Originally posted by jazz
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MB Premier Response to Skippys Idiocy
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Originally posted by walterm View PostIt wasn't hidden, a deferral is not a write off. You can borrow money and defer payments or principal but that doesn't mean you never have to pay it.
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How can we expect a government to be financially responsible when the majority of the electorate isnt?
They keep parroting the line that a large % of the population is $200 away from not being able to cover their monthly bills... there is no saving for future purchases anymore. If you want it, you just put in on a ho ho hold the payments plan.
It astonishes me the number of people with 2 top of the line vehicles on 84 month payment plans. Wake boats and triple slide granite counter topped 5th wheel campers with bank loans. Entertainment centers on in store payment plans. Living room and bedroom furniture on "no interest, dont make a payment for 12 months" plans. Kitchen and bathroom makeovers on HEloc's. Vacations on credit cards. Etc, etc...
Now how the hell can those people be expected to accept fiscal prudence by government when they cant even safeguard their own personal finances?
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Just don't pay! What are they going to do? Throw you in jail?
So you get to start over with a new strict set of rules.
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Originally posted by helmsdale View PostHow can we expect a government to be financially responsible when the majority of the electorate isnt?
They keep parroting the line that a large % of the population is $200 away from not being able to cover their monthly bills... there is no saving for future purchases anymore. If you want it, you just put in on a ho ho hold the payments plan.
It astonishes me the number of people with 2 top of the line vehicles on 84 month payment plans. Wake boats and triple slide granite counter topped 5th wheel campers with bank loans. Entertainment centers on in store payment plans. Living room and bedroom furniture on "no interest, dont make a payment for 12 months" plans. Kitchen and bathroom makeovers on HEloc's. Vacations on credit cards. Etc, etc...
Now how the hell can those people be expected to accept fiscal prudence by government when they cant even safeguard their own personal finances?
Not sure what us fiscal cons
Did to deserve this, but as an irrelevant minority I suppose it is our fault for not revolting against the Chuck's, before they became the majority.
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Think about the mentality of people. They hate taxes and bills but love making payments. People will make payments on anything, couches, tvs, put clothes and food on credit cards.
Just use interest rate arbitrage as a defacto tax, blend it all in with amortization and people barely notice.
Just like they did for hydro bills in Ontario.
Bank lends at 0.5% to the govt and buys treasurys at the same time, drives down bond yeilds, free money lent out for the govt. Party on for a yr. Then govt stops buying bonds, starts selling them to outside lenders, rates rise and now call for repayment from the plebs. Make 3% return on 400B over 25 yrs.
Throw in a punishing carbon tax and theres your govt revenue for the next generation.
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Originally posted by jazz View PostThink about the mentality of people. They hate taxes and bills but love making payments. People will make payments on anything, couches, tvs, put clothes and food on credit cards.
Just use interest rate arbitrage as a defacto tax, blend it all in with amortization and people barely notice.
Just like they did for hydro bills in Ontario.
Bank lends at 0.5% to the govt and buys treasurys at the same time, drives down bond yeilds, free money lent out for the govt. Party on for a yr. Then govt stops buying bonds, starts selling them to outside lenders, rates rise and now call for repayment from the plebs. Make 3% return on 400B over 25 yrs.
Throw in a punishing carbon tax and theres your govt revenue for the next generation.
I doubt that central banks will ever try to reverse their bond buying spree. The Fed tried it up until last year and quickly reversed course when the financial system threatened to implode. I suspect that any government that tried to maintain that course would be turfed out at the polls. If they pointed out the dangers of impending bankruptcy, most voters would not care to believe them.
Just look at the response to Covid. The vast majority of the population now firmly believes that the federal government is Santa Claus and that there are no existential limits as to what they can borrow in order to hand out seed corn to be destroyed. Zero percent interest rates are the key to facilitating all this borrowing.
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Ratings agencies are screaming at the govt to halt the insanity or wind up with a destroyed dollar. We dont have a euro here.
https://www.fitchratings.com/research/sovereigns/canadas-spending-pledges-to-push-federal-deficit-higher-still-25-09-2020 Canada’s Spending Pledges to Push Federal Deficit Higher Still
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Originally posted by jazz View PostRatings agencies are screaming at the govt to halt the insanity or wind up with a destroyed dollar. We dont have a euro here.
https://www.fitchratings.com/research/sovereigns/canadas-spending-pledges-to-push-federal-deficit-higher-still-25-09-2020 Canada’s Spending Pledges to Push Federal Deficit Higher Still
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Originally posted by Austrian Economics View PostMake interest rates low enough, and people will learn to love being indebted. It's treadmill that they won't want to get off. Kind of like heroin. They will be mesmerized by the rise in the value of their house and the ballooning of their equity accounts. It doesn't occur to most that interest rates this low are a sign of a sick, debilitated economy, not a healthy one.
I doubt that central banks will ever try to reverse their bond buying spree. The Fed tried it up until last year and quickly reversed course when the financial system threatened to implode. I suspect that any government that tried to maintain that course would be turfed out at the polls. If they pointed out the dangers of impending bankruptcy, most voters would not care to believe them.
Just look at the response to Covid. The vast majority of the population now firmly believes that the federal government is Santa Claus and that there are no existential limits as to what they can borrow in order to hand out seed corn to be destroyed. Zero percent interest rates are the key to facilitating all this borrowing.
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