For once in a very long time, a generation of young Canadians have had a taste of interest rates and how those costs impact life.
Zero interest, low monthly payments and access to credit fooled many into thinking this is just the way the world works. The Great Depression generation and those who grew up having to watch their pennies are mostly just a memory. Shucks, we don’t even have pennies in circulation anymore. The mindset to not waste and not encumber a family’s existence with unnecessary debt is a foreign idea offset by the current mindset that life is to be lived to its fullest extent.
As noted, interest rates factor heavily into the change of pace many families are feeling. At the depth of the interest rate freefall, an old friend noted it was almost like the banks (and governments) were paying people to borrow. Of course, this added to the current inflated price of real estate, which we believe hasn’t yet normalized to values that reflect real household income.
A startling talking point in recent days has been acknowledgment that the United States is now paying $3 billion dollars per day in interest. That precludes repayment of the principal, which now stands in excess of $35 trillion. We remember well stumbling upon the debt clock in New York City when it was $14 trillion, which at the time was considered an untenable figure. Debt has exploded exponentially since.
Taxpayers in Ontario already burdened with over $400 billion of provincial debt, are now paying close to $14 billion per annum in interest charges. This interest charge – with no value to taxpayers – eclipses all the money spent on post-secondary education in Ontario. By the end of this fiscal year, the Ford government will have amassed $86 billion of debt, that will in turn cause more interest expense.
Debt is a problem for most levels of government. Just as credit cards mask cash flow issues for a time, there is a point of inevitability when the debt becomes due.
Can that day be far off? According to some politicians, economists and big shots, concerns over debt are unfounded since the fundamentals of a solid economy remain in place.
We remain unconvinced that the good times will keep on rollin’.
‘This is CNN’
Clearly, we are not CNN here, but that famous three-word salutation to viewers years ago, rang resolute across many channels this week.
James Earl Jones, of Star Wars fame as Darth Vader, Mufasa in Disney’s The Lion King and Terence Mann in Field of Dreams, passed away earlier this week. His starring roles in many movies and theatre troupes endeared him to many fans worldwide. His baritone voice and big-chested laugh were incredible.
While we tend to stick close to home in this column there is a larger point here for Canadians and Americans alike.
Born poor in the small town of Arkabutla, Mississippi, at the age of six Jones moved to the state of Michigan, where he was adopted by his grandparents. According to him, the move north “was a heartbreak and not long after I began to stutter.” At this point he turned mute for the most part, embarrassed to speak. In high school a sympathetic teacher by the name of Donald Crouch saw something in Jones’ poetry and encouraged him to recite it to the class. He did so incredibly without a stammer. The rest, as they say, is history.
Excelling in life and making the most of talents is a lesson James Earl Jones leaves behind. As did the teacher who took the time and helped him emerge from his battle with stuttering.
With the adoption of AI and use of artificial sounds we wonder if Jones’ death will mark the end of an era, when original works and personality were the true mark of unique talent. Anything less seems a cheap substitute.
