Canada's debt crisis: Is the federal debt as bad as it appears?
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- Опубліковано 5 чер 2024
- Is Canada's national debt out of control? Should you be concerned?
According to the International Monetary Fund, Canada has the lowest federal debt relative to the national economy of all G7 nations.
Despite confidence in Canada's debt load, some experts have concerns with how the federal debt breaks down per person.
Under Prime Minister Justin Trudeau's government, the national debt has grown steadily, up $73 billion since taking office.
The federal debt under Trudeau hasn't reached the historic high, seen in 1995, but it continues to grow, causing concern over what restructuring might need to be taken to address the country's money issues, and questions about how it could affect the 2019 federal election.
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2019: is the debt really that bad
2020: Yes, yes it is.
HOW CAN YOU SAY DEBT BAD, THEN TELL ME,
HOW MUCH IS THE AVERAGE ANNUAL COST OF THE INTEREST ON THE CANADIAN DEBT?
2021, God help us
2022 🙈
It didn't get paid back while we made Billions from Oil revenue, so it will never get paid now.
Jul 13, 2004 - Alberta was debt-free.
It actually was being paid off and we were on the road to paying until trust fund boy started
truly shameful!
maybe we should start refining our own fuel as opposed to selling it off to the states and buying it back from them at a deficit. we've been boy scouts in everything we do
yep
Canada is an odd animal fiscally in that the federal debt level is currently low (relative to other advanced economies...), but, personal debt levels are off the charts. The average Canadian is living paycheque to paycheque, and carries more personal debt than the average American. Extremely concerning.
How is that odd? When the average person is being taxed into oblivion by the federal goverment... it seems pretty linear.
@@j.s.8780 doesn't change the fact that he's right. and so are you. and thats the scam isn't it, we're taxed to death, so we cannot pay our own debts off, and so having to continue to work, forever, paycheck to paycheck, insuring the government gets paid, every month, month to month, for life. slaves.
@@En1337Rich Having attended school there I can say that a big piece of the puzzle is that students are in no way taught money management in courses that nominally should be all about such things. I remember my 'home economics' course when I was 14 dealing with sewing and cooking but nothing at all to do with budgeting for a household. It's similar to how the guidance counselors never bothered to discuss the fact that some degrees make more than others (and an increasing number more than they cost!). I was able to start paying down my student loans on a job that paid 24k a year in a big city, but most Canadians are so financially illiterate that they both don't understand how badly the government is being run but also tend to run themselves in to the ground.
@@En1337Rich Even though Canada's taxes are also lower than most industrial economies?
Erik Stephens we do not have one of the lowest income taxe rate of industrial economies.
Australia is in the same boat. The bubble will burst.
Tony Coz ....australia sucks, middle of nowhere & not even a part of G7 Nation
@@nochatter7134 Middle of nowhere is a good thing... less wars, contagious diseases, no bad neighbour borders, less of a nuke target... envious are you
Rowan Par envious of an economically irrelevant country that’s not even part of G7 Summit....no.
@@nochatter7134 Don't want to be part of it and our economy is doing just fine
@Rajeev Vij Australia is a much more conservative country and often gets compared to the US, I'd say New Zealand is more like Canada and Australia more like the US.
Wow Global, not your usual Liberal fluff piece congratulations
I think they realize the hate that has been built on them. the Trudeau libs won't save them for ever
Maybe Trudo is just too incompetent for the media to protect him.
Global is generally more Conservative leaning than many other outlets.
Global still tries to say the economy is doing good. It absolutely is not. The real estate bubble is literally all that is holding up the economy right now.
@@MRTOWELRACK They dont care theyre trolls
2020: hold my budget and watch this.
2019: We have a 20 billion dollar deficit!! Justin Trudea in 2020: hold my beer
We cannot afford the spendthrift Trudeau. We need someone who can lead and understands the economy.
crushingalldeceivers come on. But he knows how to dance and lie
Did you not even watch the video
Smh
pierre trudeau sold canad out to the international bankers in the early 1970's
They are not looking at provincial debt which is significantly worse
Especially Quebec and Ontario.
Thank you Trudumb!
