Are you prepared to go into deficit or will you be making cuts from your own budget?

[CBC News]

Ontario will run a deficit of $500 million this year rather than make steep spending cuts to cope with an uncertain economic future, Finance Minister Dwight Duncan said Wednesday.

"We are in the midst of a global economic crisis not imagined a few short weeks ago. It is spilling over into the real economy impacting Ontario families and businesses," Duncan said at the legislature while delivering his fall economic outlook.

Full story

What about you personally? Are you prepared to go into deficit or will you be making cuts from your own budget?



More...

 

[scratch]

Ontario will run a deficit of $500 million this year rather than make steep spending cuts to cope with an uncertain economic future, Finance Minister Dwight Duncan said Wednesday.

"We are in the midst of a global economic crisis not imagined a few short weeks ago. It is spilling over into the real economy impacting Ontario families and businesses," Duncan said at the legislature while delivering his fall economic outlook.

Full story

What about you personally? Are you prepared to go into deficit or will you be making cuts from your own budget?



More...

No deficits.
Even with my meager income, I can cut. What's the gov't's problem?

 

[karrie]

I think part of the problem scratch is that if the government cuts their spending, they actually drive the economy further down. As everyone tightens their belt because of the doom and gloom in the media, it becomes a self fulfilling prophecy... they say the economy will falter, so we spend less, and lo and behold the economy falters. Yes yes, I know there are other variables as well, but, it does come into play to a certain degree.

So, the government keeps spending, showing that they have faith in the economy and are willing to keep stimulating it as they have been.

 

[Avro]

Being a multi buisness owner I know deficits can be useful.

I will leave it at that, those who have started a buisness or wanted to grow one will know what I'm talkng about.

 

[Liberalman]

Deficit is usually a temporary measure in hard times to spend the necessary monies for programs.

Eventually they have to cut social programs.

The other way the government can get rid of deficit is to raise the taxes then there will be no deficit.

The federal government admitted this morning that deficits won’t be ruled out.

We are in hard globally economic times, which hopefully is temporary.

If it’s not temporary then either taxes will go up that will lead to another election or social programs will be cut that will cause an election as well.

This is why Canada needs a majority government so there can be a definite plan to make the necessary cuts to bring the country back on course.

In hard economic times minority governments do not work because the governments hands are tied.

We can blame our inability to deal with these financial countries crises on the citizens that were to lazy to come out and vote if they did the Liberals would have the majority and they have the experience to bring the country back from a deficit.

 

[darkbeaver]

Ontario will run a deficit of $500 million this year rather than make steep spending cuts to cope with an uncertain economic future, Finance Minister Dwight Duncan said Wednesday.

"We are in the midst of a global economic crisis not imagined a few short weeks ago. It is spilling over into the real economy impacting Ontario families and businesses," Duncan said at the legislature while delivering his fall economic outlook.

Full story

What about you personally? Are you prepared to go into deficit or will you be making cuts from your own budget?



More...

You are a lying piece of dung, the global economic crisis we are in the midst of was predicted almost a decade ago by not just one or two economists but by hundreds. You are nothing more than a paid mouth piece of the international bankers and the local rich elite. Ontario, like every other gutless collection of politicians in this gutless hollowed out country have opted to lay the burden of carrying the wealthy on the backs of the ordinary citizens of this country. The time for revolution is ripe, some will remember those who have served the special interests of the corporation instead of the people who employ you.

 

[Avro]

Um, beave, you're an idiot.

The fact that an economist predicted a recession a decade before it happens is not rocket science.

In fact I will predict one ten years from now as is the pattern.

Duh.:roll:

 

[scratch]

Um, beave, you're an idiot.

The fact that an economist predicted a recession a decade before it happens is not rocket science.

In fact I will predict one ten years from now as is the pattern.

Duh.:roll:

Just too easy..........

scratch

 

[darkbeaver]

They Did It On Purpose: The Housing Bubble & Its Crash were Engineered by the US Government, the Fed & Wall Street

By Richard C. Cook

Global Research, October 23, 2008

​

During the Clinton administration, the government required the financial industry to start expanding the frequency of mortgage loans to consumers who might not have qualified in the past.

