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The federal debt interest expense has exploded and now surpasses defence spending by about double.


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Posted

Image

 

As you can see, During harper's time the debt interest was brought under control, and under the liberals between all the borrowing and inflation interest rate hikes it is now insanely high again. 

And Carney is borrowing even more than justin was. 

 

Canada deficit

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There are two types of people in this world: Those who can extrapolate from incomplete data

Posted

This is a great example as to why running up debt is such a bad idea.  The financing of the debt will also start to crowd out other spending like health care etc.  And the only way to make up the shortfall is to borrow more money, which just makes the problem worse.  Anyone that voted for Justin Trudeau is ultimately to blame for this mess.  They’re either economically illiterate or just didn’t care.

Posted
2 hours ago, Shady said:

This is a great example as to why running up debt is such a bad idea.  The financing of the debt will also start to crowd out other spending like health care etc.  And the only way to make up the shortfall is to borrow more money, which just makes the problem worse.  Anyone that voted for Justin Trudeau is ultimately to blame for this mess.  They’re either economically illiterate or just didn’t care.

This is  the problem. The last time it happened it was called the plague of the black debt, and that's what mulroney was trying to fight. Borrowing lead to interest cost  and inflation which lead to MORE interest costs and that lead to more borrowing just to keep up etc etc. 

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There are two types of people in this world: Those who can extrapolate from incomplete data

Posted

Canadians know all of this and yet continue to vote for the liberals that spend like a drunken sailor...it is what they want...everyone has got their hands out...many countries have already gone through this process, take Greece for instance... Canadians are either to stupid to see this, or really don't care...

We, the willing, led by the unknowing, are doing the impossible for the ungrateful. We have now done so much for so long with so little, we are now capable of doing anything with nothing.

Posted (edited)

This is OP is just wrong.

The federal government has a sustainable debt. Our various provincial governments are not in debt.

As a federal state, we Canadians are not in debt.

======

In simple terms, our various governments are not borrowing faster than they can collect in taxes.

The GDP is growing faster than the state debt-to-GDP ratio.

Canada is not a Ponzi scheme.

Edited by August1991
Posted (edited)
5 minutes ago, August1991 said:

This is OP is just wrong.

The federal government has a sustainable debt. Our various provincial governments are not in debt.

As a federal state, we Canadians are not in debt.

======

In simple terms, our governments are not borrowing faster than they can collect in taxes.

The GDP is growing faster than the state debt-to-GDP ratio.

Canada is not a Ponz scheme.i

What the hell are you smoking? Provincial debts are also going through the roof. The Quebec government debt is 355 billion and forecasting an 11 billion deficit this year. Other provinces aren't much better.

https://www.iedm.org/27-quebec-debt-clock/

Edited by Aristides
  • Like 1
Posted
1 minute ago, Aristides said:

What the hell are you smoking? Provincial debts are also going through the roof. The Quebec government debt is 355 billion and forecasting an 11 billion deficit this year. Other provinces aren't much better.

https://www.iedm.org/27-quebec-debt-clock/

Compared to America, Canada is well placed. Quebec (like Norway) has a fund.

The US is pay as you go. Trump understands this.

Posted
3 hours ago, Army Guy said:

Canadians know all of this and yet continue to vote for the liberals that spend like a drunken sailor...it is what they want...everyone has got their hands out...many countries have already gone through this process, take Greece for instance... Canadians are either to stupid to see this, or really don't care...

Army Guy,

The question is not money this or liberals that.

Ordinary stubborn Slavic/Russian/Ukrainian guys are fighting.

It must stop. 

Posted
1 hour ago, August1991 said:

Army Guy,

The question is not money this or liberals that.

Ordinary stubborn Slavic/Russian/Ukrainian guys are fighting.

It must stop. 

Sorry but thats exactly what this is about our national debt is out of control and is only going to get worse....

Thats a crook of BS, man has been solving his problems with violence since the first caveman beat someone up with a club...it is not just the Slavs involved in conflicts, dozens of conflicts are ongoing on the planet right now....it won't stop ever, it is how humans role...you've said you've been to dozens of battlefields, and you have not learned anything....man resorts to fighting all the time....if not at the bars,family picnics, then on the battlefield. even our sports involve it....

