Skip navigation

The budget: Shock therapy

From Tuesday's Globe and Mail

The Conservatives will try to resuscitate the economy with a wave of spending and tax cuts, joining other governments in turning on the taps ...Read the full article

This conversation is closed

  1. R Hopkins from Edmonton, Canada writes: We got into this mess by spending money we didn't have. The solution is not going to be spending more money we don't have and subsidising car companies that should really go out of business.
    Cut taxes - Raise interest rates. Feel the pain, get lean.

    If any so called experts wish to discredit this I say where were you a year ago?

    What were you predicting the price of oil, the stock market to be?
  2. Duncan K from Canada writes: One notable exception is that it is alright to borrow (tax our kids) for infrastructure programs that they will benefit from (i.e. transit, etc.)

    Everything else is only delaying the inevitable: the system will not restart until the bad debts and investments are forced into the open and dealt with.
  3. m. r. from Canada writes: Conservatives are inept at running Canada. Harper can lead party but not Canada. he should have started earlier to fix the problems.
    he and Conservatives are on the way out sooner than they think.
    reminds me of Bush 2. change the facts if they dont match yours!
  4. Robert M from Canada writes: Canadians should be happy that the Harper government has limited its deficit target; the ideas which they have leaked so far simply mis-guided.

    What does cedit card relief have to do with serious problems in the credit markets?

    Infrastructure announcements with strings attached is a classic Harper government idea which results in little or no infrastructure spending (after which the Harper government claims they "managed" the funds).

    Tax credits for home renovations? People who have the money would have the work done in ay case. This is not stimulus.

    Let's see what the budget document actually contains at 4PM.
  5. Steve French from Windsor, Ont, Canada writes: This is just chumming the water, the feeding frenzy has yet to begin.
  6. Rollo 8>) from Belgium writes: R Hopkins from Edmonton, Canada writes: We got into this mess by spending money we didn't have...

    Not so much. The US meltdown caused a worldwide recession. Why do we think we can spend our way out of it?

    Relief on credit cards? Huh???
  7. Long John Silver from Barbados writes: Fool hardy Bilge Rats! says Cap'n Silver. Any one who thinks there's any political fiscal responsibility left in this country and the world has gone bonkers.
    Piggy Banks grow to become Treasure Chests. Where on this earth can you find anyone willing to set aside the spending of today for the betterment of tomorrow?? No where.
    Long John Silver has got his treasure some where where the Scurvy Dogs on this earth can't touch it. You should consider it greatly!!

    Mt 6:20
    But lay up for yourselves treasures in heaven, where neither moth nor rust does corrupt, and where thieves do not break through nor steal:
  8. Naomi Y from Canada writes: China's 16% GDP is spread over next 3-4 years, as a matter of facts, none of the stimulus will all be done in next year so it's doesn't give us any insight without a annualized figure.
  9. forty sum from Canada writes: Another party is needed to run this country, there has been so much dishonesty and self serving tactics from this government, it is an embarrassment. The enviroment is not going to be addressed until Obama visits Steve.
  10. kevin o'connor from Canada writes: Krugman is right. The IMF is right. We need a larger stimulus than this. People who say we are taxing our kids don't understand that we will tax them more by letting a recession turn into a depression. We'll end up with more debt. It's like trying to drive your car up an icy hill. If you're going to do it - you better put the gas pedal down hard enough, or else you end up sliding back, to the same spot, with less gas in the tank. If we're going to have deficit spending and a stimulus, it has to be big enough for the problem, it has to be large enough for it to have a chance of working. This is not the time to be timid.
  11. Silver Standard (Harper hides behind the Queens skirt)) from Canada writes: Keynesian economics will make this Depression far worst. Its exaclty this type of economics that got us in to this trouble to begin with. Its all about getting people in to debt to banks. Holding dollars will not be an option for savings thats for sure.

