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Scorch and Surge: Ontario Faces Sweltering Heat and Successive Storm Threats

Ontario is bracing for a stretch of intense weather as Environment Canada issues heat warnings across multiple regions, paired with a forecast of multi-day storm risks. Temperatures are expected to soar past 30°C, with humidex values pushing conditions into the high 30s and low 40s. The sweltering heat poses increased risks to vulnerable populations, including seniors, young children, and those with pre-existing health conditions. Meteorologists warn that the heat won’t come alone. A line of unstable air sweeping across southern and central Ontario is expected to fuel daily thunderstorms through the weekend and into next week. These storms could bring heavy downpours, damaging winds, and isolated hail, further complicating the forecast. Officials are urging residents to take precautions: stay hydrated, limit outdoor activity during peak hours, and check in on neighbours who may be at risk. Pet owners are also reminded to avoid walking animals during the hottest parts of the day. The co...
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Navigating the U.S. Debt Tightrope: Balancing Growth and Sustainability

 

Even if the U.S. avoids worst-case scenarios, its ballooning debt and the cost of servicing it could eventually slow economic growth and make the burden unsustainable. According to a former International Monetary Fund (IMF) official, the U.S. must tread carefully to maintain a delicate balance.

Here are the key points:

  1. Debt Levels: Debt held by the public is already around 100% of GDP, and projections indicate it will climb to 116% in 2034, 139% in 2044, and 166% in 2054. While these levels may seem alarming, Japan’s experience shows that an advanced economy can manage substantial debt when borrowing in its own currency.

  2. Advantages and Risks: The U.S. benefits from dollar dominance, deep financial markets, and Federal Reserve support for Treasuries. However, institutional breakdowns remain a threat. For instance, concerns exist about U.S. debt default under certain scenarios.

  3. Interest Obligations: As the debt ratio rises, meeting interest obligations could force the federal government to cut discretionary spending. This reduction could negatively impact economic growth. The U.S. must balance interest payments and maturing Treasury bonds.

  4. Challenges Ahead: Rising bond yields and the outlook for higher interest rates pose challenges. Treasury Secretary Janet Yellen acknowledges this difficulty in controlling deficits and debt expenses.

  5. Trade-Offs: To sustain debt, the U.S. faces trade-offs. Borrowing more to pay off debt could exacerbate the burden, while cutting spending on critical initiatives might hinder growth.

In summary, the U.S. walks a tightrope between debt sustainability and economic growth. Striking the right balance is crucial for a prosperous future.

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