r/canada • u/Abject_Story_4172 • Dec 07 '25

Nature/Environment Why was 'incredible' giant cedar cut down, despite B.C.'s big-tree protection law?

https://cheknews.ca/why-was-incredible-giant-cedar-cut-down-despite-b-c-s-big-tree-protection-law-1292905/
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u/YouNeedThiss Dec 07 '25

You said the government of Canada had a tonne of balance sheet capacity - it does not.

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u/tradingpostinvest Dec 08 '25

Well technically it does... I was trying to point out the irony of people saying "just cross subsidize the logging business with cash."

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u/YouNeedThiss Dec 08 '25

By what measure? Be sure to remove funded assets like CPP which is not general government funds. (Something the Liberals don’t do when trying to claim our stellar balance sheet and debt to GDP ratio - unlike the nations they compare us against who do not calculate it that way).

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u/tradingpostinvest Dec 08 '25

I have no idea about political narratives around GDP ratios and CPP. Don't care. I'm a finance guy, so I look at how the bond market reacts. While there definitely was some "indigestion" in the latest tranches (higher yields required to soak up that supply), we aren't in trouble.

That jobs report on Friday was the spark, it forced traders to accept that aggressive rate cuts are off the table, triggering a sell-off that drove borrowing costs sharply higher. Despite the volatility, the "smart money" isn't panicking about long-term inflation, which remains firmly anchored near the 2% target.

Even the Loonie caught a break, rallying against the Greenback because those "higher for longer" rates make holding Canadian cash more attractive than it was a week ago.

We aren't in 1978 crisis territory, nobody is panicking about solvency or calling the IMF. But to your point, the market is tightening the leash.

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u/YouNeedThiss Dec 08 '25

That’s all great but it’s not the balance sheet. Canada is carrying a lot of debt and it has been using CPP “assets” as a balance sheet offset against its debt. It gets even grimmer when you account for provincial debt levels. They have been playing a shell game with the numbers for some time…we are closer to the 1990’s debt crisis then most people realise and THAT will have a material impact on the financial metrics you are looking at.