Continued credit rating downgrades and higher interest rates could be the tipping point that sends many Canadians into financial ruin.
Canada has a debt crisis.
And I’m not talking about our current national debt.
Before the CCP Virus, Canadians had the highest household debt in the world on a per capita basis.
Our household debt levels were worse than the levels seen in the United States before the 2008 financial crisis.
This household debt crisis was in large part a result of the hollowing out of our economy, as good, secure jobs were increasingly replaced with insecure and precarious jobs that paid far less.
This left many Canadians with debt as the last option to try and hold on to their standard of living.
But now, Justin Trudeau could be about to make things much worse.
The government is talking about the most radical reshaping of our economy seen in a generation, and their plans could be disastrous for individual Canadians and Canadian families.
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.
Higher interest rates, combined with the higher cost of living and lower growth caused by ‘green’ policies, will mean that Canadians will simultaneously face higher debt payments, less income, and higher inflation.
You can clearly see how disastrous that will be. Just imagine the damage.
Of course, there is an alternative course.
The government could cut taxes for working class and middle class people, unleash the Canadian energy sector, and rebuild our domestic manufacturing capacity. That would lower the cost of living, put more money in the pockets of Canadians, surge GDP making the debt more manageable, and create good, secure jobs building real things for Canadians.
Unfortunately, the Liberals are moving in the opposite direction.
By rejecting the common-sense ideas I listed above, the Liberals are putting millions of Canadians on the road to financial ruin.
Spencer Fernando
Photo – YouTube
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