We NEED to go back to using the Bank of Canada for National Borrowing at near 0% interest. In the 70s they changed their borrowing practices and that’s when it goes straight up.
true. bill abrams video on youtube
Bring more economic migrants,give them a hotel room,3 meals a day and all the benefits this once great country can't afford anymore.
''Budget will balance itself'' - Justa Turdo
Trudeau should be In a room with 3 meals a day ..
@@mr.d4295 and a case of soap on a rope
We are brainwashed to think debt is ok...it's not in a resource rich country like Canada. Canada's coast to coast debt is over 1 trillion $ in contrast Norway has saved 1 trillion dollars for it's next generation. Left wing government's in Canada have spent every penny and borrowed even more.
@@genssdeo4388 Debt is needed to actually do anything.
ie: Buy a home, start a business, etc.
What matters is the ability to actually pay off that debt. That's where the debt to GDP ratio comes in.
Only in the upside down world of liberal's and left wing progressives. Review what Norway did with it's resource wealth and compare it to what Canada has done with it's resource wealth. Which country would you rather be a millennial in? Which country has sustainable social programs? How did Greece become destitute ...like the 46% of Canadian's that are now destitute.
I had dreams, but every day living in Canada it seems that unless you're rich already, you're not going to survive. I'm already struggling to find work it's the hardest it's ever been, for everyone I know, who should be buying houses and starting families. But no one can afford a date let alone a house. How is this privilege to watch everyone you know sink into poverty. Never getting a chance at family or responsibility.
It's not and unfortunately this isn't even limited to Canada, this is a GLOBAL issue. We need to look inward to fix our problems first but this is a systemic issue brought on by the corruption of our political, economic, and most significantly our monetary systems. First thing that should be done is taking back the BoC from the consortium of international central banks arranged by the BIS. From there we need to slowly scale rates back up to make money have some semblance of worth again. Secondly, cut the government down to size and focus funding more towards education and infrastructure. We need less government reach and more true free market capitalism without crony politics. Thirdly, we as people need to stop demanding corporatism and corporate economics by purchasing their products because these companies have proven time and time again that they're in it for their bottom line to serve their shareholders. That is their #1 priority. We need a pivot towards local and regional economics, locally and regionally sustainable systems, and less government reach ... just smart and ethical people their for regulation. Do I see us getting there? No, again this is a global issue for a reason. The powers that be have worked exceedingly hard to get us to where we are. The US is now heading for socialism so they'll be where we're at soon enough and people will be forced to depend on the crony borderline kleptocractic government for predominantly everything. We already have base level incomes for people who simply can't find work because the economy isn't strong. The best thing I can suggest to you is look local/regional ... and if it's bleak then start looking to get a government job. If you can't beat them then you might as well think about yours and your family's survival. This isn't about a utopia, this is about financial and economic natural selection and it sucks.
Only way to survive in Canada now is to get married to Chinese immigrants. The Chinese are all rich and loaded. They run this country now.
Canada is not an Industrial economy. They don't have any Heavy Industry or Manufacturing. They also have the Worlds biggest combined taxes. They are a basket case propped up by Illuminati Banks.
Very well said Odin, I feel the same way.
Me too, I’m in the same boat......
You elected a drama teacher as PM. What did you think was going to happen??
Drama ?
No argument from me, besides budget don't balance themselves.
And what other prior professions do you think should prevent someone from becoming Prime Minister? Cab driver? Construction worker? Phys Ed teacher?
Lots and lots of drama and tears.
Trudeau's debt numbers are rookie numbers compared to Harper and Mulroney.
Ontario is the most indebted sub-national government in the world.
Yep...thanks to Kathleen Wynne!
@@darring.9161
And Dalton McGuinty.
An economy that grows 2% is not a good economy guys. Inflation is 2.5% and interest rates are extremely low. We should be growing 4% to 8% a year. Its unwise to keep money saved in a bank (high interest yields only ~1.5%) so people are forced into spending and investing into equities yet we only have a growth rate of 2%. This is the perfect time to have a huge economic boom yet as soon as the bank of Canada raises rates, our economy convulses and shows signs of correction. Not a good sign.
