Liberal (Minority/Majority) Government 2025 - ???

[HavokFour]

I would love to see where Pierre would cut in the budget to get it down to a 31b dollar deficit though, especially when we are increasing defense spending and looking to get major projects on the go.

Didn't he run on having a $40B deficit during the 2025 election?

I wonder too, and what changed from his original estimate.

 

[MilEME09]

Didn't he run on having a $40B deficit during the 2025 election?

I wonder too, and what changed from his original estimate.

Yes and that was banking on 20B from counter tarrifs

Speaking of the deficit though. Globe is reporting the fiscal update will have the deficit lower then projected.

https://twitter.com/x/status/2048566859361112324

 

[Altair]

Yes and that was banking on 20B from counter tarrifs

Speaking of the deficit though. Globe is reporting the fiscal update will have the deficit lower then projected.

https://twitter.com/x/status/2048566859361112324

Has to be commodity prices right?

They haven't cut spending, the economic outlook is largely the same...

 

[MilEME09]

Has to be commodity prices right?

They haven't cut spending, the economic outlook is largely the same...

Potentially but the feds dont bring in direct royalties as I recall so there must be more to it, especially if the federal gas tax is suspended till sept.

 

[HavokFour]

Starting with an initial $25B endowment, the fund will finance major national interest projects.

Carney announces creation of Canada's first sovereign wealth fund​

 

[brihard]

Starting with an initial $25B endowment, the fund will finance major national interest projects.

Carney announces creation of Canada's first sovereign wealth fund​

OK- cautiously, conceptually, I dig it. As an economy with so much coming in from natural resources whose prices and demand can fluctuate and which can be depleted over time, a sovereign wealth fund is a no-brainer. I'll want to see more details on execution, and what sort of investment profile they target. There's no reason Canada oughtn't be able to build up, over time, a pretty massive sovereign fund.

 

[HavokFour]

OK- cautiously, conceptually, I dig it. As an economy with so much coming in from natural resources whose prices and demand can fluctuate and which can be depleted over time, a sovereign wealth fund is a no-brainer. I'll want to see more details on execution, and what sort of investment profile they target. There's no reason Canada oughtn't be able to build up, over time, a pretty massive sovereign fund.

I'm also interested in hearing more about how an everyday Canadian being able to invest into it. The way he spoke about it in the above presser sounds similar to a market-linked GIC.

Superannuation, but for mega government projects has my attention.

 

[MilEME09]

OK- cautiously, conceptually, I dig it. As an economy with so much coming in from natural resources whose prices and demand can fluctuate and which can be depleted over time, a sovereign wealth fund is a no-brainer. I'll want to see more details on execution, and what sort of investment profile they target. There's no reason Canada oughtn't be able to build up, over time, a pretty massive sovereign fund.

Prime Minister Carney announces the Canada Strong Fund – Canada’s first sovereign wealth fund

At the core of this new strategy are nation-building projects – new ports, mines, and trade and energy corridors that will unlock our vast resources, secure our domestic supply chains, and enable us to sell to new markets across Canada and around the world.

www.pm.gc.ca

Here's the press release, its a solid idea for sure that could lead to a lot of economic growth.

 

[Czech_pivo]

OK- cautiously, conceptually, I dig it. As an economy with so much coming in from natural resources whose prices and demand can fluctuate and which can be depleted over time, a sovereign wealth fund is a no-brainer. I'll want to see more details on execution, and what sort of investment profile they target. There's no reason Canada oughtn't be able to build up, over time, a pretty massive sovereign fund.

I heard that its independence will be quite similar to the CPPIB, which has been rock-solid so far.

 

[Czech_pivo]

I'm also interested in hearing more about how an everyday Canadian being able to invest into it. The way he spoke about it in the above presser sounds similar to a market-linked GIC.

Superannuation, but for mega government projects has my attention.

Will be interesting to see how this is packaged up to the individual Canadian, ability to hold inside your RSP/TFSA, etc?

 

[MilEME09]

Will be interesting to see how this is packaged up to the individual Canadian, ability to hold inside your RSP/TFSA, etc?

As well what kind of rate of return can canadians expect? What are the tax implications?

 

[Czech_pivo]

As well what kind of rate of return can canadians expect? What are the tax implications?

