Canadian households are more in debt than any other country in the world

[B00Mer]

Canadian households are more in debt than any other country in the world

Canadian households are in more debt as a proportion of GDP than any other country in world, according to new rankings by the the OECD.

The debt data comes from a special chapter pre-release of a new report by the Organization for Economic Cooperation and Development.


Resilience in a Time of High Debt examines indebtedness of households and non-financial corporations in many advanced and emerging market economies.

Researchers found that in the fourth quarter of 2016, Canada’s consumer debt level was equal to just over 100% of the country’s Gross Domestic Product (GDP).

Canada, labelled as an “advanced economy”, is closely followed by South Korea, the UK, the USA, Malaysia, and Thailand.

However, all of their household debt ratios are less than 100% of each country’s GDP.

Global private debt at historically high levels
Overall, the OECD found private debt globally is at historically high levels, with household debt linked to an upsurge in home prices in some advanced and emerging economies.

“In countries with rising household indebtedness, house prices have also increased at a faster pace than incomes and rents, raising sustainability concerns,” write researchers.

Catherine L. Mann, Chief Economist and Head of the Economics Department, and Filippo Gori, Economist, Macroeconomic Policy Division, published a blogpost about it.

Household debt ratio and high home prices were closely linked, the researchers wrote.

“Some OECD countries that have experienced the strongest increases in household debt since the crisis have also the steepest rise in house prices,” they said.

“A number of advanced economies have experienced worrying increases in house prices in recent years.”

“While finance is needed to support economic activity and innovation, it can increase risks, lower growth, and raise inequality in the longer term.”

Sounds familiar to us.

Canadian households are more in debt than any other country in the world | Daily Hive Vancouver

 

[MHz]

You are only in debt when they stop raising your credit limit, till then. no pain.

 

[B00Mer]

This is a double post.. sorry
http://forums.canadiancontent.net/news/155293-personal-consumer-debt-hits-100-a.html

 

[spilledthebeer]

This is a double post.. sorry
http://forums.canadiancontent.net/news/155293-personal-consumer-debt-hits-100-a.html

Here is an article illustrating the ugly failure of all LIE-beral policy. With some comments of my own in brackets):

Wynne spending our cash like a drunken sailor

By Andre Marin. First posted: Saturday, May 20, 2017 02:39 PM EDT | Updated: Saturday, May 20, 2017 02:47 PM EDT

Free drugs if you’re under 25, free university, discounted hydro, rent control and the cherry on the sundae is a 30% increase in the minimum wage in one fell swoop.

(It`s all the usual LIE-beral bait and switch garbage- the under 25 gang does not need free drugs as they are usually healthy-a by product of youth! Free university is only for a very few-all others can expect to pay MORE-offering ever more to a steadily shrinking pool of candidates is NOT helping the majority! And rent controls are necessary thanks to LIE-beral urban planning- no new transit means we cannot afford to travel from cheaper areas to our work and LIE-beral mandated city planning dictates that we MUST be crammed together in high rises anyway so they can save further on assorted govt services. And that increase in minimum wage is a guaranteed job killer-as potential workers are priced out of the McJob market. LIE-berals are doing a fine job of bribing us with OUR MONEY in the short term and killing us with debt in the long term!)

Premier Kathleen Wynne is running government like a Giant Tiger — everything is priced to sell. It’s like Christmas in July, except we’re still just a year from the provincial election.

But what do you do when only 11% of the population trusts you? Wynne’s giving away the kitchen sink, desperate to cling to power.

(LIE-berals are terrified that the over 55 percent of Cdns who don’t usually vote in an election may just be angry enough this time around to come out in droves and drive disgraced LIE-berals from office!)

What’s particularly pernicious is what’s unfolding with your hydro bill. In January, the province cut the provincial portion of the GST out of your bill, saving you 8%, then plans to cut a further 17% on June 1.

Wynne would have you believe it’s all magical. She waved her wand and zap, your hydro bill was cut by a quarter. That’s supposed to make you forget that you paid for massive green energy spending that we didn’t need leaving us on the hook for years, even decades, to come — and adding billions to our debt.

(In fact, the debt may last longer than the equipment that was bought to produce the debt-something like a 20 year service life versus 30 years debt repayment? We will be paying for many years for stuff that is worn out and no longer in use BEFORE its paid off!)

All Wynne did was to re-amortize our debt, shuffling it around so you get the illusion that it simply vanished.

(The contempt that LIE-berals have for ordinary Cdns is illustrated by the ugly little notes they left laying about-the ones marking out the massive NEW electricity price increases LIE-berals will hit us with in 2019 IF they win another election and can cling to power! We did not need those carelessly mislaid papers to guess what manner of financial blood bath LIE-berals will drown us in if they win another election and are called upon by civil service Hogs to honour their many costly promises- STARTING with the fifty five Billion dollars in pension gravy they have promised to OSSTF/Ontari-owe high school teachers. With 18 other Hog unions waiting in the wings! And of course our college and university profs are waiting for their chance to hit us with fifty percent wage increases- with all those support staff ALSO waiting for their chance at the gravy train- and all these people are critical to LIE-beral re-election hopes!)

