War and Covid - The excuse for the coming financial collapse

[cj8]

On 5/28/2022 at 5:05 PM, Queenmandy85 said:

One of the great sages of the economy was asked what the markets will do. He replied "The markets will fluctuate."

Anyone can predict a coming boom in the economy or a recession. That is because there will always be highs and lows. But predicting a downturn will make you more money because everyone loves a good recession story.

Only new loans can pay for old loans with interest. Money is created through loans. So the system is doomed i guess. It´s just a matter of time.

[Queenmandy85]

Inflation helps repayment of debt. So does fiscal restraint. Marc LaLonde was the liberal finance minister who reigned in inflation in the 1980's. Paul Martin, finance minister under Jean Chretien, built up large surpluses to pay down the debt inherited from the previous government. This proves it can be done. It also shows that it was the conservatives who were the big spenders and it was the liberals who were fiscally responsible...on ocassion. In reallity, it is not a party lable that makes the difference. It is the competence and political will of the individuals to get the buy-in from the voters to get the economy under control. Dealing with a deadly pandemic and a war with Russia doesn't help. The myth that war is good for the economy is well and truly discredited.

[Zeitgeist]

2 hours ago, Queenmandy85 said:

Inflation helps repayment of debt. So does fiscal restraint. Marc LaLonde was the liberal finance minister who reigned in inflation in the 1980's. Paul Martin, finance minister under Jean Chretien, built up large surpluses to pay down the debt inherited from the previous government. This proves it can be done. It also shows that it was the conservatives who were the big spenders and it was the liberals who were fiscally responsible...on ocassion. In reallity, it is not a party lable that makes the difference. It is the competence and political will of the individuals to get the buy-in from the voters to get the economy under control. Dealing with a deadly pandemic and a war with Russia doesn't help. The myth that war is good for the economy is well and truly discredited.

Martin made major budget cuts.  Our current government is adding new spending programs like childcare.  It’s insane, but the NDP did the same in Ontario building public housing.  At the end of their reign we got 8 unpaid days off for all public employees and promises that taxes would be raised but we wouldn’t lose healthcare if the NDP got re-elected.  Thankfully the public saw the banana republic insanity unfolding and elected a back to basics Conservative government that cut income taxes by 30% and got the economy booming again.  Our public today hasn’t seen the kinds of cuts needed to reduce debt in almost 30 years.  Our government fixates on handouts to emerging special interest groups and subsidies for favoured equity groups and has no sense of responsibility to future generations.  

[Queenmandy85]

People have been asking for childcare for decades. Parents are not a "special interest group or a favoured equity group." Part of the role in a democratic government is to give people what they want.

We have a problem however. Up until 2019, a major deficit would have been 20 billion. With the advent of covid, the bar hasn't just been raised, it has vanished. With hundreds of billions going out the door, well, what is anothe few billion? The government can finally give people what they have been begging for for years. The parties have been promising it and finally they have delivered.

When the debt comes due, it will be paid. Our debt from World War II was huge and we paid that off. Especially if we replace the current PM with Mr. Charest. ?

[Zeitgeist]

5 hours ago, Queenmandy85 said:

People have been asking for childcare for decades. Parents are not a "special interest group or a favoured equity group." Part of the role in a democratic government is to give people what they want.

We have a problem however. Up until 2019, a major deficit would have been 20 billion. With the advent of covid, the bar hasn't just been raised, it has vanished. With hundreds of billions going out the door, well, what is anothe few billion? The government can finally give people what they have been begging for for years. The parties have been promising it and finally they have delivered.

When the debt comes due, it will be paid. Our debt from World War II was huge and we paid that off. Especially if we replace the current PM with Mr. Charest. ?

Adding a new and expensive social program in an environment of high inflation and debt is grossly irresponsible.

[RedDog]

Debt by any level of government should be illegal. It should be against the law to run a deficit.

[Michael Hardner]

52 minutes ago, RedDog said:

Debt by any level of government should be illegal. It should be against the law to run a deficit.

They shouldn't go into debt to fund operations, I agree with that.

But if you are building a $500M bridge that is lasting 50 years, I don't see why you shouldn't spread that over time rather than try to pay all at once.  Issue a bond, pay $10M a year... (plus interest)

[Aristides]

47 minutes ago, Michael Hardner said:

They shouldn't go into debt to fund operations, I agree with that.

