Ottawa risks erasing decade of debt reduction
Wednesday, January 21st, 2009
Steven Chase, Globe and Mail
January 21, 2009
OTTAWA — Canada’s new parliamentary budget watchdog has grim news for Ottawa’s financial future.
New projects projections Kevin Page released today show that over the next half decade, the federal government is at risk of racking up as much new debt as it had paid off over the past 11 years — effectively wiping out what Ottawa has achieved since 1998.
The parliamentary budget officer warns the federal government is heading into deep deficit over the next five years and will rack up at least $46-billion of new debt — and possibly as much as $105-billion — over this period.
By comparison, Ottawa has paid down about $105-billion in federal debt since 1998.
What’s more, Mr. Page’s forecasts don’t take into account the massive additional spending in next week’s stimulus budget. The Harper government has said it’s planning a $20-billion to $30-billion stimulus package. That money isn’t factored into Mr. Page’s estimates because it’s not clear yet exactly how much the Tories will spend or over what period.
2009 heralds the start of a “new age of rebellion” according to an editorial in the highly influential London Times newspaper, and the year in which masses of people will take to the streets to riot in response to drastically falling standards of living.
While Barack Obama was being sworn in to office on Capitol Hill yesterday, the people of Iceland were starting the first revolution in the history of the republic. The word “revolution” might sound a bit of an overstatement, but given the calm temperament that usually prevails in Icelandic politics, the unfolding events represent, at the very least, a revolution in political activism.
WASHINGTON — U.S. Treasury Secretary-designate Tim Geithner said Wednesday he was careless in failing to pay $34,000 (U.S.) in Social Security and Medicare taxes earlier this decade and apologized to Congress.
JERUSALEM – Israel withdrew the last of its troops from the Gaza Strip before dawn Wednesday, the military said, and pursued diplomatic efforts to stanch the flow of arms into the Hamas-ruled territory.
The US president, Barack Obama, has ordered a suspension of the controversial Guantánamo Bay military tribunals in one of his first actions after being sworn in, yesterday.
Israel has admitted – after mounting pressure – that its troops may have used white phosphorus shells in contravention of international law, during its three-week offensive in the Gaza Strip.