Monday

Is Canada Safe From the Next Financial Crisis?

We’re in way better shape. We have a pension plan. We have a pay as you go healthcare plan. We don’t have the amount of unfunded obligations that the US has, although we have unfunded obligations. We won’t be as badly off as the US will be, because they’re just not dealing with issues down there, because of the political quagmire they have.

But it’s not saying that we’re going to have a problem; we’re always the tail that’s wagged by the dog. But on a relevant basis, we’re going to be better off. I think we’ve got a better banking system. We have better budgetary controls, although some provinces seem to be out of control. I don’t think we have quite the same issues with the municipalities. We have more natural resources per capita. So, we’re definitely going to be better off, but that’s not to say we’re going to be unscathed.

If it’s all just a big Ponzi scheme, we all just print money as all these major capitalist countries are doing, there’s an unintended consequence of it. I don’t know whether it’s going to be inflation or massive deflation, but there will be something come out of it, because the life and the place we’re living today is not normal. I’m talking about the financial area for now, and there’ll be consequences for that. I don’t think it’ll be as bad here but that’s not something that says we won’t have to endure some pain.