It does need to stop, but it is not going to happen in our life times...NATO is preparing for the next war in Europe as we speak, experts say it is not the far out...Canadians are still playing with themselves like it normally does .

  

We, the willing, led by the unknowing, are doing the impossible for the ungrateful. We have now done so much for so long with so little, we are now capable of doing anything with nothing.

Posted
1 hour ago, August1991 said:

Compared to America, Canada is well placed. Quebec (like Norway) has a fund.

The US is pay as you go. Trump understands this.

I posted Quebec's debt, if it has a fund, it is borrowed money.

Posted
1 hour ago, Army Guy said:

Sorry but thats exactly what this is about our national debt is out of control and is only going to get worse....

Thats a crook of BS, man has been solving his problems with violence since the first caveman beat someone up with a club...it is not just the Slavs involved in conflicts, dozens of conflicts are ongoing on the planet right now....it won't stop ever, it is how humans role...you've said you've been to dozens of battlefields, and you have not learned anything....man resorts to fighting all the time....if not at the bars,family picnics, then on the battlefield. even our sports involve it....

It does need to stop, but it is not going to happen in our life times...NATO is preparing for the next war in Europe as we speak, experts say it is not the far out...Canadians are still playing with themselves like it normally does .

  

Our debt? Money? No.

Putin famously said that the Koreans will eat grass.

====

I never want any future war to be reduced to such levels. 

Posted
1 hour ago, Aristides said:

I posted Quebec's debt, if it has a fund, it is borrowed money.

The US federal social security is unfunded. It is pay as you go.

The Quebec Caisse has about $500 billion in paper assets. But you are correct, Aristides. Quebec govt paper debt is about $250 billion.

IOW, the Quebec govt is a potential Ponzi scheme. It borrows at low interest rates and then lends at higher rates.

I fear that Trump may clue into this!  

Posted
4 hours ago, August1991 said:

This is OP is just wrong.

You know better than that, 

Quote

 

The federal government has a sustainable debt. Our various provincial governments are not in debt.

As a federal state, we Canadians are not in debt.

 

Ahhhh,  Sarcasm :)   I see now 

Quote

 

In simple terms, our various governments are not borrowing faster than they can collect in taxes.

The GDP is growing faster than the state debt-to-GDP ratio.

 

LOLOLOL

 I know you're being sarcastic but i don't think most people realize how bad it is, 

For those who don't know:

image.thumb.png.1ea5a4f8d257e0a03a86b53c75719869.png

our debt to gdp right now is disasterous. And carney is about to borrow a craptonne more money, 

Our debt to gdp has never been anywhere near this bad, even in the great recession

 

https://www.ceicdata.com/en/indicator/canada/government-debt--of-nominal-gdp 

Quote

Canada is not a Ponzi scheme.

Sadly right now Canada is totally a ponzi scheme. I feel very bad for the generation who's going to inherit this mess

There are two types of people in this world: Those who can extrapolate from incomplete data

Posted
Just now, CdnFox said:

You know better than that, 

Ahhhh,  Sarcasm :)   I see now 

LOLOLOL

 I know you're being sarcastic but i don't think most people realize how bad it is, 

For those who don't know:

image.thumb.png.1ea5a4f8d257e0a03a86b53c75719869.png

our debt to gdp right now is disasterous. And carney is about to borrow a craptonne more money, 

Our debt to gdp has never been anywhere near this bad, even in the great recession

 

https://www.ceicdata.com/en/indicator/canada/government-debt--of-nominal-gdp 

Sadly right now Canada is totally a ponzi scheme. I feel very bad for the generation who's going to inherit this mess

Even your purple graph (that starts at 50, not 0) shows the Canadian debt-to-gdp  falling since 2021.

And we in Canada are below 100%. (Check the graph for the US.)

Define "government debt".  (Federal, provincial, municipal - sub-national.)

 

Posted

CdnFox,

I am not being sarcastic.

