Tuesday, January 27, 2009

Thoughts on the Budget

The budget is out and there is nothing meaningful there. Opportunity to cut taxes substantially or even send some stimulus checks that are commonplace in the US and heck even in Alberta, at least in circa 2005 has been squandered. Keynes would have been delighted had he been alive today at the tremendous following his works are getting worldwide. Canada will issue over 85 billion in debt to finance this increased spending. So much for the 'better fiscal shape' of Canada. And the consequent prospects for rise in the loonie. I think deficits will be even worse than the current projections as the full magnitude of commodities collapse trickles down to the various sectors of the Canadian economy and the government tax and royalty revenues.

In addition to the above, at tax payers expense, the government will buy more of toxic garbage, this time not confined to only homes but securities backed by used Hummers and Dodge Durangos.

It’s clear that the only trick known to the government worldwide is the one taught to them by the bankers and that is-credit is everything.

There’s no point of putting money directly into people’s pockets even as hundreds of billions are given to bail out inefficient and corrupt bankers.

And by the looks of it, I doubt very many people are going to be impressed by the little tax cuts that are offered.

Looking at the budget, all I see is future tax increases for our progeny while we get little if any benefits out of it.

Your thoughts?

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