$343 Billion

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$343 Billion

Jul 8, 2020 | 13:32 1 So the projected federal deficit for 2020-2021 is $343 billion. Net federal debt at the end of this budget period over $1.2 trillion. The Liberal’s have always preferred to express debt as a percentage of GDP, that will be just over 49% up from 31% last year. They are doing an awesome job! FML Reply With Quote
Jul 8, 2020 | 13:55 2 $9,125 per capita Reply With Quote
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  • Jul 8, 2020 | 14:04 3
    Quote Originally Posted by Hamloc View Post
    So the projected federal deficit for 2020-2021 is $343 billion. Net federal debt at the end of this budget period over $1.2 trillion. The Liberal’s have always preferred to express debt as a percentage of GDP, that will be just over 49% up from 31% last year. They are doing an awesome job! FML
    They are doing an awesome job of buying generations of liberal voters amongst the financially illiterate class, which evidently has become the majority.
    They have also done an excellent job of making Canada a prime candidate for take over by the UN
    It is all about how you frame the issue. You mistakenly thought their goal was responsible governance. Reply With Quote
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  • Jul 8, 2020 | 14:58 4 And not much for the average farmer .....

    2 billion for improved BRM programs would be a drop in the bucket and yet nothing..... Reply With Quote
    Jul 8, 2020 | 15:01 5 No question this is a massive deficit if you ignore that every other country is adding similar amounts of debt because of the pandemic. Lets compare Canada's deficit to the US deficit for this year. The US have allocated US$2 trillion for the CARES ACT in March and $US3 trillion for the HEROES ACT in May to deal with Covid 19. (over 7 trillion dollars Canadian and at 10/1 population ratio this would work out to double the deficit Canada is running per person).

    In March 2020 the US national debt stood at US$23.5 trillion and at the end of June the US national debt was over US$26 trillion. Since Trump became president the national US debt has grown by more than US$ 6 trillion dollars

    Apparently the right can spend just as well as the left!
    Last edited by dmlfarmer; Jul 8, 2020 at 15:53.
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    Jul 8, 2020 | 15:13 6 DML, two words :
    Reserve Currency.
    Any comparison Between Canada and the US's ability To manage deficit spending or even out right money printing is meaningless.

    Not sure why you brought up left vs right, Trumps rhetoric and track record is anything but right center. Reply With Quote
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  • Jul 8, 2020 | 15:36 7
    Quote Originally Posted by AlbertaFarmer5 View Post
    DML, two words :
    Reserve Currency.
    Any comparison Between Canada and the US's ability To manage deficit spending or even out right money printing is meaningless.

    Not sure why you brought up left vs right, Trumps rhetoric and track record is anything but right center.
    You are ignoring that fact that there are more than one reserve currency in the world. Reserve currency is not a god given right, or set in stone. It is simply a willingness to hold that country's currency as a hedge and to facilitate foreign trade.

    Yes the US is the dominant world currency, with about 60% of reserves. But the world bank lists other recognized reserve currencies too. For example as of 2019:
    1. U.S. Dollar: $6.74 trillion (61.82%)
    2. Euro: $2.21 trillion (20.24%)
    3. Japanese Yen: $572 billion (5.25%)
    4. Pound Sterling: $495 billion (4.54%)
    5. Chinese Renminbi: $213 billion (1.95%)

    Interestingly the Country in 6th Place in Reserve Currency is Canada at 210 billion (1.92%)

    Should the world decide the US is no longer the economic powerhouse it once was, or that US$26 trillion in debt it has, or if they simply decide they would rather buy commodities (oil, wheat etc) in Euros or Rubles, or even Canadian dollars, the US could lose it reserve currency leader status. Markets are a funny thing that way.
    Last edited by dmlfarmer; Jul 8, 2020 at 15:40.
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    Jul 8, 2020 | 15:39 8 Oh, and the reason I brought up right and left was simply because 2 posters ahead were laying blame on Liberals, who I assume represent the left economically. And I honestly thought Trump and the Republican party is still consider right leaning economically. Reply With Quote
    Jul 8, 2020 | 15:44 9 There is a pretty big difference between 6.7 trillion and 2.2 trillion. Most people can grasp a million dollars. A billion dollars is hard to fathom, and a trillion dollars is unthinkable. Reply With Quote
    Jul 8, 2020 | 17:21 10 dml the US economy is nothing like Canadas. Comparing our debt to theirs is moot. Thats an industrialized first world country with vibrant growth across all sectors. Ours is a debt backwater being held up with FIRE. You need to do some digging. Reply With Quote
    Jul 8, 2020 | 18:49 11
    Quote Originally Posted by dmlfarmer View Post
    Oh, and the reason I brought up right and left was simply because 2 posters ahead were laying blame on Liberals, who I assume represent the left economically. And I honestly thought Trump and the Republican party is still consider right leaning economically.
    I would agree that today’s iteration of the Liberal Party would certainly be considered left of center, traditionally I would have considered them more of a centrist party. As for Republican’s in the U.S. certainly traditionally right of center. Trump’s version of the party is somewhat contradictory. Lower corporate taxes is certainly a right of center policy but protectionist trade policies including tariffs is more left of center. I was specifically talking about Canada, not sure that pointing out bad policies in other countries makes me feel any better. It will be my children and grandchildren that will have to pay for the vote buying policies of today’s federal government. I think both Trudeau and Trump are poor leaders but I do get tired of Trump being brought up to try and make Justin Trudeau less incompetent!! Reply With Quote

