[Here is another $2.0 BILLION Ontario Liberal Scandal]
” a form of fraud in which belief in the success of a nonexistent enterprise is fostered by the payment of quick returns to the first investors from money invested by later investors.”
According to Katia Dmitrieva and Cecile Gutscher,of the Bloomberg News Ontario is now a world leader. For the record, the Lieberal government in Ontario has now issued bonds (debt) amounting to over $307 BILLION.
With about 13.7 million residents, Ontario is about one third of California’s; its debt load is more than double that of the biggest U.S. state.
The massive debt keeps on growing in alarming leaps and bounds as the present government shows absolutely no sign of abstaining from discretionary spending. Rather than face angry voters who would certainly react to tax increases to pay things that are not needed, the Lieberals discovered a brand new tool. They simply defer and delay the bad news by sweeping the fresh spending indiscretions under the carpet by way of issuing bonds. It all seems invisible to Ontario residents who blithely accept the wonderful things being accomplished.
Those wonderful things have most recently included (In the last nine years,) 75 major projects using the method, including the Union-Pearson Express train linking Toronto’s largest airport to the downtown financial corridor of Bay Street and the PanAm games.
Ontario treasurer, Sousa is quoted as saying he has no plans to ease up on his mad spending spree despite the fact that bond rating agencies have now downgraded Ontario’s credit rating in recognition of the Ontario government’s careless handling of money and unwillingness to curb spending.
A review of present (future payments) for the $307 BILLION in bonds issued by the Ontario government (Ontario Financing Authority) is astounding. The bonds are usually issued at a discount rate which can be a bit deceptive. Typically the Ontario government bonds listed on the site are sold at a discount rate meaning that the lender can accumulate a $1,000 bond by lending less than the face value to the province. The bonds are mainly 10 year term bonds that carried rates ranging around 2.0% per annum. (thus 20% over the full ten year term). That rate has now just been increased as a result of bad credit reports form bond rating agencies.
Have some fun with your calculator and work the numbers on Ontario’s $307 Billion bond (debt) load and the results will astound. My quick calculation turned up over $61.4 BILLION plus another $110 million in forfeited discounts or about $61.5 BILLION in service charges on the debt.
If you decide to estimate the amount of debt incurred by the Ontario Lieberals on behalf of each resident, the debt is over $22,000.00 per person. We all know that the cost of repaying debt is not evenly distributed and falls entirely onto the shoulder of those working.
However, a more immediate result is this hidden little bit of Lieberal deceit. Since the Lieberals are masters of deceit they will not pass along the debt service charges by way of tax increases. That would let the cat out of the bag. But, none-the-less there is that elephant in the room in the form of $61.5 BILLION in debt charges over the ten year period. The Lieberals have opted to simply hide the annual expense ($61.5 Billion divided by ten years) of $6.15 BILLION by subtraction.
The process is simple. You subtract from needy areas (health care, education, social assistance) and therefore sweep more problems under the rug.
It is three years too late to put a stop to the $2.5 BILLION wasted on the Pan Am fiasco. Unfortunately, that $2.5 BILLION is now already in the debt totals. But here is another $1.5 BILLION discretionary Ontario government expenditure that can and should be stopped in its tracks.
The Wynne government has announced that it is prepared to fully fund a Light Rail Transit (LRT)installation in Peel. The Lieberals envisage this new rail link as running northward from Lake Ontario at Mississauga, along Highway 10 and into Brampton.
Statistics indicate that there is likely to be ridership much lower than would justify the scheme. Moreover, there is a huge geographic problem. The planned route would pass through three major road junctions (Highways 401, 427 and 407) that see very large amounts tractor/trailer traffic. A rail line inserted down the middle of a major truck route (Highway 10) shows a complete lack of common sense.
Municipal approval of the project is presently held up at Brampton City Council where two factions are only arguing about a desired route through Brampton. It seems to me that the real debate should be about IF this LRT is of such importance that another $1.5 BILLION in Ontario debt is worth it.
It is absolutely silly for residential tax payers to even think that since the cost is not directly on their property tax bills that it means it will cost them nothing.
Copyright Thunderbird Rising 2015
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