spending

Wednesday July 12, 2017

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Wednesday July 12, 2017

Bank of Canada may hike interest rate for 1st time in 7 years

After almost a decade of warnings that never came to pass, it appears as though the Bank of Canada is ramping up to hike its benchmark interest rate — possibly as soon as next week.

July 16, 2015

On July 12, Canada’s central bank will announce its latest decision on where to place its trend-setting interest rate, which has an impact on the rates that Canadian borrowers and savers get for their bank accounts, mortgages and other products.

Eight times a year, the bank’s board of governors meets to assess the latest economic indicators and decide whether Canada’s economy needs a shot in the arm from a rate cut, or a pump of the brakes by way of a hike.

And for the first time in 54 such meetings, it’s looking like the latter is in order.

It’s not like there haven’t been warning signs. By the time Stephen Poloz was named to replace Mark Carney atop the bank in 2013, the central bank had already been on the sidelines for more than two years, its benchmark interest rate set at one per cent.

May 13, 2010

But even as the bank kept loans cheap coming out of the financial crisis, the messaging from the top came early and often that Canadians should be forewarned — rates have to go up eventually.

As far back as 2014 Poloz warned Canadians that rates would rise “soon” — before oil’s plunge in 2015 caused the bank to lose its nerve. Instead, the central bank moved in the opposite direction, cutting rates twice that year to bring its rate to 0.5 per cent, where it currently sits.

At the time, those hikes were described as a temporary measure to help a Canadian economy that had been waylaid by an oil price that lost more than 70 per cent of its value in a matter of months. But in recent weeks the bank has started leaving clear signals that despite oil still being in the $40-per-barrel range, those temporary conditions are over and it’s time for a return to normalcy. (Source: CBC News) 

 

SaveSave

Tuesday June 13, 2017

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Tuesday June 13, 2017

More muscle in our military

The world has changed profoundly since Justin Trudeau became Canada’s prime minister just over a year and a half ago.

May 26, 2017

Last week, Trudeau’s Liberal government profoundly changed how Canada will defend its interests in this world.

On Tuesday, Foreign Affairs Minister Chrystia Freeland boldly declared that Canada will blaze its own trail through the international landscape because this country can no longer depend on the United States to lead.

On Wednesday, Defence Minister Harjit Sajjan committed the government to $62 billion in new military spending over the next 20 years to guide and protect Canada on that pathway.

February 9, 2016

There will be 15 new warships and 88 new fighter jets — more planes than originally planned — for our armed forces.

There will be 5,000 more regular and reserve personnel, plus a defence budget that will rise from the current $18.9 billion a year to $32.7 billion a year by 2027 — a substantial 73-per-cent increase.

This is a dramatic and timely shift for the government and one Canadians can welcome.

It’s also a notable pivot for Trudeau who, in the early days of government, preferred foreign aid over boots on the ground as a problem-solver.

Trudeau’s flower power is morphing into Freeland’s and Sajjan’s hard power. (Source: KW Record) 

 

Friday May 26, 2017

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Friday May 26, 2017

Trudeau praises benefits of NATO intelligence sharing amid anger at U.S.

February 22, 2017

Canada’s deeply entrenched role in the fight against global extremism is more focused these days on intelligence-gathering — and sharing — than on putting more boots on the ground in the Middle East, Justin Trudeau suggested Thursday.

“The track record has shown that collaboration and co-operation between allies, friends and partners has saved lives and keeps all of our citizens safe,” Trudeau said at the outset of a daylong NATO meeting in Brussels.

October 6, 2014

“We are going to continue to collaborate and to work together to ensure we’re doing everything we can to keep citizens and our communities safe.”

Trudeau suggested the role that Canada now plays in fighting terrorism is through its membership in the so-called Five Eyes, an intelligence-sharing alliance that also includes the U.S., the U.K., Australia and New Zealand.

February 22, 2005

“We continue to be an important and trusted ally in the global intelligence community,” said Trudeau, who noted he would not go into detail.

“There are many, many occasions upon which we have directly participated and in other occasions directly benefited form information-sharing between security agencies and at the highest level.”

And while NATO agreed to assess its “level of support and the future of the mission” in Afghanistan, Trudeau betrayed no enthusiasm for sending soldiers back.

July 22, 2013

“We have no troops in Afghanistan at this time, but we are happy to be supportive in other ways.”

Trump has also been vocal about his demand for the other members of NATO to pick up their fair share of the tab when it comes to defence spending. Canada spends just over one per cent of its GDP on defence, just half of NATO’s target.

