Ontario – The Fall Of Ontario – Rising Debt Crisis

Stefen Molyneaux takes a look at the fall of Ontario under the Liberal Party and the rise of the provincial debt.  Nobody is talking about the huge level of debt that Ontario now has.  In fact, all three major political parties are planning on increasing that debt well…forever.  Nobody has a plan to balance the provincial budget let alone pay any of that debt back.

Some examples of the debt servicing issues

  • Debt servicing is Ontario’s fourth largest cost after healthcare, education and social services
  • It consumes 88% of the $13.9 billion in annual Ontario corporate taxes
  • Interest payments are exactly half of the $24 billion education budget
  • Some of Ontario’s debt is locked in at low interest rates – but up to 40% of Ontario’s $311.7 billion debt will come due during the next governmental term

and there is more. Lots more.  Why is the provincial debt not the number one issue during this election campaign?  Nooo, in fact everyone wants to add MORE debt!  More free stuff!

There is no such thing as FREE stuff.  Someone is paying for that stuff.

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2 Responses

  1. Mr Coco
    Mr Coco at | | Reply

    Its long past pitchforks and piano wire time. Long past.

  2. James Clayton
    James Clayton at | | Reply

    As you said, all three major political parties are planning on increasing that debt forever. And debt servicing is Ontario’s fourth largest cost.
    But we have to keep in mind that every dollar is “borrowed” into existence as interest-bearing debt.
    Politicians speak as if money is still something tangible that can be physically deposited or borrowed, but money in the present system is basically credit; it is generated with a few clicks of a keyboard by making digital accounting entries. Legal tender notes and coins are merely tokens of credit.
    The financial institutions basically create money by extending our collective credit to us—but all of this money is created as interest-bearing debt. That’s where the real problem begins. Total aggregate debt, including principal and interest, is always more than the entire amount of money in existence.
    Governments and banks depend on each other. The banks simply allocate some of our collective credit to government; this creates more money for politicians to spend. Governments have the option of letting their debts grow without any fear that the banks will step in and shut them down. The banks can keep providing additional money—as long as we keep paying the interest.
    Taxpayers, consumers and businesses in Canada are collectively spending billions each year in interest payments.
    To make matters worse, inflation is like a hidden tax that erodes the purchasing power of every dollar.
    The monetary system is an instrument of control that is designed to confiscate and concentrate wealth. This restricts legitimate economic activity, drives unsustainable economic growth, contributes to involuntary unemployment, and keeps us in a collective state of perpetual debt.
    Money nowadays is credit. We can take control of our credit to facilitate the exchange of our goods and services.
    I highly recommend The End of Money and the Future of Civilization by Thomas Greco. He describes the problems with the monetary system and suggests some possible solutions, including mutual credit clearing. Chapter 19 even outlines the role that governments could play in establishing economic and financial stability.

    James Clayton

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