Canada is heading into a period of higher debt that could exhaust the federal government’s taxation and borrowing capacity, reduce its credit rating, and trigger a financial crisis similar to the one seen in the 1990s, according to Simon Fraser University economics professor Herbert Grubel.
“You can’t pile on debt forever. There must be a critical point at which people who are lending you money say, ‘we don’t trust that you can repay it,’ and you get into a crisis,” Grubel told The Epoch Times.
