Author Topic: Government Day-to-Day  (Read 13160 times)

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Offline JMT

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Re: Government Day-to-Day
« Reply #345 on: May 12, 2020, 10:11:24 pm »
There are people who work and can't afford their medication.  Every province should have, at the very least, a comprehensive catastrophic drug program.

My employee is on a medication for MS. It would cost him over $1600 a month. That's more than half of his after tax salary for the month. Because of Manitoba's prescription drug program, he only has to pay about a month's worth of costs every year.
« Last Edit: May 12, 2020, 10:13:32 pm by John Mark Taylor »

Offline wilber

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Re: Government Day-to-Day
« Reply #346 on: May 12, 2020, 10:32:56 pm »
Scratch that - it will cost absolutely nothing:

"We anticipate that debt charges will not go up, which is surprising and counterintuitive," Giroux said. "Interest rates are so much lower than what we anticipated them to be just two or three months ago. It doesn't cost that much to finance that growing debt.

"Is the government in a worrisome position right now? The answer is no."

https://www.cbc.ca/news/politics/federal-deficit-higher-than-252-billion-1.5566768

Don't be a crayon economist.

We will be very lucky if the combined federal and provincial debt to GDP is less than 100% by the end of the year.

If I were a foreign investor looking to buy Canadian debt, the first thing I would think of is the future of the currency. If they are only going to pay 1% interest and I flgure the Canadian dollar will devalue by 5%, I will be 4% better off putting my money under my mattress.

What will more likely happen is the BoC will lend the money to the government and then buy back the debt, in other words print money. That is what the US has been doing since 2009. Problem is, we aren't the worlds reserve currency.

Were you even alive in 1993 and if so, why weren't you paying attention.
« Last Edit: May 12, 2020, 10:46:33 pm by wilber »
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Offline JMT

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Re: Government Day-to-Day
« Reply #347 on: May 12, 2020, 10:50:34 pm »
We will be very lucky if the combined federal and provincial debt to GDP is less than 100% by the end of the year.

So, we'll be more like Japan was pre COVID - oh well.

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If I were a foreign investor looking to buy Canadian debt, the first thing I would think of is the future of the currency. If they are only going to pay 1% interest and I flgure the Canadian dollar will devalue by 5%, I will be 4% better off putting my money under my mattress.

We don't really want our debt being substantially foreign held.

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What will more likely happen is the BoC will lend the money to the government and then buy back the debt, in other words print money. That is what the US has been doing since 2009. Problem is, we aren't the worlds reserve currency.

You keep looking for problems that don't exist. If Canada were taking on a trillion dollar liability, and no one else was, it would be a different matter.  Our package so far is small in comparison to a lot of other advanced countries.
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Offline wilber

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Re: Government Day-to-Day
« Reply #348 on: May 12, 2020, 10:56:02 pm »
So, we'll be more like Japan was pre COVID - oh well.

We don't really want our debt being substantially foreign held.

You keep looking for problems that don't exist. If Canada were taking on a trillion dollar liability, and no one else was, it would be a different matter.  Our package so far is small in comparison to a lot of other advanced countries.

Hell John, why weren't we doing this earlier, we could all be stinking rich and not have to work.

We are not Japan, we could just as easily end up like Greece.
« Last Edit: May 12, 2020, 11:09:05 pm by wilber »
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Offline JMT

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Re: Government Day-to-Day
« Reply #349 on: May 12, 2020, 11:30:55 pm »
We are not Japan, we could just as easily end up like Greece.

We're far more like Japan than Greece. Greece is in a monetary union, and doesn't have a central bank.

No one is proposing anything that the rest of the world isn't having to do right now. I'm actually not sure what you expect should be done at the moment.
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Offline wilber

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Re: Government Day-to-Day
« Reply #350 on: May 12, 2020, 11:35:11 pm »
We're far more like Japan than Greece. Greece is in a monetary union, and doesn't have a central bank.

No one is proposing anything that the rest of the world isn't having to do right now. I'm actually not sure what you expect should be done at the moment.

