Canada column published Sunday, Sept. 25/11
THE CANADIAN REPORT
(c) By Jim Fox
Canada’s finance minister has issued a stern economic warning to the world as Canadian stock markets plunged and the dollar dropped below parity with the U.S. greenback.
Jim Flaherty said another financial meltdown similar to what happened in 2008 will happen if action isn’t taken to deal with the world debt crisis, particularly in Europe.
Uncontrolled government debt could sink the economies of Greece, Italy, Spain and Portugal and “there’s been a lack of political decisiveness in Europe,” he said.
The Canadian government vows to eliminate its deficit by 2014 and cut $4 billion in annual spending through program reductions and efficiencies.
Prime Minister Stephen Harper and other world leaders have called for strong action at Cannes G20 summit in November to boost economic stability and growth.
Christine Lagarde, head of the International Monetary Fund, said growing debt problems in Europe and the United States are “entering a dangerous phase.”
After a major selloff on the Toronto Stock Exchange and lower oil prices, Canada’s dollar dropped three cents to 97 cent U.S., its lowest level in almost a year.