The Loonie Hour Canada's Fiscal Bazooka Will Triple Budget Deficits
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Oct 3, 2025 Toronto's development has hit a standstill, with alarming predictions of $360 billion in cumulative deficits over the next four years. The Parliamentary Budget Officer warns that rising debt and interest costs could explode financial forecasts. There's a debate brewing over Alberta's controversial pipeline proposal amidst strict governmental regulations. Meanwhile, the UK's digital ID faces strong public backlash due to concerns over surveillance and state control. As AI drives energy demand to unprecedented levels, discussions around civil liberties and fiscal stability grow ever more urgent.
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New-Home Market Has Stopped
- New-home development in Toronto and Vancouver has collapsed, with new condo pre-sales down roughly 90% year-to-date in the GTA.
- Developers hold record unsold inventory and cannot feasibly launch new projects until prices and costs correct.
Lower Fees To Restart Construction
- Reduce development charges, government fees, and material/trade costs to meaningfully lower new-home prices.
- Policymakers should rebalance fees while protecting infrastructure spending to revive construction activity.
PBO Flags Unsustainable Fiscal Path
- The Parliamentary Budget Officer warned Canada's fiscal path is unsustainable under benign economic assumptions.
- If growth weakens or unemployment rises, deficits and interest costs will explode beyond current estimates.
