Federal deficit hit 5 Billion in JUNE

[Topaz]

This time last year the government had 1.6 Billion surplus and now its 5 Bil in the red. The articles says its the EI payments and the auto sector loans but the military is the biggest draw on the revenues, then EI and if the EI have surpassed the military then Harper better get his arse working to get more jobs coming back to Canada. If he can't then taxes will go up for the few million that are still working and EI premuims are scheduled to go the first of the year. http://ca.news.yahoo.com/s/capress/090821/...l/deficit_rises

[Oleg Bach]

There was a surplus in UI. That money should have been managed properly and not treated as a slush fund. Not a penny of UI money should have left the coffers to fund things other than sending the money back to the depositer.

[Topaz]

There was a surplus in UI. That money should have been managed properly and not treated as a slush fund. Not a penny of UI money should have left the coffers to fund things other than sending the money back to the depositer.

You`re right, 54 Billion plus another 3 for emergency. I listen to the minister in committee last week, (taped in May) and she said that the EI fund hadn`t been setup yet and wasn`t going to be until 2010 or 2011, so what happened to the money? They used 30 Bil towards the deficit, a lot of good it did. Just look at how much money they have spent this past week, almost 100 Mil.

[Oleg Bach]

You`re right, 54 Billion plus another 3 for emergency. I listen to the minister in committee last week, (taped in May) and she said that the EI fund hadn`t been setup yet and wasn`t going to be until 2010 or 2011, so what happened to the money? They used 30 Bil towards the deficit, a lot of good it did. Just look at how much money they have spent this past week, almost 100 Mil.

Again they are using the savings of thousands of people to continue to bail out those that mismanaged the economy. The garbage strike rang a bell in my head - It seems that it's all right to let those in high postions have a nest egg - buy skimming off a bit of cash from the bail out money - Look at smiling McGinty saying it would frustrate good talent from coming on board at GM - if their salary and bonus packages were made public.....YET when a poor guy that picks up your trash so you don't have to wallow in it - wants to bank his sick days as a bonus package - It's a no no.

The trend seems to sum up in my mind as this "We the rich are entitled to be rich - and when we mishandle our buisness and we screw up - we expect the poor to hand over their life savings - because we are entitled to be on the top of the heap" - if the corporates screw up they should practice their social and econimic Darwinism they are so proud of and let nature take it's course - WE SHOULD HAVE LET THEM FALL. We did not because we were conned into believing if we let our establishment tumble that we would suffer - well we bail them out and we are still suffering.

[Bryan]

Move to Manitoba if you're suffering. There a labour shortage here.

[madmax]

Move to Manitoba if you're suffering. There a labour shortage here.

Funny you say that. I am directing many people towards that Province. Doer has done many things that McGuinty has chosen not to do and the economy and labour market is feeling the pain of his incompetence.

[Jerry J. Fortin]

All through the west things are beginning to stabilize, but jobs are still tough to come by. In the east it is far worse, this was a strange recession and its recovery will be even more strange. Manufacturing jobs are not going to come back this time, Ontario is in for some real tough times.

[crazykai]

Recessions bring so many bad but nesseccary political decisions.

The auto sector, around the world, is a key industry, employing a large percentage directly and indirectly and gets us around. Not bailing it out would be stupid, even though management and labour exploit the taxpayers with their sky high salaries only because they can and it is the same everywhere in the world, always has, always will be.

Given we have bottomed out interest rates, continued recession in the US and headline deflation with slightly below target core inflation, I don't care how much the government goes in debt right now. I think there should be planning for the serious possiblity of a second stimulus package if core inflation starts falling. It will be absolutely nessecary to avoid a made in Canada financial crisis from deflation, a crisis I believe turned the recession of 1930 into the Great Depression.

A forced currency devaluation by the central bank is another policy but it might scare away enough investment and hurt international confidence in Canada to create a crisis in itself.

Ideas for a second stimulus package?