Yes, Greece had Germany to bail it out, with conditions.
We can't keep shovelling money out the door, every day it is another multi billion dollar announcement. There will be a reckoning.
« Last Edit: May 12, 2020, 11:37:24 pm by wilber »
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Offline JMT

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Re: Government Day-to-Day
« Reply #351 on: May 12, 2020, 11:38:50 pm »
Yes, Greece had Germany to bail it out, with conditions.
We can't keep shovelling money out the door, every day it is another multi billion dollar announcement. There will be a reckoning.

Yes, and Canada has the Bank of Canada.  This is not the 90s. This is a $2-2.5T economy with a pre COVID federal fiscal position that was the envy of much of the developed word.

Offline wilber

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Re: Government Day-to-Day
« Reply #352 on: May 12, 2020, 11:50:55 pm »
Yes, and Canada has the Bank of Canada.  This is not the 90s. This is a $2-2.5T economy with a pre COVID federal fiscal position that was the envy of much of the developed word.



It isn't a $2-2.5T economy anymore, GDP dropped 9% in March alone.

Yes we need government to intervene but JT is just shovelling money out the door as fast as he can and it isn't sustainable. Today it was 2.5 billion for seniors. If you are receiving old age security, you will get a check. It takes a combined income of over $120K before they start clawing back OAS, give it to seniors who really need it.
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Offline JMT

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Re: Government Day-to-Day
« Reply #353 on: May 13, 2020, 12:31:19 am »


It isn't a $2-2.5T economy anymore, GDP dropped 9% in March alone.

Yes we need government to intervene but JT is just shovelling money out the door as fast as he can and it isn't sustainable. Today it was 2.5 billion for seniors. If you are receiving old age security, you will get a check. It takes a combined income of over $120K before they start clawing back OAS, give it to seniors who really need it.

Canadaís recovery package is so far relatively small compared to other countries. Shovelling money out the door is a matter of perspective.

Offline the_squid

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Re: Government Day-to-Day
« Reply #354 on: May 13, 2020, 12:35:14 am »


It isn't a $2-2.5T economy anymore, GDP dropped 9% in March alone.

Yes we need government to intervene but JT is just shovelling money out the door as fast as he can and it isn't sustainable. Today it was 2.5 billion for seniors. If you are receiving old age security, you will get a check. It takes a combined income of over $120K before they start clawing back OAS, give it to seniors who really need it.

What makes you think Canada is worse off than any other country eating with this?
« Last Edit: May 13, 2020, 01:59:20 am by the_squid »

Offline JMT

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Re: Government Day-to-Day
« Reply #355 on: May 13, 2020, 12:39:07 am »
https://www.bbc.com/news/business-52450958

Canada doesnít even crack the top 20 at 8.4% of GDP (itís slightly more now, but for basically everyone).

Offline wilber

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Re: Government Day-to-Day
« Reply #356 on: May 13, 2020, 08:43:26 am »
Canadaís recovery package is so far relatively small compared to other countries. Shovelling money out the door is a matter of perspective.
Not when it is to people who donít need it.
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Offline JMT

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Re: Government Day-to-Day
« Reply #357 on: May 13, 2020, 12:24:50 pm »
Not when it is to people who donít need it.

Who made you the arbiter or that?

Offline wilber

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Re: Government Day-to-Day
« Reply #358 on: May 13, 2020, 01:35:14 pm »
Who made you the arbiter or that?

I don't want to be arbiter, nor do we want cheques from government because we get OAS. We don't need them and if we get cheques we will donate the money to a local food bank and get a tax receipt, because the government obviously doesn't need the money.

Trudeau says they won't worry about fraud and recover unwarranted payments later.  Even if they do, they will be lucky to get 50 cents on the dollar and how many millions will be spent trying to recover it. They will just write it off.
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Offline JMT

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Re: Government Day-to-Day
« Reply #359 on: May 13, 2020, 01:50:23 pm »
I don't want to be arbiter, nor do we want cheques from government because we get OAS. We don't need them and if we get cheques we will donate the money to a local food bank and get a tax receipt, because the government obviously doesn't need the money.

Okay, but a lot of people who get OAS and especially GIS aren't you.

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Trudeau says they won't worry about fraud and recover unwarranted payments later.  Even if they do, they will be lucky to get 50 cents on the dollar and how many millions will be spent trying to recover it. They will just write it off.

If they had used a system with fraud prevention, most people wouldn't have money even yet.