Considering the exploding US federal debt and its potential consequences for its neighbours, should the Canadian government not be bringint this issue up with its neighbour?
Of course I realise the risk of Canada appearing meddlesome in US internal affairs if it doesn't approach the issue with sensitivity. But I believe that talks behind closed doors (assuming this is not happening already) would be appropriate as a plan A. If that should fail to convince the US to curtail its spending, increase taxes, or take other counter-debt measures, then maybe going to the World Bank to discuss some kind of international agreement for nations to try to bring their national debts to within a percentage of their GDP (the US' is currently about 90% of tis GDP) might be an appropriate plan B. Failing that, then maybe taking up the matter at the UN General Assembly, raising the concern of nations having debt burdens beyond a percentage of their GDP affecting their neighbours too. That might be an appropriate plan C. And failing that, then Canada might need to consider measures to brace for a collapse of the US dollar. This would mean taking steps now to pay off our provincial and federal debts, keep inflation down, and keep interest rates down. The only way I can see this happening would be revenue increases, spending reductions, or a combination fo the two.
But if the US dollar suddenly cracks, we'd better hope that the Canadian economy be prepared to withstand the impact of the shockwave this would send around the world.
Of course I realise the risk of Canada appearing meddlesome in US internal affairs if it doesn't approach the issue with sensitivity. But I believe that talks behind closed doors (assuming this is not happening already) would be appropriate as a plan A. If that should fail to convince the US to curtail its spending, increase taxes, or take other counter-debt measures, then maybe going to the World Bank to discuss some kind of international agreement for nations to try to bring their national debts to within a percentage of their GDP (the US' is currently about 90% of tis GDP) might be an appropriate plan B. Failing that, then maybe taking up the matter at the UN General Assembly, raising the concern of nations having debt burdens beyond a percentage of their GDP affecting their neighbours too. That might be an appropriate plan C. And failing that, then Canada might need to consider measures to brace for a collapse of the US dollar. This would mean taking steps now to pay off our provincial and federal debts, keep inflation down, and keep interest rates down. The only way I can see this happening would be revenue increases, spending reductions, or a combination fo the two.
But if the US dollar suddenly cracks, we'd better hope that the Canadian economy be prepared to withstand the impact of the shockwave this would send around the world.