    We need to get the credit out of the hand of people who can't afford it, then we need to let the recession/depression happen to clean out the system and start over. This is the best way to go and spending money will just make us suffer more later on with a worthless dollar..well its already pretty worthless in my opinion. We need a tight monetary policy and eventually a gold backed one. If not this trouble will never end, Keynes has been proven wrong by whats happening now and you just have to open your eyes to see it.
  12. Bruce Hansen from Canada writes: Mr Drummond suffers from the same ailment as too many Canadians
    - its the world eh? Could it be that Canada needs to make a decision on what it wants to be when it grows up?
  13. Auroran Bear from Montreal, Canada writes: Why isn't this story in the paper today:

    BMO pays CEO nearly $6 million
    From Herald News Services
    Published: Tuesday, January 27, 2009

    Compensation - Bank of Montreal awarded chief executive William Downe $5.98 million in total compensation for 2008, when profit fell 7.2 per cent on writedowns and eroding debt investments.

    Downe, 56, received a salary of $1.03 million, a bonus of $1.4 million, and shares and stock options worth $3.55 million, the Toronto-based bank said Monday in a regulatory filing. That's up from $5.46 million in total compensation in 2007, his first year as CEO.

    "Other" compensation of $401,444 is not included.

    Why help the banks if this is what they are going to do?
  14. garlick toast from Canada writes: Borrowing from our children,mortgaging their future,a financial plan a crack 'ho would devise.
  15. Harold Chorney from Montréal, Québec, Canada writes: If the budget turns out to spending less than 20 billion in each of the two next years on stimulus we can be fairly certain that this will not be enough stimulus to reverse the fall in GDP that we will be experiencing.(by the way I predicted last January, in fact last fall 2007 that oil prices were headed for a large drop and that a major stock crash and recession were headed our way. Just review my publications and my blog and ask my students at Concordia.The blog is googleable at Haroldchorneypoliticaleconomist)The negative impulses transmitted by the crash in reducing wealth and the slowdown in the economy require a stimulus substantially larger than that. One must distinguish between the passive deficit that results simply from the decline in economic activity and the deliberate active deficit that is stimulative because it replaces lost purchasing power and investment. Economists call this the high employment deficit or surplus.To calculate this simply compute what the government's revenues and expenditures would be if the economy were at at a low unemployment level, say 5 % with the current tax and expenditure regime now in place. If you are then running a surplus budget then the budget is not stimulative. I think that at minimum a 50 billion dollar stimulus is advisable and frankly if it were up to me I would invest more than this.5 % of our GDP about 70 billion in this fiscal year would be a good figure. In order for the stimulus to be effective very low interest rates are also essential.In the current circumstances this means initially as close to zero as feasible.
  16. The Economist With Different Ideas from Canada writes: Tax breaks for the middle class buys votes. Tax breaks for all classes stimulates spending. Families with combined family income of over $100,000.00 per year are more likely to spend on home improvements, new Energy Star qualified appliances and new vehicles than the typical middle class family during tough economic times. Funding for social housing improvements is critical as is spending on other infrastructure improvements. Municipalities are politically driven to keep municipal taxes low during tough economic times so infrastructure will suffer. In order to drive municipal infrastructure programs the funds from the federal government should be fluid with no long waiting periods. The municipalities have done their due diligence on their projects but many are on hold pending funding. In order to roll them out the Federal and Provincial governments must have faith and roll out the funding targeting the projects that create the largest return in employment or in Energy and Water Conservation. Point of sale tax exemptions should be placed on all Energy Star qualified products which include windows, doors, appliances, lighting and heating systems including gas, heat pump and geothermal heating systems. Promoting products with higher efficiencies like the GE Hybrid heat pump electric water heater and the Hallowell Acadia air to air heat pump technologies currently under assessment by NRCan that have efficiencies over 300% should be promoted over conventional gas water heating and furnaces that are less than 60% efficient. These technologies save our resources, reduce emmisions and reduce consumer spending on energy freeing up additional disposable income. Just some thoughts…
  17. If I had a million lobsters from Canada writes: kevin o'connor from Canada writes: Krugman is right. The IMF is right. We need a larger stimulus than this. People who say we are taxing our kids don't understand that we will tax them more by letting a recession turn into a depression. We'll end up with more debt. It's like trying to drive your car up an icy hill. If you're going to do it - you better put the gas pedal down hard enough, or else you end up sliding back, to the same spot, with less gas in the tank. If we're going to have deficit spending and a stimulus, it has to be big enough for the problem, it has to be large enough for it to have a chance of working. This is not the time to be timid.
    _________________________________________________-

    The problem with the analogy is the car has no snow tires.

