http://www.debtclock.ca/index.php?option=com_wrapper&view=wrapper&Itemid=1

Even Canada will experience a $171-billion increase in federal debt, according to the federal government’s fall 2010 update, more than offsetting the $105-billion in debt reduction achieved over a decade of fiscal surpluses. The interest costs of supporting this additional debt will add to whatever deficit emerges from our restructuring domestic economy, weaker U.S. export markets, substantial loss carry-forwards and any ongoing stimulus initiatives.

The risk going forward for Canada is complacency. At both federal and provincial levels, it will be politically appealing to postpone the concrete and durable restraint actions required to achieve an early and sustainable return to fiscal balance. The arguments will be tempting – the recovery is still modest; such actions will be publicly unpopular; we are in better fiscal shape than most of our trading partners. None justifies a tepid and short-term fiscal response by any Canadian government. http://www.theglobeandmail.com/news/opinions/opinion/the-canadian-way-to-rein-in-debt/article1862195/

When considering debt, both public and external, South Korea, Russia, Mexico, Pakistan, China, Argentina, Brazil, India and Saudi Arabia are in much better fiscal shape than Canada. I don’t know about you, but this doesn’t make me feel very confident. The only way to increase GDP and thus reduce our debt burden is by increasing our abysmal productivity through investment in education and innovation. Companies need the money to invest, ergo, they need to be taxed less. http://www.cme-mec.ca/?action=show&lid=JCKNC-E742G-1W6JA&cid=PWV11-K41XE-YWK5S&comaction=show

The Conservatives are on the right track by reducing taxes but need to do more to increase our competitiveness. With a majority in the house of commons, we’ll see if they’re up to the task.

Just saying.