Business
Carney shrugs off debt problem with more borrowing
Ottawa, we’ve got some problems.
The first problem is government debt is spiralling out of control because government spending is spiralling out of control. The second problem is no one within government is taking the first problem seriously.
Prime Minister Mark Carney’s first budget shows Ottawa will borrow about $80 billion this year.
Massive government borrowing means debt interest charges cost taxpayers more than $1 billion every week.
That’s enough money to build a brand-new hospital every week, but that money is going to the bond fund managers on Bay Street to pay interest on the government credit card.
Or think about it this way the next time you’re standing in the check-out line:
Every dollar you pay in federal sales tax goes to pay interest on the debt.
The government’s own non-partisan, independent budget watchdog pulled the fire alarm back in September.
“The current path we’re on in terms of federal debt as the share of the economy is unsustainable,” the Parliamentary Budget Officer said.
Here are other ways the PBO described the government’s financial situation:
Stupefying. Shocking. Something is going to break. Everybody should be concerned.
That’s how the PBO described the situation when he projected the deficit to be $10 billion lower than Carney’s deficit in Budget 2025.
How is Carney responding to Canada’s debt crunch? Instead of acting, Carney is obfuscating.
Instead of balancing the budget, Carney promises to balance the operating budget.
Carney isn’t balancing squat when he continues to borrow tens of billions of dollars every year. The closest Carney is willing to get to a balanced budget is a $57 billion deficit in 2029.
Instead of cutting the debt, Carney is changing the budget guardrails.
Even under the Trudeau government, politicians repeatedly promised to keep the debt as a share of the economy going down.
Carney used a sneaky sleight of hand in Budget 2025 to change that guardrail.
Because Carney’s debt will grow faster than Canada’s economy, he’s changing the previous guardrail of a declining debt-to-GDP ratio to a declining “deficit-to-GDP ratio.”
Carney plans to add $324 billion to the debt by 2030. For comparison, former prime minister Justin Trudeau planned to add $154 billion to the debt over those same years.
Instead of cutting spending, Carney muddies the waters with slogans of “spending less to invest more.”
The Carney government wrote Budget 2025 in a way to try to convince Canadians that it will save about $60 billion over five years.
But the government is spending billions of dollars more every year.
The government will spend $581 billion this year. That’s $38 billion more than the government spent last year. The government will spend $644 billion in 2029.
Does that look like saving money to you?
Even if you want to be as charitable as possible, nearly all the savings Carney promises to find occur in future years.
This should give taxpayers flashbacks of the Trudeau era.
Trudeau initially promised to run “modest” deficits and balance the budget in four years. But Trudeau never balanced the budget, he doubled the debt.
Trudeau promised to find $15 billion in savings. But Trudeau never cut spending, he ballooned the bureaucracy and spent billions more.
Here’s the key lesson: When the government promises to start its diet on Monday, Monday never comes.
The government debt problem is serious.
The government is now wasting more money paying interest on the debt than it sends to provinces in health-care transfers. In 2029, thirteen cents of every dollar the government takes will be used to make debt interest payments.
But instead of acting, Carney is trying to convince Canadians that everything is fine.
Instead of acting, Carney is using slogans and changing budget guardrails to paint a rosier picture of government finances.
Carney needs to change course. Shrugging off the debt won’t make things better. Only urgent action to cut spending will.
Automotive
Trump Deals Biden’s EV Dreams A Death Blow

From the Daily Caller News Foundation
President Donald Trump dealt the dreams of former President Joe Biden for an all-electric fleet of American cars a fatal blow on Thursday by terminating the onerous Corporate Average Fuel Economy (CAFE) standards Biden invoked in 2022 and further tightened in 2024.
“We’re officially terminating Joe Biden’s ridiculously burdensome, horrible actually, CAFE standards, that imposed expensive restrictions… It puts tremendous pressure on upward car prices,” Trump said during a press conference held in the Oval Office Thursday afternoon.
The Biden standards, which cranked down on allowable tailpipe emissions and raised industry-wide average car mileage to a stratospheric 50.4 miles per gallon requirement by 2030, were the centerpiece of his strategy to force American consumers to buy electric vehicles by intentionally forcing up prices for traditional internal combustion models.
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That’s right, America: Your government, led by Joe Biden’s autopen and the woke staffers who wielded it, intentionally and with malice aforethought drove up the prices of the gas powered cars you actually want to buy to try to force you to purchase electric models that poll after poll proves most of you don’t want. They did this all in the name of the global climate alarm religion, which far too many U.S. politicians use to justify a vast array of authoritarian actions.
The unbridled hubris involved in even entertaining this concept would have in the past been considered scandalous. Yet, today, it is completely in keeping with one of the central goals of the energy transition movement to drive up the costs of all traditional forms of energy to try to make the subsidized alternatives favored by the Democratic Party – wind, solar, and electric vehicles – competitive in the market. Activists in the climate alarm movement no longer even try to deny this goal – they proudly boast about it.
This was the real enterprise behind Biden’s ridiculous CAFE standards, and it is what President Trump interrupted on Thursday. It was just the latest in a series of body blows Trump and his officials have dealt the U.S. EV industry, one that could well prove fatal to many pure-play electric car companies and force major reallocations of capital budgets inside integrated automakers like Ford, GM, and Stellantis.
