Canada’s $1.1-trillion debt is shockingly high – it threatens all that we value

Ron in Regina

"Voice of the West" Party
Apr 9, 2008
24,378
8,736
113
Regina, Saskatchewan
The House of Commons passed the Liberal government's budget bill today, which seeks to roll out vast new incentives for clean energy and expending dental care subsidies — despite a Conservative attempt to hold it up.

(Ironically the day after the Bank of Canada hiked the interest rate again?)

The bill passed 177 to 146 with the support of Liberals and New Democrats, while the Tories and Bloc Québécois voted against it.

Freeland Re-Signs up for Disney+…& from the numbers looks like the Green Party did too.
It was just three years ago that Trudeau was being asked about the cost of carrying all that extra debt when the PM interrupted the reporter, CTV’s Glen McGregor, to chastise him about how low interest rates were.

“Interest rates are at historic lows Glen,” Trudeau said smiling smugly at the camera.

In June 2020, the Bank of Canada’s interest rate was 0.25% but this week, after the ninth interest rate hike it sits at 4.75% with a possible hike to 5% in July.

When Conservative Leader Pierre Poilievre called for the Trudeau government to rein in spending this week, to help slow the growth of inflation, Trudeau scoffed. He accused the Conservatives of not backing COVID supports for Canadians – a lie, they voted for them – or of wanting Canadians to go without key programs like dental care, the new national child care program or an expanded tool rebate for skilled trades.

All of this is nonsense, these programs are not the cause of Trudeau’s massive spending increases, which banks and even former Liberal finance minister John Manley have said are contributing to inflation.

“This is a bit like driving your car with one foot on the gas and the other on the brake,” Manley said earlier this year, describing how the Bank of Canada was trying to lower inflation while the Trudeau government’s spending was increasing it.
 

Ron in Regina

"Voice of the West" Party
Apr 9, 2008
24,378
8,736
113
Regina, Saskatchewan
What's got your Stanfields in a knot about increasing the interest rate?
Floating mortgage. Not locked in at a specific rate this time. In June 2020, the Bank of Canada’s interest rate was 0.25% but this week, after the ninth interest rate hike it sits at 4.75% with a possible hike to 5% in July.

It’s real, and we’re in an affordable/manageable position even with the jumps so far….but I’m sure many aren’t.
 

petros

The Central Scrutinizer
Nov 21, 2008
110,805
12,012
113
Low Earth Orbit
Floating mortgage. Not locked in at a specific rate this time. In June 2020, the Bank of Canada’s interest rate was 0.25% but this week, after the ninth interest rate hike it sits at 4.75% with a possible hike to 5% in July.

It’s real, and we’re in an affordable/manageable position even with the jumps so far….but I’m sure many aren’t.
I know of a few struggling after mortgage payments going up. One went from $900 to $1450 a month.
 

Ron in Regina

"Voice of the West" Party
Apr 9, 2008
24,378
8,736
113
Regina, Saskatchewan
I know of a few struggling after mortgage payments going up. One went from $900 to $1450 a month.
Ours has gone from under $600 to almost $900 so it’s manageable but noticeable, but we’ve got three kids (& their spouses, and their kids) who are still in rental situations & those costs are jumping along with the interest rates the last few years, making even our inflated mortgage costs look minuscule.

Two are in Regina, & one at Vernon BC which is a crazy market all on its own.
 

petros

The Central Scrutinizer
Nov 21, 2008
110,805
12,012
113
Low Earth Orbit
Our daughter is moving back to Regina this summer. She'll have a hefty chunk covered but still, it's an extra couple thousand a year gone. Thankfully it's still possible for a single person in their early 30s to buy a new home in Regina without struggling.

It's getting close to a bubble explosion for other cities. Oh boy will that ever be a big mess when it hits. It's coming, you gotta be pretty damn naive to think it isn't.

Commercial leases are going to jump which only feeds inflation when the consumer gets nailed to cover increases.
 
  • Like
Reactions: Ron in Regina

bob the dog

Council Member
Aug 14, 2020
1,264
972
113
I realize this isn't good for most people with mortgages, but for retired people with no debt and some savings it is a small reprieve.
Feds approve 30 year mortgages due to high interest rates slowing people down is the real reason. This way the monthly payments are less high.

Squawk all they want about lowering inflation but giving $400,000 and more loans to kids in their 20's is not the way to do it. It's a blessing to not have to deal with it but then they get you on property taxes.
 

Taxslave2

House Member
Aug 13, 2022
3,237
1,940
113
Feds approve 30 year mortgages due to high interest rates slowing people down is the real reason. This way the monthly payments are less high.

Squawk all they want about lowering inflation but giving $400,000 and more loans to kids in their 20's is not the way to do it. It's a blessing to not have to deal with it but then they get you on property taxes.
The interest rate isn't high. Those of us in our 60s and older bought houses at over 16%. The artificially inflated cost of land, and the doubling in price of almost all building materials is the pat 3 years is causing the problem.
 

petros

The Central Scrutinizer
Nov 21, 2008
110,805
12,012
113
Low Earth Orbit
The interest rate isn't high. Those of us in our 60s and older bought houses at over 16%. The artificially inflated cost of land, and the doubling in price of almost all building materials is the pat 3 years is causing the problem.
And labour shortages...