Canada Capitalizing on US Debt

[CPCFTW]

What are some ways the Canadian federal government could capitalize on US debt and Obama's hatred for the wealthy?

I was thinking Canada could look at buying a Caribbean island from the US, like Puerto Rico or the Virgin Islands. Obama could use the proceeds to give his supporters an extra few bucks on their welfare cheques. Then Canada could reduce investment income taxes on wealthy Canadians, so that the Canadian Caribbean island becomes a de facto tax haven and tropical resort for retired American "1%ers" seeking to avoid the "Buffet" tax.

How much would a Caribbean island cost and how much would it raise Canada's public debt to acquire? How much would we have to lower investment income taxes on the top income bracket to become a tax haven for Americans?

Any other suggestions for Canada take advantage of the US's current economic and political situation!?

Edited September 20, 2011 by CPCFTW

[msj]

Any other suggestions for Canada take advantage of the US's current economic and political situation!?

The problem with such a smug attitude is that it leads to complacency.

I mean, WTF are you talking about?

The US combined debt to GDP ratio is something like 120%.

Canada? About 110%.

And we have been "taxing the rich."

At least the US has room to increase taxes.

Some Canadians need to wake up.

Edited September 20, 2011 by msj

[Bonam]

I don't think the US is putting Puerto Rico up for sale any time soon.

Anyway, if you expect the US economy to take a turn for the worse as a result of Obama policies and want to profit from it, open a short position on US stock markets.

[guyser]

I don't think the US is putting Puerto Rico up for sale any time soon.

From what I understand, I think they may if the price is right. The US spends a ton of money there , not so much the other way around.

USVI is very expensive to live on.

[CPCFTW]

I don't think the US is putting Puerto Rico up for sale any time soon.

Anyway, if you expect the US economy to take a turn for the worse as a result of Obama policies and want to profit from it, open a short position on US stock markets.

This isn't about personally profiting from it, I already know how to do that. I want Canada to profit from it.

[Topaz]

The way to get out of debt is to rise taxes, cut back on spending or to increase your exports. Isn't it time Canada took back it lead in the manufacturing sector? Why should we import products that we can manufacture here? This would create jobs, bring in more taxes for the government and make life a little easier.

[Guest American Woman]

Canada could use a Caribbean Island. It would be worth the price tag in the long run - think of all the money Canadians would save on passports in their quest to enjoy some warm weather during those long Canadian winters.

[Guest Derek L]

The way to get out of debt is to rise taxes, cut back on spending or to increase your exports. Isn't it time Canada took back it lead in the manufacturing sector? Why should we import products that we can manufacture here? This would create jobs, bring in more taxes for the government and make life a little easier.

Who's going to buy those products? How would Canadian labour compete with labour in the third world? Would you lower them minium wage to something completive like $1 an hour?

[CPCFTW]

The problem with such a smug attitude is that it leads to complacency.

I mean, WTF are you talking about?

The US combined debt to GDP ratio is something like 120%.

Canada? About 110%.

And we have been "taxing the rich."

At least the US has room to increase taxes.

Some Canadians need to wake up.

I'm not trying to be smug.

I do think that our economies and policies are going in opposite directions though. I'm aware that Canada isn't in a much better situation in terms of debt to GDP. Correct me if I'm wrong though, but isn't the US's budget deficit WAY worse? Pretty sure the US deficit is like 10% of GDP, while Canada's is like 2%.

Many Canadians are buying up US properties in Florida, why not make a collective property investment in a tourist destination / tax haven if the price is right?

Edited September 20, 2011 by CPCFTW

[Guest Derek L]

Forget American Islands, let’s reopen talks with the Turks and Caicos Islands…….A new territory in the Caribbean, with a population equal to that of a small city……A Canadian Hawaii…..

[guyser]

Many Canadians are buying up US properties in Florida, why not make a collective property investment in a tourist destination / tax haven if the price is right?

Florida-The market is good, economy is...well...it'll get better

-stable life

-relatively low crime where the canucks buy

Puerto Rico.

-Not so much

-crime is tons worse than FLA

[guyser]

Canada could use a Caribbean Island. It would be worth the price tag in the long run - think of all the money Canadians would save on passports in their quest to enjoy some warm weather during those long Canadian winters.

LOL

We did have the chance many years ago with the Turks and Caicos Islands. It was a good deal and we should have taken it.

Oh well, we are waiting on Cuba to open up, shouldnt be long now.

