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Showing posts with label spending. Show all posts
Showing posts with label spending. Show all posts

Monday, July 7, 2025

Military Madness > War-Mongering NATO outed by Brazil's Lula at BRICS; Denmark warns of ramping up EU defense spending

 

Brazil’s Lula accuses NATO of fueling arms race

The military bloc’s push for higher defense spending encourages more wars, the Brazilian president has said
Brazil’s Lula accuses NATO of fueling arms race











NATO is fueling a global arms race by pushing for massive increases in military spending, Brazilian President Luiz Inacio Lula da Silva has said. The US-led military bloc endorsed a plan last month to raise its defense spending target from 2% to 5% of GDP.

Speaking on Sunday at the opening of the BRICS summit in Rio de Janeiro, Lula said the world is experiencing a record number of armed conflicts since World War II and warned that NATO’s policies are exacerbating the situation.

NATO has to have a raison d'ĂȘtre. Being without one after the collapse of communism in Europe, they went about finding a new reason for their existence. The Western War Industry found one for them about 2013. NATO became the storefront for the Western Weapons Industry. They are now excelling at it thanks to Biden and Trump.

“NATO’s recent decision [to raise military spending to 5% of GDP] is fueling an arms race,” Lula said. “It has become much easier to invest in maintaining wars than to invest in achieving peace,” the Brazilian leader said, referring to previous Western promises to provide 0.7% of GDP to aid developing countries.

While not yet formalized, the NATO proposal has been backed by Secretary-General Mark Rutte and several member states, including the US and Poland. A number of Western leaders have justified the spending increase as a response to what they claim is a growing threat from Russia.

Moscow has consistently denied any intention to attack NATO states and dismissed such warnings as baseless fearmongering aimed at justifying militarization and distracting from domestic problems.

In an interview published on Monday, Russian Foreign Minister Sergey Lavrov reiterated that NATO’s expansion toward Russia’s borders and efforts to integrate Ukraine into the alliance constitute a direct threat to Russian security. He said these moves left Moscow with no choice but to launch its military operation against Kiev in 2022.

Lavrov also accused NATO of transforming itself into an offensive bloc, pointing to its past interventions in Yugoslavia, Iraq, and Libya. He claimed that NATO’s militarization and demonization of Russia are being used to deflect attention from inflation, migration, and other domestic problems in the West.

The minister has also warned that NATO’s proposed spending increase could end up being “catastrophic” and lead to the bloc’s collapse. Moscow, meanwhile, intends to reduce its military spending in the coming years – a process that will be guided by “common sense, not made-up threats like NATO member states,” Lavrov said.

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NATO state issues warning over ramping up defense spending

Western nations risk financial unsustainability when implementing their militarization plans, the Danish economy minister says
NATO state issues warning over ramping up defense spending











EU nations risk “increased debt levels and unsustainable finances” if they raise defense spending too quickly, Danish Economy Minister Stephanie Lose has warned. EU and NATO members are pushing to invest billions of euros in troops and weapons.

NATO leaders agreed last month to increase the target for defense spending from 2% to 5% of GDP, with 3.5% allocated directly to the military and the remainder directed toward broader security initiatives. Brussels previously unveiled the €800 billion ($940 billion) ‘ReArm Europe’ program.

Denmark is among 12 EU nations taking advantage of a special ‘national escape clause’, which allows them to bypass the EU’s budget deficit rules when borrowing for military purposes. Lose told Euractiv that she does not fault countries such as France and Italy for opting out, in an interview published on Monday.

”It’s good if you adhere to sound public finances... if it means that they’re exploring ways to fulfill the 3.5% NATO goal without being on an unsustainable path,” she said, adding that if the reluctance indicates a lack of room to boost defense spending, “then it’s, of course, a problem.”

Speaking ahead of an EU ministerial meeting that she is set to chair Monday – as Denmark currently holds the rotating presidency of the bloc – Lose cited US trade tariffs and competition from China as additional pressures limiting the EU’s ability to increase military investment.

European NATO members say they need to increase their defense budgets to deter the alleged threat from Russia, which has denied that it poses any threat to these countries, accusing Western officials of using fear to justify the budget increases, as well as the decline in the standard of living among their citizens.

