Strategy to Pay Off Canada’s National Debt

Strategy to Pay Off Canada’s National Debt

And reduce each citizen’s annual tax obligation

Written by

Leslie Michael Jr. and Tony Rahim

Version 1.8

Current Federal and Provincial Debt

- Approximately $1.2 Trillion

Sources: Fraser Institute and Commodity.com

Current Population

- 37.27 Million

Source: WorldoMeters

About this strategy:

This strategy is made specifically for the country of Canada.
It is not catered to appease any political party of philosophy.

The writers understand that the moral and ethical lines which are drawn in the minds of each Canadian citizen, visitor of Canada, and observer of Canada from around the world, can only be taken into consideration to a certain degree when drafting such a strategy.  Thus, this proposal is strictly a morally ambiguous economic method that could possibly work to pay off the national debt of Canada and that's all it is meant to be.

The writers fully acknowledge that there are likely other ways and perhaps BETTER ways to pay off the national debt, or even a combination of ways. Thus, the writers welcome all respectful critiques, discussions, and concerns toward this strategy and/or the overall topic of paying of Canada's national debt.

This strategy is meant to work under the current Canadian currency and monetary system along with the United States Dollar remaining as the reserve currency of the world. It can work under newer monetary paradigms however we cannot confirm this as fact since we do not know what those paradigms will actually look like, until it is officially passed into officialdom. 

Corrections and additions will be adjusted to newer versions of this strategy as new and old information position themselves into the current spirit of the movement.

Canada is unique for various reasons.

Several of those reasons are outlined in this strategy and add depth to the capabilities of paying off the national debt.

Canada has a reputation of being a country which heavily taxes its citizens.

Much of the 150 year monetary history, especially after the introduction of the Income War Tax Act of 1917, showcases a lengthy history of Canadians and their businesses being taxed at various degrees. There has also been a significant increase in federal and provincial debt at the same time.

Taxes play a role in mitigating debt burdens when the escalators of economic and industrial growth are moving fast. And also during war times.  However the debt still climbs. This is especially  true in our modern era where the majority of global currencies are fiat and global debt is rising. 

In 1991, the Goods and Services Tax ("GST") was introduced during Prime Minister Brian Mulroney's term and under Finance Minister Michael Wilson's guidance. It was heavily promoted to Canadians during that time, as the tax that will help pay off the national debt.

The result is GST has not brought down the debt. Instead its existence seems to have propagated the government to spend more of what it doesn't have.

Some observers view this situation as an endless seesaw battle between GDP growth, taxes and deficit spending. In the historical sense, there doesn't appear to be a winning side.

Maybe it is time to take a different approach to solving the issue of paying off the national debt.

THIS APPROACH takes advantage of the first class assets that defines Canada to the world.

Deficit spending is often considered a blessing when it is used to create assets with tangible and intangible value. 

It is often considered a curse even if it is a necessary one, when it is used for things such as war which doesn't create value.

Fortunately, much of the tax funds that were spent during the changes in Canadian regimes, both federal and provincial, led to major infrastructure growth across the entire country.

It is those infrastructural changes that have made Canada one of the most attractive places to live, work or visit in the entire world. 

And it now presents a rare opportunity to pay off the national debt.

We leave it to you the reader to make up your own mind whether this strategy has validity for further investigation or improvement moving forward.

Canada's ability to pay off its national debt offers more than just the advantage of being the only major country in the world to be completely debt free under the paradigm of a global debt based currency system.

It also allows the country as a whole to drastically reduce the tax burden it passes down to its citizens. 

Thus, if it can be done then maybe it should be done.

Canada has vast riches in communities, resources, natural beauties, waters, ores, oils, energies, industries, farming, forestry, tourism, talents, artistries, history, multiculturalism, militiaries, mannerisms, laws and other abundances.

Under the current debt based monetary system, these riches can be used to borrow funds from world banks at the best rates; so long as Canada's credit remains the darling of the world.

If current and future state actors play their parts to the best of their elected and appointed abilities, Canada could eventually be in a position to be the ones doing the lending instead of the borrowing, not only to its own people and infrastructure projects, but also to the rest of the world.

Here is one way to pay off the national debt of Canada and the debt of all ten provinces and three territories.

Reinstate and Amend the Canadian Immigration Investor Program

Canada is marketed to the world as a first-class international destination. With only a population of 37 million and the second largest land mass in the world, it provides the perfect condition to entice high net worth people to immigrate to the country.

It's the sort of immigration that would increase the overall wealth of Canada by adding citizens and their families that are not traditionally a burden to the country or society while providing the government an interest-free injection of liquid cash. Furthermore these citizens traditionally bring foreign funds with them, along with a sense of entrepreneurship and creativity.

The Immigration Investor Program was created by the Government of Canada to promote the immigration of business people and their families. High net worth individuals who wanted to fast-track their permanent resident and citizen status into Canada plus had money to invest, had to meet the following requirements to qualify for this program.

