Wednesday, October 29, 2008

Harpernomics for Socialists #8 - Will the Reality Party of Canada Run a Deficit?

A lot of pundits are whining that I misled them during the election when I said that regardless of the ongoing global economic crisis, I would not allow Canada's finances to slip into deficit. Waaaaaaahhhh!

Look I never really said that in so many words, and Flaherty has been at pains to tone down the rhetoric and suggest that we will use all tools at our disposal.

Look dear friends, last night I got out Mackenzie King's real crystal ball, and called up the old fellow. We got into a heated argument, which I ended up winning. He said, "Even Bennett agrees with me. You've got to balance the budget above all".

I said, "Look Mackenzie, it's clear the US and certain global basket cases are slipping into deflation, and if Carney finds we're trending into the same ditch, there's always the good old printing press. I mean, we're all post-Keynsians now."

King gave me a look of sheer disbelief, shook his head and grunted, then quickly faded out.