November 01, 2016

Trudeau’s fiscal follies continue with bigger and longer lasting deficits

Brian LilleyRebel Co-Founder
 

We knew this day was coming. Justin Trudeau’s fiscal mess gets bigger. How much bigger?

The headline number will claim the deficit for this year will be lower, just $25.1 billion instead of $29.4 billion, but that is only one lie from the Trudeau Liberals.

They’re claiming the deficit is smaller because they’ve removed a $6B contingency fund from the budget. But they’re spending that. If they didn’t, the budget would be over $31B, so really, the spending is much higher than thought.

And the deficits, will last longer as well. Not just three years as promised but through until at least fiscal year 2021-22, and with no plan to return the books to balance.

This of course was wholly predictable and some did, like Stephen Harper last year when he mocked Trudeau’s promise to run three small deficits of $10B per year for three years.

And of course by the time his first budget came out they were predicting $29B for the first year alone, and now, this.

Again, wholly predictable when you look at Trudeau’s understanding of economics. “The budget will balance itself”, is Trudeau’s most famous economic pronouncement, but he has others that show how little he really understands.

Now we’re facing a projected budget deficit of over $31B that could get bigger. TD and Scotiabank were predicting bigger deficits before we ever had these numbers, but what if they do get bigger still, will Trudeau and company change course?

Probably not.

When he unveiled his budget last March, Bill Morneau was asked if his big stimulus plan didn’t work, would he change course. The answer was, no.

These guys are wedded to the spend, spend, spend philosophy that more government spending will grow the economy.

This is the same philosophy that guided his father, Trudeau the elder, who had one balanced budget in his entire 16 years in office.

I warned about this during the last election, others did as well.

But voters wanted change and change is about all they are going to have left. The kind of “change” you go digging through the couch for because this government is going to take the rest of your money.

Comments
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commented 2016-11-02 19:16:41 -0400
Are they worried over at the Red Tent? The resident troll of several aliases is ever so busy of late, damage control or deflection mode? Not a word of this nor the following (links below) on CBC, but that is to be expected, they are after all the head cheerleader for the Libs.

Check out the headlining article at the National Post :
“Senior Hillary Clinton aide Huma Abedin raised concerns about Justin Trudeau’s staff ahead of Clinton’s trip to Ottawa in October 2014, emails released by Wikileaks Wednesday show.”
http://news.nationalpost.com/news/canada/clinton-declined-one-on-one-with-trudeau-in-2014-after-liberals-turned-apolitical-event-into-fundraiser

One of the top articles on Toronto Sun’s main page:
“So as it turns out, Stephen Harper nailed it.
During last year’s federal election he predicted Justin Trudeau’s financial promises were a work of fiction that would prove to be a fantasy if Trudeau won power.
Subsequent events have proven the former Conservative prime minister correct.”
http://www.torontosun.com/2016/11/02/harper-right-about-trudeaus-deficits

Another highly placed article on their main page:
http://www.torontosun.com/2016/11/02/why-the-maryam-monsef-case-matters

And then there is this one:
Feds’ renewable energy plan will make taxpayers poor, green companies rich
http://www.torontosun.com/2016/11/02/feds-renewable-energy-plan-will-make-taxpayers-poor-green-companies-rich
commented 2016-11-02 18:25:34 -0400
John I thought you were smarter then that another (brain washed person ).
commented 2016-11-02 18:14:40 -0400
Jay I here you’re mom calling you for dinner be a good boy and eat all you’re vegetables , and maybe she will give you you’re allowance .

You no nothing about anything and were mesmerized by his hair as well
commented 2016-11-02 17:25:57 -0400
Step One: Baby Doc has to stop giving away our money to other countries or pie-in-the-sky UN nonsense. Remember, this is money we borrowed and have to pay back, but Mr Generous Baby Doc hasn’t figured out that if you borrow, you owe, and if you owe you don’t give money away.

Has anyone bothered testing his, or any of his cabinet, with an IQ test? Would he even score as “low normal”?
commented 2016-11-02 15:11:06 -0400
$128.5 billion. That was what the Harper Conservatives added to the national debt over almost 11 years. The first 4 were as a minority where he had to deal with a major recession and 2 whiny opposition parties just to hold power. Morneau is on track to surpass that number in 4 years without any tangible results. That’s what happens when you replace an economist with a bunch of trust fund kids and bobbleheads.
commented 2016-11-02 12:18:37 -0400
I also believe infrastructure is a necessity because it is not Keynesianism if done right, and the old Socreds federally and now the Canadian Action party agree with using the Bank of Canada to pay for infrastructure.

With regards to the whole traitor thing, Harper using the same logic would be labeled as a traitor because his party increased Canada’s overall debt and did nothing to aide the other provinces with their debt burdens and it created patchworks and his tenure helped to usher in deficit spending across the board. Without an active federal government, the provinces must pick up the slack and I think people realize that. The myth of small government is to reduce bureaucracy and to reduce spending, but that further increases debts and deficits for the lower levels of government. Which is why all provinces, the federal government and the municipal governments must share the costs and that will help everyone.