We Canadians largely spend within our means. (True, Justin Trudeau used up alot of our line of credit.)

We Canadians are creating wealth faster than our governments can tax us - and despite Trudeau Jnr, we have a large margin.

Posted

OTOH, the US federal American government is spending at a faster rate than it borrows.

In part, this is due to SALT. And Medicare, and Social Security. I think Krugman described the US government as a tank with a pension plan.

=====

God knows what happens if CalPers defaults.

Posted
1 minute ago, August1991 said:

Even your purple graph (that starts at 50, not 0) shows the Canadian debt-to-gdp  falling since 2021.

 

No, its clmbing between 2023 and 2024.  Jezuz dude you can tell up from down can't you?

 

Quote

And we in Canada are below 100%. (Check the graph for the US.)

First off, depends on the province a little, and second off virtually all economists agree that it would be 100 percent fatal for the us to be over 100 if it weren't an anchor currency, and that the threat of the debt to gdp is very real for them and about to be out of control. 

Greece started to spiral into the ground uncontrollably when it hit 102 percent and finally went bankrupt at 129, and once they hit that 102 things accelerated quickly and there was no stopping it. Many economist say that once you hit 100 percent its very very hard to get it back under control again. And we're heading in that direction. Worse, our gdp has been artificially increased by immigration  Our gdp per captia is also in real trouble. 

Quote

Define "government debt".  (Federal, provincial, municipal - sub-national.)

That's just federal. You have to combine the provincial and other debt on top of that

In 2021, the total federal and provincial gross debt per capita in Canada was $76,135. This figure represents the combined debt of the federal, provincial, territorial, and local governments. While the gross debt-to-GDP ratio fell to 117.2% in 2021, it remained above pre-pandemic levels, according to Statistics Canada. 

https://en.wikipedia.org/wiki/Canadian_public_debt#:~:text=For 2021 (the fiscal year,a share of the economy".

https://www150.statcan.gc.ca/n1/daily-quotidien/221122/dq221122b-eng.htm#:~:text=Gross debt-to-gross domestic,%) posted the highest levels.

 

AND  we know 2023 is higher again as is 2024.  With the tariff war we're probably going to go higher again in 2025 2026

Our total debt to GDP is HORRIFIC, thanks to the libs.  It was half that in harper's day. And it's getting worse AND carney is about to borrow another 225 billion over teh next 3 years AND we know that's probably a severely low number. It could well be close to double that 

 

Make no mistake kiddo, canada is selling it's future right now and it's going to be very hard to recover. 

14 minutes ago, August1991 said:

CdnFox,

I am not being sarcastic.

 

OH!  Well then you're an ídiot

15 minutes ago, August1991 said:

We Canadians largely spend within our means.

We're not even remotely close as i've proven. 

You're simply wrong. There's no debate.  You're just absolutely 100 percent wrong, 

There are two types of people in this world: Those who can extrapolate from incomplete data

Posted
11 hours ago, August1991 said:

SALT: State and Local Taxes - In Canada, we cannot declare provinicial and property taxes as a deduction on our federal taxes.

Trump made America like Canada.

So now you're just rambling at random about nothing rather than addressing the points that we were previously discussing.

There are occasions when it seems like you have little flashes of something worth listening to and things that contributes to the conversation. But a lot of the time you just come across like a mindless ldiot because it posts like this. 

Why bother if you're not going to say something sensible or stick to the topic?

There are two types of people in this world: Those who can extrapolate from incomplete data

Posted
17 hours ago, August1991 said:

Our debt? Money? No.

Putin famously said that the Koreans will eat grass.

====

I never want any future war to be reduced to such levels. 

I'm sure the world will take into account your needs and wants....today majority of europe is preparing for WAR with Russia and China...while here in Canada we continue to play with ourselves and talk about things that don't matter to anyone else...

After the next war perhaps we will all be eating grass, and insects without complaining...

We, the willing, led by the unknowing, are doing the impossible for the ungrateful. We have now done so much for so long with so little, we are now capable of doing anything with nothing.

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