That is like asking ‘Is a frog’s butt watertight?’ or ‘Is a PM named Trudeau corrupt?’ ... The answer, of course, is “Yes, we believe it is.”
Debt becomes a benefit according to the liberals
Well it actually kind of does, if invested properly.
@@LittleRainGames are you suggesting you trade on margin?
Delete your account, take an economics and international trade course, then reopen your account before you post another uneducated comment. It's much more complicated than "debt is good" or "debt will destroy our economy".
I can't believe people are ok with having all this money stolen from them. regardless of what it gets spent on.
This analysis seems ridiculous. The low interest on Canada's debt means that as long as it manages to stimulate marginal growth over time it should pay off. Furthermore counting debt per person is far less important than debt to GDP ratio as the video it self acknowledges and there Canada fairs incredibly well. Look I'm certainly not a liberal but this is in my view really weak analysis of the supposeded issue of Canadian debt.
Hans Gustafsson what about the former Prime Minister explaining that Canada was paying 36 cents out of every dollar of government expenditure to service the debt? That’s insane for a small country. The US only pays 8% of its expenditures to service its debt.
2019: debt is bad
2020 : hold my beer
In the mid sixties Canada went from printing it's own money to borrowing money from foreign interest. Coincidence ?
It actually changed in the early 70s, with the change in global banking practices and shuttering of the gold-conversion window. Canada was basically bullied into joining the party to provide lazy wealth with a source of interest-bearing income.
And then the "government as household" fallacy began.
check Bill Abrams video on youtube for the banking story
no
"How do we get out of debt" spend less money
Conservatism, that is
What I don't understand is why we don't go back to borrowing from ourselves (Bank of Canada) rather than pay high interest tot he private banks. That was a disaster when it happened in the 70s and has remained so...we are now at the mercy of the private banking sector - and anyone who thinks they have any interest in you other than what they collect from you has been living on Saturn.
Gerry S you can’t borrow from yourself. It only makes the problem inevitably worse. The Canadian bank prints money which lowers the value of the dollar and Canadians loose the value of their savings. In reverse private banks have higher interest rates that eats a chunk of every dollar. (The guy said 30ish cents)
Rajeev Vij it’s a system built on a bad foundation and all that is done is build onto it
Spend less. Take in more money and use it to PAY the dept Down. (But Millenneals don't care.)
Are Canadians not going to wake up until the money runs out? Unfortunately i don't think so.
How exactly can the money run out?
@@TPaineYang lol is this a legitimate question? Or are you trolling?
@@TheMarky26 Canada has a sovereign currency which means the government can print/supply more money in the economy.
@@TPaineYang which would inevitably tank our economy even further via hyper inflation.
@@TPaineYang it's not a sovereign currency Pierre Trudeau made sure of that.
Stephen was the wizard with the budget
he was good but he still bent his knee to bail out the banks at a whopping 40 billion give away in 2009.....we could have owned all the banks for that
@Dr ROLFCOPTER! Thanks
"balanced budget": code for slashed social spending & tax cuts + bailouts for the rich. We have hellish nursing homes & broken hospitals - but banks making record profits after the bail out
The budget will balance itself.
Just Ontario alone has more debt then California and California has more people then all of Canada
The report is a bit skewed as it also does not take into account provincial debt where the largest expenses of education and health care are. Federal debt is $761B but add that to Ontario's Debt of $323B and all the other provincial debt
because of the provincial lefty government Ontario voted upon itself for so many years. What the hell is wrong with Ontarions? We just moved here.
Even when you factor in Provincial debt Canada still ranks the best in Debt to GDP in the G7. If you throw in state debt the US ranks amongst the worst.
In a country so rich why is this debt acceptable at all? We should have huge reserves and all debt points to is corruption.
Evidence of corruption, other than your personal opinion?
The reason why we are a rich country is because we have lot of debts. Having no debts like you wish would means a barely functionning health care system (and not free for all citizens like it is today), very poor infrastructures like roads or bridges and no projects of any kind like stadium, museum, park, public pool and more. I wonder if we would have emergency services like ambuoance or firefighter... The point is that all these services added to all the social advantages have a cost, a cost that, without going into debt, is not affordable.