Again, is there the least bit of intel that indicates Russia is planning to attack Europe? That should be the least that Europe demands before spending a trillion dollars.

Western Europe’s industrial competitiveness has fallen since EU leaders reduced Russian energy imports, which supported the region’s industries for decades. The move was part of sanctions against Russia due to the Ukraine conflict.

Yes, but think about how filthy rich American LNG producers have become.

Russia considers the conflict to be a result of NATO expansion, saying the US-led military bloc presents a direct threat to national security.

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Thursday, May 22, 2025

Canadian Convulsions > Incredibly Reckless Spending by the Trudeau Government

 

Canada Had Largest Debt Increase Among G7 Countries Over Last Decade: Fraser Institute



Canada’s total government debt has grown substantially since 2014 and has outpaced that of nearly every other advanced country around the world, according to a new study from the Fraser Institute.

The study, “The Deterioration of Canada’s Finances Internationally” released May 15, compared Canada’s finances during the last 10 years to that of 40 other advanced countries internationally, including G7 countries. The authors found that Canada experienced one of the largest increases in government size over the last decade and now has one of the highest debt burdens of any advanced economy country.

“Simply put, over the past decade, the size of government in Canada and the overall government debt burden have grown faster than nearly every other advanced economy in the world,” says the report, authored by the Fraser Institute’s policy analyst Grady Munro and Jake Fuss, director of fiscal studies.

“This has translated to a deterioration in the state of Canada’s finances relative to comparable countries, and likely means lower economic growth and reduced living standards for Canadians.”

Total government spending in Canada increased from 38.4 percent of the country’s economy in 2014 to 44.7 percent in 2024. This makes Canada the 17th highest for total government expenditures out of the 40 advanced countries analyzed.

“Canada’s 6.34 percentage point increase in government spending relative to the economy was the second-largest increase out of all 40 advanced economies, and the largest in the G7,” the study says. “Only Estonia experienced a greater increase in the size of government during this period at 6.66 percentage points.”

Munro and Fuss’s study indicated that Canada had the largest increase in both spending and debt among the G7 countries. Germany had the second-highest spending increase among the G7, with a 5 percentage point increase, followed by a 2.9 percentage point increase for the United Kingdom, 2.3 for the United States, and 1 percentage point for Japan. France and Italy both saw decreased spending during the past decade, by 1.2 percentage points and 0.2 percentage points respectively.

Canada’s debt burden jumped by 25.23 percentage points since 2014, the third-highest increase in debt among the 40 economies and the largest increase in debt among G7 countries. Although Canada’s debt burden increased significantly, 20 of the 40 countries decreased their total debt burden, for an average 2.79 percentage point decrease among the 40 countries over the last decade.

France’s debt burden was second highest among the G7 countries, with a 17 percentage point increase, followed by the United States with 16.4 percentage points, the United Kingdom with 14.1, Japan with 3.4, and Italy with 0.5. Germany was the only G7 country to reduce its debt burden, with a 10.6 percentage point decrease.

The authors said the Canadian government relied heavily on borrowing money to fund its expansion and spending increase, which in turn increased federal and provincial government debt.

The Canadian government’s gross debt increased to 110.8 percent of GDP in 2024, from 85.5 percent in 2014, indicating that Canada now has the seventh-highest indebtedness ranking out of the 40 countries analyzed, and the fifth highest among the G7 countries.

“Canada likely suffers lower economic growth than it otherwise would have with a lower debt burden,” the study says. “This problem will only worsen if debt continues to grow relative to the size of the economy.”


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Many countries saw a spike in debt burden during the pandemic in 2020 as governments borrowed money to fund pandemic-related programs while the economy was in recession. However, Canada borrowed the most relative to the size of its economy, Munro and Fuss said. In 2020 alone, Canada’s debt burden increased by 27.86 percentage points.

Research suggests that growing spending and rising debt in Canada are likely to harm overall economic growth,” the study says.
An increasing government debt burden corresponds to higher interest payments for taxpayers, less money for key services, and higher taxes for the future generations of Canadians, Munro said in a news release.

“Taxpayers ultimately pay for government debt in the form of interest payments, which divert money away from key services, and future generations of Canadians could face higher taxes to pay for today’s borrowing,” Munro said.

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