Why isn’t Ontario declaring BANKRUPTCY?…………….updated:

Posted: August 3, 2012 in Uncategorized

$16,000,000,000.00 (16 billion) in the hole this year and counting! That’s the amount California is in debt and is the reason that today we hear a third California town is declaring bankruptcy.

It’s also the amount Ontario is in debt this year and even though we have had two credit downgrades in less than a year, nothing seems to be “on the radar” to address this humongous debt load that McGuinty has saddled the hard working tax payers of Ontario with.

Total debt for Ontario is over $260,000,000,000.00 (that’s billions) with every Ontarian now on the hook for over $20,000.00 each!

Scandals daily are the norm right now, specially within the Health Care system where apparently anyone who holds an executive position can write their own cheques for expenses without any oversight.

The numbers that should raise a “red flag” here regarding our ability in Ontario to bring down this deficit is the population numbers of both Ontario and California. Ontario has just over 14 million citizens while California has over 38 million!

If 38 million people can’t pay down the deficit, how in the “name of goodness” can only 14 million people afford this amount of debt to continue?

Desperate times call for desperate measures………..unfortunately in McGuinty’s World , every thing is beautiful………..don’t worry, be happy!

What a recipe for DISASTER!

Ontario economy could be worse than California’s

By Andy RadiaPolitics Reporter

By Andy Radia | Canada Politics – Sun, 5 Aug, 2012

It seems every day there’s a new report about California’s financial woes.

Governor Jerry Brown is proposing  a multi-billion dollar tax increase to deal with that state’s debt problem and in recent weeks three cities have filed for bankruptcy protection. While California’s economy grabs the world headlines, the grim reality for us in Canada is that Ontario’s financial situation is just as, if not more, dire.

As chronicled in a recent report by citizens’ group Fair Pensions for All, California trumps Ontario with lower debt-to-GDP ratio — the ratio used to measure a country’s ability to repay debt. California’s debt-to-GDP is 19 per cent whereas Ontario’s is a whopping 35 per cent. California also boasts a much lower per capita debt: each Ontario resident owes $18,651 while Golden State residents owe just over $10,000.

This isn’t the first time Ontario has been compared to the world’s most struggling First World economies.

In a report released earlier this year, former TD Bank chief economist Don Drummond made 362 recommendations to the Ontario government to balance the books by 2017-18. Drummond cautioned against dawdling, noting that while Ontario’s debt situation is nowhere near that of Greece, it could eventually compare, if steep spending cuts and reforms aren’t made by Premier Dalton McGuinty’s government.

“You can’t really pick up a newspaper without reading about Greece and Spain and Italy . . . although keep in mind that Ontario’s debt-to-GDP ratio is 35 per cent and Greece’s was 35 per cent in 1984,” Drummond said according to the Toronto Star.

The respected economist pointed out that government debt burdens can rise quickly if they are not “headed off early with appropriate action.” Drummond cited Spain’s net debt, which doubled to 56 per cent of GDP between 2007 and 2011; Portugal’s, which doubled to 103 per cent since 2003; and Britain’s, which went from 35 per cent — the same as Ontario — to 73 per cent since 2004.

READ MORE HERE:

McGuinty Liberals not acting on crushing deficit: Report

August 3rd, 2012  REBECCA THOMPSON | QMI AGENCY

DEBT SHOWDOWN - McGuinty Liberals not acting on crushing deficit: Report

ONTARIO PREMIER DALTON MCGUINTY Credits: REUTERS/KENNETH ARMSTRONG

TORONTO – A new report that compares Ontario’s crushing deficit to California’s paints a bleak picture for the economic future of the province.

Both jurisdictions face deficits of about $16 billion, but when you compare population and economic output, Ontario’s fiscal mess is worse, says the report by Fair Pensions for All, a citizens’ group that studied the issue.

Ontario has approximately a third of California’s population of nearly 38 million people and a third ($638 million) of its GDP, and that means the per capita debt is far higher: $16,638 per Ontarian versus $10,463 for Golden State residents.

California’s problems have been grabbing headlines, including this week when the city of San Bernardino filed for bankruptcy.

But the state government is at least moving to control spending and tackle the deficit while Ontario is pretending that nothing is wrong, said Bill Tufts, executive director of Fair Pensions for All.

“Basically, in our opinion, not near enough has been done to deal with the realities that are out there,” he said.

Dalton's Ontario

READ MORE HERE ALONG WITH VIDEO:

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Comments
  1. lucifer says:

    someone impeach mcstinky or people will riot

  2. Told You So says:

    I love it. I blog about fiscal responsibility and I get put on a watch list and investigated / harassed until I lose my job. Only in Ontario could promoting financial responsibility be considered an illegal activity. Seriously funny guys.

    Hey BTW – when the province goes bankrupt you will probably be the first department to face massive budget cuts. Additionally, based on the current financial situation in the province I predict you will be dealing with a frozen pension fund in the near future. But hey – don’t shoot the messenger right?

    GLHF

    • Tom Blacksmith says:

      Frozen pension funds?
      The feds already skimmed the EI fund a few years back to the tune of something like $54B.

      They would never skim off the CPP now would they? We’ve already trusted them to throw our retirement (and little bit of socialist handout) into the casino. So yes, in 20 years or so it’ll be gone.

      Same shit goes for corporate sponsored pension funds. If it ain’t in a vault somewhere with round the clock goons guarding it, it will eventually disappear. It’s the nature of the beast in a lawless and corrupt system.

      The little guy is f__cked!

  3. Don Quixote says:

    And what do these and other jurisdictions who have similar debt levels all have in common?
    They all dove into the deep end of the “Green” cesspool.

    • Tom Blacksmith says:

      Yup. Almost makes you wonder if the “gang green” ain’t set out to bankrupt the nations on purpose. As M. Strong apparently said, “isn’t the only hope for humanity that industrialized nations collapse…isn’t it our responsibility to bring this about”?

      Funny how our energy policy seems to facilitate this, huh? Not to mention the cap ‘n trade and carbon tax horseshit.

      I wonder of Dalton realizes he’s facilitating the collapse of our economies and taking this province toward insolvency?

  4. Tom Blacksmith says:

    Actually, $16B is the deficit, which is the difference between GDP and spending.

    Ontario’s debt is around $240B, yes, $240,000,000,000…almost 1/4 of a Trillion dollars. That’s what’s been racked up, I think almost half by McGuinty, on the good old Ontario Express card. This government can barely afford the minimum payments.

    Maybe McGuinty is a big Arnold fan?

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