1/ The emergency aid package announced by the federal government yesterday contains mostly targeted and temporary measures to help affected households and businesses cope with the coronavirus crisis.
I believe these measures are unavoidable and I will not criticize them.
2/ The government has for now at least mostly avoided the typical Keynesian stimulus measures to encourage everyone to borrow and spend more.
Not only are these totally inefficient as a rule, they would be utter folly in the current situation.
3/ We should be under no illusion that this plan will be extremely costly and will make us all poorer in the longer term.
But it may be the price to pay to deal with an exceptional situation and provide a safety net to all those who find themselves in a dire situation.
4/ Trudeau said however that “we have the fiscal room to do this because of prudent decision-making over the past five years.” This is complete BS.
This government massively increased spending and unnecessarily accumulated more debt during its first mandate.
5/ We could easily have been in a surplus situation for years and be much better prepared financially to deal with this situation if the Liberals had really been prudent.
On the contrary, they spent recklessly and Canadians will suffer more because of it.
6/ The situation was also made worse by the Keynesian monetary policies of all major central banks over the past decades.
With their artificially low interest rates, they encouraged households, corporations and governments to borrow imprudently and become overly indebted.
7/ Another financial crash was inevitable even without the coronavirus.
The current monetary system, based on fiat money that banks can create without any limit, is bankrupt.
We will have to return to some kind of gold standard to bring back economic stability.
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