When George W. Bush was named president by the Supreme Court in December 2000, the stock market had begun to decline with the bursting of the dot.com bubble.

In 2001 the frequency of White House visits by Alan Greenspan increased.

Greenspan endorsed President Bush’s March 2001 tax cuts for the rich. More such cuts took place in May 2003.

Signs of recession had begun to show in early 2001. The stock market crashed after 9/11. The U.S. invaded Afghanistan in October 2001 and Iraq in March 2003.

The Federal Reserve began cutting interest rates, and by 2002 a home-buying frenzy was underway. Fannie Mae and Freddie Mac went along by guaranteeing the increasing number of mortgage loans.

According to a mortgage broker this writer interviewed, word began to come down through the mortgage banks to begin falsifying mortgage applications to show more borrower income than borrowers actually possessed

Banks that wrote mortgages began to offload them when Wall Street packaged them into mortgage-backed securities that were sold around the world as bonds to investors.

Risk-analysts at the leading credit-rating agencies, such as Standard and Poor’s, Moody’s, and Fitch, gave their highest ratings to mortgage-backed securities whose risks were later acknowledged to be grossly underestimated.

Mortgage companies, with Alan Greenspan’s endorsement, began to offer more Adjustable Rate Mortgages (ARMs), loans that would reset at much higher rates in future years.

Mortgage brokers fed the growing bubble by telling people they should buy now because housing prices would keep going up and they could resell at a profit before their ARMs escalated.

Huge amounts of money began to flow into the economy from mortgages and home equity loans and from capital gains on resale of inflating property.

Meanwhile, in the world of investment securities, the Securities and Exchange Commission greatly reduced the amount of their own capital investors were required to bring to the table, resulting in a huge increase in bank leveraging of speculative trading.

George W. Bush was reelected in 2004 at the height of the housing and investment bubbles. By 2005 the housing bubble was accounting for half of all U.S. economic growth and yielding huge tax revenues to all levels of government.

Despite the tax revenues from the bubbles the Bush administration was running huge budget deficits from expenditures on the wars in Afghanistan and Iraq .

ABC News reports that during this time risk analysts at Washington Mutual, one of the nation’s largest banks, were told to ignore high risk loans because lending had to be maximized. Those who objected were disciplined or fired.

State attorneys-general moved to investigate mortgage fraud but were blocked from doing so by orders of the Treasury Department’s Comptroller of the Currency. There was no federal agency that was charged with regulating mortgage fraud.

In February 2006, Ben Bernanke replaced Alan Greenspan as Federal Reserve Chairman and held interest rates steady. Homeowners began to default as ARMs reset.

The housing bubble began to collapse in 2006-2007, with the economy showing early signs of a recession and the stock market starting to decline by August 2007. Home prices began to plummet in most markets, with millions of homeowners owing more on their homes than their new appraisals.

Homeowners began to default, with over four million homes going to foreclosure from 2006-2008. In many cases, homeowners simply walked away, dropping off the keys to their houses at the bank.

The U.S. economy shed 60,000 jobs in August 2008. In a year, Wall Street had cut 200,000 jobs. State and local governments began to cut budgets and jobs.

The “toxic debt” from the collapse of the housing bubble brought about a full-scale crash of the U.S. financial system by September 2008. The stock market immediately fell, with 40 percent of its value—$8 trillion—now having been lost in a year. $2 trillion of the losses were in retirement savings.

The crash of the U.S. economy began to reverberate around the world with bankers and the IMF warning of an onrushing global recession.

Massive bailouts by the U.S. Treasury Department and the Federal Reserve failed to stem the tide of the crashing markets. By late October 2008 the recession has begun to hit in force.

As the situation worsened, big banks like J.P. Morgan Chase received government capitalization even as they were buying up banks that were failing. J.P. Morgan Chase paid $1.9 billion for Washington Mutual with assets of over $300 billion.

The U.S. government joined with the nations of Europe in planning a series of economic summits to explore global financial solutions. President Bush will host the first summit in Washington , D.C. , on November 15, after the U.S. presidential election.

