The real reason for this massive debt was best expressed by the Auditor General of Canada in his 1993 annual report, as follows:

"From Confederation up to 1991-92, the federal government accumulated a net debt of $423 billion. Of this, $37 billion represents the accumulated shortfall in meeting the cost of government programs since Confederation. The remainder, $386 billion, represents the amount the government has borrowed to service the debt created by previous annual shortfalls."

The entire federal debt is fictitious, resulting from the money magic of compounded interest. Today roughly 20% of Provincial and Federal budgets go towards servicing (i.e. paying interest on) these debts, without ever paying paying back the principal.

The real reason for this massive debt was best expressed by the Auditor General of Canada in his 1993 annual report, as follows:

"From Confederation up to 1991-92, the federal government accumulated a net debt of $423 billion. Of this, $37 billion represents the accumulated shortfall in meeting the cost of government programs since Confederation. The remainder, $386 billion, represents the amount the government has borrowed to service the debt created by previous annual shortfalls."