Inflation is coming...in a big way. Part 3. DEBT CRISIS

[rookiepilot]

Good luck.

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Courtesy of the Trudeau government. Amazing how he is just as bad, if not worse than his dad

[digits_]

Courtesy of the Trudeau government. Amazing how he is just as bad, if not worse than his dad

It's happening in almost every country. Left, right, and whatever other political flavor that is in power.

The response of the governments to the pandemic were fairly uniform across 'The West'.

[Inverted2]

Part of the WEF’s Great Reset? I personally don’t care. I have my house paid off, we drive cheap paid off cars and have money in the bank. Those who put themselves up to their eyeballs in debt have only themselves to blame. Helen Keller could have seen/heard this one coming.

[‘Bob’]

Of course.. only if you forget Mulroney who added more debt than any prime minister in Canadian history until an unprecedented pandemic that affected all world governments regardless of political leanings.

You could also blame Harper. Canadian real estate didn’t correct like it did in the USA in what is now known as the Great Recession. QE was steady and it continued until now there is nowhere left to go. When it does.. it will be a much larger correction because of it.

Could be worse. Japan is in much much worse shape than we are. Like most things, it’s based on confidence. We only will get junk rating with defaults. Carrying a $10,000 balance on your credit card is expensive.. but fine as long as you are making payment on time. Miss two payments on a $200 balance and now your interest rates have jumped five percent and you score goes down.

I said it before and I’ll say it again. It’s only going to be the outliers who are going to get hurt. Like those who got a mortgage in 1981. Whether under Trudeau, Thatcher, or even Ronald Reagan.. rates were flirting with 20% because the ghost of Bretton-Woods refuses to die.

If you used cheap debt to buy six figures of education or depreciating assets, you are in trouble. If you leveraged equity into real estate with HELOCs, the Smith maneuver, and the Brampton Mortgage… you’re in trouble. If you listened to the realtor who said to bid $150k over asking because you can’t lose on real estate, or the mortgage broker that you can’t lose on a variable, or are playing too excessively with crypto or following Wall Street Bets for the meme stocks instead of the loss porn… you’re in trouble.

Myself? Just along for the ride. It’s more like chess than hockey. Small moves, little risk, small gains, but being able to avoid losing employment over commodities crashes or COVID, being able to take advantage of low prices and cheap debt to save money and pay things down rather than spend it, and not time the markets but put a little more in when things were low.

[Inverted2]

I wonder what the interest rates will go to this time around? 20% is a long shot. 10% would be nice. I’d like to finally be rewarded for being a saver over the past decade. Might be some good bargains to be had as well. All those boats and travel trailers you couldn’t find or buy last year might be deeply discounted soon.

[rookiepilot]

Could be worse. Japan is in much much worse shape than we are.

.

[co-joe]

Courtesy of the Trudeau government. Amazing how he is just as bad, if not worse than his dad

It's happening in almost every country. Left, right, and whatever other political flavor that is in power.

The response of the governments to the pandemic were fairly uniform across 'The West'.

I feel like this is the thing actually saving us, if the US was even remotely fiscally responsible, the loonie would take a nose dive. But since the EU, the US, and Canada are all living on printed money, everything is at least in balance.

[goldeneagle]

Of course.. only if you forget Mulroney who added more debt than any prime minister in Canadian history until an unprecedented pandemic that affected all world governments regardless of political leanings.

Between Mulrooney and Harper, the PC governments tallied up more debt than all previous governments combined.



Mulroney from 84 to 93, then Harper from 06 to 15.

Interesting to note on that chart, from 93 to 2003 (Chretien Liberal government) the debt line is fairly flat. Likewise from 2015 to the start of the pandemic.

The conservatives are conservative in name only, sell a bill of goods to a base that cant do basic arithmetic, convince them that they are going to 'balance the books' then proceed on a spending spree once elected.

Question for those who are interested. Of the last 10 prime ministers in Canada, which passed on balanced books to the incoming new government?

[Alkasultzer]

Easy to see who the Trudeau fans are.

Nothing is ever his fault. It's amazing

['97 Tercel]

Mulroney dealt with a recession, and Harper dealt with a helluva recession.

But Trudeau's been great....

[Inverted2]

They’re already hinting at future food shortages too. Fertilizer shortage, Ukraine and prairie drought last year. 2023 is gonna be a ‘hold my beer’ type of year.

[rookiepilot]

Of course.. only if you forget Mulroney who added more debt than any prime minister in Canadian history until an unprecedented pandemic that affected all world governments regardless of political leanings.

Between Mulrooney and Harper, the PC governments tallied up more debt than all previous governments combined.



Mulroney from 84 to 93, then Harper from 06 to 15.

Interesting to note on that chart, from 93 to 2003 (Chretien Liberal government) the debt line is fairly flat. Likewise from 2015 to the start of the pandemic.

The conservatives are conservative in name only, sell a bill of goods to a base that cant do basic arithmetic, convince them that they are going to 'balance the books' then proceed on a spending spree once elected.

Question for those who are interested. Of the last 10 prime ministers in Canada, which passed on balanced books to the incoming new government?

.

[TeePeeCreeper]

Of course.. only if you forget Mulroney who added more debt than any prime minister in Canadian history until an unprecedented pandemic that affected all world governments regardless of political leanings.

