Mr. Speaker, yesterday the Minister of Finance told Canadians that the federal government will not be borrowing any new money in the markets and the process of restoring policy sovereignty to Canada has begun.
He failed to remind Canadians that the roll-over of the still massive existing public debt will require foreign investor participation. Neither did he recognize that Canadian investors will tend to use the same benchmarks as investors do in any sophisticated market to judge the risk and return on Canadian instruments relative to other markets. If these investors perceive that Canada's fiscal consolidation is missing the mark, they may well opt for foreign instruments, leading to higher borrowing costs in Canada.
The Minister of Finance has used illusion and carefully chosen words to bamboozle Canadians into thinking that Canada's debt is in great shape. It is not.