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
―
DW NOTE
Mark Carney wants Ottawa to borrow money to create a sovereign wealth fund. Actual sovereign wealth funds are capitalised with fiscal surpluses — Norway's from oil revenue, Singapore's from persistent budget discipline. Canada ran a C$40 billion deficit last year. Carney is proposing to borrow at 4%+ to invest in assets that may or may not return more, then calling the vehicle a wealth fund rather than what it is: leveraged state speculation with taxpayer liability.