With interest rates that are near negative in real terms, and with Coronavirus exposing our vulnerability and dependence on countries like China for the most basic things.
As you read this, the TSX is in freefall.
Oil prices have collapsed.
Coronavirus is spreading.
As a result, interest rates – which are already very low – are likely to be dropped further, while the yield on government bonds is incredibly low as well.
At the same time, Coronavirus has exposed our vulnerability in many key areas, including the fact that we are dependent in part on China for things like medical equipment and medicinal drugs.
What this means is that now is the time for a massive investment in infrastructure and manufacturing, in order to cut our reliance on foreign countries.
Canada is already going to see big economic losses, as our economy had already slowed and investment was already fleeing many areas. Because of the big deficits run during good times by Justin Trudeau, we will face bigger deficits in the bad times.
That said, if the economy collapses, and if we remain dependent on foreign countries, the deficit will be bad anyway.
So, now is the time for the government to use deficits for something that will actually help the nation, rebuilding our infrastructure, and rebuilding domestic manufacturing capacity in areas like steel, defence, medicine, as well as providing support for our oil industry.
Such an investment would help build Canada for a generation, and help insulate us from a world economy and system that has become far too globalized and unstable.
We need to build up, strengthen, and secure Canada, and the best time to start is now.