The Liberal government says its contribution is bigger than the numbers suggest, citing its commitment to send up to 455 troops to head up a multinational mission in Latvia, as part of efforts to curb Russian aggression in the Baltics. (Source: Toronto Star)

 

Wednesday November 2, 2016

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator Ð Wednesday November 2, 2016 Fiscal update boosts Liberal infrastructure plans but offers no path back to balance Justin Trudeau's Liberal government is responding to the sluggish global economy with a fall economic update that puts a even greater focus on infrastructure spending than in its spring budget, while making it easier for private sector investors to add their money to the government's already considerable funding pot. While the projected deficit for 2016-17 has moved down to $25.1 billion from the $29.4 billion forecast in the spring budget, the new figure no longer has any kind of a safety cushion built in. Absent that cushion, the deficit has actually grown thanks to some $1.7 billion in new spending since last spring. The deficit situation improves toward the end of the government's five-year horizon, to $16.8 billion in 2020-21. The projected debt-to-GDP ratio Ñ the key measure of the affordability of a government's debt Ñ by then returns to the 31 per cent mark, where it was in 2015-16 as the Liberal government took office. Morneau told reporters his government made the right decision in preparing itself for what is happening to the economy. But Interim Conservative leader Rona Ambrose said the Liberals' massive spending has created no new jobs and has led to a stalled economy. "They think this failed plan is somehow working, and they're doubling down on it," she said. Repeating the party's line that the Conservatives are the voice of taxpayers, Ambrose accused the government of "making lives more expensive for Canadians.Ó "Canadians are worse off today than they were a year ago," Ambrose said. "But instead of action, we hear excuses.Ó (Source: CBC)Êhttp://www.cbc.ca/news/politics/fall-economic-update-bill-morneau-1.3831080 Canada, Bill Morneau, budget, economy, deficit, statement, update, economic, dragon, spending

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Wednesday November 2, 2016

Fiscal update boosts Liberal infrastructure plans but offers no path back to balance

Justin Trudeau’s Liberal government is responding to the sluggish global economy with a fall economic update that puts a even greater focus on infrastructure spending than in its spring budget, while making it easier for private sector investors to add their money to the government’s already considerable funding pot.

While the projected deficit for 2016-17 has moved down to $25.1 billion from the $29.4 billion forecast in the spring budget, the new figure no longer has any kind of a safety cushion built in. Absent that cushion, the deficit has actually grown thanks to some $1.7 billion in new spending since last spring.

The deficit situation improves toward the end of the government’s five-year horizon, to $16.8 billion in 2020-21. The projected debt-to-GDP ratio — the key measure of the affordability of a government’s debt — by then returns to the 31 per cent mark, where it was in 2015-16 as the Liberal government took office.

Morneau told reporters his government made the right decision in preparing itself for what is happening to the economy.

But Interim Conservative leader Rona Ambrose said the Liberals’ massive spending has created no new jobs and has led to a stalled economy.

“They think this failed plan is somehow working, and they’re doubling down on it,” she said.

Repeating the party’s line that the Conservatives are the voice of taxpayers, Ambrose accused the government of “making lives more expensive for Canadians.”

“Canadians are worse off today than they were a year ago,” Ambrose said. “But instead of action, we hear excuses.” (Source: CBC)

 

Thursday March 24, 2016

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator - Thursday March 24, 2016 Canada government tries to fend off critics worried about deficits Canada's government on Wednesday sought to deflect criticism that it had condemned the country to years of budget deficits, saying it could balance the books within five years if efforts to boost the economy succeed. The ruling Liberals on Tuesday projected a C$29.4 billion ($22.3 billion) deficit for fiscal 2016-17, nearly three times larger than what they promised during last year's election campaign. The Liberals, who say the spending will help boost growth, gave no target date for returning to balance, with the budget still expected to show a deficit of C$14.3 billion in 2020-21. Opposition politicians and influential media commentators said they feared Canada would face a long string of shortfalls of the kind it has not seen in two decades. This could cause problems for Prime Minister Justin Trudeau. "We're hoping to increase the growth rates," Trudeau told CBC Radio on Wednesday. If the government can stimulate the economy, "we get to balance in the coming five years," he said. "There is a track to that if we increase the growth in the economy." Trudeau faces no immediate political threat, since he only took power last November and is sitting high in the polls. But the longer the deficits last, the greater the potential political risk. (Source: Reuters) http://ca.reuters.com/article/domesticNews/idCAKCN0WP1R2 Canada, Justin Trudeau, Bill Morneau, growth, economy, budget, debt, spending, government

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday March 24, 2016

Canada government tries to fend off critics worried about deficits

Canada’s government on Wednesday sought to deflect criticism that it had condemned the country to years of budget deficits, saying it could balance the books within five years if efforts to boost the economy succeed.

The ruling Liberals on Tuesday projected a C$29.4 billion ($22.3 billion) deficit for fiscal 2016-17, nearly three times larger than what they promised during last year’s election campaign.

The Liberals, who say the spending will help boost growth, gave no target date for returning to balance, with the budget still expected to show a deficit of C$14.3 billion in 2020-21.

Opposition politicians and influential media commentators said they feared Canada would face a long string of shortfalls of the kind it has not seen in two decades. This could cause problems for Prime Minister Justin Trudeau.

“We’re hoping to increase the growth rates,” Trudeau told CBC Radio on Wednesday.

If the government can stimulate the economy, “we get to balance in the coming five years,” he said. “There is a track to that if we increase the growth in the economy.”

Trudeau faces no immediate political threat, since he only took power last November and is sitting high in the polls.

But the longer the deficits last, the greater the potential political risk.  (Source: Reuters)