Between Mulrooney and Harper, the PC governments tallied up more debt than all previous governments combined.



Mulroney from 84 to 93, then Harper from 06 to 15.

Interesting to note on that chart, from 93 to 2003 (Chretien Liberal government) the debt line is fairly flat. Likewise from 2015 to the start of the pandemic.

The conservatives are conservative in name only, sell a bill of goods to a base that cant do basic arithmetic, convince them that they are going to 'balance the books' then proceed on a spending spree once elected.

Question for those who are interested. Of the last 10 prime ministers in Canada, which passed on balanced books to the incoming new government?

For $500…

Paul Martin?

TPC

[schnitzel2k3]

I'm glad "every" economist (about 59%) are predicting a recession for 2023/24. Self fulfilling prophecies are wonderful. Especially when it's doom and gloomy.

When is ACPA renegotiating their agreement again, lol.

[pelmet]

Of course.. only if you forget Mulroney who added more debt than any prime minister in Canadian history until an unprecedented pandemic that affected all world governments regardless of political leanings.

Between Mulrooney and Harper, the PC governments tallied up more debt than all previous governments combined.



Mulroney from 84 to 93, then Harper from 06 to 15.

Interesting to note on that chart, from 93 to 2003 (Chretien Liberal government) the debt line is fairly flat. Likewise from 2015 to the start of the pandemic.

The conservatives are conservative in name only, sell a bill of goods to a base that cant do basic arithmetic, convince them that they are going to 'balance the books' then proceed on a spending spree once elected.

Question for those who are interested. Of the last 10 prime ministers in Canada, which passed on balanced books to the incoming new government?

Intentionally misleading. When you inherit, a huge deficit, it is not going to disappear overnight. It takes years to change a trend significantly.

Trudeau Senior created huge deficits. Mulroney as a progressive conservative continued the trend. The Liberals continued on initially under Chretien until there was a crisis which forced a change with Paul Martin(the last liberal I respected overall) actually being more fiscally responsible. The conservatives ditched the progressive(and we see what that is all about now) and had a policy of incrementally reducing government spending overall. The great recession hit and as agreed by all parties(eventually) money was injected into the economy that increased the deficits. Despite endless protests from the liberals and NDP, he cut the spending(and the GST) and was well on his way to balancing the budget and alsmost got there when Canadians bought into the trudeau junior idea. He even promised an increased deficit; then went on made it three times greater than he promised……..in good economic times. Covid came along which justified an deficit increase but he got into what was termed as freakanomics, by massively increasing the deficit(and adding onto your wonderful inflation) by opening up the spending taps.

So the Progressive Conservative party(which no longer exists) ran up the bills just like the Liberals. The only leaders showing any fiscal prudence in my mind was Chretien/Martin for a few years and Harper.

[Inverted2]

I don’t know where they get the 6.7% increase from. Gas is up 40% from last year. Food prices are insane. Something would have had to go down to counter those increases and I can’t think of anything that went down in price. They’re hiding the real inflation numbers. Maybe they left a 1 off and it’s really 16.7%?
Also they don’t factor diesel prices in to the inflation rate which affects everything you buy since it’s shipped by truck/train/boat.

https://www.cp24.com/mobile/news/inflat ... -1.5868331

[garfield]

Japan is the best example, over indebted since the 90's and still hanging on,

looks like governements can lend money to themselves as much as they want. I'm sure we're gonna hit the wall big time but when is the big question, could be tomorrow or in 30 years.

[rookiepilot]

.

[Commonwealth]

Lets start with this:

244,000 on this list. Mind blowing.

https://toronto.ctvnews.ca/ontario-rele ... -1.5835205

I don't know if $100,000 a year can be called "sunshine."

[Tbayer2021]

Lets start with this:

244,000 on this list. Mind blowing.

https://toronto.ctvnews.ca/ontario-rele ... -1.5835205

I don't know if $100,000 a year can be called "sunshine."

Helluva lot more sunshine than your first half a decade at the airlines.

[rookiepilot]

Lets start with this:

244,000 on this list. Mind blowing.

https://toronto.ctvnews.ca/ontario-rele ... -1.5835205

I don't know if $100,000 a year can be called "sunshine."

With Virtual lifetime job security, heavily regulated hours, and rich pensions?

[rookiepilot]

No more Fin posts.

[pelmet]

Inflation seems to harm so many around the globe. It almost seems like only a recession can tame inflation. Both seem to be bad. It almost seems like a “damned if you do and damned if you don’t” situation in terms of this inflation fighting policy.

While I have always thought along the lines of a recession being bad, I have been wondering something lately…….when all is taken into account from a global point of view, is there any possibility that a sharp recession could be the better long term scenario. Could the central banks be thinking this.

[oldncold]

The canadian 50 cent piece (formerly the loonie) amp inflation since govt over spending (trudeau 1 and now 2) have combined to add 875BILLION to national net debt. N 15 million positive tax payers (people whose income is such that they actually dont get any deductions)

Productivity is in the toilet along with the dollar because the govt "progressive" tax structure dissincentivizes working harder above a certain income level . Cum bye ya /why take an extra shift to be taxed 50+% on it