Friday, September 30, 2016

Canada Is Worse Than The U.S.?
A Sovereign Debt Crisis Maybe More Probable
Martin Armstrong explains the structure & politics in Canada between the federal, provincial, & municipal governments .. "Canadian municipalities are effectively only agents of provincial governments, and in the United States, they too are stand alone entities. Therefore, in Canada, we have a hierarchical budget and debt constraints that combine to restrict the revenues of municipalities .. The risks in a sovereign debt crisis are actually higher in Canada than the United States. The Canadian structure means it is one for all and all for one, whereas in the United States there will be a disparity between states as some will survive better than others. A Detroit bankruptcy is not possible in Canada, whereas in the United States everyone stands alone and a collapse of one does not take down the whole. So a collapse in Illinois will not take down North Carolina."
LINK HERE to the commentary

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