Trudeau Is Going To Bury Us In Debt

Decapoda

Council Member
Mar 4, 2016
1,342
73
48
A shocking new report quietly released by the federal government admits that their finances could collapse in the coming decades if politicians don’t make responsible choices.
Two days before Christmas, when most politicians and their staffers had long left their offices for the holiday break, the finance department released — without fanfare or wide notice — a surprising update on long-term economic and fiscal projections.
The report warns that lower than expected growth combined with higher program spending “would be sufficient to put at risk the fiscal sustainability of the federal government.”
Ian Lee, who teaches at the Sprott School of Business at Carleton University, says Canadians should certainly be worried about these numbers.
“I’m old enough to remember when Pierre Elliott Trudeau first took us into deficits, which were much smaller ones than they are today,” Lee told the Toronto Sun in a telephone interview. “Everybody back then said ‘What’s the big deal?’ But the problem is that debt started to snowball and get out of control. It’s so difficult for politicians to say no and to make hard, difficult choices.”
The forecast also assumes that the budget won’t be balanced until 2055. Projections show it peaking at $38.8 billion in 2035.
This goes against a key Liberal campaign promise.
During the 2015 election, Justin Trudeau pledged to balance the budget before the next election, in 2019. Yet, in the fall fiscal update announced this past November, Trudeau’s Liberal government pushed the goal posts back and projected deficits until 2021 and beyond.
These new assumptions from the finance department now call all of the Liberal government’s numbers into question.
This is not the only alarming figure revealed.
Another key fiscal promise of the prime minister’s campaign was to bring down the debt-to-GDP ratio to 27% by 2019. Yet the finance report also places this accomplishment out of reach.
It instead projects the debt ratio consistently hovering around 31% for the next few years, then dropping to 30.4% by 2021.
Federal debt is also assumed to cross the $1 trillion mark around 2031. It is currently $635 billion.


Buried government report reveals looming fiscal crisis


•Returning to surplus
Trudeau’s campaign promise: 2019
Finance department’s forecast: 2055
•Reducing the debt ratio
Trudeau’s campaign promise: down to 27% by 2019
Finance department’s forecast: still up at 30.4% by 2021
•Still not balancing itself
“The commitment needs to be a commitment to grow the economy and the budget will balance itself.”
— Liberal leader Justin Trudeau, 2014
•Gloomy future
“I don’t think it’s going to end well.”
— Ian Lee, Carleton University
•Federal debt projections
-2017: $635 billion
-2021: $746 billion
-2030: $992 billion
-2045: $1.5 trillion

I think it's safe to say budgets do not, in fact, balance themselves as our inept leader would have us believe. Trudeau is not just incompetent, it appears he's actually a serious threat to the future fiscal welfare of our country.
 

Machjo

Hall of Fame Member
Oct 19, 2004
17,878
61
48
Ottawa, ON
This is where Greece has the advantage over Canada. The fact that no one wants to lend to the Greek government forces it to balance the books. Canada has no such check in place.
 

Goober

Hall of Fame Member
Jan 23, 2009
24,540
57
48
Moving
I am old enough to recall the 70's and 80's with massive deficits. Then Chretien was elected PM and combined with huge cuts and a rebounding world economy we dug our way out.
It will not be that easy next time as we see slow world/Canada economic growh, which I am afraid will be the norm
 

Remington1

Council Member
Jan 30, 2016
1,469
0
36
This is where Greece has the advantage over Canada. The fact that no one wants to lend to the Greek government forces it to balance the books. Canada has no such check in place.
Huge difference is that Greeks don't pay nearly the amount of taxes we pay ( if they pay some at all!!). They are in trouble by their own doing. We on the other hands are getting buried by lack of vision.
 

Machjo

Hall of Fame Member
Oct 19, 2004
17,878
61
48
Ottawa, ON
Huge difference is that Greeks don't pay nearly the amount of taxes we pay ( if they pay some at all!!). They are in trouble by their own doing. We on the other hands are getting buried by lack of vision.

I'm not sure about that. I'm sure the government was probably forced to raise taxes and cut spending to get help from other governments and the IMF.

Maybe that's what Canada needs. A tough pill to swallow, but I bet Greece will see an economic miracle in a few decades thanks to the balanced budgets forced on it. The balanced budgets will toughen them up as a people, and they'll probably end up with a streamlined, no frills no gimmicks government as a result.
 

pgs

Hall of Fame Member
Nov 29, 2008
19,790
158
63
B.C.
I am old enough to recall the 70's and 80's with massive deficits. Then Chretien was elected PM and combined with huge cuts and a rebounding world economy we dug our way out.
It will not be that easy next time as we see slow world/Canada economic growh, which I am afraid will be the norm
Yup I fondly remember sky high interest rates and the much higher income tax levels . It was great seeing $2000.00 out of a $5000.00 cheque . Those were the days my friend , those were the daze .
 

