Auditor General Blows lid of Budgetting Process - but it's the 1993 Aud-Gen report

MOST IMPORTANT Fiscal (ie Gov't Budget) LINK YOU"LL EVER FOLLOW
Para 5.41 from 1993 Aud Gen Report

which is incorpoarted into the note below too

The Fiscal Monitor - January 2011
http://www.fin.gc.ca/fiscmon-revfin/2011-01-eng.asp

Hooray!

 

Interest-bearing debt now only $791.757 Billion

at 33million population that's just 23,992.63 each!

---if we each pay an extra $1000/yr for 25 yrs it's done!!

 

**(although only 1/2 that number are taxfilers)

so I guess it's more than $2000 each

 

**(although ~40% of taxfilers don't pay any tax)

so I guess it's closer to $3,000 each taxPAYER for 25 yrs ..... I hope I live that long

 

PS probably about an additional 40-60% of that $3,000 sum to similarly-handle the Provincial equivalent debt-loads.

 

 

Wait a second...... $4,200 to $4,800 EXTRA per year for 25yrs!!!!

 

Who's kidding who here .... that's NOT gonna happen!

 (correct!  pls see Q4 c) below)

 

 

What exactly was it we "bought on credit" that we got in exchange for that debt?

ie what types of "investment/consumption" spending comprises the debt?

i) recent bailouts- say $100-150 Billion

ii) old borrowings to cover deficits from 1960-70-80's maybe about $1-10 Billion

(in 1991-2 it was only $37 billion Para 5.41 from 1993 Aud Gen Report and we've run many surpluses since then)

iii) interest on interest -- the balance ---~$792bn less 150bn less 10bn = $632billion

 

OH MY!!! that's a lot of money ..... for nothing. or nothing tangible ... we cannot say we bought a fleet of ships or built all these cities or waterways or something ...can we?

 

NB -- Don't forget the non-financial assets (also on table 6) of $63.6 bn and the Financial Assets of $291.8 bn .... (unless the Financial Assets are just double entry Accounting)

 

So lets subtract theb ~$632 bn less $63.6 bn  less $291.8 bn = $276.6 bn for absolutely sure with nothing to show for it?

 

Q1 - How is it financed?

 

Q2 - What rates are being paid?

 

Q3 - Why do the Federal Pension Funds get paid such a premium? 6.7% in 2010 , 7.1% in 2009 see 2nd-last para on pg 6.18 -Volume 1 of 2010 Public Accounts

 

 

Q4 -What is the debt retirement plan for that sum?

-a) sinking fund over 15-25yrs?

-b) amortized bonds?

-c) devalue the currency so that the debt-sum looks smaller as a % of revenue and GDP?

 

Unspoken official answer c)