Today’s letters: Join the United States? Not bloody likely

National Post | Full Comment

Re: Francis Ignores Real Canadian-U.S. Divide, Jonathan Kay, Sept. 28.

Jonathan Kay presents an excellent introduction to why most Canadians would reject the Canada/U.S. merger proposed by Diane Francis.

Ms. Francis suggests a possible American merger incentive payment to Canada of $17-trillion (coincidentally currently equal to the total U.S. debt),

payable over 20 years. But there is a big problem for Canadians with that. As a percentage of GDP, the U.S. government now projects its revenue to remain constant, and its debt interest and entitlement costs to continue rising linearly and match revenue by 2025. Adding in military, infrastructure, and education costs, the day of reckoning will arrive much sooner. The only practical option for the United States to avoid this implied inevitable bankruptcy appears to be via major debasement of its dollar, and this is consistent with the Federal Reserve already printing 85 billion new dollars a month.

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