What's Wrong with Canada?
- Thread starter shortie
- Start date
I hear you. My father says the same thing. Problem is, Canada enjoys the worlds largest bi-lateral trade relationship in the World with the United States. And we're the net benefactors. As it stands right now, Canadian exports (400 Billion) are allocated to:
US 75.02%
UK 3.37%
China 3.09%
EU >3%.
When America hits the wall, it's likely they'll monetize, Loonie will go far above parity, US incomes will quickly erode = collapsing US demand = Canadian exports to the US could be cut by a 1/3rd to 1/2. Also, consider most Chinese and Indian exports are raw commodities to feed the manufacture of consumables (back to the United States). The EU is the only credible savior in the picture, and look at their balance sheet. It's identical, and in some cases worse, than the United States. Greece is just the start. Portugal, Spain, Italy, UK and France are in bad shape. Look at their budget deficits and national debt. When America goes, Europe will shortly follow. Unfortunately, we are truly facing a sovereign debt problem in Western developed economies. We are now on the downswing. It's hard to imagine how the world, let alone it's largest trading partner, will get by unscathed when the worlds economic engine blows up. I wish I could share in your enthusiasm. I really do. It doesn't cheer me up to know our fates are pretty much sealed and we'll be headed into a real, honest-to-God Depression shortly. In America, that Depression will be severe. I bet the same for Canada. Much of Canadas historical prosperity is directly linked to our trade surplus with the United States.
Well you're factually wrong. Most of the debt in Canada was accumulated under the Brian Mulroney government, which was a Conservative government as the graph below shows which actually reinforces my point that the Canadian Conservatives are absolutely, 100% not fiscal conservatives.
<img src="http://www.geldpress.com/i/img/canada%20debt.jpg">
Secondly, notice in the second graph that corporate taxes have decreased in Canada over the last several years (one of the benefits of decreasing debt loads). Add these two facts to your position that it really doesn't matter what the Auditor General's report says and it becomes obvious that you're advocating based on emotion.
<img src="http://www.budget.gc.ca/2008/images/chap3-9b-eng.gif">
Oh, and Harper has just announced today another $30 million taxpayer dollar check to go to Russia for Chernobyl. He can't write those checks fast enough.
You are 100% correct. If the USA goes down, so does everyone, including and perhaps especially Canada. I don't see it as a foregone conclusion as you do, but I admit it looks dim.
The only possible saving grace could be the wealth of resources in this country. Will demand for resources in emerging markets coupled with adequate domestic consumption of goods of all kinds be enough to lessen the blow to our quality of life?
Judging by your charts, it actually proves nothing in your favor.
Lets break it down:
The Conservatives were in power from 1984-1993. So the debt went from ~ 250 to ~400 = ~$150 billion in debt added on.
The Liberals were in power from 1993-2006. So the debt was ~400 when they took power, which they then increased to ~550. Also ~ $150 billion in debt added on.
In the mid 90's, Paul Martin did a good job of beginning to reduce the debt. From what I can tell from the chart, he took it down to ~ 450.
Conclusion: Liberals are no more fiscally conservative than the Conservatives.
As to your second chart, all that shows is that both parties have been reducing corporate tax rates. The Conservaties moreso than the Liberals. Your comment about the AG's report not mattering is a strange comment because I never said that. I said the photo opp specifically at the G8/G20 is not signficant. If you want to nitpick, I can also show many instances of Liberals nickle-and-diming the Canadian taxpayer to death with wasted expenditures. This will get us nowhere. I for one am able to admit all parties in all governments waste money in one way or another.
Now on to the Chernobyl aid. Harper is giving them $30 million over 5 years. You Liberals like to spit out big dollar figures, but forget to mention these amounts are amortized over many years (i.e. fighter jet purchases).
This is so typical to mention programs that don't even show as a blip on the budget, and decry that socialism is rampant in the U.S., while forgetting all about the trillions spent subsidizing US corporations primarily through arms purchases, but in many other ways as well. Yes, indeed, the USA is a socialist nation because of all the corporate welfare.
Quote from Gabfly1:
How unfortunate for you. When I leave my door unlocked, I usually come home to find the place vacuumed and dusted, with a hot meal set at the table, my laundry folded, and a chocolate mint on my pillow.
....
that makes it a beautiful fairy tale until one realizes that "to be out" means doing your neighbor's laundry while he is "out" ironing your socks at your house.
Yes, you're right about emerging markets. They'll decouple from the USD and buy more raw material. Not sure about finished goods since they make (nearly) everything we do, except cheaper. Our domestic consumption is largely dependent on robust US exports, so that will take a big hit..