    This deflationary spiral is a naturally occurring event that needs to run it's course. We are at the end of a debt cycle and piggies need to be slaughtered.

    Bad spenders and poorly managed businesses need to fail. There is already too much credit and we are now adding more.

    The "crack ho" analogy used is correct. The system needs to go to detox. By creating these stimulus packages you are rewarding bad behavior and further ensuring our children grow up in an economy of crack ho's who cant sustain themselves without govt subsidy.

    Further, what are we going to do after this little party in 2 months? Add more coke?

    The west has partied far too long with 52 inch TV's in every house, 300K mortgages and new cars every 3 years.

    To use my tax money to feed these addicts is not acceptable. You punish those who lived within their means and reward those that didn't. Any politician who supports this will not get my vote.
  18. Barrie Hebb from Halifax, Canada writes: Tax cuts combined with an increase in spending is likely to have some positive impact on the economy but it is not really a solution beyond the short term for the type of economic woes the country faces. My hope is that this simply provides some people some relief while we are able to dig deeper into the root causes and search for longer term solutions, if there are any. That said, there are smarter ways to spend the money and if the goal is to provide a stimulus to the Canadian economy with Canadian tax dollars, those things that employ Canadian production (and income) spread over the largest number of people possible should be preferred. If people are going to take the extra and simply import - the impact will be reduced. My fear is that since WWII, the Canadian economy has enjoyed an artificially high standard of consumption beyond the true value, on global markets, of what we produce. It has been sustainable for about 1 to 2 generations, but really, we do not have the capacity to continue it any longer given demographic challenges, global competition, and a lack of any new resources that can absorb the burden. Canadians are going to have to get used to earning and spending less per person, across the board, along with executives, while some of the wealth is spread to other countries who can produce more for less.
  19. kevin o'connor from M'Chigeeng, Canada writes: Million Lobsters,
    I think a lot more than the irresponsible will be hurt if we allow deflation to occur. It's not about retribution ('pigs', 'crack hos', 'slaughter', other lame tough guy rhetoric), it's about sound economic policy. We need a massive stimulus.
  20. Mark H from United States writes: Keynesian economics DOES NOT WORK. The government cannot create wealth by spending, because for every dollar they spend, they take one out of the greater economy. If government spending actually created net wealth, why don't we just spend $10 trillion, and all retire millionaires?

    JFK and Reagan had the right idea - slash taxes. Make them permanent. The problem with a "stimulus" or temporary cuts is that everyone knows they're temporary, so they will not change long term behavior. Case in point, the majority of Americans (again, just like last year) are planning to either pay off debt or save whatever stimulus Obama bestows upon us. Change!
  21. al goguen from Victoria, Canada writes: let's wait and see a few more minutes, but if Haarper is told to go home, I would be very happy. He doesn't know how to be Prime Minister. He would be a perfect candidate for the Wax Museum in London.
  22. Mickey Hickey from Toronto, Canada writes: To say we got into this mess by spending what we did not have. The consumers are the ones who got in over their heads. Governments in Canada are lightly indebted by international standards we should give Chretien and Martin credit for doing a good job. In the same vein we should thank Mulroney for implementing GST. The consumers are frightened by rising unemployment and the downfall of the economies of our trading partners. Spending by individuals is declining because of existing debt loads and lack of confidence, spending by SME is declining because of declining profits and unavailability of funding. $50 Billion payout to the banks by Harper/Flaherty was spent on foreign acquisitions and other frivolities. Tax cuts to the middle class will go to paying down debt and will have little stimulus effect. Funds directed to infrastructure are highly effective and have a multiplier effect of 1.4 as opposed to tax cuts which have a multiplier effect of 0.10. The gov'ts have to spend directly and not through handouts to banks, consumers or business. The exception is a moral one and means the unemployed, poor, students, infants should also be given assistance for the duration of the downturn. Catering to the Conservative base means a continuation of the hunt for the holy grail, a moral philosophy that justifies greed and selfishness. Flaherty in particular should know better.
  23. b W from Canada writes: I am a conservative. however, I believe that some of these intitatives are wrong.
    Manufacturing is suffering. Construction is still not in the same boat. Why a consumer driven focus in this construction?
    We are in this mess because easy credit changed our economy when it should have been in a recession. In 2007, they dumped easy credit on the real estate market, artificially inflating the prices. When this is now being adjusted, they are trying again to manipulate the market instead of allowing it to find its own equilibrium.
    I belive that these uncharted waters will lead to more disaterous consequences. Firstly to define and administer this tax plan will be difficult. The potential for abuse is unlimited.
    Instead they should focus more on the longevity items in manufacturing (green initiatives, like Quebec's hydro plans). Focus on smart infrastructure (subways in Toronto), consumer driven industry specific targets is just wrong.
  24. If I had a million lobsters from Canada writes: kevin o'connor from M'Chigeeng, Canada writes: Million Lobsters,
    I think a lot more than the irresponsible will be hurt if we allow deflation to occur. It's not about retribution ('pigs', 'crack hos', 'slaughter', other lame tough guy rhetoric), it's about sound economic policy. We need a massive stimulus.
    ___________________________________________________

