Harper made the observation during an online three-day conference hosted by the finance firm Cambridge House International Inc. « That’s completely different than what we were trying to do in 2008–2009 I should add, much more dangerous in the long term,» said Harper. During Harper’s first term as prime minister, his government managed to weather the storm through the financial crisis in 2008. « We will leave this recession, the world, with a debt overhang that dwarfs what we saw in 2008, 2009. And what we saw after 2008, 2009 was after a financial crisis, recession and somewhat of a recovery was then a series of sovereign debt crises in several countries, in Greece, Italy, Portugal and Ireland,» said Harper.
«This time the debt overhangs by governments as well as businesses and households are much larger. It is absolutely the case that we will have all kinds of solvency crises around the world and we will have significant sovereign debt crises in the near years to come, very soon». Harper is not the only economist and global leader warning about impending financial turbulence. Recently, Canada’s federal debt surpassed $1 trillion due to the Liberal government’s large coronavirus spending measures.
Meanwhile, a recent report by the Fraser Institute predicted that Canada’s combined federal and provincial debt will surpass $2 trillion in 2021.
Source: True North Wire
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