Tuesday 27 October 2020

Not Too Shabby

It's (usually) nice when Canada gets recognized on the world stage.  

Or in this case, in the latest Sasha Barat Cohen's "Borat Subsequent Moviefilm".


The scene pans to Barack Obama, and Borat states that since Obama was elected President of the United States, many Africans have become world leaders.



Ouch!  But hilarious.

So what else has our African Prime Minister been up to?

Well, the International Monetary Fund (IMF) has just released their 2020 Fiscal Monitor Report.


This report reviews the fiscal responses of world governments to the Covid-19 Pandemic crisis.

The report shows that all governments have been shoveling money out the door, but evidently Trudeau has been using the largest shovel.  In the world.

Canada leads the world is virtually every category.  And by "lead" I mean the highest % GDP spending, debt, fiscal imbalance and other categories I've never heard of.




But I don't have to worry about paying it back.  The people who will be paying it back - and they will be paying it back all their lives - are currently all under the age of four.

"No way!" adherents of Modern Monetary Theory say;  "Governments never need to pay it back.  And with current interest rates, borrowing is essentially free."  And for people of a certain age, low interest rates are all they have ever known.

But for people of a different certain age, they remember back to the early 1980's.  Where after years of government spending to get us out of recessions.....


...inflation exploded and interest rates spiked to above 20%. 

And when that happens - and it will - interest payments will become unmanageable.

You need look no further back than Greece in the same 1980's. 


Year's of government overspending led to soaring inflation, high deficits and, finally, defaulting on loans to the IMF. [The first time in history that a developed country defaulted on an IMF loan. Which may be why the IMF publishes these reports.]

And with the progressive left about to take over in the US.....


...Trudeau will have lots of company in the Home Depot shovel aisle.


  


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