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Gridlock · 04-24-2013, 12:35 PM

Dude. Forgive me...but what the hell are you talking about?

Lessons from US and Europe. Here provincially. In a post I made about debt. Adding it together, I think its safe to say that I was talking about not racking up huge amounts of debt to pay for shit!

That most certainly is a lesson that we can learn from anyone in the world, or any point in history.

Let's actually talk debt and deficit here and how numbers add up where. I'm going to equate this to household spending.

If your government is running a deficit, its effectively buying groceries on the credit card(in this case, bonds). You eat them, and they are gone. Annually, that deficit gets added to the debt load, but you can still operate in a balanced, or surplus position and add to the debt, through one time purchases, mostly for capital improvements. So, its like taking on a car loan.

So, I'm not always against taking on debt in times of low interest rates because you can buy things that hopefully in turn produce income(roads, ports, bridges), and even occasionally a little nice thing for the people...the big screen tv(BC Place Roof). You finance that off through bond repayment.

But I am ALWAYS against deficit spending, except in times of severe recession. So I understand that both provincially and federally, we can't keep the programs in place, stay in the black budget wise and do it all on diminished tax income. Get it. In good times, in theory those surpluses can go towards debt repayment.****But my problem is, people are now saying that we don't care about any of that. Gimme gimme gimme...and if you tell me a nice story about how we're going to tax all those nasty rich people to pay for it, we're good! That's like getting a card in the mail that the credit card has a low introductory rate. In our case..it does. It's going to go up. We know that.

I personally would like to stop that process now. I don't want to get to the point where we switch to borrowing to pay for what we borrowed(pay day loans) and get fucked. THAT will hold the province back.

So I'm asking that we stop lying to people and telling them its all ok. It's not. Putting groceries on the credit card is a sign your life is too expensive. Putting social programs on the provincial debt is a sign that you are equally in trouble.

So I ask everyone, using the household terms above, if a friend said any of the above, what would you say? Because I know what I would say, "Yay, its great that you lost your job, and putting groceries on the credit card and your back up plan is to resort to payday loans. Maybe you should be out looking for a new job though. "

****Canada under the fed liberals did a magnificent job of this. Once again, you can sit and always say that they could put more into social programs or whatever, but they ran a surplus budget, and applied a portion back to the federal debt, which was one of the few countries that actually had a decreasing debt. This means when you hit a big ass recession, you can add a bit back to the debt and not be fucking yourself, because you had paid down that debt for the 10 good years previous.

04-24-2013, 12:35 PM	#197
Gridlock Banned By Establishment Join Date: Dec 2003 Location: New West Posts: 3,997 Thanked 2,982 Times in 1,135 Posts Failed 284 Times in 109 Posts	Dude. Forgive me...but what the hell are you talking about? Lessons from US and Europe. Here provincially. In a post I made about debt. Adding it together, I think its safe to say that I was talking about not racking up huge amounts of debt to pay for shit! That most certainly is a lesson that we can learn from anyone in the world, or any point in history. Let's actually talk debt and deficit here and how numbers add up where. I'm going to equate this to household spending. If your government is running a deficit, its effectively buying groceries on the credit card(in this case, bonds). You eat them, and they are gone. Annually, that deficit gets added to the debt load, but you can still operate in a balanced, or surplus position and add to the debt, through one time purchases, mostly for capital improvements. So, its like taking on a car loan. So, I'm not always against taking on debt in times of low interest rates because you can buy things that hopefully in turn produce income(roads, ports, bridges), and even occasionally a little nice thing for the people...the big screen tv(BC Place Roof). You finance that off through bond repayment. But I am ALWAYS against deficit spending, except in times of severe recession. So I understand that both provincially and federally, we can't keep the programs in place, stay in the black budget wise and do it all on diminished tax income. Get it. In good times, in theory those surpluses can go towards debt repayment.**But my problem is, people are now saying that we don't care about any of that. Gimme gimme gimme...and if you tell me a nice story about how we're going to tax all those nasty rich people to pay for it, we're good! That's like getting a card in the mail that the credit card has a low introductory rate. In our case..it does. It's going to go up. We know that. I personally would like to stop that process now. I don't want to get to the point where we switch to borrowing to pay for what we borrowed(pay day loans) and get fucked. THAT will hold the province back. So I'm asking that we stop lying to people and telling them its all ok. It's not. Putting groceries on the credit card is a sign your life is too expensive. Putting social programs on the provincial debt is a sign that you are equally in trouble. So I ask everyone, using the household terms above, if a friend said any of the above, what would you say? Because I know what I would say, "Yay, its great that you lost your job, and putting groceries on the credit card and your back up plan is to resort to payday loans. Maybe you should be out looking for a new job though. " **Canada under the fed liberals did a magnificent job of this. Once again, you can sit and always say that they could put more into social programs or whatever, but they ran a surplus budget, and applied a portion back to the federal debt, which was one of the few countries that actually had a decreasing debt. This means when you hit a big ass recession, you can add a bit back to the debt and not be fucking yourself, because you had paid down that debt for the 10 good years previous.