sunnsea

Three Asset Classes that Can Actually Outpace Coming Inflationary Price Increases

You should also mention that the 11% cut in the 1995 Canadian budget also led to the rationing of health services that you on the right like to use as criticism of a "public option." As far as Ontario is concerned, the job losses are part of the overall extreme downturn in the global demand, i.e., U.S. demand for cars and trucks. Prior to in 2006 that GM for example moved engine production from Detroit across the river to Ontario mainly because they have a single-payer health insurance system at lower cost to GM.


On Oct 19 09:34 PM derryl wrote:

> E Nuff Said:
> Good point about turning around a "hopeless" fiscal situation. <br/>
>
> In 1995 Finance Minister Paul Martin balanced Canada's federal budget
> by cutting the federal health and social transfer to the Provinces
> by $11B. Scaled up 10X to the US economy that would equal a $110B
> reduction in annual transfers from Washington to the states. Canada's
> provinces use the health and social transfer mainly to fund health
> care and education, which are provincial responsibilities under Canada's
> constitution. The provinces all squealed but responded by rebalancing
> their own budgets and cutting whatever they could from the 2 big
> ticket provincial budget items, health and education. So if there
> was 'pain' it was dispersed as widely as possible by Martin's budget
> balancing move. And now Canada leads the OECD in fiscal (and banking)
> health.
>
> In 1993 Alberta Premier Ralph Klein and Treasurer Jim Dinning attacked
> Alberta's deficit spending, that began with the oil collapse and
> depression (in Alberta) of 1982. They required ALL gov't departments
> to find 5% cuts, which actually happened. Alberta had a 25 year plan
> to pay off its net debt, but after oil began rising in 1998 and natural
> gas took off the debt was paid out in full 10 years early. Alberta
> now has no net debt (some debts are longer term and can't actually
> be paid out until they come due, but Alberta has set money aside
> to pay these). This year due to the collapse in natural gas, Alberta's
> major royalty cash cow, Alberta is running an $8B deficit. But over
> the past few fat years the province has saved $17B in a sustainability
> fund, so no new borrowing will be required to fund the deficit. Gas
> royalties are still low but tarsands construction is starting up
> again so Alberta should endure the present recession quite well.
>
>
> Most other Cdn provinces have been behaving as fiscally responsibly
> as Alberta (and some are doing even better which is why political
> change is in the Alberta air), with the exception of Canada's biggest
> province--Ontario. Ontario's socialist premier is determined to 'go
> green'. Admittedly, Ontario has suffered fully 1/2 of all Cdn manufacturing
> job losses as steel and autos are way down, but if you want to see
> what Obama's greenonomics might do to America just have a look at
> Ontario.