The idea from leftists citing MMT is that because the Bank of Canada issues Canadian currency, running a $400 billion+ deficit (the deficit is definitely more than $400 billion now) isn't a problem. Since you can just print the money needed. The debt is denominated in CAD. Thing is if you have more money floating in circulation but the Canadian goods, services and assets available to purchase don't proportionately increase, you get inflation and devaluation of the national currency. This is the problem that Venezuela, Argentina and Cuba found themselves in. Would you accept a Cuban peso as payment for goods and services? No. Only Cubans would accept their own money. And many Cubans only want pesos for immediate needs. For cash that they don't intend to spend right away (ie. savings account) they prefer to hold US Dollars. In fact many Cubans accept US Dollars directly for payment anyways and try to avoid using the peso as much as possible.

The idea from leftists citing MMT is that because the Bank of Canada issues Canadian currency, going into $400 billion+ in more debt (the deficit is definitely more than $400 billion now) isn't a problem. Thing is if you have more money floating in circulation but the Canadian goods, services and assets available to purchase don't proportionately increase, you get inflation and devaluation of the national currency. This is the problem that Venezuela, Argentina and Cuba found themselves in. Would you accept a Cuban peso as payment for goods and services? No. Only Cubans would accept their own money. And many Cubans only want pesos for immediate needs. For cash that they don't intend to spend right away (ie. savings account) they prefer to hold US Dollars. In fact many Cubans accept US Dollars directly for payment anyways and try to avoid using the peso as much as possible.

The idea from leftists citing MMT is that because the Bank of Canada issues Canadian currency, going into $400 billion+ in more debt (the deficit is definitely more than $400 billion now) isn't a problem. Thing is if you have more money floating in circulation but the Canadian goods, services and assets available to purchase don't proportionately increase, you get inflation and devaluation of the national currency. This is the problem that Venezuela, Argentina and Cuba found themselves in. Would you accept a Cuban peso as payment for goods and services? No. Only Cubans would accept their own money. And many Cubans only want pesos for immediate needs. For cash that they don't intend to spend right away (ie. savings account) they prefer to hold US Dollars. In fact many Cubans accept US Dollars for payment anyways and try to avoid using the peso as much as possible.

The idea from leftists citing MMT is that because the Bank of Canada issues Canadian currency, going into $400 billion+ in more debt (the deficit is definitely more than $400 billion now) isn't a problem. Thing is if you have more money floating in circulation but the Canadian goods, services and assets available to purchase don't proportionately increase, you get inflation and devaluation of the national currency. This is the problem that Venezuela, Argentina and Cuba found themselves in. Would you accept a Cuban peso as payment for goods and services? No. Only Cubans would accept their own money. And many Cubans only want pesos for immediate needs. For cash that they don't intend to spend right away (ie. savings account) they prefer to hold US Dollars.