- retroact one time tax cuts on the 15% mariginal income tax bracket from the 2008 year

- stimulus checks, a couple hundred bucks to every man, woman and child like Alberta Tories do to bribe the public into voting for them before every election

Keep out the sector lobbying handouts and from being delayed by planning commitees and in make it immediate.

Edited August 22, 2009 by crazykai

[Jerry J. Fortin]

Recessions bring so many bad but nesseccary political decisions.

The auto sector, around the world, is a key industry, employing a large percentage directly and indirectly and gets us around. Not bailing it out would be stupid, even though management and labour exploit the taxpayers with their sky high salaries only because they can and it is the same everywhere in the world, always has, always will be.

Given we have bottomed out interest rates, continued recession in the US and headline deflation with slightly below target core inflation, I don't care how much the government goes in debt right now. I think there should be planning for the serious possiblity of a second stimulus package if core inflation starts falling. It will be absolutely nessecary to avoid a made in Canada financial crisis from deflation, a crisis I believe turned the recession of 1930 into the Great Depression.

A forced currency devaluation by the central bank is another policy but it might scare away enough investment and hurt international confidence in Canada to create a crisis in itself.

Ideas for a second stimulus package?

- one time grants of $1,000 to all Canadians under the Canada Student Loans Program

- increased maternal and parental EI benefits similar to QPIP

- restoring Conservative cuts to childcare and adult literacy programs

- retroact one time tax cuts on the 15% mariginal income tax bracket from the 2008 year

Keep out the sector lobbying handouts and from being delayed by planning commitees and in make it immediate.

Here we go again, lets spend our way out of debt! That only works when you are a business and have some chance of making a profit. How does the government profit aside from taxation? Those realized profits received from taxation are a bad gamble at best and they will take many years to realize. Lets look at spending first.

[crazykai]

Governments are not businesses. They are totally different organizations. Those who think they are the same either have their own agenda and use people's ignorance or are ignorant themselves.

Taken to the extreme, a government ruinning on a solely a profit motive would taken unproductive members of society and turn them into soap to be sold. There was one government that did that in the 30s and 40s and thank God our troops defeated them.

I might as well add that I am for spending cuts if and when inflation and interest rates get out of control, like they did in the early 90s and resulting in both Mulroney and Chrietien making large spending cuts. Today, we have the exact opposite problem. I am also not dillusional or an anarchist, like say the Prime Minister, that all taxes are evil, unneseccary and the economy will be ruined by a one percent increase in the GST.

There is good spending, there is bad spending, there are good taxes, there are bad taxes, there are people who base things on facts, others on wishful thinking, some are moderate, others extreme...

[Oleg Bach]

We are the buisness-government are mid management.

[Mr.Canada]

This time last year the government had 1.6 Billion surplus and now its 5 Bil in the red. The articles says its the EI payments and the auto sector loans but the military is the biggest draw on the revenues, then EI and if the EI have surpassed the military then Harper better get his arse working to get more jobs coming back to Canada. If he can't then taxes will go up for the few million that are still working and EI premuims are scheduled to go the first of the year. http://ca.news.yahoo.com/s/capress/090821/...l/deficit_rises

I remember you liberals were screaming for Stimulus spending and you got it, stop whining please. Where do you expect that stimulus money to come from mrhmmm?

Oh don't worry we know you with your job at OCAP cannot pay for it. We, the middle class will once again foot the bill, your welcome.

[madmax]

Recessions bring so many bad but nesseccary political decisions.

The auto sector, around the world, is a key industry, employing a large percentage directly and indirectly and gets us around. Not bailing it out would be stupid, even though management and labour exploit the taxpayers with their sky high salaries only because they can and it is the same everywhere in the world, always has, always will be.

Land Developers are parked on governments steps, lobbies, and hall, and everywhere in between, with their hand out.

Alway have and always will be. Billions and Billions for the Corporate Billionaires.

[Jerry J. Fortin]

Land Developers are parked on governments steps, lobbies, and hall, and everywhere in between, with their hand out.

Alway have and always will be. Billions and Billions for the Corporate Billionaires.

I must agree, I see it daily because I live in Alberta.