DaSleeper

Trolling Hypocrites
May 27, 2007
32,298
236
63
Northern Ontario,
Yup I fondly remember sky high interest rates and the much higher income tax levels . It was great seeing $2000.00 out of a $5000.00 cheque . Those were the days my friend , those were the daze .
Or wage and price control.....Only the wage control retroactive to before we had just settled a negotiated contract......
 

darkbeaver

the universe is electric
Jan 26, 2006
41,020
175
63
RR1 Distopia 666 Discordia
Coming Decades! hahahahahahahahahahah days idiot not decades

Trudeau doesn't care... he's set for life and will take off for St. Kits.

He's a figurehead only. I'm in dayly contact with him, I help him dress and make sure he dosn't hurt himself in the bathroom.
And I write his speeches.
 

JLM

Hall of Fame Member
Nov 27, 2008
74,176
116
63
Vernon, B.C.
A shocking new report quietly released by the federal government admits that their finances could collapse in the coming decades if politicians don’t make responsible choices.
Two days before Christmas, when most politicians and their staffers had long left their offices for the holiday break, the finance department released — without fanfare or wide notice — a surprising update on long-term economic and fiscal projections.
The report warns that lower than expected growth combined with higher program spending “would be sufficient to put at risk the fiscal sustainability of the federal government.”
Ian Lee, who teaches at the Sprott School of Business at Carleton University, says Canadians should certainly be worried about these numbers.
“I’m old enough to remember when Pierre Elliott Trudeau first took us into deficits, which were much smaller ones than they are today,” Lee told the Toronto Sun in a telephone interview. “Everybody back then said ‘What’s the big deal?’ But the problem is that debt started to snowball and get out of control. It’s so difficult for politicians to say no and to make hard, difficult choices.”
The forecast also assumes that the budget won’t be balanced until 2055. Projections show it peaking at $38.8 billion in 2035.
This goes against a key Liberal campaign promise.
During the 2015 election, Justin Trudeau pledged to balance the budget before the next election, in 2019. Yet, in the fall fiscal update announced this past November, Trudeau’s Liberal government pushed the goal posts back and projected deficits until 2021 and beyond.
These new assumptions from the finance department now call all of the Liberal government’s numbers into question.
This is not the only alarming figure revealed.
Another key fiscal promise of the prime minister’s campaign was to bring down the debt-to-GDP ratio to 27% by 2019. Yet the finance report also places this accomplishment out of reach.
It instead projects the debt ratio consistently hovering around 31% for the next few years, then dropping to 30.4% by 2021.
Federal debt is also assumed to cross the $1 trillion mark around 2031. It is currently $635 billion.


Buried government report reveals looming fiscal crisis


•Returning to surplus
Trudeau’s campaign promise: 2019
Finance department’s forecast: 2055
•Reducing the debt ratio
Trudeau’s campaign promise: down to 27% by 2019
Finance department’s forecast: still up at 30.4% by 2021
•Still not balancing itself
“The commitment needs to be a commitment to grow the economy and the budget will balance itself.”
— Liberal leader Justin Trudeau, 2014
•Gloomy future
“I don’t think it’s going to end well.”
— Ian Lee, Carleton University
•Federal debt projections
-2017: $635 billion
-2021: $746 billion
-2030: $992 billion
-2045: $1.5 trillion

I think it's safe to say budgets do not, in fact, balance themselves as our inept leader would have us believe. Trudeau is not just incompetent, it appears he's actually a serious threat to the future fiscal welfare of our country.


Not too honest either!
 

Decapoda

Council Member
Mar 4, 2016
1,342
73
48
The last long term economic report released under Stephen Harper's government in 2014 projected Canada would eliminate its debt within 25 years. After a little over a year into junior's term, things look drastically different. Canada is now projected to run catastrophic deficits year after year. By 2045, Canada is now projected to be 1.5 Trillion in debt! Just 2 years ago, Canada was projected to have a 760 billion surplus by that same year.

This incompetent fool is a walking disaster for Canada. Incompetant actually doesn't even come close to describing him. With all his "post national state" bullsh*t he's been spewing, and his punitive self inflicted hobbling of the Canadian economy by taxing essential, life giving co2, his talk about Canada only working when Quebeccers are in charge, and now this disasterous economic forecast, I'm seriously starting to believe this idiot actually hates the country he's been charged with leading. What the hell is wrong with this guy...what is his freaking malfunction?? Hard to comprehend the vision of a fool.
 
