A 1 minute video from the Canadian Taxpayer's Federation:
The greatest problem with fiat currency and the bonds sold to support it, is that it gives governments a license to borrow for any politically expedient project.
Note carefully on the video that Canada's debt skyrockets beginning in 1968 with Trudeau's socialist scheme the "Just Society" to today's level of $600 Billion.
When adjusted for population size, this level of debt would be equivalent to Americans owing $6 Trillion rather than the actual $16 Trillion they owe!
Canadian debt only dropped in the early 1990s when the bond market forced higher yields on Canadian bonds and coerced the government of the day to cut spending. This spilled over into the real economy as banks charged high rates on mortgages (I paid 9.9% on mine at that time), which also dropped the affordability level of assets such as houses.
The video does not touch the topic of unfunded liabilities which are not included in the massive debt total Canadians are carrying.
The great irony is that Canada is considered the healthiest economy of the G7.
Congratulations Canada - you are the winner in the government debt least ugly contest.
The greatest problem with fiat currency and the bonds sold to support it, is that it gives governments a license to borrow for any politically expedient project.
Note carefully on the video that Canada's debt skyrockets beginning in 1968 with Trudeau's socialist scheme the "Just Society" to today's level of $600 Billion.
When adjusted for population size, this level of debt would be equivalent to Americans owing $6 Trillion rather than the actual $16 Trillion they owe!
Canadian debt only dropped in the early 1990s when the bond market forced higher yields on Canadian bonds and coerced the government of the day to cut spending. This spilled over into the real economy as banks charged high rates on mortgages (I paid 9.9% on mine at that time), which also dropped the affordability level of assets such as houses.
The video does not touch the topic of unfunded liabilities which are not included in the massive debt total Canadians are carrying.
The great irony is that Canada is considered the healthiest economy of the G7.
Congratulations Canada - you are the winner in the government debt least ugly contest.
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