@@simonbolduc1580 how does that smell because your head is suck some where. Wake up! Give your head a shake cause your ears and eyes are full pf do do.
@@simonbolduc1580 actually, debt does not equal those services at all. It it totally possible to run social services while still having money. All you need to do is have your earnings less than your spendings; I have found that liberals especially are not good at this, definitely now where they try to shutdown some of the powerful economies in Canada (over flawed reasoning!).
6:57 what happens if the economy hits a slump. understatement of the century. $343 Billion of added Canadian debt in one year.
our debt ratio is falling off a cliff as we, as a country, as closed for business. Everyone is bailing faster than a bullet. No oil, no pipeline, no manufacturing, corporate bailout, immigrant overspending, no border, carbon taxing, special interest groups (even foreign funded ones) that amount to 3% of the population dictating what the 97% of us left can do, this is a nightmare.
yes it is truly a nightmare in your imaginary country.
Now, the msm talks about the debt! When Castro Trudeau took over, everything is great, great handsome Trudeau! By the way, experts pegged it around 3 to 4 trillion and that was 10 years ago!
You mean the Harper govt reduced the debt not Chrétien
Finally... more than just viral journalism from global news
So much misinformation in this video. The conservatives ran positive budgets up until the financial collapse in 2008. This helped bring the budget slowly back to balance - not the Chretien government. While Chretien brought it back a bit, that was essentially all removed by Paul Martin's government in 2005-06.
he working on the downfall
8:04 No People's party of Canada?
libs, cons, and ndp were 3 biggest parties at the time
PPC wasn’t even in the top 5 biggest parties by any measure, of course they weren’t included.
People always use debt as a scare. I truly had enough of this tacit.
Yeah you’re right it’ll probably just go away on it’s own 🤦♂️
Almost all countries have a privately owned Central Bank. The Federal Reserve in the United States is a private bank. The Bank of England is a privately owned bank and all the European country Central Banks are privately owned including Italy, France, Spain, Greece etc.
The Bank of Canada is unique in that it is a publicly owned bank that was set up in 1935 to “lend” money at zero or near zero interest rates to the federal, provincial and municipal governments of Canada for public infrastructure projects. I say “lend” but as mentioned above the Bank of Canada did not lend money it had on deposit, it created the money for the loans by simply entering the numbers onto the bank’s balance sheets. This meant that Canada up to1974 had little public debt. In fact, the Bank of Canada has the power to create all the money required to run the country debt free with no interest.
The money the Bank of Canada created was spent into the economy on products, goods, services and public infrastructure for the benefit of the Canadian citizens and does not have to be paid back to anyone. Before 1974, the Canadian government did borrow some money from private commercial banks at interest that it had to pay back but the majority was created debt free with no interest. Starting in 1974 with the Trudeau (that’s Senior Trudeau) government, Canada started borrowing money from the Bank of International Settlements in Switzerland and other privately owned international and Canadian private commercial banks such that going forward, the majority of the money the government created was borrowed and had to be paid back with interest. This resulted in Canada’s national debt to increase from about $20 billion in 1974 to about 625 billion today in 2016 and is increasing by about $75 million a day. In the past 42 years the debt has increased by a factor of 31. In the 39 years from 1935 to 1974, the debt increased from about $2 billion to about $20 billion a factor of 10. In the 42 years from 1974 to 2016, the debt has been increasing 3 times faster than in the previous 39 years from 1935 to 1974. As a result, from 1974 to 2016, the Canadian government has paid out $1.7 trillion in interest.
To put this into perspective, Canada’s nation yearly budget is about $240 billion. That’s about 7 years of running the country. That is a lot of money going to pay interest and going to private banks. Presently about 12% or about $30 billion of the $240 billion yearly Canadian government budget is going to pay the interest on the national debt. I do not think this is sustainable. The Canadian Government should not borrow money from private commercial banks, and private commercial banks should not be allowed to create money. The Canadian Government through the Bank of Canada has the power to create all the money required to run the country and the Canadian Government does not need to have a national debt. The Bank of Canada was created for the purpose of creating debt free and interest free money for federal, provincial and municipal government infrastructure projects for the benefit of all Canadian citizens.
