BUYER BEWARE: Mark Carney Pitches a Canada “Wealth” Fund - Funded With Government Debt - What Could Possibly Go Wrong? - EnergyNow
BUYER BEWARE: Mark Carney Pitches a Canada “Wealth” Fund - Funded With Government Debt - What Could Possibly Go Wrong? - EnergyNow
Source: EnergyNow
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DW NOTE
Carney proposes capitalizing a sovereign wealth fund with borrowed money — which means Canadians would service debt to finance equity bets made by a committee. Norway funds its wealth fund with actual resource surpluses. Canada would fund it by issuing bonds, then hope the returns exceed the coupon. That's not a wealth fund, it's leveraged speculation with a pension-like governance structure.