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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Condor who wrote (56219)	11/21/2004 9:56:11 AM
From: KyrosL	Read Replies (1) \| Respond to of 74559

Canada has made great strides in reducing its debt, running hefty surpluses in the last few years. Its debt to GDP ratio is around 40%, I believe the lowest among OECD nations, and is falling rapidly. In contrast, the corresponding US ratio has passed 60% and rising rapidly. I think Claude Cormier still remembers the early 90s when Canada's debt was rising rapidly and is afraid that those times will return. But, based on the fact that Canada is one of the few countries running both budget and trade surpluses for a number of years in a row, his fears may be misplaced. Among currencies I would say the CAD beats all others hands down.

To: Condor who wrote (56219)	11/21/2004 9:58:36 AM
From: Seeker of Truth	Read Replies (1) \| Respond to of 74559

I'm sorry that I don't have the exact figures but roughly in the last few years the US public debt has grown from about 30% of the GNP to 70% of the GNP. On the contrary Canada has done the opposite. The federal debt is now around 30% of the GNP and falling. Things were really bad around 1990 when the Wall Street Journal called Canada a basket case. Bob Rae was scared out of his wits by the interest rates that Ontario would have to pay for some of his never born projects. Those days are gone; I hope forever. IMHO the success of Canada can be attributed to the energy of immigrants plus the reluctance to fight wars. Americans are more hysterical; Canadians are calmer, hence somewhat more objective, not a lot maybe. When I get some time I will google Canada's public debt and GNP and report back to you. Anyway the numbers are good. I think the poster was remembering the situation of 1990 and our newspapers rarely print good news. Why? That's a matter for psychiatrists.