Discussion · Government Orders
Greg McLean Conservative
“The government's ability to borrow money can disappear overnight. Interest rates are rising around the world because governments, especially Canada's, have too much debt. This will drive up borrowing costs very suddenly, just like what happened in the 1990s. The government must pay attention to this risk and be ready for it.”
“Mr. Speaker, we have talked about the operating balance. I have pointed out a bunch of numbers that were part of the Parliamentary Budget Officer’s report. Fiscal capacity is there until it is not. Suddenly, it all turns around overnight, and it turned around when Jean Chrétien was Prime Minister. I pointed out the example. It happens very suddenly when the IMF, the International Monetary Fund, comes in and says that we can no longer pay our bills. What is on the horizon here? I will point out to the member that interest rates are rising around the world, primarily because of excess government debt everywhere, in Canada in particular. The increase in government debt is going to cause more risk. Therefore, bond rates will go up and more people will have to pay money. This avalanche will happen before it is planned. It will happen very suddenly, and we need to get it in front of us. We need to make sure we are aware of it. We need to make sure we know how to deal with it. Fiscal capacity will disappear very quickly.”
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Mr. Speaker, we have talked about the operating balance. I have pointed out a bunch of numbers that were part of the Parliamentary Budget Officer’s report. Fiscal capacity is there until it is not. Suddenly, it all turns around overnight, and it turned around when Jean Chrétien was Prime Minister. I pointed out the example. It happens very suddenly when the IMF, the International Monetary Fund, comes in and says that we can no longer pay our bills. What is on the horizon here? I will point out to the member that interest rates are rising around the world, primarily because of excess government debt everywhere, in Canada in particular. The increase in government debt is going to cause more risk. Therefore, bond rates will go up and more people will have to pay money. This avalanche will happen before it is planned. It will happen very suddenly, and we need to get it in front of us. We need to make sure we are aware of it. We need to make sure we know how to deal with it. Fiscal capacity will disappear very quickly.