https://assets.bwbx.io/images/users/iqjWHBFdfxIU/iroikDYIT5Q...
Canada's deficit is among the worst of all relevant countries at the moment.
Canada's deficit is among the worst of all relevant countries at the moment.
https://www.ons.gov.uk/chartimage?uri=/economy/governmentpub...
The EU average is about the same as Canada at 13.7% of GDP. The UK is up at 19.2%. If anything, I would think that Canada's 2020 deficit is pretty typical of developed countries.
By the way, your graph only shows the data for Canada. I guess the rest of the countries are irrelevant?
Per capita, our debt is comparable to the US
An army can help that by signaling the stability of the country. An army alone does not do the job though, the real value lies in the trust and organization of the society itself. The more of that there is, the more others will believe the currency will be able to buy something they want, since organized societies with high trust are able to produce desirable things.
A secondary concern an army helps with is enforcing laws and preventing fraud, such as counterfeiting. If you know the US is not going to let some other tribe or country counterfeit their country, and has the capability to stop them, it helps you trust the currency more.
Obviously, the armed forces aren’t directly involved in the first few layers of conflict, but it’s always advantageous to have the ability to park an aircraft carrier fleet off someone’s coast during negotiations.
https://www.cfr.org/backgrounder/sea-power-us-navy-and-forei...
We (USA) are totally the child of Britain. And we will probably be slowly phased out of relevance in a similar way.
Edit: Google “libya petrodollar gold”
>However, by 1971, convertibility into gold was no longer viable as America's gold resources drained away. Instead, the dollar became a pure fiat currency (decoupled from any physical store of value), until the Petrodollar Agreement was concluded by President Richard Nixon and Secretary of State Henry Kissinger in 1973.
The essence of the deal was that the U.S. would agree to military sales and defence of Saudi Arabia in return for all oil trade being denominated in U.S. Dollars. A secondary option to this agreement is the purchase of U.S. debt securities with surplus oil proceeds. By 1975, all OPEC nations agreed to price their oil supplies exclusively in U.S. Dollars and to hold their oil proceeds in U.S. government debt securities.
https://www.sandstoneam.com/insight/rise-of-the-petrodollar https://en.wikipedia.org/wiki/Petrodollar_recycling#Petrodol...
https://www.visualcapitalist.com/debt-to-gdp-continues-to-ri...
Without that deficit you would have or a fall in GDP or an increase in private debt (that it's a lot worst than public debt).
(1) https://www.youtube.com/watch?v=WS9nP-BKa3M
(Stony Brook University, Presidential Lecture Series: Stephanie Kelton)