt, start looking after that little problem as quick as you can. I say this because here comes a buyers market on the order of a once in a lifetime experience.

We are headed for a serious correction in the markets. Not just real estate and not just stocks, it will be everything across the board but it will be applied the harshest to luxury items. Unfortunately it won't affect food prices or utilities, it will simply affect everything else. Watch the consumer spending index, and see what happens. If you have money to spend you will be able to buy what you want at the price you want. Buy stuff, don't try to sell stuff that is the key. Of course you need the money to buy things, if you have a job and you can hold onto it you can come out of this smelling like a rose.