Re: Re: Re: This is a shame
onthebottom said:
The economy and the budget are another issue. The economy is blazing right now (tax cuts and low interest rates helped) and has a very good outlook for Q4 03 and CY 04. As the economy grows so will tax revenues (social program costs will decline) although I would agree that Bush has been on a spending spree. 9/11 was very expensive and will continue to be for another 5 years or so (expanded domestic security and military spending, which you call obcene I think).
911 eh, well i agree there were costs associated with that, but not 500 billion worth which is where the US deficit is headed next year. That's after 395 billion this year and 200 billion the year before that.
All in all, Shrub has increased your debt by about a paultry trillion dollars since taking office. Hardly responsible economics.
You'd better hope that that "blazing economy" doesn't ignite inflation there bud, cause if it does, old Uncle Allan Greenspan is going to jack those rates up quicker than you can say "oh fuck" and the interest that the US will have to pay will be crippling.
\The arguement has been made that Shrub is stimulating the economy by spending money like a drunken sailor in order to ensure his re-election and once that happens, he will turn off the tap.
And, if the US economy is blazing right now, how come it's not adding any jobs, in fact, it's shedding jobs still. Maybe you want to tune into CNN
Here's the link in case you missed it....
http://money.cnn.com/2003/12/04/news/economy/jobless/index.htm
And why has the stock market been moving sideways more or less in the last 6 weeks??
And why has the American dollar continued to tank if all is so rosy in the good ole USA????
(Bet you have really noticed that your hobbying money doesn't go as far as it used to in good ole YYZ!)
onthebottom said:
I wouldn't spend too much of your time worrying about our deficit issues here; we're in hoc about 50% of GDP as are you and most developed nations. Great Economist article this month about explicit deficit (above mentioned government bonds) and implied deficit (Canada had the highest implied deficit by far - all those generous social programs are going to break you eventually) which are the costs of social programs forecasted out 25 years.
OTB
Please post a link.
Here's mine refuting your above statements.
http://www.policyalternatives.ca/afb/afb2004martindeficitssum.html
Or, maybe you prefer a link to Statistics Canada
http://canadianeconomy.gc.ca/english/economy/federal.cfm
Current Canadian federal debt is $510 billion Canadian dollars, or about 390 billion US dollars.
Now, how much is current federal US debt?????
About 7 trillion US dollars (wow!!)
Here's a link mon ami......
http://www.publicdebt.treas.gov/opd/opdpenny.htm
Now how much is US GDP???? Around 11 trillion dollars I believe
Here's another link to the CIA fact book........a bit old, but i bumped my figure up to allow for it. (It states US GDP as 10.4 trillion.)
http://www.cia.gov/cia/publications/factbook/geos/us.html
Ok, so a total debt of 7 Trillion / 11 Trillion = 64 percent (ouch!!)
Now lets look at Canadian federal debt.
From above = 390 billion US / 1 trillion US (the same CIA website says it's about 923 billion US, but that's a bit old, and I remember reading in the Globe and Mail a while back that it had surpassed the 1 trillion mark.
So Canada comes in at roughly 40 of GDP.
So, by my estimate, the US is in considerably more long term trouble than we are. Plus shrub keeps spending more and more money he doesn't have.
Hardly prudent economics....
I wouldn't worry too much about our social programmes if I were you. I'd start worrying about what is going to happen when Greenspan jacks up those rates and how you are going to pay for the day to day running of your government, never mind what little social programmes you have.