Today the vast majority of the money supply in Western countries is created by private bankers. That tradition goes back to the 17th century, when the privately-owned Bank of England, the mother of all central banks, negotiated the right to print England's money after Parliament stripped that power from the Crown. When King William needed money to fight a war, he had to borrow. The government as borrower then became servant of the lender. There is much more information on this topic on the internet. If interested try Google searches for: “money as debt”, “debt money” ,“web of debt” “the hidden secrets of money”.
Thanks for taking the time ti read this lengthy Comment
Danny
Going out on a limb here, but guessing it's only gotten a lot larger since this vid was released, lol!
Maybe less spending all that money on public awareness for things you held dear Trudeau and more spending on things that make money, like actually building a pipeline, would be a good start.
My favour would be making a bill saying such percentage of funds must go specifically to improving the economy (but a pipeline would sure be nice).
Let's remember that Martin's way of reducing the deficit/debt was in large part by just offloading expenses to the provinces.
And gutting defense. The decade of darkness we called it.
You know Global News there is another party that you neglected to add to the ship at the end. Why is that is it part of your "balanced" reporting like CBC?
Canada’s long term growth would involve getting Alberta’s energy to market and getting rid of Trudeau.
Come on Canada those are rookie numbers compared to the US’s 22 trillion 😂
------
The US’s debt is to itself. Example: the Department of Energy borrows from the Department of Education, who borrows from the Department of the Interior, etc. You could take $1 million and keep moving it around until the debt is gone.
Canada was not that smart in planning its debt.
Dude you need to do some more reasearch because your way off. 😂
------
Prove me wrong
US debt is held in treasury bonds the government has to pay back when the bonds mature. Anyone including you and I can buy bonds, people in foreign countries buy them and therefore anyone who owns a bond holds US debt. I don’t know how Canada’s system is structured but the US could be screwed one day if we fail to pay back our bonds because it will make it harder to secure new lenders.
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Look up interdepartmental debt. Bonds are only the external portion which is a very small percentage.
Bring all the refugees let them get all the benifts housing,healthcare,education,monthly allowance give them all 🎅🎅🎅 justin tru is the saint of the refugees👏👏👏👏
refugees cost relatively little.. lmao
Very thankful that Global did this so people are actually informed instead of getting basic info out of the parties. Keep this up.
The debt would have at least been more justified if Trudeau would have gotten the trade deals from China and India, plus not antagonist the US to make himself look good. He went to China to talk about human rights, got nothing from them. Went to India to play dress up, that India pitied Trudeau so much to give him only 1 billion trade deal. Knowing Trump wanted a new trade deal, he could have played into Trump's ego to get a better deal but no he had to make himself look good. Then he supported the environmentalist to kill the pipeline deal which Alberta really needed to diversify their trading partners. I dunno if he knows this but Alberta oil profits pays a lot into the federal budget that allows Ontario to do federal programs.
whos watching this today when we are at 1.868TN in debt or 49,681.74 pre person hahaha rip that chart
A well made video, with good information. Yes, this is very frightening. Canadians have a huge personal debt as well as a country. Our grandparents were good savers and took advantage of Canadian Savings Bonds. Both mind set and bonds are gone now. A fighting mind opener!
I have no debt, I put some money more than 30 Grand in Canada but still the Canadian border custom immigration officers especially the Asian males and a white female officers in Vancouver BC border were screaming and yelling at me for no reason and she told me that Canada is a compassionate country .., would you believe that? After that incident, I decided to pull ALL my $$$ out of Canada. Adios Canada !! Living in Canada is all about taxes and fees. Canada has been increasingly hostile towards a good resident of Canada. What’s up with that??
hey , you left out the PPC on your little sinking ship of Canada . Go Max
A well done unbiased video koodos.
Tax cuts for corporations and the rich will massively worsen the situation.
The debt per person comparison, while fair in the sense it adjusted for inflation and population. It didn’t adjust for productivity. An individual from 2018 is perhaps 4 times as productive as a individual from 1901, and thus capable of shouldering 4 times the amount of debt.