    Lame tough guy talk - damn straight, why would I bailout those losers who couldn't manage a chequbook and wanted their 300 K house and tV when they made 60K a year?

    Further, why stimulate - let the market and economy do what it does best - innovate and create jobs.

    Are you prepared for the tax in 3 years? Cause someone is gonna py the bill and it won't be the govt.
  25. garlick toast from Canada writes: '' Massive stimulation'' will be inflationary in the short term and will mostly be spent off-shore without a ripple effect in our economy.Six months from now people will be crying for another fix.
  26. If I had a million lobsters from canbabwe, Canada writes: One more thing - who is gonna get this stimulus package. You can bet your last dollar (which is probably true) that a conservative party hack near you is licking his lips waiting for this boondoggle.
  27. Auroran Bear from Montreal, Canada writes: Mark H from United States writes: Keynesian economics DOES NOT WORK. The government cannot create wealth by spending, because for every dollar they spend, they take one out of the greater economy. If government spending actually created net wealth, why don't we just spend $10 trillion, and all retire millionaires?
    =================================================

    I disagree Mark. Firstly, we've never seen Keynesian economics on this grand a scale. Keynes himself only wrote it in 1936. What we see right now is a massive drop in aggregate demand (look at retail sales figures). There is no spending going on at either the personal level or at the corporate level so there is no spending to be crowded out at the moment.

    Temporary stimulus plans are exactly that. They are there to stimulate demand in the short run and they do a better job than tax cuts. In downturns people will take the tax cut and either save it or pay off debt. In your own country, the 177 billion stimulus plan from early last year showed that only 17% of that was actually put back into the economy.

    Fiscal stimulus goes directly into the economy and provides jobs which, in turn, provides personal and corporate taxes as well as providing discretionary spending for the economy. Tax cuts don't guarantee spending, let alone spending on products that actually benefit the domestic economy. If, with your tax cut you buy a foreign good, how does that benefit your economy?

    In the short run stimulus is needed. Once the economy is running on its own, stimulus is withdrawn this preventing crowding out of investment and then you can look at lowering taxes on a broad base to recoup the stimulus dollars.
  28. O Perdana from Canada writes: The real problem is not economic mismanagement, but the whole concept of fiat currencies. Eventually, it is discovered that fiat currency, government created and controlled with no externally imposed discipline on the printing press, is inherently flawed.

    History says there has never been a nation which has managed to devalue its' currency into prosperity.

    Quantitative easing, bailouts, economic stimulus are all terms used by the banksters approaching the end of the game.

    Protect and free yourself....got Silver? got Gold?

    Now back to some good'ol music by Pink Floyd - Money

    Carpe diem.
  29. If I had a million lobsters from canbabwe, Canada writes: I can see it now - Like John Thain some scumbag from the backwoods of the government is gonna get caught taking your "stimulus" money to redo his office, house, cottage, car, truck, etc and we'll get a bill for 2 million dollars.