Edited September 20, 2011 by guyser

[CPCFTW]

Florida-The market is good, economy is...well...it'll get better

-stable life

-relatively low crime where the canucks buy

Puerto Rico.

-Not so much

-crime is tons worse than FLA

Transfer payments and being given the right to vote might minimize those issues.

[msj]

I'm not trying to be smug.

I do think that our economies and policies are going in opposite directions though. I'm aware that Canada isn't in a much better situation economically (although I think we are politically better off). Correct me if I'm wrong though, but isn't the US's budget deficit WAY worse?

Many Canadians are buying up US properties in Florida, why not make a collective property investment in a tourist destination / tax haven if the price is right?

The US deficit was also way worse awhile ago even when Obama couldn't be blamed for it.

It's funny and, perhaps, ironic, that deregulation and low taxes could lead the US into a house/credit bubble that has seen tax revenue tank to historic lows.

Now, don't get me wrong, look at Europe, and even Canada (oh, I know, deny it all you want Canuckleheads), to find credit bubbles and real estate bubbles that are rearing (or will rear) their ugly heads soon enough.

The world is awash in deficits and debts (both public and private) and it's going to take more than a few politicians to right the ship.

Canada looks good comparatively because we have borrowed our way to prosperity - if you can call our current economic malaise prosperity - well, say it with a straight face, that is.

Canadians are more indebted than ever (we are even competitive with Americans at the peak of their bubble back in 2005/2006) and you don't think a decrease in commodity demand or an increase in interest rates or who knows what could tip us into the tank, too?

Then some a$$hole American can come to the forum in a few years and brag about buying up the north.

Who knows, maybe that's something BC_2004 is looking forward to....

[CPCFTW]

The US deficit was also way worse awhile ago even when Obama couldn't be blamed for it.

It's funny and, perhaps, ironic, that deregulation and low taxes could lead the US into a house/credit bubble that has seen tax revenue tank to historic lows.

Now, don't get me wrong, look at Europe, and even Canada (oh, I know, deny it all you want Canuckleheads), to find credit bubbles and real estate bubbles that are rearing (or will rear) their ugly heads soon enough.

The world is awash in deficits and debts (both public and private) and it's going to take more than a few politicians to right the ship.

Canada looks good comparatively because we have borrowed our way to prosperity - if you can call our current economic malaise prosperity - well, say it with a straight face, that is.

Canadians are more indebted than ever (we are even competitive with Americans at the peak of their bubble back in 2005/2006) and you don't think a decrease in commodity demand or an increase in interest rates or who knows what could tip us into the tank, too?

Then some a$$hole American can come to the forum in a few years and brag about buying up the north.

Who knows, maybe that's something BC_2004 is looking forward to....

I don't understand how I'm being an "a$$hole". There are two parties to the sale of an asset. I'm just suggesting that when the US is on the brink of default, it might be a good time to look at something like this. For example, if you were on the brink of bankruptcy, you might be a little more inclined to sell your car to pay back your creditors. You're really taking it a little too personally for some reason.

Edited September 20, 2011 by CPCFTW

[msj]

I don't understand how I'm being an "a$$hole". There are two parties to the sale of an asset. I'm just suggesting that when the US is on the brink of default, it might be a good time to look at something like this. For example, if you were on the brink of bankruptcy, you might be a little more inclined to sell your car to pay back your creditors. You're really taking it a little too personally for some reason.

And you're being too complacent.

The reason Mulroney spurned the offer for a Carribean Island back in the 80's is because Canada was in no position to get involved in that type of thing.

The reason we would/should spurn such an idea now is that Canada is still in no position to get involved with this type of thing.

You remind me of people who will borrow because borrowing is "cheap" since it's at "low interest rates" without any regard to your current financial position or consideration of future financial position.

You appear to have no idea that our financial position is only slightly better than the US' and only slightly better than it was back in Mulroney's day.

If the US were to go broke then Canada has many other options it is going to need to consider than trying to buy islands at fire sale prices.

But that, too, is typical of complacent Canadians thinking - hey, lets buy real estate because R/E never goes down in value etc....

Only, it has - in the US, and many other countries, and is likely coming home to Canada soon enough.

Then maybe we will lose the smugness and complacency. One can only hope.

[CPCFTW]

And you're being too complacent.

The reason Mulroney spurned the offer for a Carribean Island back in the 80's is because Canada was in no position to get involved in that type of thing.

The reason we would/should spurn such an idea now is that Canada is still in no position to get involved with this type of thing.