That is why I believe devolution is the worst thing that could have come out during the last 10 years.

It would have been better to use the Bank of Canada and municipal bonds to pay for many of the projects.

Some people forget about how Russia paid off their debt in 1998.

Some people forget that nations can devalue their currencies to pay down debts.

These alternative methods can be explored. People on here are too fixated on the mainstream methods.
commented 2016-11-02 12:14:16 -0400
This whole notion also about only left wing parties and centrist parties because Keynesian is a joke because even during Harper’s election campaign against Trudeau and Mulcair showed that Harper also believes in adding to the deficit with stimulus and bailing out. Remember Harper even bailed out along with his party for companies that went under like GM and other auto makers in Ontario.

During the 2015 election campaign, Harper and the Conservatives proposed 60 billion over 10 years on infrastructure and this still would have added money to the deficit. All parties at this point are for some kind of deficit spending to raise the deficit because of a stagnated Western economic system. All Western economies are around 2% of GDP or less with most southern European countries just hovering over 0.5%. Italy I think is doing the worst.

No party is truly paying down Canada’s overall debt. As I said in my previous comment under this one, that is why minor parties advocate for use of the Bank of Canada for ensuring debt and deficits cannot occur for infrastructure. This would mean infrastructure would be created but without adding a penny to the national debt or to the deficit.
commented 2016-11-02 12:10:24 -0400
Harper increased the debt by 160 billion but if Conservatives believe that a balanced budget amendment would have fixed the problem they are sadly mistaken. It would have lowered Canada’s overall GDP numbers year by year because budgets are not like household budgets because during recessions nations are forced to spend because the rest of the world does that. Think about 2008-09. Just because Harper accepted the opposition’s demands and put forward their own stimulus the Conservatives could have easily went into an election and got a massive majority. They are very much for what the Liberals and NDP and Greens and Bloc Quebecois are for just by going slower.

The fact is I am a minor party supporter because I realize that the mainstream parties cannot truly pay down Canada’s national debt using the means in place. Which is why we either need a gold backed currency or bond currency or nationalized banks.

These are clear and unequivocal in how to pay down debts.
commented 2016-11-02 11:35:00 -0400
I would like to think there must be some Liberals in the house with a BRAIN. If we can get them to cross the floor would that not bring this Air Headed Dip Shit Down. It’s obvious now that the budget is not balancing itself!!!!!!!!!!!!! We need to do something, this is total B.S.
commented 2016-11-02 10:31:49 -0400
Jay Kelly proves once again that lefties never learn from their mistakes, never learn from the mistakes of others and refuse to exercise discernment.
commented 2016-11-02 09:10:33 -0400
Its what socialists P.M.s from QUE. do.
commented 2016-11-02 08:53:07 -0400
Wait people the worst is yet to come. With the new Canada investment bank the Liberal party is scheming to raid our pensions to fund their infrastructure dreams. There will be no pensions left as the whole system will collapse as a result of a bloated bureaucracy set up to run the big Liberal corruption machine. No one will be able to retire as there will be no money left after the pockets of Liberal elites are filled. Once the money is gone Trudeau will finally get his dream of becoming a real life dictator. Remember one of the first things Trudeau did was give the banks the legal right to raid your savings to save their asses and his. The time is coming and sooner than we think.
commented 2016-11-02 08:46:03 -0400
Yesiree, out of a job, don’t worry load up the kids and take a trip to Disneyland, just put it on your credit card, buy a new car for the trip as well. Reality is someone else’s problem. Ontario, Canada in a nutshell.
commented 2016-11-02 03:27:39 -0400
I hope Jay Kelly lives forever, so he can be the only one of us that continues to pay for the mistake he helped vote into office. Our grandchildren’s grandchildren will still be paying for the financial damage caused by the Liberal failures. I don’t imagine it will take long, and Canada will be a country without power, water, heating, food, jobs or a future. Thanks to the Liberal Governments attack on Canadian energy, business, culture and values, we will be a barren wasteland. Unable to afford the outlandish price for what I listed above, and paying out for climate change, peace keeper troops, immigration/refugee welfare recipients, money to the UN and the European trade arrangements. And I’m sure more will be appearing as time passes. That crap concept of spending to stimulate the economy never worked in the past and won’t work now, and that Morneau guy from the private sector should know that, he’s just a Trudie Lapdog. The very fact that a guy like that lies to us knowing the truth, makes him as much of a traitor as the rest of the Liberal Scum.
commented 2016-11-02 02:20:34 -0400
Jay Kelly commented
“Yeah, probably the Trudeau deficit is the only way to go. Several years of deficit will produce economic growth.”

You are amusing, you’ve earned your pay for the day. Chip off of Trudeau in philosophy, is that in practice too? Since the budget will, according to your Leader, balance itself does your chequebook balance itself too? Have you been issued a garnishment on your wages thus the overtime in posting as of late?
commented 2016-11-02 01:51:46 -0400
6 trillion – mere pocket change – how many lifetimes would it take you to pay that back from your LPC party dues Kelly.