    Jesus people wake up. The elites have you totally suckered.
  30. Philly Canuck from GTA, United States writes: You folks that talk trach about governement intervention and Keynesian economics should recognize the KEY difference between this approach and the Milton Fraudman / University of Chicago "FREE market" approach (I spelled his name that way on PURPOSE): People are involved in markets and the "free market" is only free for those with money or that have the capability of losing money (like bank CEO's). Markets are collective and they are not designed to ensure individuals are safe, secure, taken care of, and that's not the way many people want the world to work...unfortunately, markets harm those least capable of enduring or surviving downturns. The other analogy that gets passed around is that these market corrections are like the burning of a forest, which removes old, dead wood and allows for new growth. What the free marketers forget is that those "trees" are people, jobs, pensions... As for the whole trickle-down theory, we saw a nice little "natural experiment" in that approach with the U.S. tax stimulus checks...people banked them or used them to pay off existing debt. When money is made available at the top of the economic food chain, it gets used to pay debt or benefit those earning it...it is NOT aimed at benefiting specific areas (such as buying cars made in N.A. to ensure auto workers keep their jobs). When all is said and done, free market theories assume that people and markets are rational and motivated to expand markets; they are not motivated as such, but motivated by individual interest, which is counter to the general interest implied by the needs of the marketplace. And let's not forget, Keynes said PAY THE DAMN DEFICIT OFF WHEN TIME'S ARE GOOD...if you don't shout that, no one remembers it!
  31. If I had a million lobsters from canbabwe, Canada writes: Here's a good stimulus program spend 2 billion like the gun registry on a teddy bear registry to help IT guys get off the dole.

    Cripes I can see it now. Some stiff in the govt will take this idea and put the country to work.
  32. If I had a million lobsters from canbabwe, Canada writes: Philly canuck wrote:
    PAY THE DAMN DEFICIT OFF WHEN TIME'S ARE GOOD.

    Yeah you are gonna pay it through triple taxation. I might as well join the lip licking crowd cause you people are being played as fools.

    Sign me up I need my cottage painted on your dime.
  33. If I had a million lobsters from canbabwe, Canada writes: O Perdana wrote Carpe diem. (seize the day) Hey OP how do you say seize the crooks by the throats in Latin.
  34. garlick toast from Canada writes: Canada cannot spend its way out of a global meltdown.What we can do is help the unemployed, secure our food supply and trim some fat. That way, when sanity returns to the financial world, we will be ready to move forward without a crippling debt burden.
  35. Brian Martin from Canada writes: Philly Canuck writes, "And let's not forget, Keynes said PAY THE DAMN DEFICIT OFF WHEN TIME'S ARE GOOD...if you don't shout that, no one remembers it!" We remember it Philly. The problem is it NEVER happens and for good reason. In a fiat debt-money fractional reserve banking system such as we have, debt accumulates because there is no way to pay it off. Almost all money comes into existence as debt with interest owing, but the interest is never created. The only way for liquidity to be maintained is for additional borrowing 'at interest' to take place. The net effect is an exponential growth of debt or fiat credit and a linear growth of money supply. It is functionally a Ponzi scheme and cannot survive forever. Whether this is the last death throe or not remains to be seen, but I would grab as much gold and silver as possible right now. Until this root-cause issue is publicly brought to light, we will not see substantial change and many will suffer regardless of political or moral ideology.
  36. CallofDuty . from Canada writes: garlick toast from Canada writes: Canada cannot spend its way out of a global meltdown.What we can do is help the unemployed, secure our food supply and trim some fat. That way, when sanity returns to the financial world, we will be ready to move forward without a crippling debt burden. ---------------------- This makes too much sense. Expect this post to be deleted soon.
  37. Alistair McLaughlin from Canada writes: The Stimulators will always say that the stimulus is too little, too late. That way, when the stimulus falls flat on its face, and the economy remains mired in recession, they can say it wasn't enough. Japan injected enormous fiscal "stimulus" into their economy in the early 1990s, and never really recovered. Yet the Canadian Centre for Policy Alternatives came out last week and warned that Canada must stimulate enough to avoid making the mistakes Japan made in the 1990s. Japan's debt-to-GDP ratio climbed from 20% in 1990 to 85% today - and they're STILL in recession. And the stimulators say they didn't stimulate enough??? It defies logic.
  38. Alistair McLaughlin from Canada writes: Garlick Toast is exactly right. We cannot spend our way out of this. I do favour running a small deficit if necessary to increase IE payouts and eligibility. Afterall, $54 billion in excess EI premiums went directly into debt reduction over the past 15 years. Re-borrowing some of that money and using it as it was intended to help us through recession should be a no-brainer.
  39. garlick toast from Canada writes: It's not the size of the ''stimulus'' that counts, it's how it is applied. Sticking a dildo in your ear won't give you an orgasm.
  40. Alistair McLaughlin from Canada writes: I'm quite certain that if Keynes were alive today, he'd write most of his follwowers off as cranks - Krugman and Stiglitz in particular. Keynes quite rightly favoured massive fiscal stimulus when government spending was about 10% of GDP. Back when there was no healthcare, little public education, few highways, and no welfare state. Given that state of affairs, it was only natural that someone would wake up and call for increased public spending. However, government spending today ranges from 35% to 65% of GDP; I doubt very much Keynes would encourage even more spending. Governments of that size are already providing the type of "fiscal stabilisation" Keynes envisioned, without any extra stimulus at all. Don't blame Keynes for the foolishness of the Krugman-Stiglitz crowd.
  41. kevin o'connor from Canada writes: Million Lobsters,
    Yes I'm ready to pay higher taxes in 3 years if that's what is sound policy at the time i.e. pay off debt from the stimulus package when the economy has recovered. I believe the cost will be higher if we allow deflation to occur. Markets are not always perfect, they crash or tend toward monopolies when not regulated properly, and when they crash they need to be supported so they can once again create jobs and innovation down the road. And you don't seem to understand that the people who created this mess, right wing american politicians and wall street frauds, are not going to pay in any real way for deflation if it comes. GWB is going to be just fine. Greenspan too etc. There are so many golden parachutes on the horizon it looks like freakin' Dday. The average joe is going to pay though, and suffer terribly if we go into a deflationary perio = Depression. Again you are focused on retribution, but the policies you advocate will hurt responsible people a lot more than those who got the world economy in this mess.