Last edited:

darkbeaver

the universe is electric
Jan 26, 2006
41,020
175
63
RR1 Distopia 666 Discordia
PET with a gun to his head destroyed the Bank of Canada and us Canadians what own and operate the institution as I undewrstand. We borrow needlessly, a tiny little war would set us free. Fuk off we owe you nothing. You stole our cod. Pricks.

The Russians have always been enemies of Nova Scoitians, fish bandit communists, the did introduce freezere trawler to Canada. Huge seaworthy refrigerators, our handlines could not stop the communist onslaught.Burning
 

JLM

Hall of Fame Member
Nov 27, 2008
74,176
116
63
Vernon, B.C.
A shocking new report quietly released by the federal government admits that their finances could collapse in the coming decades if politicians don’t make responsible choices.
Two days before Christmas, when most politicians and their staffers had long left their offices for the holiday break, the finance department released — without fanfare or wide notice — a surprising update on long-term economic and fiscal projections.
The report warns that lower than expected growth combined with higher program spending “would be sufficient to put at risk the fiscal sustainability of the federal government.”
Ian Lee, who teaches at the Sprott School of Business at Carleton University, says Canadians should certainly be worried about these numbers.
“I’m old enough to remember when Pierre Elliott Trudeau first took us into deficits, which were much smaller ones than they are today,” Lee told the Toronto Sun in a telephone interview. “Everybody back then said ‘What’s the big deal?’ But the problem is that debt started to snowball and get out of control. It’s so difficult for politicians to say no and to make hard, difficult choices.”
The forecast also assumes that the budget won’t be balanced until 2055. Projections show it peaking at $38.8 billion in 2035.
This goes against a key Liberal campaign promise.
During the 2015 election, Justin Trudeau pledged to balance the budget before the next election, in 2019. Yet, in the fall fiscal update announced this past November, Trudeau’s Liberal government pushed the goal posts back and projected deficits until 2021 and beyond.
These new assumptions from the finance department now call all of the Liberal government’s numbers into question.
This is not the only alarming figure revealed.
Another key fiscal promise of the prime minister’s campaign was to bring down the debt-to-GDP ratio to 27% by 2019. Yet the finance report also places this accomplishment out of reach.
It instead projects the debt ratio consistently hovering around 31% for the next few years, then dropping to 30.4% by 2021.
Federal debt is also assumed to cross the $1 trillion mark around 2031. It is currently $635 billion.


Buried government report reveals looming fiscal crisis


•Returning to surplus
Trudeau’s campaign promise: 2019
Finance department’s forecast: 2055
•Reducing the debt ratio
Trudeau’s campaign promise: down to 27% by 2019
Finance department’s forecast: still up at 30.4% by 2021
•Still not balancing itself
“The commitment needs to be a commitment to grow the economy and the budget will balance itself.”
— Liberal leader Justin Trudeau, 2014
•Gloomy future
“I don’t think it’s going to end well.”
— Ian Lee, Carleton University
•Federal debt projections
-2017: $635 billion
-2021: $746 billion
-2030: $992 billion
-2045: $1.5 trillion

I think it's safe to say budgets do not, in fact, balance themselves as our inept leader would have us believe. Trudeau is not just incompetent, it appears he's actually a serious threat to the future fiscal welfare of our country.


I don't know a hell of a lot about the subject, but I do know enough that when Ian Lee starts talking, people should start listening!
 

Bar Sinister

Executive Branch Member
Jan 17, 2010
8,252
16
38
Edmonton
What is important is not the level of debt, but the ratio of debt to GDP, and the cost of debt servicing. Under Pierre Trudeau that ratio rose to about 29%. Under Brian Mulroney it rose to 64%. Under Jean Chretien and Paul Martin it declined to 36%. And under Stephen Harper it rose to 91%. Frankly, blaming the current government for a mess created by Harper's refusal to reduce spending while at the same time cutting taxes seems to be something of a mystery to me. However, as I mentioned debt servicing is also a factor and at current interest rates even the current level of debt is not of major concern. That could change if the economy does not improve, or interest rates rise, or if the government decides to create even larger deficits, but we will just have to wait and see.
 

Danbones

Hall of Fame Member
Sep 23, 2015
21,566
2
36
Unlike most of the world, we have publically owned central bank chartered to make interest free loans to our government.
What we have been sold is debt slavery pure and simple
 

mentalfloss

Prickly Curmudgeon Smiter
Jun 28, 2010
37,816
12
38
39
Mississauga, ON
It's internal debt so it's fine.

Our Debt to GDP ratio is also fine.

Japan is an example of why debt isn't something to be concerned about.