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For weeks, there had been rumours out of Queens Park that Premier Bob Rae would have some Witter pills for the people of Ontario to swallow when he 100k to the TV air waves last week. And for once, the rumours were right on. Ontario, he said is in dire economic straits right now, staring smack in the face of a massive $14.3 billion deficit this coming year. And coming hard on the heels of the $9.7 deficit the Government budgeted for this year (it will likely be higher than that) clearly the recession has a tighter grip than even the most gloomy pessimists imagined. "Unacceptably high" was the way Mr. Rae described the pro- jected deficit in what has to be the under-statement of the year. "We're really getting hammered," he added. In an effort to somehow stem the flow of red ink, hospitals, municipalities, school boards and universities will have 10 mud- dle through this year with just a one per cent hike in provincial transfers. Next year and the year after that, the figure will be two per cent. While municipal councils, hospital boards and so on will do their level best to make do with this increase, it's clear that lev- els of service, programs and jobs are on the line. After all, infla- tion continues to rufl at about four per cent, locked-in wage con- tracts this year range from five to seven per cent. With a one per cent hike, it's obvious the numbers just don't add up. School boards and municipalities simply camnot make up the shortfalls by adding to property tax rates. That would be totally unacceptable for the vast majority of home owners already hard- strapped 10 make ends meet. Likewise, the provincial government cannot run huge deficits. Because even (if) times get better, the shortfall must be paid eventually, and even a hint of higher taxes at the personal or corporate level is enough 10 send investors scurrying for other climes. For this reason we find it curious that Mr. Rac wants help from Ottawa 10 launch some kind of "Depression-style" public works program to create jobs and stimulate the economy. That's fine, but th federal treasury is as bare as Oftario's. Where will the money come from jo fix roads and bridges etc? Either from borrowing or increased taxes, both of which are not Ontario is probably looking at a period of restraint that will last 01 ti 38 dhs Gangte, xomngin ie ikea of whit hat Oe BY Mdke-wolt progeaina tha will ony geassaie Shon-isf Boge- Talking directly to Ontarians via television last week, Mr, Rae tried to inject a note of optimism in saying "this is not a time for It's not a time for nts to be throwing money into * fix" solutions while the deficit clock continues to tick. Super Bore ET I she wrote for the Bill from Buff ' Despite two weeks of hype, the game was......... predictable. And for two teams that are supposed to be playing for the world champi- Shi. fs que sioghy, soposially on thé par of is ill ' _ But then the two of hype is what the Super Bow is really all about, isn't it? Grey Cup re-runs anybody? Ug ATIZER, a proves once again that govern. ments can't run a lemonade stand and make it pay The billions that went into Petro-Can by the purchase of Gull and Fina, later it was found to have paid hundreds of millions more than,the companies were worth, Trudeau sucked the into his folly, likewise the provincial govern. jobs. Pensioners and those living on their investment interest, find their banks only paying three per cent on savings and about seven per cent on GIC's: all taxable by Ottawa. With inflation still about four of 49 per cent of DeHaviland, while Bombardier of total control through buyi per cent, aided by our tax not only ffom Ontario, but hun- dreds of millions from Ottawa. It was reported that Ontario payers are on the hook for the initial $49 million, and debts of $300 million as well. Ottawa sold DeHaviland to Boeing for $150 million in the first rally The Bank Act has not been substantially changed since 1913. Mackenzie King said in 1935 "until the control and issue of money and debt is restored to the government and ized as its most conspicuous land sacred responsibility, all talk of sovereignty of Parliament and democracy is idle and futile." The greatest absurdity about the banking system is that when government needs money over and above what it brings in, it bor- rows from the chartered banks the money it gave the chanered banks the right to create in the first place. What nonsense. * Graham Towers, a long-time Bank of Canada governor was once asked why governménts can't create additional money rather than He answered: "If Parliament wants 10 change the form of oper- ating the banking system, it is cer- aly within its authority to do pi could save the taxpayers bil- lions in debt charges over the yeats. : Speaking of coin, there was not a word froni Queens Park or Outawa in cutting costs for bilin- gualism. They cut health, educa- tion, municipal and other essential services, but not one penny out for French. Bill 8 has cost Ontario over «$200 million, French miersivn in Durham over $32 "ek Ne, mer duty jeime isis told the Commons n 1986 that "regulations and absurd laws regarding Official Please see CAN'T, page §