“Europe has been laid low by a heady brew of bureaucracy, over-regulation, over-taxation and debt. A crisis of political leadership has in turn produced a deficiency of bold, innovative ideas, a shortage of vision and a huge expansion of government intervention.”

The result is a proliferation of what have come to be known as zombie companies.

“The Bank for International Settlement’s defines a zombie as “any firm which is at least 10 years old, publicly traded and has interest expenses that exceed the company’s earnings before interest and taxes”.

“These companies are in a kind of limbo – neither productive, nor seeking to enter formal insolvency proceedings. The zombies are plagued by large amounts of debt, low levels of profitability, negative margins and no capital for growth, meaning they effectively produce nothing. They survive because they get some sort of cash, often from the government, which enables them to pay the interest on their debt. Creditors allow them to continue existing for as long as they continue to pay interest.”

Like the European monetary authorities, the Bank of Canada is now scooping up around half of current bond issues in an effort to prevent interest rates from soaring like a homesick angel. One does not have to think too long to come up with a list of Canadian companies which might fit the definition of zombies, and this must necessarily include any number of crown corporations and provincially run utilities.

Is it mere coincidence that Manitoba Hydro recently issued 100 year, interest-only bonds? I think not.

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Make no mistake: this plan for us — not them.

The UN is explicit: “COVID-19 has provided insight into how rapid lifestyle changes can be brought about by governments … The lockdown period in many countries may be long enough to establish new, lasting routines if supported by longer term measures. In planning the recovery from COVID-19, governments have an opportunity to catalyse low-carbon lifestyle changes by disrupting entrenched practices.”
 
Governments can achieve these goals, the UN says, through taxation and other policies affecting fundamental decisions we make about our lives, from what we eat (preferably meatless, low-carbon diets), to how we travel (less by air, more by subsidized electric cars), to how we power our homes (with wind and solar energy, at least for “higher income” earners, given the costs) and much, much more.
 
That’s what Trudeau means by “The Great Reset.”