Canadian Deficit C$248B over first 9 months 20/21

[TOM4CWB]

Business News
FEBRUARY 26, 2021 / 11:09 AM
Canada budget deficit swells to C$248 billion over first nine months of 2020/21
OTTAWA, Feb 26 (Reuters) - Canada’s budget deficit from April to December widened to C$248.17 billion ($195.8 billion) from a deficit of C$10.97 billion a year earlier, as the government provided massive pandemic supports, the finance ministry said on Friday.
“The unprecedented shift in the government’s financial results reflects the severe deterioration in the economic situation and temporary measures implemented ... as a result of the COVID-19 outbreak during this period,” it said in a statement.
Revenues dropped by 15.6% reflecting a broad-based decline including lower tax revenues. Program expenses, meanwhile, jumped 86.1% largely due to emergency transfers to individuals, businesses and the provinces.
On a monthly basis, Canada posted a deficit of C$16.15 billion in December 2020, compared to the C$782 million surplus recorded in December 2019.
Monthly revenues were down 2.4% on a decline in other revenues, which include Crown corporation profits and returns on investments among other things. Program expenses climbed 59.9%, again on COVID-19 response measures.
Reporting by Julie Gordon, Reuters Ottawa Bureau, 343-961-4020; Editing by Steve Scherer; julie.gordon@tr.com
Our Standards: The Thomson Reuters Trust Principles”

Sooooo the total Federal CDN Debt increases 50% in 9 months? Provincial Debt?

Is the great debt ‘reset’ a given now?

What will this mean to commodity prices?

Farm Land Prices?

People work from home instead of office buildings... house prices?

Where do the xxT$’s go and what effect will 2$T spent in the US being pushed through... plus US15$/hr minimum wage do?

[Austrian Economics]

Business News
FEBRUARY 26, 2021 / 11:09 AM
Canada budget deficit swells to C$248 billion over first nine months of 2020/21
OTTAWA, Feb 26 (Reuters) - Canada’s budget deficit from April to December widened to C$248.17 billion ($195.8 billion) from a deficit of C$10.97 billion a year earlier, as the government provided massive pandemic supports, the finance ministry said on Friday.
“The unprecedented shift in the government’s financial results reflects the severe deterioration in the economic situation and temporary measures implemented ... as a result of the COVID-19 outbreak during this period,” it said in a statement.
Revenues dropped by 15.6% reflecting a broad-based decline including lower tax revenues. Program expenses, meanwhile, jumped 86.1% largely due to emergency transfers to individuals, businesses and the provinces.
On a monthly basis, Canada posted a deficit of C$16.15 billion in December 2020, compared to the C$782 million surplus recorded in December 2019.
Monthly revenues were down 2.4% on a decline in other revenues, which include Crown corporation profits and returns on investments among other things. Program expenses climbed 59.9%, again on COVID-19 response measures.
Reporting by Julie Gordon, Reuters Ottawa Bureau, 343-961-4020; Editing by Steve Scherer; julie.gordon@tr.com
Our Standards: The Thomson Reuters Trust Principles”

Sooooo the total Federal CDN Debt increases 50% in 9 months? Provincial Debt?

Is the great debt ‘reset’ a given now?

What will this mean to commodity prices?

Farm Land Prices?

People work from home instead of office buildings... house prices?

Where do the xxT$’s go and what effect will 2$T spent in the US being pushed through... plus US15$/hr minimum wage do?

Those are some pretty wild numbers. Revenue down 15% while expenses up 86%? Yikes. Any business in that position would find itself out of business rather quickly.

Due to the exponential rise in debt that occurs with fiat currency, I think it will only be a year or two before we see trillion dollar deficits. Maybe sooner.

[fjlip]

Can every country DEFAULT? then what? RESET all right...back to caveman/tribalism/war.

[sumdumguy]

We still have time jwab. We can borrow our way into an inflationary spiral. Can I still get life insurance ?

[jazz]

.

[HITTGrapevine]

They are just that, numbers, if a debt is never called in does it really matter. Just saying, darned if I know.

I lived my life being fiscally responsible, looking back I’m knot sure it was the right thing to do.

I often wonder the same thing jwab
For younger generation, it seems like living in perpetual debt is a given.
Everything's new, machinery, pickup trucks, houses, toys.
All financed on cheap money and leveraged with expensive farmland.
Not much different for city slickers
Anyone with a pulse and a pay cheque gets credit nowadays.
Governments too.
Spend like drunken sailors one minute and rev up the printing presses the next.
Balancing budgets is not a priority.
Just keep the economy rolling at all costs.
if too many people default on their debts or go bankrupt, govt will step in with more free money and keep the wheels turning.
Can't imagine any other outcome.
Banks would own the whole country and everything in it if defaults ever got bad

[Livewire]

As seen on that graph Canada now has more debt than Greece. Does that mean we are headed for a financial crisis? Didn’t they go through that a while ago and were bailed out ?? And now have negative interest rates?? Or was that somewhere else in Europe

[furrowtickler]

As seen on that graph Canada now has more debt than Greece. Does that mean we are headed for a financial crisis? Didn’t they go through that a while ago and were bailed out ?? And now have negative interest rates?? Or was that somewhere else in Europe

What could go wrong .... UBI

We are living in bizarre times

[jazz]

Another $15B shoveled out the door today.

https://www.thestar.com/politics/federal/2021/03/03/chrystia-freeland-extends-emergency-rent-and-wage-subsidies-for-business-with-15-billion-boost.html

[fjlip]

King Midas in REVERSE...

[AlbertaFarmer5]

I often wonder the same thing jwab
For younger generation, it seems like living in perpetual debt is a given.
Everything's new, machinery, pickup trucks, houses, toys.
All financed on cheap money and leveraged with expensive farmland.
Not much different for city slickers
Anyone with a pulse and a pay cheque gets credit nowadays.
Governments too.
Spend like drunken sailors one minute and rev up the printing presses the next.
Balancing budgets is not a priority.
Just keep the economy rolling at all costs.
if too many people default on their debts or go bankrupt, govt will step in with more free money and keep the wheels turning.
Can't imagine any other outcome.
Banks would own the whole country and everything in it if defaults ever got bad

It is Mutually Assured Destruction only it is financial this time, not nuclear.
And that is why it will go on longer than any of us think possible.
The consequences are just too horrific for any one country to pull the rug out from any other.
The cascading dominoes will take everyone down, everywhere.
Can they keep ahead of the exponential debt growth required to keep all the balls in the air, and simultaneously keep from creating unsustainable inflation in all currencies?
And if inflation does occur in ALL currencies at the same time ( as it appears to be now, relative to hard and soft assets, is even that sustainable since there is no responsible alternative (geographically speaking) for capital to flow to, as would be the case when one country at a time does it?