Sigh, a 245% increase over 55 years? That's nothing compared to inflation. What a terrible piece.
The IMF comparison is not a fair comparison. Canada has much larger provincial government and smaller federal government. The federal government does nothing in Canada except in times of war. All healthcare and education spending is done at the provincial level while UK and France have national healthcare and education systems. The federal government should be in surplus right now at the top of the business cycle so it can go into deficits if there is a recession. I wish Paul Martin were here. He balanced the budget "come hell or high water."
Ragu Thanabalasingam: The ONLY reason Paul Martin was able to do that was because he literally stole a 50 Billion dollar surplus out of the Employment Insurance Fund (all while purposely avoiding paying any taxes on his own Corporation - Canada Steamship Lines).
Suggest reading Candace Malcolm book “Generation Screwed”. She is excellent liberal, and JT critic.
I’m pro investment but to do a fair comparison with UK and France you need to include provincial debt.
It doesn't justify running a deficit in good times. What will you do when you actually need money and your GDP is down?
Exactly; however, a new left thinking is at the basis that debt doesn’t matter; it has no effect on the value of money, at all. Hahahahahahahahah.
This is an excellent and interesting video. Thank you Global News.
Any basic accounting principle would show that bankruptcy is inevitable..daily population increases with daily job loses..it 100% evident what our government officials want
Are the figures inflation adjusted?
The problem is not the debt, but the structural deficits that are contributing debt even in good economic times. The real problem is private debt because it acts as a dead weight on economic growth.
million more of refugees every year, and tax payers money to educated, feed, house them
Millions of refugees every year? what the hell are you talking about.
refugees work and pay taxes too...
There are more legal immigrants and a very small proportion of refugees.
What about the thousands of dollars i paid for school. Five times more than Canadians for the same education. Which btw is almost free in Europe for me. Look at how many international students are in this country and how they help tutition fees stay low or else Canadians won’t afford education at all.
If you didn’t know Immigration is pricy.
Immigrants on a work permit still pay taxes but can’t enjoy the benefits. So Canadians can get those benefits
If they do qualify for Permanent residency, it’s About 5000$ for PR application.
Then still have to pay several fees if the want to be residents after 3 years(About 2000$). My 5 year school already threw in over 120,000$.
But they still work all the minimum wage jobs.
But you don’t see that do you?
Take it out of trudeau trust fund he can afford it.
All this talk of balancing budgets and paying down debt is just avoiding the truth here, which is that every single dollar that's borrowed into existence by the government has to be paid back to the central bank. In order to do that the money supply would have to go entirely back to the bankers with interest! Don't you people get that the principle alone is impossible to pay off? And to pay off the interest, if you could pay off the principal you would have to borrow more money wouldn't you!?
Just wait
But but but it’s going to balance it’s self... just after the socalist utopia arrives obviously 🙄
"Is deficit spending the new normal"
Ahaha NEW? We've been doing this for decades it's nothing new.
The big question is where does Andrew Sheer and the Conservative Party stand on Universal Healthcare? That is a deciding factor.
The thing is the Debt to GDP is important. But as many people can attest an individuals income situation can change for better or for worse. Debt to GDP is an approximation of income for an economy. Economies can change especially for the worse. Especially in economic times where there is a major push towards restricting trade and especially when the government runs deficits which are mostly not about "investing" in infrastructure or other types of long term investments but rather a majority of the deficit is tied to operating budget increases.
Mad Max 2019!🇨🇦🇨🇦🇨🇦🇨🇦
Oh global is here doing a real story? Bahaha, now that there is a mess and their boy wonder is done.
Global always does your just a dumbfuck conservative
@@thedailylifeofjay3822 The only dumb one is you, for not seeing Junior for what he actually is.
@@thedailylifeofjay3822 Look like the only dumb on here is you for not being smart enough to see the Liberals for what they really are. I just feel for sorry you more than anything else.
why do they read out the entire 5 significant figures every time?
How bout now?
