I provided the 30 year bond yield. I provided you with quotes from the PBO saying that our borrowing costs are not likely to increase. What more do you want to see?
You said:
Canada's 30 year bond rate is 1.06%. Almost all of our old debt is about to roll over, and the new debt will be accrued at the 1.06% rate.
How do you know that "Almost all of our old debt is about to roll over"? Where's your evidence for this claim? Or is it a wild guess?
Canada issues bonds at 1 month, 3 months, 6 months, 1 year, 2 years, 3 years, 5 years, 10 years, 20 years, 30 years etc.
Where's your evidence that all or even most of this new debt we're spending will be locked in at 30 years at 1.06%? What kind of moron would invest in a 30 year bond that only returned 1% interest...one of the lowest interest rates in history? I would never, ever buy that bond, would you? Would the Canadian government invest in a bond from a foreign country at that rate for 30 years? Only if they were stupid, since it returns next to nothing and interest rates will start rising in a year or 2 or 3.
I provided you with quotes from the PBO saying that our borrowing costs are not likely to increase.
The PBO also said this in the article: "Is the government in a worrisome position right now? The answer is no."
He said the debt load could become "unbearable" in the event of a sizeable spike in interest rates and added the prospect of such an increase is "concerning."Interest rates go up and down all the time. Right now they're low, so we're ok. But how long are they borrowing at these low rates? And what will happen in 5 years or 10 years or 20 years when they renew borrowing for the debt at higher rates when they inevitably haven't paid off all the money they're borrowing now along with the previous debt?
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