Financial Vulnerability Of Canadian Households Rising “Beyond Historical Experience”

A new report from the Parliamentary Budget Officer (an office the Trudeau government has been trying to weaken), has revealed that household debt in Canada will create a level of “vulnerability” that is “beyond historical experience.”

The dire warning comes as household debt is projected to increase from 174% of disposable income to 180% of disposable income by 2018. Rising interest rates will make that higher debt level even tougher to manage, increasing the debt-servicing ratio (DSR) and bringing increased vulnerability.

Here is a key section of the report:

“Household debt-servicing capacity will become stretched even further as interest rates rise to more “normal” levels over the next five years. Based on PBO’s projection, the financial vulnerability of the average Canadian household would rise to levels beyond historical experience.

  • By the end of 2021, the DSR is projected to increase by over 2 percentage points, from 14.2 per cent of disposable income in the first quarter of 2017 to 16.3 per cent (Summary Figure 1).
  • The projected increase in the DSR to 16.3 per cent would be 3½ percentage points above the long-term historical average of 12.9 per cent (from 1990Q1 to 2017Q1).
  • The projected DSR would also be almost 1½ percentage points above its highest level over the past 27 years, 14.9 per cent, which was sustained for only one quarter in 2007.”

The map below shows the projected rise in the debt-servicing ratio:

Image: PBO

Connecting the dots

Often when issues such as rising debt levels are reported, they are discussed without any deeper context. That’s a big problem, because it obscures the factors causing such dangerous and historic vulnerability.

For example, there is a direct connection between globalist economic policy that concentrates wealth and power in the political, banking, and corporate elite, and the vulnerability of Canadian households.

Wages have often been growing at a rate lower than inflation, meaning more and more people are becoming poorer in real terms. Taxes are going up, carbon taxes are increasing the price of goods – creating further inflation that further drives down the real value of wages, and our economy is stifled by regulations and restrictions that slow growth and lock millions of people out of the chance to create wealth.

All of these things are connected, and they’re contributing to an economy that forces many Canadians to work harder and harder just to stay afloat, and then take on more debt just to maintain a standard of living.

Additionally, those in power encouraged extremely low interest rates as a way to benefit the big banks and holders of large amounts of stock, while refusing to implement policies that would create real economic growth for middle income and working Canadians.

That’s why – when reporting on debt and the vulnerability of Canadian households – all of this has to be discussed, because until we put economic and political power back in the hands of the Canadian people, the elitist agenda will put as at further economic risk.

Remember, those in power don’t want you to be financially independent. They want to keep people desperate and dependent on money “from” the politicians, even though that money was taken from us in the first place.

The rising debt-servicing ratio is merely a symptom of a much greater disease: An economy and government that now serves a small elite at the expense of the Canadian people.

Spencer Fernando


The elites want to hide their many failures behind political correctness, deception, and manipulation. We need to push back and spread the truth.

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