More deficit talk

      Canada     75.40     2009 est.

      United States     52.90     2009 est.

  Canada has a higher public debt per gdp than the united states. Like the us, their biggest foreign creditors are also China and Japan. They still run budget deficits for just about every year except for the years leading up to the commodities boom. But the us cant produce and export iron and copper ore like the Canadians can. They only have 20 million people and a much larger land mass.

When the commodities boom came to a crash, the Canadian government began running budget deficits again to fuel economic growth.


2007-08     $457,637
2008-09     $463,710
2009-10     $519,100
2010-11 (projected)     $522,337
2011-12 (projected)     $535,237
2012-13 (projected)     $542,537


  Canadian budgets deficits continue to expand and are expected to expand for quite a period of time. They have little to no choice. The only reason Canadians were not running budget deficits to increase liquidity was because the united states and its massive commodities imports was creating the liquidity and budget deficits for them, along with other resource importers.

Canadian Trade Surplus with US Falls
Canada’s Job Losses Result from Higher Loonie and Weaker USA Economy

Jul 3, 2008 Daniel Workman

While Canada is rich in natural resources like oil, nickel and lumber, a slowdown in the USA can only lessen international demand for Canadian products and commodities.

Analysts who understate the effects of an American recession on Canada should consider the following international trade fact of life: the United States of America is the largest consumer of Canadian products, buying over 80% of total exports shipped from Canada.


Read more at Suite101: Canadian Trade Surplus with US Falls: Canada’s Job Losses Result from Higher Loonie and Weaker USA Economy http://www.suite101.com/content/canadian-trade-surplus-with-us-falls-a59244#ixzz14TBOk800

 

 

 Nothing wrong with budget deficits, but its clear that budget deficits are for the most part a necessary way of life. For more money to be available in the global economy, someone in the world needs to print it.