Lilley- Interest payments on national debt among largest line items in Trudeau’s budget
With the federal government spending roughly $1 million every 60 seconds and continuing to spend more than it takes in, the $1.2 trillion national debt is expected to grow to $1.3 trillion over the next five years.
One trillion dollars is one million, million dollars or 1,000 billion dollars.
That’s one heck of a lot that will never be paid back. Who reaps the benefit of the interest that has to be paid annually?
Hence inflation.
The money changers.
$24 billion of interest payments on $1,200 billion debt is 2% cost.
Inflation is 6% (according to feds).
Taxable investor gets 1% after tax, net of inflation is down 5% per annum.
Who holds this debt besides the Gov of Canada?
I doubt the majority of Canadians read/have reading comprehension of such texts. Even if they read, I don’t think they understand it.
If a scumbag imbecile like Trudeau was elected 3 times despite his many fails and faux-pas, I don’t think the majority understands basic finance/economics.
“…I don’t think the majority understands basic finance/economics.”
I think that most who voted for Prinz Dummkopf have precisely the same understanding of finances as he does.
And when bankruptcy will be imminent, Liberal/NDP mafia will let some conservative pinata/oTool type to take the helm for a brief period of time. Only to take the blame. After which the Trudeaus/Freelands/Singhs of that time will reign again for another 40-50 yrs to come.
Who? Bennett here and Hoover in US?
A History of Canada – Part Three
Someday foreclosure on Canada will happen. Whoever holds the debt will want something other than numbers on a ledger.
You think it’s expensive to get into Banff and Jasper national parks now?……
I quit visiting the national parks. I just pay the road toll and pass through. I’d rather spend my money at private campgrounds or provincial parks. Besides I spent time in the national parks during their best years, before they became infested with Chinese and Europeans.
As Babe Ruth said, nobody goes there anymore, it’s too busy.
That quote’s also been attributed to Yogi Berra.
You’re right. I knew that too. It was a senior moment, Babe Ruth’s name just sprung to my mind.
I don’t know enough about the Babe to confirm whether he said it himself.
BA, maybe Yogi, and not the bear.
I suspect Chrystia Freeland is expecting all of Canadas financiers will FORGIVE the debt … like Bernie Sanders demands all college loans be forgiven …
Trying to catch up with us folks in the USA.. Yikes.
Well … you’ve broken into the $T’s Debtors Club! Congrats Canada!
Thirty years ago, the same thing happened with many Third World countries. They had accumulated so much debt that it affected the stock market. The shares of the banks that had lent money to them were getting hit hard, as I remember.
Eventually, those same banks decided to eat the cost, wrote off those loans, and the market recovered nicely.
The interest payments will pay themselves.
The national debt has become a double edge sword to be used against fiscal conservatives. They run on balancing the budget and when they can’t do it they’re branded incompetent lying hypocrites and the spin doctors in the liberal party and media make the accusation stick, turning many marginally conservatives against the party leadership. And if it looks like they’re getting close to balancing it, it’s claimed they’re doing it on the backs of the poor and the elderly. It’s heads I win, tails you lose.
Quit talking about balancing the budget and focus on challenging the government on why they’re not fixing the problems that are causing costs to spiral.
other than Mike Harris, no one has actually cut government for as long as I remember, there has been some fancy words about reducing the government through attrition and cutting the rate of growth, but none of that matters, it’s all just smoke and mirrors until someone on day one decides to pull the plug and start over
Chretien/Martin did some cuts by getting rid of executives.
Well, do you know of a better way to bankrupt a country and enrich your fellow elites?
A couple of years ago Ontario was spending just over a billion dollars a month to service the provincial debt….
That’s enough for a brand new hospital every month with money left over to operate it
After all this spending, provincially and federally….what do we have to show for it?
Horrendous isn’t it. Thanks for putting that into perspective.
Arty, I have been watching the insanity for a long time now, it is beyond horrendous. Have I mentioned that Canadians are very stupid?
I don’t think there’s anyone on here who hasn’t mentioned Canadians are very stupid.
Never forget the A plus B theorem.
Suppose the total income of the non-financial sector is A. With this we are expected to cover both total expenditure on non-financial goods (which equals A) and total service charges on current debt (call it B).
Obviously A can never equal A+B unless B is zero, so there are only two ways to ensure that Canadians can collectively to come up with A+B and make income equal outgo:
1. For some Canadians to go into debt to the tune of B. This is what happens now.
2. For Canadians, in their capacity as the Canadian sovereign, to issue money to cover B, either in the form of a reduced or negative GST (the Just Price) or by cash payments to Canadians (the National Dividend). This was the Social Credit proposal.
