On this blog we’ve been warning for months that the Canadian dollar may face rapid debasement. History shows it’s not far‑fetched — the Mexican peso went through devastating debasement and never recovered. The only real difference today is that more Canadians are consciously aware of what’s happening.
The CUPW Position: “Government Can’t Be Insolvent”
CUPW negotiator Jim Gallant recently told CBC’s Rosemary Barton Live:
“There’s no such thing [as insolvency]. Are the RCMP insolvent? Are the Armed Forces insolvent? … Government can’t be insolvent.”
Gallant argues that because Ottawa ultimately stands behind Canada Post, anything the union demands can be paid for. That’s only partly true. A government can always print money, but that does not guarantee the money will hold its purchasing power. Inflation erodes real wages and pensions no matter how “fully funded” they look on paper.
Gallant also compared Canada Post to the RCMP and other non‑profit‑driven agencies, implying that the Crown corporation’s profit motive should be stripped away entirely. In effect, that’s an argument for removing Canada Post from its Crown‑corporation framework — and for shifting its liabilities directly onto taxpayers.
Canada Post’s Reality: Insolvent and in Debt
Canada Post is already insolvent in economic terms. It has borrowed $1 billion from the federal government just to cover operations, and it is losing roughly $10 million per day. Its unfunded liabilities — especially its defined‑benefit pension plan — are effectively demands on future taxpayers.
This is the bloat of Canada’s public sector. If Ottawa obliges CUPW’s demands, the cost will ultimately be borne by private businesses and consumers through higher taxes and prices. As inflation rises, pensioners and government workers with inflation‑indexed pay will demand further raises, fueling a spiral that weakens the dollar even more.
The Warning Signs for the Loonie
What Gallant is voicing is not just a union stance; it’s an entrenched expectation: no matter what, the government will take care of us. Chicago and other U.S. cities show how dangerous that mindset can be. In Canada the difference is that Ottawa can (and likely will) print money — but money printing without productivity typically leads to rampant inflation. When the government then raises taxes to cope, private businesses are discouraged from investing, and jobs disappear.
This is why we’ve argued that Canada Post should not be shielded from electoral accountability. As long as CUPW and Canada Post operate outside the election cycle, both sides can run up liabilities with little public pushback. In Ontario, teachers’ unions were reined in when voters got fed up with endless strikes. Without that check, Canada Post’s defined‑benefit pension plan could become the next crisis point for the federal government.
A Christian Perspective on Stewardship
From a Christian worldview, stewardship matters. Luke 16:10 reminds us that “whoever can be trusted with very little can also be trusted with much.” Governments and unions alike are merely stewards of the resources God has provided. Printing money to satisfy every demand without accountability is not stewardship; it’s mismanagement that harms future generations.
Christians believe in freedom, private property, and honest measures — principles that undergird a healthy currency. When those principles are ignored, debt piles up, inflation erodes savings, and society grows resentful. That is why we urge readers to watch this situation closely: if CUPW succeeds, it could accelerate the very debasement we’ve been warning about.
Final Word
It is not our place to predict exactly how Ottawa or Canada Post will act, but we can point to the pattern: unfunded promises, rising deficits, and a weakening currency. Unless there is real reform, both Canada Post and the Canadian dollar are on a dangerous trajectory.
Consider making Jesus Christ your Lord and Savior today. In Him we find true security — not in government guarantees, but in the unchanging promises of God.
