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Canada's debt charges are ballooning as Freeland tables a gloomy fall economic statement (HOLY SHIT)


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https://www.cbc.ca/news/politics/canada-fall-economic-statmenet-2023-1.7035098

Ottawa to spend $20.8B more than expected over the next six years — and post a $40B deficit this year

The federal Liberal government has run a deficit every year since it was elected. It posted even bigger deficits during the COVID-19 pandemic as it scrambled to shore up an economy on the ropes during an unprecedented health crisis.

Now, with interest rates at a 20-year high, the cost to borrow all that money has spiked from $20.3 billion in 2020-21 to $46.5 billion in this fiscal year. The debt service charges will march even higher still in the years ahead. Carrying the debt is expected to cost the federal treasury $60.7 billion a year in 2028-29, according to the economic statement.

That means debt service charges are now among the most costly line items in the federal budget.

To put that in perspective, Ottawa will spend $28.9 billion on the Canadian Armed Forces this fiscal year — about $18 billion less than what the government will send in payments to the bankers and bondholders who carry Canada's debt.

We are effed. Twice the defense budget to service debt and the cost will be going up.

AND we're still piling it on - with no return to balance anywhere in sight.

Well crap.

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Disagree, strongly.

Canada's current federal debt to gdp ratio is 40% (in Japan, it is over 200%

======

There is a great misunderstanding about taxes, government spending and debt.

Governments do not spend or borrow as you or I do. If you're a woman - imagine  does it matter whether you use the debit card, credit card?

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1 hour ago, August1991 said:

Disagree, strongly.

Canada's current federal debt to gdp ratio is 40% (in Japan, it is over 200%

======

There is a great misunderstanding about taxes, government spending and debt.

Governments do not spend or borrow as you or I do. If you're a woman - imagine  does it matter whether you use the debit card, credit card?

Japan is in severe trouble and everyone recognizes it. It's a matter of when that bubble is going to burst. They're addicted to quantative easing. And their population is aging and shrinking. Everyone knows that's going to pop and one of the only things saving them is the bank owns most of their debt and of the rest about 50 percent is owned by their own people.  And they have a big enough economy to drag things out - 3rd largest. Somethimes germany inches ahead.

Canada's economy is more like 9th, and falling behind.  We can never sustain the kind of borrowing they did. And their quality of life has taken a severe hit.

Sorry - you're just plain wrong.

 

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