3. For Canadians collectively to repudiate the debt, so that B now equals zero. This was the Soviet solution.
The debt will never be paid in full. It cannot be paid in full. And Bay Street, who support themselves and their mistresses and rent-boys on interest charges, don’t want it to be paid anyway.
So the only thing worth discussing is who will get stiffed and when.
We Get A Great Reset.
And Soup lines with cracker’s.
Canadians will get 20 acre’s and a Mule.
M-14. Haven’t fired one of them in years. nice
Yo. Dustoff.
Thank you for all those pretty nurses, stitches, wound dressings, and chopper door gunners. ha
1967-1969
This is nothing short of an attack against the citizens of Canada.
Good thing we’ve got an army to fend of attackers.
America has a great Army,
But Wino Joe will give it to the Chinese bat eater’s.
Bankrupting canada and the west has always been the goal. First drive up the debt, then drive up interest rates.
Harper had a balanced budget at 47 dollar oil.
Liberals and NDP are financially bankrupting the nation-the NDP demand the people who already get most of the government welfare get more of it. We all knew the NDP are to radical to govern responsibly- now they are puppet masters who control the Liberal party and the damage they are both doing will never completely be undone. Our media spew Liberal approved propaganda in the news format, but the MSM fool no one.
I’ll take the West,the rest get what they voted for.
Amazing system where slavery comes from the parasitic horde.
This many parasites cannot survive on a single host..
So what will it be?
Given that “What cannot go on,stops”.
Do we have a cull?
Or a collapse?
Naturally the two are the same.
Except one is carried out in an orderly fashion,with limited blood shed..
The other is done by the four horsemen.
Forward!
I thought the Coof and the ” vax ” WAS the cull.
Also worth remembering that Lilley has made it clear that the direction Canada is headed at breakneck speed has nothing to do with Schwab or the WEF, as such no mention of how those policies are impacting spending.
that be just the feds.
now add among others, aptly named Ontariowe. (courtesy ms wynnedfarm, ‘nuther liberal fond of buying votes)
now add all personal debt. eeeeessshhhh.
my calculator just ran out of digits!!! haaaaaalp!!!
ladies aaaand gennelmin, the piper is rehearsing his chops. l see the makings of the word ‘hearse’ in that.
all kidding aside, finance has certain ‘laws’ roughly similar to natural laws like, oh, gravity. (no double entendre meant but convenient)
lm gonna get by (buy?, bye bye perhaps?), by marketing wheelbarrows a la the Weimar Republic:
https://preview.redd.it/n8hryr22fng81.jpg?auto=webp&s=38fc1b3e379fb4c6ade78c64b48bd5dc89447a82
Ontario is going to be in at $400 million debt.
Ford PC government responsible for about $80 million over 4 years.
Libs put up $190 million over 15 years.
Harris PC put up $40 million over 8 years.
NDP put up $55 million over 5 years.
Adjusting for inflation Doug Ford = Bob Rae. I never thought I’d miss McGuinty/Wynne.
The millions should of course been billions.
If Canadians were taught financial sense since childhood, Justin would be on the supply list.
And here we are.
The government has its fingers in every single piece of the economic pie.
Any withdrawal causes a (initial) negative reaction.
As DanP writes, Cons coming in to do clean-up are blamed for the spill.
If they just “freeze spending” there is nothing but a wailing and gnashing of teeth.
The MSM supports this false narrative with gusto. So do the financial institutions, elites who suffer not, and far too many economists who ferry the GDP ratio crap and that just outs them as little more than stupid puppets.
The game is rigged. The Liberal House can’t lose.
It’s a game and the biggest player is the US. They inflated their economy through debt and every other country (including China) piled in. The countries that printed too much money are getting punished now – think Turkey, Venezuela. Other countries (like Canada and Australia) stayed under the swinging axe of the US debt machine and did not get whacked.
The only way to pay down $1.5 trillion of debt is to inflate the hell out of the economy. Make the dollar so worthless that Canada’s economy inflates to $15 trillion. Then our debt is only 10% of GDP. And back into the game we go.
If you don’t own assets, only money (a pension say, or savings) then you get hammered at every reset. At the other end are those who give the money away. Just convert the money into assets quickly and you net big time as the money deflates relative to your assets. In this environment, saving money is for fools.
A billion is not what it used to be *sigh*
Hey Lilley! Any thoughts to what extent your buddy Blubber Douggie contributed to our public debt burden?
In the nineties, countries around the world got their financial shit together by finally cutting spending and actually paying down actual accumulated debt. I can’t remember when exactly, but some shithead economist said that we didn’t need to do this, that we could run up debt in perpetuity and that’s all the left needed to hear.
Governments go into debt for one reason only – to win elections.