Canada goes full Krugman. Finance minister jacks up borrowing and spending, confirms gold sale - Peter Diekmeyer

Jeff Fitchett: I liken Canada's fiscal position to a house of cards that is on the brink of collapsing.  Most Canadians have taken the bait, hook, line and sinker.  As long as we are told that we have the best banking system in the world, that we have the lowest national debt out of all G7 countries and that everything is wonderful; the masses will continue to follow the path without any second thought. It's sad that most people only see a tiny portion of the iceberg protruding through the surface of the water unaware of the massive mountain that lurks just under the surface.  A day of reckoning is fast approaching and most people are more concerned with Kim Kardashian's ass rather than what the future will look like when it is revealed that the emperor is wearing no clothes.  

Bill Morneau took centre stage last week in the Canadian Parliament and didn’t disappoint. The new Liberal finance minister’s first budget jacked up program spending across the board, to be paid for by borrowing and, eventually, presumably, money printing. His rhetoric was coated with suggestions that “economic growth” would solve the country’s problems. The only folks left out were taxpayers and savers.
On the face of it, Morneau’s logic makes sense. With interest rates near zero and the Canadian government’s debts among the lowest in the G-7, why not borrow a bit and invest in infrastructure? Well, there are several reasons – and all of them augur well for the future of gold.
Canadian government debt at record levels

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