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

[August1991]

21 minutes ago, CdnFox said:

Yes, but they are an anchor currency and that lets them get away with more than we can. Or anyone else can.

...

You call it "anchor currency". To me, the US dollar is a "reserve currency".

Like the British with their pound, we Canadians have always had our own currency.

[Shady]

2 hours ago, August1991 said:

As long as real GDP is rising faster than government spending, then a State is largely sustainable.

IOW, it is not so much the level of water in the swimming pool; the key question is whether it is rising or falling.

====

Let me re-phrase that: As long as real GDP is rising faster than the difference between government spending and government tax revenues, then a State is largely sustainable.

It’s not. 

[CdnFox]

3 minutes ago, Shady said:

It’s not. 

 And that's the problem. We started to go into the hole fairly badly during GOOD times, then we went even deeper during covid, and now we're sinking again because the world economy is slowing, 

Our debt to gdp is horrible and our gdp per capita is utterly abysmal, and that's where we're starting from going into the next fiscal crisis 

[August1991]

6 minutes ago, Shady said:

It’s not. 

Thanks.

Just now, August1991 said:

Thanks. Good. Amazing. 

 

[CdnFox]

20 minutes ago, August1991 said:

You call it "anchor currency". To me, the US dollar is a "reserve currency".

 

Whatever. You're still wrong either way

Quote

Like the British with their pound, we Canadians have always had our own currency.

You're kidding!!!!  wait... let me look that up.... MY GOD YOU"RE RIGHT!!!!!

Do you ever notice that when you get called out for being silly about something and proven to be wrong you tend to just ramble off into meaningless statements that have nothing to do with the discussion and end. Did you honestly believe there was anybody who would be reading this that did not know that Canada had its own currency? Are you really that Thick?

So you're bringing up useless points that have nothing to do with the conversation because you realize your point wasn't correct and you can't defend it. That's a really weird way to handle being wrong.

[August1991]

Economic growth is not based on government debt to GDP ratio.

Far more important, what are the government people doing?

=====

We buy stuff and hire people to work for us. For the past 100 years, it's about 20% of what we do. 

Edited June 10 by August1991

[CdnFox]

Just now, August1991 said:

Economic growth is not based on government debt to GDP ratio.

It very largely is. That is a big factor when Companies are considering whether or not to invest inside a country

And it definitely reflects the government's ability to provide services. The higher the debt to GDP goes the more tax money the government has to collect in order to pay for the same number of services. Does that means they need to borrow even more money which means they're just pushing the disaster down the road or raise taxes.

Both have a severe impact on economic growth

Quote

Far more important, what are the government people doing?

Surprisingly, largely irrelevant.

When people are looking at investing in Canada and any kind of amount of money that serious they want to know that the government is stable, taxes are low and likely to stay that way, and government services are available that they can rely on to keep their employees happy and healthy, Or that there are stable Private Enterprise Solutions which are easily available.

Right now Canada is not looking good on any of those fronts. And for the first time in our entire history more investment money is leaving Canada than coming to it.

Meanwhile our debt to GDP syncs and our productivity sinks and our GDP per capita sinks

We're getting pretty close to sunk

[August1991]

8 minutes ago, CdnFox said:

It very largely is. That is a big factor when Companies are considering whether or not to invest inside a country

And it definitely reflects the government's ability to provide services. The higher the debt to GDP goes the more tax money the government has to collect in order to pay for the same number of services. Does that means they need to borrow even more money which means they're just pushing the disaster down the road or raise taxes.

Both have a severe impact on economic growth

Surprisingly, largely irrelevant.

When people are looking at investing in Canada and any kind of amount of money that serious they want to know that the government is stable, taxes are low and likely to stay that way, and government services are available that they can rely on to keep their employees happy and healthy, Or that there are stable Private Enterprise Solutions which are easily available.

Right now Canada is not looking good on any of those fronts. And for the first time in our entire history more investment money is leaving Canada than coming to it.

Meanwhile our debt to GDP syncs and our productivity sinks and our GDP per capita sinks

We're getting pretty close to sunk

I am a real person.

CdnFox is a robot.

[CdnFox]

Just now, August1991 said:

I am a real person.

CdnFox is a robot.

LOL   Ok Pinocchio

[Shady]

On 6/10/2025 at 7:50 PM, August1991 said:

I am a real person.

CdnFox is a robot.

You might be a real person but it seems like you’re advocating for debt servicing costs that will continue to take up a bigger and bigger percentage of the budget.  That’s not sustainable.

[CdnFox]

37 minutes ago, Shady said:

You might be a real person but it seems like you’re advocating for debt servicing costs that will continue to take up a bigger and bigger percentage of the budget.  That’s not sustainable.

Like many on the left he turns his nose up at the facts when they don't see him. Our debt situation is absolutely not sustainable.

[August1991]

On 6/11/2025 at 9:50 PM, Shady said:

You might be a real person but it seems like you’re advocating for debt servicing costs that will continue to take up a bigger and bigger percentage of the budget.  That’s not sustainable.

This is my point.

When borrowing/debt servicing costs rise faster than spending? A state is not sustainable. True.

But Canada is very, very far from this.

====

But how are our governments spending? What are government bureaucrats buying on our behalf? 

[CdnFox]

3 hours ago, August1991 said:

 

But Canada is very, very far from this.

 

That is a complete lie. And you've been presented with the evidence to show that that is a complete lie

I have no idea why you insist on being a completely retarded príck at times but repeating lies like that makes you a completely retarded príck just so you know

[August1991]

On 6/13/2025 at 9:33 PM, CdnFox said:

That is a complete lie. And you've been presented with the evidence to show that that is a complete lie

I have no idea why you insist on being a completely retarded príck at times but repeating lies like that makes you a completely retarded príck just so you know

CdnFox,

Our problem in Canada is not borrowing: it is how our bureaucrats spend the money.

In the US, the bureaucrats are spending money they don't have.

[CdnFox]

16 minutes ago, August1991 said:

CdnFox,

Our problem in Canada is not borrowing: it is how our bureaucrats spend the money.

In the US, the bureaucrats are spending money they don't have.

Our problem is absolutely borrowing. This is absolutely crystal clear, many many experts are weighing in on that and the problems that's going to create if we can't slow it down, it hurts investment which is a major problem, absolutely promise you there is no doubt or question about this, borrowing is a major major problem and growing worse.  And that's no matter how we spend the money. 

But yes, you are also correct that we could spend the money much more effectively. But borrowing the money would still be a problem

We are currently spending money we don't have. And in fact we are doing so at an increasing rate. In the last 10 years we have borrowed more money that we borrowed in the 150 years before that. And we are well on the way to laughing that again and tripling the debt within 15 years.

It is so unsustainable it isn't funny. This isn't a matter of opinion this is just rock solid fact

[August1991]

18 minutes ago, CdnFox said:

Our problem is absolutely borrowing. This is absolutely crystal clear, many many experts are weighing in on that and the problems that's going to create if we can't slow it down....

 

Strongly disagree.

We Canadians have our own currency. We borrow and lend in Canadian dollars. And we Canadians are largely equal/fair in all our dealings.

====

True, foreigners like our Canadian commercial paper.  But we like their warm beaches. 

Edited Monday at 03:22 AM by August1991