    Brian Martin,
    Under J. Chretien and P. Martin a lot of debt was paid off. It can happen, with sound leadership. Opportunities to pay off more were wasted by Harper. In fact, mocked by him.
  42. O Perdana from Canada writes: If I had a million lobsters from canbabwe asked " how do you say seize the crooks by the throats in Latin."

    Sicut ante, vincit omnia veritas!
  43. Super Farmer from Canada writes: We'll come out of this recession if and when the USA does regardless of government spending.
  44. Alistair McLaughlin from Canada writes: garlick toast from Canada writes: Sticking a dildo in your ear won't give you an orgasm.

    Garlick, are you sure you're sticking it in just right? Because I swear I'm getting it.
  45. If I had a million lobsters from Canada writes: Kevin - I'd rather punish the guilty but you are assuming that the fiscally responsible are going to get hurt. If you have looked after your nest and lose your job you are far better off than the folks who partied because they will have to pay for their wayward ways.

    I do not seek retribution, I seek common sense. Why should we pay the freight period - it's unacceptable.

    In any other time period in history the debtors went to debt prison and suffered from their ways. Do I propose debtors prison - absolutely not - do i propose justice absolutely, There are mechanisms in place to deal with those who need it.

    You declare bankruptcy and move on and you pay for it - not us.

    This mamby pamby - pseudo liberalism help those poor souls crap has to stop. How will these people learn if you let them off the hook?

    They won't and in 2 years time we'll bail them out again. No way.
  46. harry oakes from toronto, Canada writes: just more nickle and diming..... 1.5 % of GNP will not move the economy one iota....what is required is a MASSIVE STRATEGIC PACKAGE....either you do it now or it will require more down the road.......this is a fabulously wealthy country whose value has hardly been scratched....a figure of 5 % is relevant to the crisis.....why is we elect leaders who are frightened to lead ?
  47. garlick toast from Canada writes: I don't think this mess will be over in two years. We can either spend all our capital trying to make good on over valued assets or trim our sails and ride it out. At one point, we will face inflation and a rise in interest rates. When that happens, heavy debt will keep us in chains.
  48. Alistair McLaughlin from Canada writes: Harry Oakes, we've come out of recessions before without breaking the bank. Why must we break the bank for this one? Japan tried that. It didn't work. They're still mired in recession 15 years later. We will eventually recover from this. I'd just like to avoid doing anything really really stupid and reckless in the meantime.
  49. Rick in Toronto from Toronto, Canada writes: Not sure if the numbers are correct up top... $5Billion is listed as >1% of the French GDP where as 28 Billion is listed as around 1% of UK GDP... would suggest british GDP is approx 5 times that of France.