They're dipping into the cpp to do this
as far as i know the ccp has 190 billion in investments.....sounds good until you find out the ccp is 600 billion in debt.......i guess the investment is barely holding the ccp together......sigh
2021 ---- what about now !
Let's all thank our great Prime Minister Trudu for this patriotic contribution to the nation
For the population the debt is sicking with nothing to show for it !
Pat yourselves on the back, you are great servants, obey, pay and consume....
I got a message for you Global banks, and the government, I am not your slave anymore! I am not owned by a bank or government, and I know the truth! I can't wait for what comes next!
government criminals
If I ran my household like the government, I would be bankrupt and homeless.
not if you have a printing press.
if there is no debt, there is no currency. DEBT = CURRENCY. when currency is owned internally by a nation state, it is not cause for concern. WHen external agents own a countries debt, then you have a problem.
@@truthsocialmedia exactly and it has too paid back with interest more debt more tax. More inflation.
@@truthsocialmedia both isn't true. Foreign or internal holding of debt has different risks. For example japan's debt is largely internal, in the order of 90% whicg is really the only reason they haven't collapsed. The issue with this is the savings of the nation are therefore also tied to the nation. If the government goes bust, so does the savings of the populace. On the other end, foreign debt will generally mean higher interest levels, but also more support from the international community to not let your economy go bust. It means usually less of an inclination to take on as much debt as well. Canadian debt is strongly held internally by financial funds and pension plans but some is indeed held by foreign parties. Canadian federal debt is managable. Ontario debt is far more concerning lol. But that's a different story. Economists all generally agree strictly looking at debt value isn't a good figure. A million dollar debt isn't as important if you have yearly revenue of 4.4 million. Especially if you're a government where a 30 year payment plan can be a plan. Think, how is it you can afford a debt of 500 k for a house when you only make 80k as a house hold? It's because you have a 30 year mortgage. If you pay it sooner you'll pay less in interest and that's an incentive, but banks are still happy to loan you the money.
@@camobuff not exactly how inflation works 🤭
Not to mention provincial, municipal and household debt. Are we ready for the next recession? I thinks, my fellow Canadians, we have a problem here. The first step in kicking an addiction or unhealthy dependancy is admission. Our healthcare system can't fix this illness.
If we are to continue as a country we MUST declare total war on the debt. Borrower is slave to the lender. The enemy is in the hearts of all of us. That one that says I want more. Is this a project that can unite us?
All money is created against debt. That's just the nature of the beast. If you want savings in the economy, there has to be debts. If you want the economy to grow while people are saving money, then there has to be greater debt.
If you eliminated ALL debt, then there would be no money. The entire system would collapse and all of us would starve for being so damned economical.
@@OgallalaKnowhow ? You'll have to explain yourself a little better. I don't understand your perspective.
@@beastlyendeavour9184 - No problem.
A good primer is the Bank of England report "Money Creation in the Modern Economy"
1. Modern money is bank money. And all bank money is created as a dual-entry accounting entry. This means that for every positive sum created there is a matching negative sum.
2. As long as people want to save money (i.e., not spend it), then total debts have to grow somewhere. Because the holders of private liabilities are waiting for that spending so they can pay off their debts, and the positive and negative sums cancel each other out. If everyone just spent all their money immediately this wouldn't be an issue - the circuit would clear automatically. But because we're human and are uncertain we like the security of saving money.
3. Money can either be issued against liabilities of private banks OR against the liabilities of a central bank + government that owns it. This is only true for monetary sovereign governments like USA, Japan, Canada.
4. The real problem in Canada is excessive PRIVATE debt. Private debt growth was exponential from the 1980s until 2007-2008. The reason western governments were able to run surpluses in the 1990s and early 2000s was because of this incredible growth in private debt. Not a normal situation we should try to replicate.
5. If the goal is to reduce total debt then we have to start with the private side. For the foreseeable future, public debt levels are going to have to increase to allow households to wind down their own debts. And this can only happen at the Federal or sovereign level. Ideally, this spending should be in the form of productive investments that reduce overhead costs for people like public transport, etc.
6. The alternative is to allow the economy to shrink until private debts get repaid.
Debt is not a good thing. It can be a useful tool, but being perpetually in debt is a bad thing.
