Over at Mises Canada I explore the following unfortunate facts concerning Canadian debt:
Household debt to GDP in Canada is around 95%, higher than at any time in recent history. In fact, this statistic is up nearly 20% since the global credit freeze of 2008. Government debt is not doing much better. It too is higher than it has been for 14 years, and its current level of 85% of GDP is an increase of almost 30% since 2008.
Sound troubling? The reason should be too. Since 2008 Canadian real interest rates have been negative, including a brief foray as low as -2% in early 2011. Increased indebtedness is what happens when a central bank essentially sets interest rates so low that you are being paid to borrow money.
Read more here…