Comment 72371

By ScreamingViking (registered) | Posted December 18, 2011 at 15:38:12 in reply to Comment 72368

I agree with you about money being "like oil" and that keeping more of it in the economy is a good thing, assuming there is the right balance of taxes to provide the public services and infrastructure required by that economy.

However:

Government debt is a non-issue in a nation that prints its own currency, which Canada does. The ONLY issue that we could have is inflation. However, given the fact that investors are lending at record low rates, it would appear that they are signalling lower inflation going forward.

A non-issue? What about when most of that debt is held by foreign hands? And a situation where many, many countries are facing debt problems? (particularly our large partner to the south)

I think the inflation risk is a bigger deal than you let on, especially considering the global debt problem. It can get out of hand quite quickly, and Canada's fiscal policies are only going to be able to do so much to help.

Comment edited by ScreamingViking on 2011-12-18 15:40:13

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