1. The investor had to be able to demonstrate that they had the necessary business experience.
2. The investor was required to have a minimum net worth of $1,600,000 CAD, legally obtained.
3. The investor was required to make a $800,000 CAD investment to the Government of Canada, which would be returned to them 5 years later, without interest.
4. If they intended to live in Quebec, the investor had to use Quebec's Investor Program instead.
5. The investor and family members were not found inadmissible on grounds such as health and security.

The $800,000 CAD investment was made by the investor which was administered by Citizenship and Immigration Canada.

Citizenship and Immigration Canada would return the $800,000 investment approximately five years and three months later, without interest.

The investment was guaranteed by the Canadian provinces, which used the money to create jobs and help grow the economy.

THIS strategy proposes:

Reinstate and fast track the program with 2,500,000 high net worth individuals and their families. Double the investment to $1,600,000. Use the funds to pay off the national debt of Canada. Then invest to create jobs and grow the economy.

800,000 initiates fast tracked into the citizenship program would bring $1.28 Trillion into the Government of Canada. That will pay off the debt, or more accurately replace the debt with an interest free loan.

Paying off the national debt would allow the government to receive the best borrowing rates from international banks.  It positions Canada to re-structure its debt with the lowest interest rates and terms moving forward.  Canada can pay its loans back to these new citizens after five years with the least amount of interest.  Thus, every citizen's overall tax burden is reduced. That alone will help grow the economy and create jobs or at the very least alleviate debt stress.

Canada is the Rolls Royce of the western world. The target market is Ultra High Net Individuals. Put a high class marketing campaign to target these individuals around the world. Let them know that all they have to do is show a total net worth of $3M. They must also invest $1.6M for 5 years which they are guaranteed back without interest.

These high worth individuals get their immigration and permanent residency fast tracked and Canada gets to pay off the national debt. If Canada finds 800,000 individuals willing to do that, they just cleared off the national debt. Then the country is in a far better position to re-position its future debt obligations.

Our initial population target is 2,500,000 in total

The first 800,000 new high net worth individuals fast tracked through the Canadian Immigrant Investor Program wipes out the debt. The other 1,700,000 drives the growth engine of Canada.

Canada only has a population of 37 million. It has the room to add to the population being that it is the 2^nd largest national land mass in the world. Adjusting and reinstating the Canadian Immigration Investor Program could provide the country the economic growth to build out infrastructure while creating new jobs and opportunities.

Managing the funds should be like managing a game clock in sports. The sequence of events and its timing is paramount for this to work efficiently. 

Once Canada has wiped off its debt, after five years it must return $1,600,000 to each new Canadian citizen/permanent resident with funds from the new batch of high net worth individuals.

Much like Norway's managed fund, take the $2.7T coming from the Canadian Immigration Investor Program and put it into a national fund. Then grow the fund for the benefit of  Canadians. 

• The funds should aim for a yield of 10% per year. 
• From $2.7T the resulting 10% yield is  $270B per year. 
• In five years the fund will earn $1.35T. 
• In 10 years the fund will earn $2.7T.  

The Canadian government now has the funds to pay back all the loans.

Then start job creation and economic plans to build out nationally and internationally.

This newly structured Canadian Fund is not an open fund. It should be a closed managed fund to ward off crony capitalism. Canada would need this fund not just to pay off its debts, but to pay for future expansions indefinitely.

The Norway Fund is primarily focused on returns from one commodity; oil. Unlike the Norway fund, Canada has an embarrassment of riches to diversify from. Here are some examples. Canada is has over 7% of the world’s fresh water. It has a variety of underground resources including but not limited to precious, strategic and rare earth metals and minerals, oil, forestry, farming, fisheries, transportation, electricity, alternative energies, ingenuity, and so much more. 

Using these resources to grow the fund could put the country on a solid footing for a long time. 

Growing the wealth of the nation simply requires some structured imagination.

One note on the argument that this is a redistribution of wealth and theft from other countries.  That would be only be true if the immigrants were not voluntarily making the investment decision on their own to move to Canada and become Canadian citizens.  Many high net worth individuals have already made that decision.  This program would help move that process along.

One note in regards to any concerns of terrorism from immigrants. The immigration class  suggested as the marketing target in this white paper strategy is not generally part of the network of terrorist organizations or ideologists around the world. They are part of the established and vetted business class community. Also, immigration is not the same thing as refugee status.

One final note before closing off this version of the strategy. The Canadian government should give enticements to investor immigrants that will add value to certain economic areas which desperately require it. 

Here is an example: farming.  In North America only a small percentage of land is farm land. Of that small percentage over half of the owners of these farms are over the age of 60.  More of the younger generation of Canadians which these farms will be left to are moving toward a city life.  Fast tracking high net worth immigrants that do farming as a business, or would like to do farming as a business will be advantageous.  

As previously mentioned, the writers fully acknowledge that there are likely other ways and perhaps BETTER ways to pay off the national debt, or even a combination of ways.  This is one way.  

The time has come for Canadians to put their thinking caps on.  

Thanks for reading.