(Globe) Ottawa bled $1.7-billion in red ink in August, offering the latest sign that Canada is in serious economic turmoil and that balancing the federal books will be a tricky challenge this year.From Garth Turner's blog. (he apparently lifted it from the G&M).
“We’re in for rough times. These are difficult times. Canadians should not underestimate what we’re facing. We’re not an island. We’re a trading nation,” Finance Minister Jim Flaherty said yesterday.
When you have the Finance Minister making dire warnings, it is time to head for the hills. I know that he is incompetent, but still, he should be whispering sweet nothings in Canadians' ears to keep them from panicking. The point is, it is always much worse than is officially revealed. It was just a couple of weeks ago, during the election campaign, when we heard such things as "Canada is insulated", "We have planned for this", "We will not run deficits", and so on. Then it is revealed that there was a $1.7 Billion deficit in August, and that was before this melt-down got under way.
There has been trillions of dollars pumped into banks world wide, and Canada has probably pumped in 100 billion or more by now. Businesses still have trouble getting credit for inventory and operating expenses. I am not sure about mortgages right now, I won't bother thinking about that for some time to come. We hear that the problem is with liquidity, but the real problem is debt. The whole world is up to its eyeballs in it, and now the money tap is turned off. I've always called it "The Big Grab". "They" use the peons to generate vast wealth, and then "They" take it all back. It's just a huge shell game. My question is, why are we pumping money in to create more debt? How does this address the sea of debt that we are drowning in? How will that debt be reconciled when nobody has a job? It's too late to go back to basics, nobody knows them anymore.
I caught a bit of the Senatorial Inquisition into this sub-prime debacle - featuring Alan Greenspan. A Democrat by the name of Waxman (supposedly widely feared) was grilling Greenspan, who ended up having to admit that his whole ideology was fatally flawed, and that the whole economic structure of the global economy is a house of cards. My first thought on hearing that was that it was deliberate, and calculated - a conspiracy on an unbelievable scale. Derivatives, and all of the other legerdemain that is pulled off. Layers upon layers of pyramidal rip-offs. How could any body, in its right mind, allow banks and markets to regulate themselves? Why bother having transportation safety agencies, food inspection agencies, medical and drug standards, workplace safety standards?
This is going to be wild.