You remind me of people who will borrow because borrowing is "cheap" since it's at "low interest rates" without any regard to your current financial position or consideration of future financial position.

You appear to have no idea that our financial position is only slightly better than the US' and only slightly better than it was back in Mulroney's day.

If the US were to go broke then Canada has many other options it is going to need to consider than trying to buy islands at fire sale prices.

But that, too, is typical of complacent Canadians thinking - hey, lets buy real estate because R/E never goes down in value etc....

Only, it has - in the US, and many other countries, and is likely coming home to Canada soon enough.

Then maybe we will lose the smugness and complacency. One can only hope.

Have you ever read any of my other posts? I'm constantly complaining about debt and overspending on social programs. I don't see how you can say I'm complacent about it.

The thing about a caribbean island is that it is an actualy physical asset, unlike borrowing to write welfare cheques and give everyone free flu shots and visits to the clinic for a headache. It would also increase Canada's population and tax base by 10%. People and land are the real assets that can actually pay off this ridiculous debt load.. Not socialist dreams like a strong middle class and an over-educated and unemployed workforce.

[Jack Weber]

Have you ever read any of my other posts? I'm constantly complaining about debt and overspending on social programs. I don't see how you can say I'm complacent about it.

The thing about a caribbean island is that it is an actualy physical asset, unlike borrowing to write welfare cheques and give everyone free flu shots and visits to the clinic for a headache. It would also increase Canada's population and tax base by 10%. People and land are the real assets that can actually pay off this ridiculous debt load.. Not socialist dreams like a strong middle class and an over-educated and unemployed workforce.

A strong middle class is a socialist dream?

[Smallc]

Canada? About 110%.

That varies by where the info comes from. The big difference is federal debt, of which Canada has far less. Also, current deficits are far less in Canada, at all levels. I've never before seen a number with Canada over 85%.

Edited September 21, 2011 by Smallc

[Jack Weber]

That varies by country. The big difference is federal debt, of which Canada has far less. Also, current deficits are far less in Canada, at all levels.

It's still a massive debt and we still have massive deficits...

Just not as massive as other countries...

[Smallc]

It's still a massive debt and we still have massive deficits...

They aren't really massive deficits, and they'll be gone soon enough. They're already much smaller than they were in 2008. As a percentage of GDP, the federal deficit is approaching insignificant levels.

[Jack Weber]

They aren't really massive deficits, and they'll be gone soon enough. They're already much smaller than they were in 2008. As a percentage of GDP, the federal deficit is approaching insignificant levels.

You're making the mistaken assumption that economic growth will be just what Slasher Jimmy wants/needs...

Todays IMF report stands in direct contradiction with that line of wishful thinking....

[msj]

That varies by where the info comes from. The big difference is federal debt, of which Canada has far less. Also, current deficits are far less in Canada, at all levels. I've never before seen a number with Canada over 85%.

Well, um, maybe if you read the link you will see that it is about combined debt (federal, provincial).

Yeah, reading a link would be good. That's why it was put there in the first place....

[msj]

The thing about a caribbean island is that it is an actualy physical asset, unlike borrowing to write welfare cheques and give everyone free flu shots and visits to the clinic for a headache. It would also increase Canada's population and tax base by 10%. People and land are the real assets that can actually pay off this ridiculous debt load.. Not socialist dreams like a strong middle class and an over-educated and unemployed workforce.

Yeah, this is how people/countries get further into debt - but, but, but, we're buying an asset!!!!

Yes, if it will be a productive asset where the long run incoming cash flow will be greater than the long run outgoing cash flow, then go ahead and borrow.

If not, then don't borrow for the sake of borrowing and for the sake of "owning" an asset.

That's just stupid - and yet so many Canadians have been doing exactly that.

[CPCFTW]

Yeah, this is how people/countries get further into debt - but, but, but, we're buying an asset!!!!

Yes, if it will be a productive asset where the long run incoming cash flow will be greater than the long run outgoing cash flow, then go ahead and borrow.

If not, then don't borrow for the sake of borrowing and for the sake of "owning" an asset.

That's just stupid - and yet so many Canadians have been doing exactly that.

And what makes you think I want Canada to buy the asset for less than the predicted discounted future cash flows? You're just arguing for the sake of arguing. I specifically asked in my first post how much it would cost to acquire a Caribbean island and how we could go about making it a productive asset (by making it a tax haven for wealthy Americans). You're going in circles trying to justify why you're arguing. Go away.