Debt management is a house of cards – so says the former Chairman of the fed reserve. Most banking institutes know US debt is unpayable – Their T bills are routinely discounted when their dollar hicups.

And I suppose you missed the fact this great economy had a 10 year depression that killed 5 million from hunger and hunger related disease. Never happen again? The conditions are almost identical – near miss with a printed currency bail out of wall street.

Go back and get your money back you spent on that poli-sci course at podunk college.
commented 2016-11-02 01:23:36 -0400
Vajay jay……try to keep up, we talking about Canada you clown. Put down the bottle, and flush the pills.
commented 2016-11-02 01:04:19 -0400
Bill Elder refers to the United States’ $12.8 trillion of debt. It should be noted that only $6 trillion of that debt is owed to foreigners.

It is not a house of cards. The United States has a stable economy and even though their debt is enormous (greater than any nation in history) there is still the possibility that they can pay it off.
commented 2016-11-02 00:54:59 -0400
How is it that the left can’t understand basic economics. If you put everything on your credit card you still have to pay it back plus interest and the longer you wait to pay it off the more interest you pay. If your debt gets too big and interest rates go up you will get yourself into a situation where you are paying more in interest than you can afford. One only has to look at Ontario’s financial situation to see how large deficits have worked out for them.
commented 2016-11-02 00:48:05 -0400
Kelly has obviously never had the fiscal responsibility to spend/balance a pay check let alone a nation. If Keynesian VooDoo about spending your way to prosperity is true, how come deficit spending nations are saddled with debt that prohibits growth/prosperity – oh ya they have a printing press – house of cards economics
commented 2016-11-01 23:59:52 -0400
Or wait. Was it Jay Kelly that asked?
commented 2016-11-01 23:58:10 -0400
We must like it. We keep voting liberal even after they screw it up time and time again. We play Charlie Brown to their Lucy. " I promise I won’t pull the ball away this time."

Reminds me of the jokes they told in the Soviet Union: "A decree went out that everyone in town must meet in the town square the next day at noon. At the stroke of noon the announcement was made that the next day at noon everyone must meet again to be hung. Sean Penson shot up a hand and asked “Do we have to bring our own rope?”
commented 2016-11-01 23:32:10 -0400
Yeah, probably the Trudeau deficit is the only way to go. Several years of deficit will produce economic growth.

Bill Morneau is quite clever, and the Trudeau government has a handle on this.

Why is it that Liberal governments are the only ones to be financially responsible?
commented 2016-11-01 23:04:01 -0400
Justin Trudeau? Never heard of her?
commented 2016-11-01 23:03:43 -0400
I am so shocked ,YAWN!!
Say trolls , when he was first elected you clowns were saying he would balance the budget. LMAO!
commented 2016-11-01 21:31:28 -0400
Elton, yeah, the dysgenic cretins who were fooled into voting for the Canadian Idol, sold their economic future out fairly cheap now they will struggle economically for their lifetime servicing the debt he runs up treating his special friends to the pubic trough.

Saying I told you so to these cretins is pointless, I hope they all volunteer for government euthanasia programs so they can cleanse the gene pool of their weapons grade stupidity.
commented 2016-11-01 21:21:13 -0400
The only thing more stupid than the Liberals is US. For hearing this stupidity and doing nothing but complaining (like me). That is what they are counting on. Unfortunately, no real leadership within the country.
commented 2016-11-01 21:11:53 -0400
Don’t forget all the first time voting bimbos who like his hair. Not much of a stretch to predict there will be no balanced budgets under this regime. Lib policy is lies lies and damned lies and spend spen spend.
commented 2016-11-01 20:40:27 -0400
“But voters wanted change …”

No, the public sector (unions) and third-parties wanted change, the naïve voters bought into the lies and promises.

http://ipolitics.ca/2016/03/30/election-2015-saw-large-influx-of-third-party-spending-elections-canada/
http://news.nationalpost.com/news/canada/canadian-politics/more-than-two-dozen-third-parties-have-registered-in-hopes-of-influencing-federal-election
http://news.nationalpost.com/news/canada/canadian-politics/third-parties-mostly-unions-spent-6m-to-influence-2015-election-minister-vows-crackdown

http://www.samaracanada.com/samarablog/blog-post/samara-main-blog/2015/12/07/third-parties-in-the-2015-federal-election-partying-like-it-s-1988
“Because third parties have up to four months after election day to report their campaign spending and have no obligation to report spending that occurred prior to the writ drop, it is nearly impossible to estimate third-party spending so soon after the election. However, some preliminary observations are possible based on the list of registered third parties and their publicised activities during the campaign.”
commented 2016-11-01 20:35:36 -0400
Liberal airheads voters did not vote strategically. They voted liberal because they don’t know what they’re doing. So they voted for someone who doesn’t know what he’s doing.