But if you are building a $500M bridge that is lasting 50 years, I don't see why you shouldn't spread that over time rather than try to pay all at once.  Issue a bond, pay $10M a year... (plus interest)

Problem is we don't pay it off over time, politicians just babble on about debt to GDP and just keep carrying the debt. Future generations end up paying for two bridges, then three etc, because none of them are paid for.

[Michael Hardner]

1 minute ago, Aristides said:

Problem is we don't pay it off over time, politicians just babble on about debt to GDP and just keep carrying the debt. Future generations end up paying for two bridges, then three etc, because none of them are paid for.

Absolutely true.  But do you expect the 'masses' to be prudent with money ?  Lots of examples of this being problematic.  That's why I generally agree with RedDog.  

[ExFlyer]

On 5/25/2022 at 7:02 PM, myata said:

Well see now I get how we managed to have a two-century old decorated democratic post-colonial system and never thought of a) looking at it  more closely and b) updating it. Like I still don't get rationally, in my brain. But I can see it. So it's been two months since pandemic restrictions were lifted in the province (April 1 I think). Folks in the local store still obediently line up in a single line to several cashiers. Employees stopped telling them it's no longer necessary. I try to gently remind every time, with little effect. See, people liked the restrictions! It's so much easier when someone is thinking for you and just telling you what to do, what to put on, where to go or not to and so on. It's exactly how it happened last time and the one before that and so on, forever.

Now tell me it all is the fault of the government.

Ha, good one coming from you that has been blaming the government for it all. Ha!!!

[RedDog]

I remember many years ago the Connecticut house sitting well into the breakfast hour to table a budget one year because running a deficit was illegal for the state government.

What we see now are grandiose dreams on the campaign trail luring votes when there’re no concrete plans for the financials. Liberals are famous for X zillion dollar scenarios “over X years” when there’s no certainty of them even being in office so completion and payback never happens.

[Queenmandy85]

But if you make a deficit illegal, how does the government deal with unforseen emergencies such as a war or a deadly pandemic or large scale projects such as transitioning to nuclear power and electrifying and rebuilding the transportation system.

Remember, it has always been the liberals who brought in the surpluses and the Conservatives who ran deficits.

[Michael Hardner]

1 hour ago, Queenmandy85 said:

But if you make a deficit illegal, how does the government deal with unforseen emergencies such as a war or a deadly pandemic or large scale projects such as transitioning to nuclear power and electrifying and rebuilding the transportation system.

Premier Ernie Eves had to run a government under a condition like this, as I recall. When asked what would happen if he had to run a deficit he replied that they would just change the law.

[WestCanMan]

On 5/25/2022 at 12:06 PM, Michael Hardner said:

1. Land, precious metals and crypto are all bubbles also

Ownership of land is a category of its own. It puts a roof over your head and if you own enough, it can provide enough food for you to live on. It guarantees that you can survive. No other investment does that.

Up 'til 2022 people benefitted greatly from leveraging to buy land, but I agree that it's maybe not advisable to carry one or more large mortgages anymore. The financial markets under Biden/Trudeau are predictable, but not in a good way. 

The reason why precious metals are such a hot commodity right now is that you can hold them in your hand - they're not just digital "assets" which can be seized with the click of a button by a fascist gov't - they have always held value and will always hold value, they trade around the globe as a liquid asset, and they are stable compared to our constantly devaluing currency.

Precious metals have their shortcomings, like any other investment, but it's prudent to keep some on hand now.

I live in BC and we're supposed to keep a month or two worth of food and fresh water out here in case of an earthquake, but now those stocks are necessary for political and economic reasons which didn't exist before 2020. 

[Michael Hardner]

3 minutes ago, WestCanMan said:

 I live in BC and we're supposed to keep a month or two worth of food and fresh water out here in case of an earthquake, but now those stocks are necessary for political and economic reasons which didn't exist before 2020. 

Agree with most of the rest of the post but this part borders on paranoia.

[Michael Hardner]

54 minutes ago, Michael Hardner said:

Agree with most of the rest of the post but this part borders on paranoia.

I suggest you just re-use your canned goods from Y2K my friend.  Also be sure to drink your own urine.  I realize that there are likely lots of fresh water sources near you, but I still would tell you to go drink your own urine.

[cj8]

On 5/31/2022 at 1:26 PM, Michael Hardner said:

Agree with most of the rest of the post but this part borders on paranoia.

 

Why? The banking system is a ponzi. It will collapse. Hundreds of millions will likely die then if banking is not transformed.