Ontario’s $300 billion in debt explained

The numbers are jaw-dropping — and they keep getting worse.

In a recent report, Financial Accountability Officer Stephen LeClair said Ontario’s net debt will reach $350 billion by 2020-21. He warned this province’s debt burden is one of the highest among Canada’s provincial governments and an interest rate hike could put its credit and “fiscal flexibility” at risk.

This province has the largest sub-national debt of any jurisdiction in the developed world.

  • Ron MacDonald
  • dance…dancetotheradio

    I pray for an interest rate hike.
    People buying five hundred thousand dollar houses on fifty thousand dollar salaries need a wake up.

    • It’s madness.

    • Clink9

      Didn’t work out too well in the US.

      • dance…dancetotheradio

        We are well past that point.
        It’s just a matter of time.
        The CMHC has guaranteed mortgages in excess of the national debt and they have five percent reserves to back it up.
        To which I say bullshit because no company or corporation just leaves forty billion sitting in a vault these days.

    • canminuteman

      When we bought our house we did all our calculations based on an 8 percent interest rate. We went to the bank and told them how much we wanted to borrow. They were prepared to lend us about three times what we wanted. We thought they were nuts. Now twelve years later we will be mortgage free in another 4 easy payments.

      • LauraS

        We did the exact same thing. Mortgage free in about the same time, too.

        Never understood those who take out big mortgages, and then get a line of credit for “necessary” renovations. I guess they don’t have to worry about job loss, illness, interest rate hikes, etc.

        Enjoy living mortgage free! 🙂

  • DMB

    In the end it won’t be any political party, journalist or the police who will stop the Liberals and their reckless spending but the bond rating agencies who will once the interest on the debt becomes unsustainable.

    • mauser 98

      1 or 2% hike and the music stops…make sure you have a chair
      think local .. province , feds want to kill us

      Wynne / Justine will blame Mike Harris

    • canminuteman

      That’s basically what happened when Chretien was PM and Martin his finance minister IIRC,

  • ontario john

    Feminist Trudeau will support her in the next election, and she will get elected again. Because everyone loves Trudeau.

  • simus1

    Two word explanation:
    “Enthusiastic Looting”

  • terrence22

    Most politicians, if any, do NOT understand the relationship between millions and billions (and most other topics). Here is a summary:

    1,000 (thousand) approximately equals 17 minutes

    1,000,000 (million) approximately equals 11.5 days

    1,000,000,000 (billion) approximately equals 32 years

    1,000,000,000 (trillion) approximately equals 32,000 years

    • Alain

      They aren’t the least bit interested in understanding such reality. That is the problem.

      • Clausewitz

        “Where’s that can? Time to give it another kick down the road”. And that is what passes for Liberal economic policy.

  • Jaedo Drax

    One billion dollars in
    new crisp one hundred dollar bills would occupy about 400 cubic feet and
    would fill a space 5 feet high, 8 feet wide and 10 feet long.

    now just multiply that by 300.