When reading the fall economic statement from the LPC, keep in mind that the federal govt doesn't borrow money...it doesn't need to.
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When reading the fall economic statement from the LPC, keep in mind that the federal govt doesn't borrow money...it doesn't need to. What is described as "public debt charges" is cash paid to bondholders of bonds that don't need to exist. A subsidy for having accumulated cash. The bonds are used to set the risk-free floor on interest rates, which can just be set legislatively.
There is no public debt or deficits.
Federal deficit balloons to $61.9B as government tables economic update on chaotic day in Ottawa | CBC News
The federal government tabled a fall economic statement Monday that calls for more than $20 billion in new spending and explains how last fiscal year's deficit ballooned to $61.9 billion — but it was Chrystia Freeland's abrupt resignation as finance minister and her questioning of her own government's economic policy that sent Canadian politics into a frenzy.
CBC (www.cbc.ca)
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@johnefrancis Thanks, when I left work I had the impression it might not come out. I was waiting for one specific thing in there and while it's mentioned, it's just kicking the can down the road.
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@dairpo what's the thing?
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I would love to sit down and have a verbal conversation with you to understand this perspective. There's something significant you understand that I do not, and I'd love to get on your level.
(Not likely feasible until spring)
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@sloot these are implications of MMT, a detailed theory that describes the existing operations of govts that issue their own fiat currency, like most sovereign states. When you create money from nothing, the rules and constraints are opposite to what a regular user of that currency experiences.
There is a link to a primer in my profile.
"The Deficit Myth" is a good accessible book on the subject...
