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View Full Version : Are we saving money by saving money?



John Smith
04-24-2013, 05:33 AM
Considering how low interests rates are, I think this is not a silly question. We have things that we need to do, like modernize our infrastructure. Given the currently low interest rates, lets look at it as infrastructure repair is on sale this month.

Does anyone see our budget reaching a point where we can pay cash for this project? I don't.

If we think long term, aren't we better off taking advantage of the cheap money rather than waiting until the infrastructure needs even more attention and the money is more expensive?

Mad Scientist
04-24-2013, 08:10 PM
Coincidentally, this came up in the local paper a few days ago. The Nova Scotia government is claiming a balanced budget, but someone made a suggestion just about identical to yours.

Oh, and speaking of 'infrastructure', I have a bridge to sell to anybody who actually believes that Nova Scotia has a balanced budget!

Tom

hanleyclifford
04-24-2013, 08:15 PM
John may have a point. Better to spend it now because it will be worth a lot less next year. Don't have the cash? No prob; just print some up and get the goods and services for yourself - the hell with the dummies who save.

skuthorp
04-24-2013, 08:23 PM
Considering your interest rates it makes sense for me to borrow US$ and invest in our govt. bonds at 3.36 currently.National governments of all stamps are averse to deficit budgets, even when it makes sense. It's really an investment in the future. Of course it's become a political football what with bailing out robber baron banks and throwing new notes about like confetti, even here with the backwash from the GFC only now biting, but our position is very good and it's only parochial politics trying to scare the voter and our too high A$ that's the problem.

Jim Bow
04-24-2013, 08:26 PM
Our politicians don't see a difference between spending and investing. Investing in infrastructure (like the electrical grid and the highway system) would pay off bigtime, but it would require spending money. No politican wants his/her name associated with spending.