Naturally, the climate alarm activist community was outraged. “Trump’s action will feed America’s destructive use of oil, while hamstringing us in the green tech race against … foreign carmakers,” said Dan Becker, Director of the notorious far-left conflict group, the Center for Biological Diversity, according to the Guardian.
But here’s the thing: U.S. consumers don’t want to buy the alternative the climate alarm community and Biden administration were trying to force. Even with the attraction of Biden’s economically ruinous $7,500 per unit IRA subsidies, U.S. car buyers made clear their strong preference for big, full-size, gas-or-diesel-powered pickups and SUVs.
This reality is why Stellantis announced in September it was abandoning plans to introduce a full-size electric pickup to compete with Ford’s F-150 Lightning. Even worse for EV boosters, Ford has already cut back on production of the Lightning model, and is planning to eliminate it entirely soon, according to the Wall Street Journal. These decisions and plans were already underway long before Trump’s decision to rescind the CAFE standards, based on simple consumer demand.
Interestingly, many consumers believe Trump didn’t go far enough on Thursday, and that he should simply eliminate mileage requirements altogether. One commenter to my Substack newsletter writes, “why didn’t they just kill CAFE standards once and for all? From what clause in the Constitution does the federal government have the right to limit what type of car I can buy?…They should have just killed it outright.”
It’s a legitimate question: Why do federal regulators believe they have the right to control consumer behavior in the name of climate alarmism? In light of last year’s decision by the Supreme Court to rescind the Chevron deference – which helped facilitate the massive expansion of the federal bureaucracy for 40 long years – it’s a question that could be litigated in the months and years to come.
Joe Biden’s EV dreams are dead now, but that doesn’t mean the situation can’t possibly get even worse for the EV industry in America. Stay tuned.
David Blackmon is an energy writer and consultant based in Texas. He spent 40 years in the oil and gas business, where he specialized in public policy and communications.
Business
US Energy Secretary says price of energy determined by politicians and policies

From the Daily Caller News Foundation
During the latest marathon cabinet meeting on Dec. 2, Energy Secretary Chris Wright made news when he told President Donald Trump that “The biggest determinant of the price of energy is politicians, political leaders, and polices — that’s what drives energy prices.”
He’s right about that, and it is why the back-and-forth struggle over federal energy and climate policy plays such a key role in America’s economy and society. Just 10 months into this second Trump presidency, the administration’s policies are already having a profound impact, both at home and abroad.
While the rapid expansion of AI datacenters over the past year is currently being blamed by many for driving up electric costs, power bills were skyrocketing long before that big tech boom began, driven in large part by the policies of the Obama and Biden administration designed to regulate and subsidize an energy transition into reality. As I’ve pointed out here in the past, driving up the costs of all forms of energy to encourage conservation is a central objective of the climate alarm-driven transition, and that part of the green agenda has been highly effective.
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President Trump, Wright, and other key appointees like Interior Secretary Doug Burgum and EPA Administrator Lee Zeldin have moved aggressively throughout 2025 to repeal much of that onerous regulatory agenda. The GOP congressional majorities succeeded in phasing out Biden’s costly green energy subsidies as part of the One Big Beautiful Bill Act, which Trump signed into law on July 4. As the federal regulatory structure eases and subsidy costs diminish, it is reasonable to expect a gradual easing of electricity and other energy prices.
This year’s fading out of public fear over climate change and its attendant fright narrative spells bad news for the climate alarm movement. The resulting cracks in the green facade have manifested rapidly in recent weeks.
Climate-focused conflict groups that rely on public fears to drive donations have fallen on hard times. According to a report in the New York Times, the Sierra Club has lost 60 percent of the membership it reported in 2019 and the group’s management team has fallen into infighting over elements of the group’s agenda. Greenpeace is struggling just to stay afloat after losing a huge court judgment for defaming pipeline company Energy Transfer during its efforts to stop the building of the Dakota Access Pipeline.
350.org, an advocacy group founded by Bill McKibben, shut down its U.S. operations in November amid funding woes that had forced planned 25 percent budget cuts for 2025 and 2026. Employees at EDF voted to form their own union after the group went through several rounds of budget cuts and layoffs in recent months.
The fading of climate fears in turn caused the ESG management and investing fad to also fall out of favor, leading to a flood of companies backtracking on green investments and climate commitments. The Net Zero Banking Alliance disbanded after most of America’s big banks – Goldman Sachs, J.P. Morgan Chase, Citigroup, Wells Fargo and others – chose to drop out of its membership.
The EV industry is also struggling. As the Trump White House moves to repeal Biden-era auto mileage requirements, Ford Motor Company is preparing to shut down production of its vaunted F-150 Lightning electric pickup, and Stellantis cancelled plans to roll out a full-size EV truck of its own. Overall EV sales in the U.S. collapsed in October and November following the repeal of the $7,500 per car IRA subsidy effective Sept 30.
The administration’s policy actions have already ended any new leasing for costly and unneeded offshore wind projects in federal waters and have forced the suspension or abandonment of several projects that were already moving ahead. Capital has continued to flow into the solar industry, but even that industry’s ability to expand seems likely to fade once the federal subsidies are fully repealed at the end of 2027.
Truly, public policy matters where energy is concerned. It drives corporate strategies, capital investments, resource development and movement, and ultimately influences the cost of energy in all its forms and products. The speed at which Trump and his key appointees have driven this principle home since Jan. 20 has been truly stunning.
David Blackmon is an energy writer and consultant based in Texas. He spent 40 years in the oil and gas business, where he specialized in public policy and communications.
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