But a cabinet document leaked to the Progressive Conservatives tells the real story. Between 2022 and 2027 we can expect 6.5% increases each year followed by a 10.5% increase in 2028.

Given that we have set elections every four year, Wynne’s likely thinking she’ll win in 2018 and pack it in before the 2022 election, leaving the whole mess to be sorted out by whoever gets power after her.

Liberal Energy Minister Glenn Thibeault, in an explanation that strains credulity, said he couldn’t confirm the document or verify its numbers. Poor fella explained how he’s been swamped with “thousands of documents” and “hundreds of briefings.” “I’ve been in this position for 11 months,” Thibeault pleaded.

He then pivoted, à la U.S. President Donald Trump, contradicting himself to say the numbers were off as the document was just a “draft.” But he refused to give us the supposedly updated numbers.

(In truth we can easily guess there ARE NO updated numbers as LIE-berals will simply screw us as quick and fast and deep as they dare for as long as they can! LIE-berals and their Hog allies see themselves as being so profoundly entitled they simply cannot conceive of a situation where they cannot have whatever they want whenever they decide to TAKE it!)

Thibeault said he’d disclose the numbers when he updates his long-term energy plan. Expect that to land in the lazy days of summer once the Legislature has recessed, when most are at their cottage and likely around 4 p.m. on a Friday.

If Thibeault doesn’t have the financial projections available now, as the bill is set to pass, we have a serious problem. We’re sailing blindly into the abyss. Isn’t that what first got us into this hydro mess — a lack of planning and sheer negligence?

Both New Democratic Party leader Andrea Horwath and PC leader Patrick Brown’s parties will rightfully vote against the hydro bill. Horwath called it a “$40-billion attempt to buy an election” while Brown said “in no world can I support a plan that’s going to cause vast new amounts of debt.”

Of great concern is that the poll finding that 89% of people distrust Wynne was conducted after all the goodies were announced. The same poll also found PCs still lead in popular support with 41%, the Liberals have 28% support and the NDP trail with 23%.

That’s only going to spur Wynne to continue spending your money like a drunken sailor. You’ve been warned.

(OH I do like those pollster word games! Some of us- those who work in the private sector distrust LIE-berals because they are using ever more creative ways to tax us to death- while providing ever WORSE service! But civil service Hogs don’t trust LIE-berals because they are afraid LIE-berals will go back on their bold promises of new gravy for Hogs! Hogs are simply worried that they will give their support to LIE-berals now and then wait in vain for the promised gravy- that we cannot afford to supply anyway!)

(However, as public support for LIE-berals has jumped back from 11percent to 28 percent in the last 6 months- up to June/2017 would suggest that LIE-berals have been successful in their secret back room talks with civil service Hog unions and have bought labour peace-and Hog support- for now- by offering up token amounts of gravy in the short term and offering up solemn promises of a FLOOD of new gravy if LIE-berals can cling to power after the 2018 election! If LIE-berals win in 2018 then we can expect a financial blood bath in 2019 as LIE-berals seek to pay off all those HUGE promises of new gravy to their Hog allies!

 

[Walter]

Sunny ways cuz the budget will balance itself.

 

[Curious Cdn]

Just ask the GOP.

They'll blame it on the Dems like they did last time.

 

[mentalfloss]

This just proves that debt carries no real consequences.

Canadians are going to forego any prudent fiscal policy for sure now.

And they would be right to do so.


It's clear that debt policy is just fear mongering from Conservatives.

 

[Hoid]

If the average house costs $500K how can Canadians avoid debt?

You are either in debt or you are renting,

 

[DaSleeper]

I have been debt free since I paid off my house in '97... 3 years before I retired, I made payments on the last car I bought 5 years ago just because GM offered interest free loans but savings interest rates were so low at the bank, I would be surprised if I gained 20 bucks out of the deal.

 

[Hoid]

If the average house is $500K and you need %20 down that means to buy the average house you need $100K down.

I don;t know many people who got into their house with $100K down.

 

[spilledthebeer]

If the average house is $500K and you need %20 down that means to buy the average house you need $100K down.

I don;t know many people who got into their house with $100K down.

No consequences to debt? HAHAHAHAHA!!!!

Here is another nice tale of LIE-beral hypocrisy-along with some comments of my own in brackets):

Wynne Liberals stonewalling on grants list

By Anthony Furey, Postmedia Network. First posted: Friday, January 13, 2017 08:07 PM EST | Updated: Friday, January 13, 2017 08:11 PM EST


Ontario’s looming war over corporate handouts-Province should reveal grants list

It’s been a full year since an Ontario MPP started asking the Liberals how much money they’ve handed out to corporations over the years. He still hasn’t received a full answer.

