An interesting tidbit from Dear Leader yesterday.
"Without key countries taking systemically appropriate and co-ordinated economic measures, without resistance to protectionism and acceptance of more flexible exchange rates, without fiscal consolidation [and] without a commitment by governments to cut rising deficits and reduce what are, in some cases, dangerous levels of national indebtedness - without things such as these, we will not avoid a recession"
This makes me feel a lot better. We should expect the exact opposite. After all, this is what the "trained economist" and his finance minister were saying before the last recession:
September 15, 2008: "My own belief is if we were going to have some kind of big crash or recession, we probably would have had it by now." - Prime Minister Stephen Harper
October 7, 2008: "I think there are probably some great buying opportunities emerging in the stock market as a consequence of all this panic."
October 8, 2008: "We're sure not going to run a deficit... We will maintain a surplus in Canada and we will continue to pay down debt. We are a relative rock of stability." - Jim Flaherty
October 19, 2008: "We're on track for a modest surplus in this fiscal year" - Jim Flaherty
Asked whether he would unequivocally rule out a deficit under his government: "Yes. Yesterday I think I was asked one question about whether we would run a deficit and I said, 'No.' That's my answer."
Oct. 11: "The fact of the matter is independent analysts, including the International Monetary Fund, say that Canada is not going to go into recession with the current world environment and its current set of domestic policies. We're the one country that’s going to continue to show some growth."
So, the question becomes, are they lying to us, or just incompetent? Or maybe both…