Kruggel: Liberals are 9 for 9 budgets in deficit and 9 for 9 budgets where they have completely missed their targets
We
now have a date of December 16. Chrystia Freeland will stand in the
House of Commons and give the update as to the government's finances and
how the government is on track to meet its budgetary promises and
obligations. The government will then break for their Christmas
holidays a couple of days later.
Ms.
Freeland stated when she delivered the budget last spring that she
would cap the deficit at $40 billion. It was her way of taking the
deficit story away from the Conservatives by promising she had it under
control.
The Parliamentary Budget
Officer has warned for months that the $40 billion cap was never going
to be met. He's cited several erroneous assumptions on revenues and the
economy. He noted that spending had already far exceeded the Liberals
budgetary promises.
He wasn't alone Banks, their experts that watch the budget and government finances, have said the same thing.
Early
estimates are that the budget deficit will be $46 billion on the low
end, for 2024/25, and $55 billion on the high end. Fiscal 2023/24 the
deficit was $50 billion for comparison.
In practice none of this really matters.
We are talking sovereign
debt. The government and the Bank of Canada can create money out of
thin air for use within the country. Creating too much does create
inflationary pressure. That's the only real problem. That inflationary
pressure can become substantial. Venezuela, Argentina, Zimbabwe, and
Wiemar Germany are all good examples of this.
The
main issue here is that the Liberals are 9 for 9 budgets in deficit and
9 for 9 budgets where they have completely missed their targets I do
not fault them for 2020 - 2022. The pandemic was beyond their control.
Since then, they have failed to unwind spending as they promised.
This
becomes the public relations disaster. The Liberals know this too.
They delayed the Fiscal Update to minimize discussion in Parliament.
Pierre Poilievre made it clear he'd pause his partisan games on the
documents debate for the Update a few weeks ago. Freeland remained
silent.
Fact is, the Liberals cannot escape this becoming a big, black eye for them.
Poilievre,
speaking to reporters the other day summed it up with a new line of
attack stating that the Prime Minister has lost control of the budget,
lost control of the border, and lost control of his own party.
A government that has lost control. That's rather ironic.
ABOUT DEVON KRUGGEL:
I'm a 50-year-old
Caucasian male and was a right winger of sorts from the age of 16 until I was
about 47 or so. I have got a degree in History and Political Science and one in
Computer Science. Bachelors. I've been in BC since 1990, and have lived on
Vancouver Island since 1993.
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