Another failure of Trudeau’s economic policies.
In the wake of the latest Trudeau budget, there are warnings that Canada’s AAA credit rating is at risk.
The warning was issued by Fitch Ratings Inc., one of the biggest credit rating agencies.
Here’s what Fitch said, as reported by BNN Bloomberg:
“Canada’s gross general government debt, combining federal and provincial fiscal accounts, is higher than other ‘AAA’ rated sovereigns, excepting the U.S, and remains close to a level that is incompatible with ‘AAA’ status,” the report said.
The warning came after the federal government forecast a higher deficit of $19.8 billion in 2019-20 and $19.7 billion for 2021-22, before shrinking to $9.8 billion by 2023-24, in its budget on Tuesday.
“My reaction to Fitch is: Thank-you very much,” said Norman Levine, managing director of Portfolio Manager Corp., in an interview with BNN Bloomberg Thursday.
“When opposition politicians, when Street economists talk about it, the government poo-poos it. But when a rating agency says it, that means something.”
“In Canada, you have a government that’s a tax and spend government with no signs of ever changing that – they just keep moving the goal post further out,” Levine added. “But in Canada, the bigger risk I think is some of the provinces, which are in even worse financial shape than the federal government.”
A province facing some severe financial challenges is Ontario, which was ruined economically by years of failed Liberal governments. Things are on the mend with the Ford Government in power, but Justin Trudeau has now exported the failed Ontario Liberal economic policies to the nation as a whole.
Canada can’t afford the failures of the Trudeau government, and our whole country is being put at risk.
Photo – Twitter