Canada’s government debt set to pass $1 trillion, fiscal austerity may be needed soon: Even With Free Borrowed Federal Money, June retail sales likely rose only 4.4% after declining in May – July 23, 2021,

In my personal opinion, Canada has the most unqualified finance minister in the history of this great nation. Chrystia Freeland is Canada’s Deputy Prime Minister and Minister of Finance after disgraced finance minister Bill Morneau was forced to step down.

Plutocrats is a book by Chrystia Freeland in which a person can get a glimpse into the way Chrystia Freeland imagines the financial world. In her view, she doesn’t see an overbearing government as the root cause of the rise and power of the “New Global Super Rich” instead she appears to believe that MORE government policies will help to take from the rich and give to everyone else.

As a private citizen, Chrystia Freeland can believe whatever she wants to believe, but the reality of the situation is that the “New Global Super Rich” exists because the governments of the world, including her own, continue to bail out private businesses that align with government policies.

Currently, Carbon Tax is the new corporatist scheme that Chrystia Freeland signed off for, this is actually going to contribute to “The Rise of the New Global Super-Rich and the Fall of Everyone Else” But you see when you believe that your government policies are progressing humanity forward, you don’t imagine yourself to be a part of the problem

Canada’s debt set to cross $1 trillion mark as Liberals extend aid in budget |

Even with all the free government handouts, personal and government debt levels continue to rise, when a government borrows money into existence, the whole point to is to get a positive return on investment, Trudeau couldn’t even get a positive return on investment pre-pandemic and the public and private debts have only surged form there. Making matters worse, however, is the rising cost of living which is DEFLATIONARY

When it costs more Canadian dollars to purchase fewer goods and services, the end result is deflation, which forces the government to borrow even more money, if the markets realize that a government is hopelessly in debt, the market will begin to sell off those dollars.

The Canadian dollar in my opinion if austerity measures are now considered a relic of the past will be weaponized against the Canadian people Chrystia Freeland imagines she’s helping. As is the case with Joe Biden who is the current President of the United States, I genuinely don’t think Justin Trudeau nor Chrystia Freeland know what they’re doing to the economy. Observing them and their words up close, I think they’re ignorant, both Justin Trudeau and Chrystia Freeland are second-generation politicians, both were raised relatively wealthy and both are descendants of spendthrift Liberals.

When most Canadians imagine Public sector debt, I feel as though they’re disconnected from the financial reality of it means to their and their children’s futures. Private Debt is private debt, the private sector will always calculate the risk of lending to private citizens, public debt, on the other hand, has little to do with any market fundamentals, the government imagines a future for a country and they begin borrowing and spending that money into existence.

When these bets go bad, the government doesn’t go bankrupt, nor does it even shrink, in the modern era, the government will often double down borrowing and spending more money, now if people lose faith in the currency, the first thing that happens is that private businesses, change their behavior, and if the government continues to spend and borrow and regulate the economy, this is when most private businesses if possible will move offshore. The remaining companies then often have a monopoly on what’s left and these government-created monopolies as most Canadians know(bell rogers, etc.) create all sorts of price distortions.

Canadian telco prices are inflated because competition is illegal via the Canadian government, the government recently passed climate change regulations and taxes and since these laws were passed, energy prices have gone up, and because Oil as an example is so vital to the Canadian economy, RETAIL prices for a lot of goods and services in Canada have gone up.

Canadian GDP set to surge this year, but high debt levels could crimp future growth prospects |

Now, in the minds of most economists, this isn’t a big deal, because inflation is transitory, my question is how do lower the cost of living when the price of a growing government is FIXED? There have been talks about ending telco monopolies for years? Hasn’t happened for the most part in Canada, although telco companies in Canada are often publically traded, one could argue they’re nationalized.

Recently the Canadian government forced online companies to charge taxes on goods and services purchased online, that’s also DEFLATIONARY for the economy If I bought something a few months ago that was $100, the exact same item is now $113? I’ve just lost 13% of my purchasing power online!. What this means is that if let’s say a Universal Basic Income is normalized, it will cost the government more money to get a worse economic output.

So for myself it’s no surprise as to why the economy rebounded after it slipped, the consumer is being forced to spend more, but there comes a time when the consumer realizes that they’ve lost their purchasing power and because of all the existing debt that the Liberals piled onto the Canadian economy, they’ve put a lot of retailers and sellers under a lot of pressure to UNIFORMLY raise prices or go bankrupt.

The private sector is profit-driven, no person in their right mind is going to start a business with a profit. If I start a charity and my charity runs out of stuff, I’m out of business, the government is the only entity that is allowed to run perpetual deficits and if the government takes over the entire economy, fewer people will be incentivized to participate.

In Venezuela, the government promised to provide for all the people, the people believed the government could do this, once the government began demonizing the private sector, a lot of productive people in Venezuela’s private sector left, this, by the way, happened in Venezuela before the recent chaos, private companies began leaving Venezuela long before Nicolás Maduro, but similar to Canada, Venezuela had a lot of oil, then one day the price of oil collapsed and because Venezuela was dependent on the high price of oil, the Venezuelan economy crashed and because Venezuela had become so reliant on IMPORTS, once the bolivar crashed private, now foreign sellers began refusing to accept Venezuelan bolivars.

This deflation of Venezuela’s economy resulted in the Venezuelan bolivar hyper-inflating. Now even during this time, the Venezuelan government didn’t shrink, because under socialism or progressivism the government nor the bloated public sector isn’t the problem, the problem is something external. Canada is increasingly becoming reliant on Imports!

Canada retail sales seen rebounding in June after declining 2.1% in May |

Interesting times ahead!