Canadian Politics Today

If you're a person, sure. If you're a country - maybe, maybe not.

Like I said, where were you in 93?

I provided you with the information already.

Where's the link?  Where's the evidence?

Canada will have to roll over a large part of it's debt this year. Borrowing costs for most of Canada's debt will continue to fall for the foreseeable future.

That's always the case during a global recession.  The interest rates will rise inevitably, and if they go up too much we're going to get smacked, just like Giroux said.  You're talking about the next couple of years.  I'm talking about decades because that's how long we'll have this debt in the very best case scenario.

You guys act like we're at the end of the line or something.  We're one of the few AAA rated countries, and we're expected to keep that rating through this.  The federal finances will survive, even if things become a bit tighter at some point in the future.

And you act like nothing is wrong at all, everything is fine.  You do realize this country is on a trend of borrowing every recession and not paying it back right?  It's not sustainable in the longterm.  Something needs to change.  Sure the country will survive, but the gravy train is going to end at some point.  We're burning a candle at both ends.  Everything I've said the last few years about our budget has come to pass.

And our energy sector is being smashed to bits, which is what got us through the last recession.  Investors are fleeing this country at unprecedented rates.  Our economic growth in the short and medium term even after this recession is over is looking like the sh!ts, which is why they're leaving.

Like I said, where were you in 93?

We weren't actually anywhere near bankruptcy in 2003.  We were also running massive deficits in a vacuum.

We weren't actually anywhere near bankruptcy in 2003.  We were also running massive deficits in a vacuum.

Investors didn’t want our bonds which forced Chrétien and Martin to drastically cut federal spending, which in turn put pressure on provincial budgets forcing their debt to increase. The BoC has already started quantitive easing which is basically printing money and Canada will probably lose its AAA credit rating. That means it will pay higher interest rates. You seem to think there is some kind of free ride here.

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.  Debt servicing costs are going to fall, even with a trillion dollars of new debt.

Low interest rates won't last forever.  It's not a good idea to run policy with the expectations that they will.

Our debt to GDP ratio was in the danger zone.  Chretien and Martin were responsible leaders, unlike our current government.  They cut spending by 20-30% across the board.  It led to unprecedented surpluses and economic growth and debt reduction.  We were the envy of the G7.  That's all for nothing now, as our GDP to debt ratios have significantly increased, and all the debt we reduced from the late 90s to 2008 has been added back on, and then some.  Because we have a PM that wants to play Santa Claus.

Actually our debt to gdp ratio was the highest it's ever been under Harper. It has reduced since JT took office. Of course you may have heard there is a pandemic occuring which will certainly have an effect. I suppose you'll try and blame Covid on Trudeau somehow.

Our debt to GDP ratio was in the danger zone.

Not even close. Japan's debt to GDP ratio has now passed 250%.  we are the 10th largest economy in the world with far more economic power than in 1993.

Where's your info for that? Kevin Page has already come out and said that's unlikely.

BNN has had a couple articles on it.

https://www.bnnbloomberg.ca/soaring-canadian-deficit-may-jeopardize-aaa-rating-macquarie-1.1436065