The U.S. military shifted combat troops from Iraq to the U.S. to contain possible civil unrest.

Most major retail chains began to close stores and lay off employees even as the Christmas season approached.

The Washington Post reported on October 23, 2008: “Employers are moving to aggressively cut jobs and reduce costs in the fact of the nation’s economic crisis, preparing for what many fear will be a long and painful recession.”

Richard C. Cook is a former U.S. federal government analyst, whose career included service with the U.S. Civil Service Commission, the Food and Drug Administration, the Carter White House, NASA, and the U.S. Treasury Department. His articles on economics, politics, and space policy have appeared in numerous websites and print magazines. His book on monetary reform, entitled We Hold These Truths: The Hope of Monetary Reform, will soon be published by Tendril Press. He is the author of Challenger Revealed: An Insider’s Account of How the Reagan Administration Caused the Greatest Tragedy of the Space Age, called by one reviewer, “the most important spaceflight book of the last twenty years.” His website is www.richardccook.com. Comments or requests to be added to his mailing list may be sent to EconomicSanity@gmail.com. Also see a series of his speeches on YouTube at http://www.youtube.com/user/GracchusJones.




http://www.globalresearch.ca/www.globalresearch.ca

 

[Walter]

We can blame our inability to deal with these financial countries crises on the citizens that were to lazy to come out and vote if they did the Liberals would have the majority and they have the experience to bring the country back from a deficit.

Bloody lazy Liberal non-voters.

 

[Scott Free]

I think this entire economic crisis has been fabricated right from the start by the US fed printing too much money. Now they are pulling money out by not printing as much and selling treasury bills to print new money. That is the crisis right there. The fed originally tightened the money supply thereby forcing the banks to tighten the money supply. The money supply was way too loose to start with but now it's too tight. So the Fed issued treasury bills so people took money out of the stock market (causing it to fall) to buy bills but the market has fallen so they issue more bills which causes the stock market to fall again. It is basically a consolidation of wealth.

Canada should stay out of this game. If we look to our government to spend us out of this we will only end up sending our wealth to the gluttons in the Fed. That is a mistake IMO. We should wait until that huge sucking sound stops coming from the south before we try and correct our economy otherwise we'll get swallowed up IMO. We can see this starting already as our dollar falls. If the government starts to borrow it may well collapse. We need to demonstrate our dollar is strong because we have resources to back it up. Unfortunately, reality isn't a factor unless the USA completely collapses. Personally I think that would be the best for Canada. I have grown tired of this artificial economy which strives to give the USA hegemony by reducing the significance of real world product.

 

[Ron in Regina]

Just for perspective and the sake of comparison.

http://forums.canadiancontent.net/prairies/78377-saskatchewan-seems-have-turned-corner.html

 

[Scott Free]

That should get better too as OPEC is reducing oil supply by 2 million barrels this week.

As long as we don't start running a deficit Saskatchewan should continue to be OK IMO.

 

[Ron in Regina]

That should get better too as OPEC is reducing oil supply by 2 million barrels this week.

As long as we don't start running a deficit Saskatchewan should continue to be OK IMO.

My fingers are crossed.

 

[Kreskin]

The automakers need to reinvent themselves in these times with products that are appropriately named so we can get people working again. My ideas are:

Ford F-Word
Pontiac Repo
Chevrolet Shirtless
Nissan Nothing
Chrysler Christsake
Saturn Sacked
Toyota Trash
Honda Hindtit
BMW SOL
Buick Bailiff
Mazda Mud

Each have 45000 9-volt batteries that need changing every 6 kilometers.

 

[Ron in Regina]

This one can be for the "Green" crowd as long as they pay the Methane tax,
as Methane is a GHG. One horsepower, but recyclable into some stringy BBQ.

 

[Kreskin]

This one can be for the "Green" crowd as long as they pay the Methane tax,
as Methane is a GHG. One horsepower, but recyclable into some stringy BBQ.

Awesome stuff Ron. I think that's the 2009 Chevrolet Chariot.

 

[Ron in Regina]

awesome stuff ron. I think that's the 2009 chevrolet chariot.

nice!!!