Another Budget report from Page

[Topaz]

Pages' latest report says he can't see where the government is going to cut 6.8 Bil. from the deficit. He has tries to information from the heads of the department but is having problems getting it from them. I'm sure other Canadians have wondered were the money would come from. The Libs had to hit the military to reduced the debt and since the Tories want to increase the debt through the military, I'm wondering how they are going to do this. Thoughts? http://www.cbc.ca/politics/story/2011/01/20/budget-office-report.html

[Esq]

Pages' latest report says he can't see where the government is going to cut 6.8 Bil. from the deficit. He has tries to information from the heads of the department but is having problems getting it from them. I'm sure other Canadians have wondered were the money would come from. The Libs had to hit the military to reduced the debt and since the Tories want to increase the debt through the military, I'm wondering how they are going to do this. Thoughts? http://www.cbc.ca/politics/story/2011/01/20/budget-office-report.html

Growth.

I think it may be a false hope though, there is too much focus on importing of finished goods and too little capacity for canada to produce its own. So most profits go to external sources- that may very well be linked to transnational conglomorates.

With a 2 to 3% growth factor though in a tax basis of 200 billion that amounts to 4 to 6 billion revenue per year- However the conservatives are cutting corporate taxes - hoping this translates into increased personal revenue perhaps.. but since the dollar is rising incentive to raise pay rates by this same amount may not be identical. It also means that inflationary printing is more catastrophic because of wage freezes.

It has to come from growth - unfortunately the stimulus won't be there as it is compeletely offset, little more than fudging the books because it went to short term almost naught Return on Investment - if this money instead went into capital producing projects. Growth in returns might be realizable, but I am skeptical to see it happen.

If the government wasn't spending on debt interst - and they paid the debt down the money spent on stimulus would have been secondary. Provinces would have been forced to create work programs that actually generated income for the provinces, and it would have avoided the need for all the profits going to private companies. In the end essentially it maintained a privatized model of management as opposed to public works capable of return capital.

The bottom line here is that NO government can afford to raise taxes. Also tax raises may just be offset by economic slowdown.

This whole thing is mostly about who controls the money - not about conditions.

The government could print 6 billion if it wanted to elimitate that deficit, but it should be done now while the dollar is still high. Actually deficits should be printed out of existence every year.

[PIK]

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Edited January 20, 2011 by PIK

[Esq]

...

I had the thought they might legalize drugs and tax them to make up the deficit shortfall also.

This might produce 6 billion in taxes.

Like look at everything that is illegal then put a price tag on it. Easy way to generate revenue from the corrupt rich.

Like indulgences.. It worked for the church

It might increase tourism too.

Edited January 21, 2011 by Esq

[Topaz]

Aren't they bring in another 13 Billion on increase EI premiums? IF the Tories get their majority, anything is on the table including increase in income taxes. Why not give back the pay increase they gave themselves because they surly didn't earn it with the billions in the red.

[Jack Weber]

I had the thought they might legalize drugs and tax them to make up the deficit shortfall also.

This might produce 6 billion in taxes.

Like look at everything that is illegal then put a price tag on it. Easy way to generate revenue from the corrupt rich.

Like indulgences.. It worked for the church

It might increase tourism too.

If I miss my guess,those "indulgences" the Roman Catholic Church allowed people to pay their way out of,was one of the main "Protestations" of one Martin Luther...

In that vein,even if the libertarian types in the Conservative party might consider something like legalizing drugs,I cannot see that type of move going over well with the socially conservative base of that party...

[Moonbox]

The government could print 6 billion if it wanted to elimitate that deficit, but it should be done now while the dollar is still high. Actually deficits should be printed out of existence every year.

Umm...isn't that what led us to 18% mortgage rates back in the 1980's???

[Esq]

Umm...isn't that what led us to 18% mortgage rates back in the 1980's???

Not that I am aware of can you explain this?

Inflation is ongoing almost every year but it is the rate of inflation.

6 billion works out

from $600 billion

about about 1% inflation increase

---

I had second thoughts instead of direct paydown it would be better to short the market

for example buy a lot of USD and euro, watch the dollar drop and speculators dump then buy back in and pay down.

[Esq]

Not that I am aware of can you explain this?

Inflation is ongoing almost every year but it is the rate of inflation.

6 billion works out

from $600 billion

about about 1% inflation increase

---

I had second thoughts instead of direct paydown it would be better to short the market

for example buy a lot of USD and euro, watch the dollar drop and speculators dump then buy back in and pay down.

To more clearly explain this.. 1% inflation works out to 1 cent from every dollar general tax that isn't raised through taxes but instead by creating credit and currency.

[Esq]

To more clearly explain this.. 1% inflation works out to 1 cent from every dollar general tax that isn't raised through taxes but instead by creating credit and currency.

To better understand this.. The Conservaitve Party of Canada's irresponsible debt load is really 25 cents on every dollar taxed in terms of "actually economic effect" meaning every dollar has 25 cents less than it did when they came into power (this reflecting a 150 billion dollars in debt spending since they came into office (and yes i realize the number is actually higher)

But in the matter of where is 6 billion coming from a 1% inflationary increase would solve the problem. Yes it is in part illusion but if it is "direct costs in Canadian dollars" it would basically nullify the loss.

[Esq]

To better understand this.. The Conservaitve Party of Canada's irresponsible debt load is really 25 cents on every dollar taxed in terms of "actually economic effect" meaning every dollar has 25 cents less than it did when they came into power (this reflecting a 150 billion dollars in debt spending since they came into office (and yes i realize the number is actually higher)

But in the matter of where is 6 billion coming from a 1% inflationary increase would solve the problem. Yes it is in part illusion but if it is "direct costs in Canadian dollars" it would basically nullify the loss.

To the government.