Yes, either an 'open' return yearly - meaning unlimited upside as well as unlimited downside, or, as @HavokFour pointed out, maybe a 'Market-linked GIC' type of investment product for set time periods - 2,3,5yrs with a guaranteed min and max and a fixed upside. If they go the 'Market-linked GIC' its an pretty conservative option that will most likely appeal to those with minimal risk appetites and investment knowledge. They are truly a 'buy and forget' tool.

 

[Brad Sallows]

Be interesting to find out if it's going to be properly a sovereign wealth fund, or just a kind of bank.

 

[Halifax Tar]

I understand the wish to celebrate. Let me be devils advocate.

Slush Fund

 

[brihard]

Prime Minister Carney announces the Canada Strong Fund – Canada’s first sovereign wealth fund

At the core of this new strategy are nation-building projects – new ports, mines, and trade and energy corridors that will unlock our vast resources, secure our domestic supply chains, and enable us to sell to new markets across Canada and around the world.

www.pm.gc.ca

Here's the press release, its a solid idea for sure that could lead to a lot of economic growth.

Thanks!

I'm also interested in hearing more about how an everyday Canadian being able to invest into it. The way he spoke about it in the above presser sounds similar to a market-linked GIC.

Superannuation, but for mega government projects has my attention.

Agreed, I’m interested in details too.

I heard that its independence will be quite similar to the CPPIB, which has been rock-solid so far.

Um… Tough to say in that given the explicit intent to link to major projects. That suggests a mandate difference that will necessitate some alignment with federal priorities at least some of the time. Details will be important.

Will be interesting to see how this is packaged up to the individual Canadian, ability to hold inside your RSP/TFSA, etc?

As well what kind of rate of return can canadians expect? What are the tax implications?

Yes, either an 'open' return yearly - meaning unlimited upside as well as unlimited downside, or, as @HavokFour pointed out, maybe a 'Market-linked GIC' type of investment product for set time periods - 2,3,5yrs with a guaranteed min and max and a fixed upside. If they go the 'Market-linked GIC' its a pretty conservative option that will most likely appeal to those with minimal risk appetites and investment knowledge. They are truly a 'buy and forget' tool.

Mm hm. Worth noting that creating this fund will also place on the menu a policy option of creating preferential tax treatment or other incentive for both individual or institutional investors.

If this was coming from most rando politicians my skepticism would’ve far higher. If there’s anyone whose head is filled with the right knowledge to make something like this effective and viable, it’s PM Carney.

Be interesting to find out if it's going to be properly a sovereign wealth fund, or just a kind of bank.

Agreed. I won’t be surprised if there’s somewhat of a blend of both approaches and assets for the sake of diversification. But clearly the opening moves here seem postured to juice infrastructure. Turning that into returns on investment that can then be reinvested will be a trick.

I could see this being a mechanism by which government helps to signal confidence in the viability of certain projects to help spur the private sector, and then once a project is more advanced the government can unwind its stake to other investors.

 

[foresterab]

I'm also interested in hearing more about how an everyday Canadian being able to invest into it. The way he spoke about it in the above presser sounds similar to a market-linked GIC.

Superannuation, but for mega government projects has my attention.

So if it can over gov't back bonds like any other agency then this might be the successor to the old Canada Saving Bonds...without the gov't administration challenges of physical bond certificates etc. By all means make them open for purchase in any RESP, RRSP, TFSA or other gov't account.

I've thought however that this should be wider than just resources. Every time the gov't is asked to bail out a company there should be an ownership stake provided in return which would be added to the fund. I don't actually want the gov't running companies in the private sector so can apply buy back options at loan price + stock gain differential at fixed intervals but that would be under the fund manager and not the government of the day selling assets to make a quick budget buck.

I'm also interested in how much offshore resource development is outside provincial control. Working in a landlocked province I don't see this aspect as much but I thought there was some direct federal revenue vs. provincial revenue from offshore wells. Regardless it'd be great if even a sliver of the tax revenue could be used to help add funds to grow....but unfortunately the current debt/deficits make debt repayment a higher priority than reducing income to me right now.

Lastly....does this provide an umbrella for other provinces and/or territories to set up a similar process under the federal tent? I don't see Quebec or Alberta changing process but what about the Yukon or NWT? Nunavut? Generating a revenue stream to this fund in exchange for a share of the pie? What about First Nations?

Overall I view this as a good thing in concept and provides a greater national source of funding separate from adding new taxes each time or bemoaning why private industry doesn't want certain risks.