foresterab
Full Member
- Reaction score
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- Points
- 880
Your point about government borrowing vs. competing with private sources. I was trying to think of the implications of the loss of the Canada Savings Bonds being issues by the Government direct to Canadians...and now you fighting private capital return rates.And that brings us to a question "sovereign wealth fund" advocates don't bother to answer. What happened when the money was spent? What utility was achieved by government spending that year?
- Government borrowing competes with private borrowing. The resulting negative effects are not easily measured, but are part of the equation when determining whether a profitable borrowing-investing gap really exists. (The government debt instruments and the SWF are "seen"; the economic effects are "unseen".)
To battle tariffs will need a combination of changes - political will and focus, regulatory changes (some in the works), simplifying business especially for small owners, and fiscal discipline. When I look at how much of the current federal budget is going to debt that becomes a key focus to me. Some will require spending cuts - and that becomes a good discussion into itself as to where that exists - and some will be through economic growth.
Raise the GST back up to 7%...but at least 1% must go to debt repayment. The other 1% goes to dealing with Canadian border security and the CAF.
Where my mind goes is next what is produced in Canada? What is currently in use that will be demanded not just by the CAF but also other agencies? For example does it make sense to hand over C-!46 helicopters to the RCMP for border patrols and instead upgrade CAF to a newer larger fleet? Thinking of what meets political tariff demands while keeping production in Canada...or buying off the shelf internationally.