  • Jul 8, 2020 | 20:54 12 Went too long and too deep. The jobs will not be there when things normalize. Canada already has the highest G7 UE rate and ran the debt up even faster than all its peers. We have long recovery ahead of us if we can come out of it at all.

    Here is RBCs take on it. ie dollar is toast

    While Canada’s AAA rating was a strong talking point, Fitch’s downgrade did little to stir government debt markets. But the gargantuan financial requirement announced in the fiscal update—the government will borrow some $713 billion from markets this year—has already put some pressure on yields, especially for longer term government borrowing.

    https://thoughtleadership.rbc.com/costly-covid-stimulus-loads-343-billion-onto-2020-deficit/

    Canadas actual debt is closer to $3T.
    Last edited by jazz; Jul 8, 2020 at 20:56.
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    Jul 8, 2020 | 21:02 13 Most of the people that I know that got CERB used it to buy guns. For hunting.

    Just think, once they buy the prohibs from people, how much the UN's disarmament agenda is going to add to the already out of control deficit? Reply With Quote
    Jul 8, 2020 | 21:10 14
    Quote Originally Posted by Braveheart View Post
    Most of the people that I know that got CERB used it to buy guns. For hunting.

    Just think, once they buy the prohibs from people, how much the UN's disarmament agenda is going to add to the already out of control deficit?
    Gun grab will quietly disappear. Have got to cut costs everywhere they can now, the deficit numbers are out. This wasteful exercise will be shelved, quietly. Reply With Quote
    Jul 8, 2020 | 21:16 15 Sask is fully open now yet you can see literally dozens of storefronts, restaurants, personal services shops who arent bothering to even try. You cant make a recovery with half your place empty and having to double your staff to wipe the place down every 5 minutes. F was this stupid. Idiots in charge. Reply With Quote
    helmsdale's Avatar Jul 8, 2020 | 22:33 16
    Quote Originally Posted by Hamloc View Post
    Net federal debt at the end of this budget period over $1.2 trillion.
    A trillion is a retarded number... for context, you could spend just over $1.6M every day of the year since the birth of christ in money you didnt have and you'd be just shy of where we're at today!

    The US could have blown $1M an HOUR since the birth of christ and still not gotten as far in debt as they are! Reply With Quote
    Jul 8, 2020 | 22:49 17 Dumb question I supose but who are we and others borrowing from,does anyone have the trillions of dollars or is it just an IOU,to be paid to whom and when. Reply With Quote
    helmsdale's Avatar Jul 8, 2020 | 23:02 18
    Quote Originally Posted by Horse View Post
    Dumb question I supose but who are we and others borrowing from,does anyone have the trillions of dollars or is it just an IOU,to be paid to whom and when.
    In alot of cases these days its money conjured out of thin air by the US fed, ECB, BOJ, and Canadian central bank.

    Heres the best part... profits generated by the canadian central bank accrue back to federal government coffers. Yay? Reply With Quote
    Jul 8, 2020 | 23:18 19
    Quote Originally Posted by Hamloc View Post
    I would agree that today’s iteration of the Liberal Party would certainly be considered left of center, traditionally I would have considered them more of a centrist party. As for Republican’s in the U.S. certainly traditionally right of center. Trump’s version of the party is somewhat contradictory. Lower corporate taxes is certainly a right of center policy but protectionist trade policies including tariffs is more left of center. I was specifically talking about Canada, not sure that pointing out bad policies in other countries makes me feel any better. It will be my children and grandchildren that will have to pay for the vote buying policies of today’s federal government. I think both Trudeau and Trump are poor leaders but I do get tired of Trump being brought up to try and make Justin Trudeau less incompetent!!

    Excellent post , this happens time and time again with a few posters here . Sad actually.
    We have the most incompetent leader of any “first” world country on earth .
    Almost like he is under house arrest in his cottage ....... lol Reply With Quote