Carney's new fund is for corporate welfare, not sovereign wealth

Congratulations, Canada! On Monday, our nation joined an exclusive club: countries with sovereign wealth funds. Norway, Kuwait and other resource-rich nations have long tapped royalties and budget surpluses to fund investment vehicles: in this era of geopolitical uncertainty and an erratic neighbour, Prime Minister Mark Carney thinks it’s time Canada does the same.

Problem is, we’re tapping debt, not revenue. When asked where the Fund’s initial $25 billion will come from, Finance Minister Francois Philippe Champagne admitted that it will be borrowed. But that’s ok, because we’ll get great rates. “I would say there’s only two countries in the G7 which have a AAA credit rating, Canada can borrow on the international market at some of the lowest rates that you can see,” Champagne crowed. Read more here