So rich - and so poor

from Asia Times Online:

So rich - and so poor: The world's most resource-rich country, Canada, is joining the rush to austerity and imposing radical budget cuts. Interest payments now take 15% of the budget, thanks to a government move to borrow from private banks in 1974. - Ellen Brown

It seems that the choice by Canada to borrow from private banks has created a moral hazard associated with over spending. That is a good thing. Spending should never be free of consequences as the author argues.