We are an oil producing country. We shouldn't have ANY debt!
Liberals said it all pixie dust and unicorn farts now . the world does not use Oil anymore.
Get a pipeline built. Without it you cant get the oil out of Canada cost effectively.
Said Maduro
@@MattCommins: We need more refinery capacity as well as a plan to secure our National energy needs if Canada can't buy it on the open market for any reason (ie, war in Middle East). Canada is a cold country & has to import many things which we no longer produce anymore (food, machinery, electronics, clothing, etc). Having a secure domestic energy supply with the capacity to ramp up or down is essential to our Country's well-being. I don't give 2 craps about the "Green" B.S. plan - we need to produce energy for the next Century until technology can actually replace it. Agenda 2030 will only ration our energy usage while we starve/freeze to death. Everything is imported into our Country - we need to be able to at the very least have the ability to transport it - electric vehicles don't have the distance capability to travel long distances even in a temperate (not sub-arctic) climate & extreme terrain. Utopian ideals are just to fool citizens into denying the reality of living in Canada - life here isn't like living in a gigantic shopping Mall in a major city... We will need to use oil & all of it's thousands of various derivatives for at least the next century. Anybody that says different is full of it - Climate Bimbo & Elizabeth May are frigging RETARDS and Political Con-Artists selling Fantasies!!
@@MattCommins : We don't even need to sell it abroad. Instead, we need to replace the foreign oil coming into our country with what we can produce domestically for our own needs & only sell or trade the excess if we have that option at World Prices instead of Fire-sale prices. If a war breaks out and we can't buy it at any price Canada is in Big Trouble. Many people think that oil is just used for fuel - but there are literally thousands of other products (ie, plastics) that we depend on to make from it as well. We need to manage our resources more effectively instead of selling them at a loss. Our efforts to curb pollution should be focused on building new infrastructure, Power grids & upgrading water & sewage in our major cities & actual environmental improvements instead of stupid "feelgood" Carbon Taxes which only transfer our wealth elsewhere in the World while doing nothing for Canada.
Yes our debt is not the worst therefore let's get more. Wonderful logic. How about no debt. We need to pay our debt. This won't be simple but we shouldn't be spending more money.
Please update this video for 2021!
But never forget, the budget will eventually balance itself.
2022 - 761Bil...that's cute. (1.2 Trillion now btw)
Just like his father.....leaves nothing but massive debt for someone else to clean up.....PM Airhead is done.
yup. pierre got us into the world banking system
Are the numbers adjusted to inflation?
Yes
Our debt is much higher than what is being said.
"There needs to be a massive investment to compete".
Umm... okay... so why not make it attractive for companies to invest instead of making taxpayers do it?
Can’t wait for the 2019 election
Lol
Ahem...exactly WHERE has all the money been going, for all these years? ...my town seems frozen in time, only bullshitting itself that it's recovered from the loss of the Paper Industry....
Strange. I got a Debt help ad just before this.
PPC 2019 Maxime Bernier for PM Rein in the Bank of Canada, go back to Gold Standard
Trudeau sold all of Canada's gold. One of the first things he did.
That would be perfect but we have no gold so when the next crisis happens and is around the corner based on all evidence we will hurt a lot as we have no gold like most counties
How can you compete on a global scale when no one else is on the gold standard and will continue printing money freely lol
Enter the maple syrup backed dollar...
And to think Harper left with a surplus after the worst recession since the 1930's. Trudeau needs to go, another 4 years would be catastrophic. Scheer 2019.
Trudeau needs to go, along with all those that share his morals and values. There will be a correction. Nature will see to it. Like how a forest fire brings rejuvenation.
Yup, Harper did a great job fiscally, but the media doesn't like that, so they will attack him on other grounds, such as his wholesome family values and Christian beliefs. Now Trudeau on the other hand, totally foolish and irresponsible, but because that is actually who the elites want in there, they will portray him as a rock star, just like his communist father.
Only Mad Max Bernier could help us now.
How did this happen? And why are we just hearing about this now?
How have you not heard about this? It's been in the news since 2011.
This is terrible news. Canada is in big trouble.