Ron Butler, a Canadian mortgage broker and commentator, addressed the issue of government deficits and borrowing in a series of posts on March 27, 2026. In his tweets, Butler discusses Modern Monetary Theory (MMT) and its implications for countries like Canada and Ontario.
In one post dated March 27, 2026, Butler wrote: “It’s becomes so common the Economists invented a new way to justify it: Modern Monetary Theory
These Economists suggest under the right conditions Governments could run Deficits FOREVER with no ill effects
I am NOT kidding: FOREVER
Japan is always the key example
5/”
On the same day, he noted the apparent lack of public concern about government borrowing: “Virtually no Canadians feels any real effect from our various Governments issuing Bonds to secure the money to cover those deficits
All over the World Governments borrow vast amounts of money to cover the difference between the taxes they bring in & the money they spend
4/”
Butler also questioned whether ongoing spending is sustainable for jurisdictions such as Ontario and Canada: “Can Ontario (which owes more money than many small countries) & Canada just keep spending because somebody buys our Bonds?
So far YES
Which means we are all part of one of the biggest FAFO experiments in history” (March 27, 2026).
Modern Monetary Theory has gained attention in recent years as some economists argue that sovereign governments with their own currency can finance large deficits without immediate negative consequences. Japan is frequently cited as an example due to its high debt-to-GDP ratio and long-term use of government borrowing to stimulate economic growth. While MMT remains controversial among mainstream economists, supporters believe it provides flexibility for governments facing persistent fiscal shortfalls.
Ontario’s provincial debt has been compared to that of smaller nations, reflecting broader trends in advanced economies where government borrowing plays a significant role in funding expenditures beyond tax revenues.
