Quote:
Originally Posted by Slava
Well that is the dirty little secret about this. No one is actually talking about paying it back, and it won't actually happen. The US for example isn't actually going to pay about $19 Trillion in debt back. Canada isn't paying however many hundreds of billions back. We'll reduce it when the servicing costs get too high and eat into the ability to borrow, and maybe reduce it some when that kind of thing happens, but that's it. Imagine the outcry if one government actually cut enough to pay say $500 billion over 5 years? We can't even just keep it level for five years straight, so reduction is a pure pipe dream!
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For a while, Canada was running surpluses and actually reducing the debt burden. In the 90s, the US was also running surpluses. It is possible.
And if it were to continue for a period of time (yeah I know, lol right?), real debt reduction could occur.
But with Mr Trudeau in power, we can put those discussions away for a while. He, like his daddy, believes deficits are a good thing.