[Esq]

Also if you just divided the 1% inflationary increase by about .3% and adjusted interest rates by this same amount I'm geuss the banks would see neglible reason to raise it to 18% for a paltry 1% inflationary supply increase with an eqaul interest rate increase.

That 18% sounds like fear mongering to me for a paltry 6 billion over 3 years.

[Esq]

If they did raise them by 18% I'd suggest the government just offset the loss of mortgages by stealing them

by offering lower rate mortgages from new supply.

[Esq]

If they did raise them by 18% I'd suggest the government just offset the loss of mortgages by stealing them

by offering lower rate mortgages from new supply.

and naturally buy back the dump.. hoping it might recover or heat my home one day.

[Esq]

and naturally buy back the dump.. hoping it might recover or heat my home one day.

amero anyone?

[dre]

Please anybody that believes the government claims on defecit reduction needs to give their head a shake.

A conservative/republican government has not balanced a single budget in North America for more than 50 years. If you believe this one will then you probably buy a lot of used bridges.

[pfezziwig]

With a 5 year projection of balancing the books they have made it clear they have no real intention of balancing the books Flaherty cannot see 5 days into canada's economic future. The Liberals are looking better and better these days, I'm surprised they haven't captilized on the Chretian/Martin years of balanced budgets for proposing an alternative to Harper, they seem to be pushing deficit spending as a means to get elected which isn't winning anyone over from the Center.

[Jerry J. Fortin]

With a 5 year projection of balancing the books they have made it clear they have no real intention of balancing the books Flaherty cannot see 5 days into canada's economic future. The Liberals are looking better and better these days, I'm surprised they haven't captilized on the Chretian/Martin years of balanced budgets for proposing an alternative to Harper, they seem to be pushing deficit spending as a means to get elected which isn't winning anyone over from the Center.

It will take more than just balancing the books to clean up our act.

[PIK]

Please anybody that believes the government claims on defecit reduction needs to give their head a shake.

A conservative/republican government has not balanced a single budget in North America for more than 50 years. If you believe this one will then you probably buy a lot of used bridges.

That is because cons have to clean up the mess the libs leave behind and the tough measures it pisses off the people ,they throw out the cons just before we get to that point and the libs take the credit, like mulrooney's GST . And did mike harris not balance the budget?

[Jack Weber]

That is because cons have to clean up the mess the libs leave behind and the tough measures it pisses off the people ,they throw out the cons just before we get to that point and the libs take the credit, like mulrooney's GST . And did mike harris not balance the budget?

And Harris created the largest public debt Ontario had ever seen,including the combined idiotic efforts of the Peterson and Rae gov't's...

That's what happens when you borrow 5 BILLION dollars ti give away in tax cuts.Then you cut the public service to the bone,giving them triple severence(in some cases.Then realizing that the government actually needs people to run it day to day...Then hiring back many of those bad union people as "independent consultants" at 3 times their union wage...

"Keepers of the public purse",indeed...

But hey,you're a Con's con who buys into the bumpersticker sloganeering,huh?

And could you explain the financial "mess" the Chretien/Martin Liberals left for us???

Would it be the massive surplusses?

The lack of STRUCTURAL deficits?

The well funded "Rainy Day Fund"?

[DrGreenthumb]

That is because cons have to clean up the mess the libs leave behind and the tough measures it pisses off the people ,they throw out the cons just before we get to that point and the libs take the credit, like mulrooney's GST . And did mike harris not balance the budget?

That is so full of BS. I'm no Liberal but it is easy to see that the Liberal party has been a lot better financial managers than the Con-artist party. We had an 18 billion dollar surplus when these clowns took over and now we are 56 billion in deficit. Is that what Cons think is good financial stewardship?

[PIK]

And Harris created the largest public debt Ontario had ever seen,including the combined idiotic efforts of the Peterson and Rae gov't's...

That's what happens when you borrow 5 BILLION dollars ti give away in tax cuts.Then you cut the public service to the bone,giving them triple severence(in some cases.Then realizing that the government actually needs people to run it day to day...Then hiring back many of those bad union people as "independent consultants" at 3 times their union wage...

"Keepers of the public purse",indeed...

But hey,you're a Con's con who buys into the bumpersticker sloganeering,huh?

And could you explain the financial "mess" the Chretien/Martin Liberals left for us???

Would it be the massive surplusses?

The lack of STRUCTURAL deficits?

The well funded "Rainy Day Fund"?

Massive surplus, in other words when we are tax to death we get massive surpluses,and the taxpayer paid down the debt not the goverment and did harper not make 2 of the biggest payments on the overall debt ever? And 56 bil give me a break, that is a drop in the bucket.One more thing remember the big promise chretien made about ending the GST, but he did not and I wonder why? Edited January 25, 2011 by PIK

[Jack Weber]

Massive surplus, in other words when we are tax to death we get massive surpluses,and the taxpayer paid down the debt not the goverment and did harper not make 2 of the biggest payments on the overall debt ever? And 56 bil give me a break, that is a drop in the bucket.One more thing remember the big promise chretien made about ending the GST, but he did not and I wonder why?

And it is also the citizens of this country that got the things that debt bought them...

Blame the baby boomer generation,not necessarily the politicians...

By the way,those surplusses paid down debt AND gave us some modicum of a social saftey net.

By the way,Sweatervest Stevie's 2% drop in the GST added at least 6 Billion dollars to the deficit,which is a STRUCTURAL DEFICIT,as outlined by Mr.Page...

The good 'ol Con's...Keepers of the public purse...

[Smallc]

Massive surplus, in other words when we are tax to death

Because the last Liberal government never lowered taxes....

Edited January 26, 2011 by Smallc

[Battletoads]

Debt, what debt? Harper said we would have a surplus.

You must stop listeing to these liberal sypathizers.