“The government needs to come clean. Taxpayers deserve to know how that money’s been spent,” says Monte McNaughton, the Progressive Conservative MPP for Lambton-Kent-Middlesex and the opposition critic for economic development.

McNaughton wants the full list of the 374 corporate grants the government has handed out to private companies since 2005. The price tag, according to a provincial auditor general’s report, is $1.87 billion. But exactly which companies received all the money and what it went to remains unclear.

“So far I’ve been stonewalled, as have MPPs and the auditor general from receiving that information, including how many jobs, if any, have been created,” McNaughton adds.

Last year, when McNaughton’s push was just getting under way, I put this question to Economic Development Minister Brad Duguid. He disagreed the information wasn’t out there, saying that it was all on archived news releases on government websites. The government then sent me lists of grant recipients. It wasn’t complete.

In the meantime, they continue to dole out taxpayer dollars to chosen businesses all across the province. Yes, there’s almost always a press release, if not a press conference, naming the company and the amount. But they’re never centrally archived and there’s rarely any follow up on how well that money was spent.

(And what else should we expect from a LIE-beral govt that believes-as did former Ontari-owe premier Dalton McGinty-that its time govt started picking economic winners and losers in this province”! But of course the public always thought the `winners` would be efficient, useful and fair employers-we DID NOT assume ALL the winners would be LIE-beral pals!)

McNaughton went on to recommend last spring that all MPPs have a vote in the legislature over handing taxpayer dollars to individual companies. Duguid shot back, telling me it was “the wackiest idea I’ve heard in my 22 years in elected office.” He said it would politicize the issue even more.

(Sounds to me as if Duguid just gave us iron-clad proof of how selfish the LIE-beral grant selection process is? If `wacky` is described as getting fair value for public money! Otherwise why not let us all get a say in who benefits most?)

Late last year, meanwhile, manufacturers in the province banded together to form the Coalition of Concerned Manufacturers of Ontario after feeling like the government was trying to run them out of town with excess regulations and sky high hydro bills.

This whole scenario makes no sense. Some companies are considering shutting down or moving to the United States because of government policy. Others are receiving massive grants. It’s like the government is re-engineering Ontario’s economy from the top down, using taxpayer money, but not disclosing their full plan.

It would help if they’d just compile a basic spreadsheet on how that almost $2 billion in grants has been spent and make it public. It’s not like McNaughton’s asking for much.

“My questions have been simple and very basic,” he says. “Just release this information, make it public.”

afurey at post media

(Oh how sad-somebody actually thinks LIE-berals really Want to answer simple questions! LIE-berals want to win the next election and to do that they NEED to buy support from select groups and union voting groups are best for LIE-berals since union leaders march in lock step to the same drummer! Civil service unions have been INSTRUMENTAL in putting LIE-berals into power and the govt Hogs like to work with CAW and other large unions-they are natural allies with LIE-berals! It is no coincidence that LIE-beral Dalton McGinty GUARANTEED govt money for Cdn Auto Workers pension fund if General Motors failed after the 2008 economic meltdown.)

(LIE-berals have SCORNED the Conservative approach to economic help. Conservatives believe that it is most proper and fair simply to keep corporate taxes as low as possible to encourage as many companies to set up shop here as possible. If the tax deal is good enough this year-under Conservatives- then it will be good enough in 10 years. By such methods Conservatives lure companies for the long term to supply steady jobs. With Conservative economics anybody who is logical and sensible and efficient in their work will succeed.)

(By comparison, LIE-berals offer `grants` and short term loans because its all part of their plan to BUY support as needed for elections. They wheel and deal in dirty little back room deals that advance their needs without real regard to public necessity in the long term! With LIE-berals its all about THEIR POWER and control and about what you can do for them right now!)

(This is the nature of communism versus LIE-beral style socialism: a communist will kill you for disagreeing with him. But a Socialist will simply leave you to starve in a ditch if he sees no use for you. With LIE-berals-if you don’t have a job its because you are stupid and/or voted foolishly! But all can be repaired if you just blindly trust the LIE-berals who made the mess in the first place with their huge deficits and massive gravy train that is sucking up ALL the cash in our society! And if you offer up blind trust to LIE-berals and are still hungry then LIE-berals will say its all the fault of Conservatives who wont stop interfering!)

(LIE-berals are oblivious to the reality that their plan to “stimulate the economy” with massive deficits is simply a larger and more costly version of the NDP/Bob Rae plan that gave Ontari-owe a doubled debt and Rae Days! LIE-berals will borrow enough money to make us look rich and will plan NOT to be around when the bills come due-along with interest-compounded and amortized! No-LIE-berals will be on a beach some place writing their memoirs about the kinder, gentler society that was killed off by massive debt!)

 

[EagleSmack]

Thanks Trudeau

 

[EagleSmack]

And BUMP!