Mr. Speaker, today a splash of ice cold reality was flung into the government's face with the abrupt increase in interest rates which will inevitably send a shudder through the investment and consumer communities.
The international money lenders have sent an early warning signal to the federal government by increasing interest rates and placing pressure on the Canadian dollar. The budget confidence appears to have lasted only two months.
Did the government address the issue of unemployment in this budget? No. Did the government make a realistic revenue estimate in the budget? No. Did the government build higher interest rates into its estimates of government costs next year? No.
When rates jump and the dollar falls, the federal deficit will jump and interest rates will be forced up. As a Chinese proverb says, unless we change directions we will likely end up where we are headed.