As Trudeau Pushes Radical Policies, Credit Rating Agency Issues New DEBT WARNING

The Liberals radical far-left shift puts them outside the Canadian mainstream, and risks doing devastating damage to our already severely weakened economy.

Justin Trudeau’s embrace of radical far-left economic policies isn’t going unnoticed.

Fitch Ratings, who already downgraded Canada from AAA to AA+ over rising debt fears, has issued a new warning.

In their latest note on Canada, they point out that our government debt to GDP ratio is surpassing the ratio in many countries with an AA rating:

“Significant fiscal deterioration in 2020 was a key factor in Canada’s downgrade to ‘AA+’/Stable in June and the latest announcements point to continued risks of further deficit widening. These measures, and the federal government’s CAD343 billion estimate of the upsized fiscal 2020/2021 deficit announced in the July fiscal snapshot point to a general government deficit above 21% of GDP in 2020, wider than our 16.1% of GDP estimate at the time of the downgrade. The gross general government debt to GDP ratio will rise above 120% of GDP, significantly higher than the ‘AA’ median.”

There is also this warning:

“Failure to place consolidated gross general government debt/GDP on a downward path over the medium term could lead to negative rating action.”

Basically, Fitch is making it clear that endlessly rising spending combined with a weak economy rising debt to GDP levels is a serious problem, something that we already know through simple common sense.

As I wrote earlier, this would be bad enough under a government pursuing realistic policies, but is far more dangerous under the radical left shift the Liberals are making:

“It appears the Liberals will be spending record amounts of money, while simultaneously embracing radical far-left ‘green’ ideas, which will make everything more expensive, and destroy good secure jobs in the energy sector, while crippling Canadian manufacturing and preventing the resurgence of Made in Canada products that is so necessary for our economic and national security.

Trudeau’s policies will also likely trigger further credit rating downgrades, and this is where the personal debt crisis could be launched.

At some point, interest rates will go up, and with Canada losing fiscal credibility, that is becoming more and more likely.”

This is a very dangerous moment for our country.

Spencer Fernando

Photo – YouTube

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NancyW

We have been worried about this since the radical left took over this country, the CCP flu just magnified it further and made it much worse. All the Provinces are also in big debt, Ontario is being threatened again with a downgrade I think we are almost at 400 billion in the hole now with the lock down and the GTA costs. When adding personal debts and people starting to default on loans and mortgages, we are in deep doo doo, Worse off are all the small businesses, who supply most of the employment in Canada, but because of the… Read more »

Gloria

Let’s just hope Erin O’Toole wins the election. It wouldn’t surprise me if Trudeau wins again.

Garlet Farlett

Colour me surprised. This is his plan

Brian Dougan

Is that Freeland behind her master? Using a mask to filter the odor her party has caused.

Gary

The minute that clown was elected pm was a very dangerous moment for our country.

Gary

It has been the plan from the minute he was elected. The talking point of grow the middle class been the exact opposite of what they say. Look around the world the Americans, Briton, South America for example that has been the lefts calling card, grow the middle class, and what’s happening is the middle class is being wiped out. They went after small business the biggest employer in any democracy and destroyed it. Why else would The big box stores Homedepot, Rona, Walmart be able to stay open but not the small guys? It’s all part of the plan.… Read more »

Eleanor

I agree 100%. We must stop him and his slaves quickly or our country is gone as we know it. So SAD…

D MacKAY

Trudeau is already ending the “5 eyes” intelligence membership. The next step is
Destroying the economy to force a dependency on China – that is the goal not a consequence.