The outlook of the Canadian economy right is actually frightening. What does the future entail?
I’m not a huge fan of most major news networks, but this one was worth sharing LOL.
It’s a boring economic piece, but one I think we all as Canadians need to be aware of.
As Asselin notes in the article, “It’s not easy to find, but on page 142 of the federal government’s fiscal and economic update, in a little shadowed box, there’s a number that will have a big impact on Canadians for generations to come: ‘Accumulated deficit: $1,423 billion (55.5 per cent of GDP).'”
That is Canada’s estimated debt in 2024!!!
What does this mean for the Canadian economy and where are we headed from here?
Now, I’m not here to write about whether it is right or wrong that the government should have spent like this.
Put people out of work because of a pandemic, then you need to pay them with them with things like CERB. Right or wrong? I don’t know and I’m not a politician, so I don’t need to make that call.
But what does that mean for us as Canadians, striving to become Cashflownaires and living in the Position of FU?
Well, as Asselin notes in the article, “we are reminded constantly not to worry about the burgeoning debt, because the federal government has a lot of fiscal power and real interest rates are low — and will remain there for the foreseeable future.”
Yup, the average Canadian won’t worry. They’ll go about their day as if nothing happened.
They’ll go to work, collect a pay cheque, spend it frivolously, and hope to retire by the age of 65.
In the meantime, they will see cost of living rise, their wages stay stagnant, their debts continuing to rise, and the idea of retirement getting further and further away, with no assets to show for.
Why, because the fiscal power that the government is talking about is really just money printing. And what does money printing do? It decreases the value of the dollar and increases the amount of dollars demanded by an asset or commodity.
Government debt = money printing and continued low interest rates
Money printing & low interest rates = asset & commodity inflation
Asset & commodity inflation = unaffordability for the AVERAGE Canadian
It’s that simple.
But for us Cashflownaires, this is a huge opportunity.
We can use these next 5-10 years acquiring assets while they are still somewhat attainable. Because we demand cashflow from every asset we acquire, we can use it to pay off debt and replace our income.
We won’t have to rely on our employer like the rest of the average Canadians.
Instead, we depend on our income-producing assets.
We’re not happy with these debts the government is bringing on stream.
But we can also use that information to set ourselves and our families up for success and financial freedom in the future.
Hopefully, you can take this information and do something about it.
Hopefully, you find this information helpful.
Vince & Mike
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