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 wants Ottawa to borrow money to create an investment fund that will — if we're reading this correctly — invest borrowed money to generate returns that could have been earned without the borrowing. A sovereign wealth fund makes sense when you have actual wealth to manage, like Norway's oil surplus. Canada has a $1.4 trillion cumulative deficit and rising debt service costs with the Fed funds rate at 3.75%-4.00%. This isn't wealth management, it's leverage cosplaying as statecraft.