It’s time For Canadians To Start Firing Federal Politicians and Cutting Their Pensions: Interest payments on Canada’s national debt will Rise to $34.7 billion – February 11, 2023,
There are instances in which the government is better suited to do specific jobs than the private sector; policing comes to mind when I think about an instance in which it would be a HARD sell to get people on board. Sometimes the government is better suited to do certain jobs, and the public at times is even willing to pay a premium to allow the government to do certain jobs.
But then there was an idiot named Justin Trudeau, who decided to declare war on fossil fuels without first having a VIABLE alternative. With the current Prime Minister Justin Trudeau, it’s POPULAR politics with his base first and the economy a distance LAST. It’s a little frightening to hear Justin Trudeau speak or make an announcement because EVERYONE in Canada knows that whenever Trudeau speaks, the cost of living is likely going up and our freedoms are getting squeezed.
Trudeau is not really an intimidating figure; however, the power he has is EXTREMELY intimidating as he’s broken several Canadian laws, and because he’s aware of the consequences long in advance, he breaks these laws unscathed; this again makes Justin Trudeau an intimidating figure in Canadian politics. But what happens when Trudeau’s popularity in his own base starts to dwindle?
Well, that’s when people start to analyze the COSTS associated with Justin Trudeau’s and FUTURE Canadian cabinets. Currently, the law suggests that Trudeau and his cabinet are set for life. In business or the private sector if the leaders DESTROY their business, what comes next is BANKRUPTCY, and if a company goes bankrupt, they’re usually not rewarded with free income from that business for the rest of their life.
Why, then, when politicians create failed ideas that lead to deficits that could NEVER exist in the private sector e these politicians REWARDED with an undeserved pension? Well, the answer to that question revolves around the LACK of financial education in schools. You see, if the public DEMANDED BIG government the very least be solvent, even if Justin Trudeau had wild and crazy ideas, as long as he left the country solvent, one could argue why his cabinet is DESERVING of their pensions and paychecks.
To date, Trudeau has done nothing but put Canada into debt, and NONE of Justin Trudeau’s investments are yielding POSITIVE cashflow; making matters worse, Justin Trudeau’s spending and regulations on the economy are so bad that the Bank of Canada was FORCED to raise interest rates during what appears to be a recession.
As most people know, the private sector, including the private banks, do not need a central bank. Central banks are for the benefit of the FEDERAL government, that’s all. During periods of war, the architects of the modern economy saw PRIVATE banking as a potential evil, because, let’s say Canada, as an example, was being invaded, but the banks and the depositors at the PRIVATE banks demanded high interest to finance a war, well, then the government could be limited in how much money they could borrow.
a Central bank bypasses the private saver/depositor and allows the government to borrow money at a rate that shouldn’t bankrupt or compromise the federal government. Now, obviously, the roles of central banks have changed in modern times, and people are now imagining central banks differently, Donald Trump went so far as to ask PUBLICLY for lower interest rates to HELP his political aspirations.
Even in Canada, the central bank is TERRIFIED to fight inflation, instead opting for rate targeting, hoping that raising interest rates NEAR the inflation rate will signal to the markets that prices should stop rising. No, anyone with common sense would know that prices are rising because Justin Trudeau is making the COST of doing business more expensive. In order for PRIVATE businesses NOT to go bankrupt, they have to pass those higher costs back to the consumers who voted to make Justin Trudeau the prime minister.
Now, if you lack financial education, you’d imagine that the PRIVATE sector is raising prices on consumers UNNECESSARILY. Still, if you have BASIC financial education, you’d know that the Federal government, which includes the Bank of Canada, is raising the cost of living for Canadians. Now, one should ask if the government has complete control over the money supply, why, then, is the central bank raising interest rates?
The answer to that question is simple; the government is actually competing with the private sector for RESOURCES; when the government, for example, creates a regulation on fossil fuels in hopes of destroying the fossil fuel industry and replacing it with renewable energy, the government is supposed to make a claim that a better alternative exists and the private sector needs to get on board and transition to renewable energies.
But suppose a viable alternative or replacement to fossil fuels DOESN’T exist; well, then what will happen is that the Canadian federal government will be sitting on a pile of BORROWED cash DOING NOTHING productive. We learned recently that a lot of Canadian FEDERAL workers making hundreds of thousands of dollars a year were working remotely.
Now, I remind you that a lot of these federal employees, via government regulations and taxes, are being paid by the private sector. This same private sector via federal regulations and taxes is being starved of capital, meaning that instead of the Canadian government getting POSITIVE cash flow to pay down the debt, the Federal government of Canada is receiving NEGATIVE cash flow.
If you’re ANY BANK, and your main borrower needs to borrow more money to meet its debt obligations, it’s a sign that your main customer, the Federal Government, is BROKE. If your main customer is broke, you have to call in debt, but ofcourse, this is a central bank, so instead of calling in debt or not lending the insolvent borrower more money, the Bank of Canada issues a warning to Trudeau that its time for his cabinet to start making better investment decisions.
We throw around the word “government spending,” but the correct term should be “government investing.” When the government thinks it knows better than the private sector, it has to prove it. To date, the Trudeau cabinet has not proven itself to be a solvent institution, infact almost all of Trudeau’s spending have yielded him bad results, this even including Trudeau’s vote-buying schemes.
Trudeau’s vote-buying, which even includes buying up the media, hasn’t resulted in Trudeau winning a majority? Trudeau is LOSING support even though he’s giving away money he borrowed from the bank of Canada. Trudeau and his cabinet are insolvent and if Canadians had financial education, one of the first things Canadian voters would be doing is demanding the pensions of Trudeau’s cabinet be cut.
There is no penalty in Canadian politics for incompetence, and this needs to change!
Interesting times ahead