    Can't be right...

    Am keen to know which infrastructure job I'll sign up for over the summer...

    Looks like the sheep who flocked to build houses in pre-price-bust Oil Rich Alberta might be building roads back in Ontario to transport domestrcally produced cars to the American market... hang on a minute... ermmm... might just have spotted a flaw in the plan.

    Stephen... Stephen... is there a chance to get a wee ammendy in before you do the announcey.
  50. No Coalition from Canada writes: It's all a bunch of BS... Harper is only responding to the crying mass of political hysterians... the bottom line, is you cannot fix the problem of lack of liquidity by borrowing more money that just isn't there.

    The only fix to this problem is to isolate the dead assets, reinstall the gold standard, and remove 'faux' dollars from circulation...and reassess the normalized value of everything from homes to cars.

    The problem is the central banking model...the manufacturing of money based on that model...and this idea that you can bailout anything with anything other than a pail.
  51. Brian Martin from Canada writes: Kevin O'Connor... If every penny in existence was paid off of all debts public and private, there would be no money in circulation and still billions in debt. Any individual can beat the odds and pay down their debt, but in the aggregate, the system is currently designed to create money through debt, ergo, it is impossible to pay it off. You need to understand this fundamental point before you can comprehend what is going on today on a macroeconomic level.
  52. Dick Dupa from Toronto, Canada writes: End of neo-capitalism, clearly and soundly.
  53. Allen GG from BobcaygeonMazatlan, Canada writes: Well Brian Martin is correct, in part, basically describing the "fiat" dollar of the USA. Canada is not quite in the same position, in fact the problem has been that the Canadian banks had too much cash and too few borrowers.
    The USA precipitated this problem, and they are part of the cause. But the UK is having a severe downturn, which may force them in to accepting the Euro.
    Here in Mexico we see the problem, but the low price of petroleum is the biggest worry, and that is similar to Canada's plight.
    Canada is taking the correct approach, let's hope Obama's administration follows the same course.
  54. Michele K from Ottawa, Canada writes: No Coalition writes: "It's all a bunch of BS... Harper is only responding to the crying mass of political hysterians... "

    No Coalition, I see your '...', but you put it too early, cutting off the most salient part of your post, so please - allow me to correct on your behalf:

    "It's all a bunch of BS. Harper is only responding to the crying mass of political hysterians, because unfortunately, he's unqualified to lead and has no idea of what he should actually do. Therefore our PRIME MINISTER (your emphasis), the man that is supposed to be our LEADER, the man who has all along claimed to be the only one qualifed to lead us; instead of leading, is in fact again trying to hide his own incompetence by trying to shift the blame for this mess and his ineffectual solution to it, on (supposedly) hysterical Canadians.
    That Harper - always concerned about doing right by Canadians!"

    Oh, my goodness - my bad re: transcription of your last line. What you really wrote was, "That Harper - always concerned about doing right by himself and his party - no matter what the cost to Canadians".

    Oh, and no thanks necessary for the fixes, No Coalition.
  55. MR. oz from Canada writes: our politicians seem to get "smarter" day by day. They all seem to think that we can spend our way out of debt. they also seem to help the wall street gangsters and big money to perpetrate the biggest rip-off in history. It is an out and out program to help the rich with the money from the working class, and people seem to swallow the falsehoods they are being feed, Hook, Line and Sinker!

Comments are closed

Thanks for your interest in commenting on this article, however we are no longer accepting submissions. If you would like, you may send a letter to the editor.

Report an abusive comment to our editorial staff

close

Alert us about this comment

Please let us know if this reader’s comment breaks the editor's rules and is obscene, abusive, threatening, unlawful, harassing, defamatory, profane or racially offensive by selecting the appropriate option to describe the problem.

Do not use this to complain about comments that don’t break the rules, for example those comments that you disagree with or contain spelling errors or multiple postings.

Back to top