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Trump: ‘Severe’ consequences if Saudis murdered Khashoggi

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WASHINGTON — President Donald Trump has acknowledged it “certainly looks” as though missing Saudi journalist Jamal Khashoggi is dead, and he threatened “very severe” consequences if the Saudis are found to have murdered him. His warning came as the administration toughened its response to a disappearance that has sparked global outrage.

Before Trump spoke Thursday, the administration announced that Treasury Secretary Steven Mnuchin had pulled out of a major upcoming Saudi investment conference and a U.S. official said Secretary of State Mike Pompeo had warned the Saudi crown prince that his credibility as a future leader is at stake.

Pompeo said the Saudis should be given a few more days to finish and make public a credible investigation before the U.S. decides “how or if” to respond. Trump’s comments, however, signalled an urgency in completing the probe into the disappearance of the journalist, last seen entering the Saudi Consulate in Istanbul on Oct. 2.

The messaging underscored the administration’s concern about the effect the case could have on relations with a close and valuable strategic partner. Increasingly upset U.S. lawmakers are condemning the Saudis and questioning the seriousness with which Trump and his top aides are taking the matter, while Trump has emphasized the billions of dollars in weapons the Saudis purchase from the United States.

Turkish reports say Khashoggi, who had written columns critical of the Saudi government for The Washington Post over the past year while he lived in self-imposed exile in the U.S., was killed and dismembered inside the Saudi Consulate in Istanbul by members of an assassination squad with ties to Saudi Crown Prince Mohammed bin Salman. The Saudis have dismissed those reports as baseless but have yet to explain what happened to the writer.

Trump, who has insisted that more facts must be known before making assumptions, did not say on what he based his latest statement about the writer’s likely demise.

Asked if Khashoggi was dead, he said, “It certainly looks that way. … Very sad.”

Asked what consequence Saudi leaders would face if they are found to be responsible, he replied: “It will have to be very severe. It’s bad, bad stuff. But we’ll see what happens.”

Vice-President Mike Pence said earlier in Colorado that “the world deserves answers” about what happened to Khashoggi, “and those who are responsible need to be held to account.”

In Istanbul, a leaked surveillance photo showed a man who has been a member of the crown prince’s entourage during trips abroad walking into the Saudi Consulate just before Khashoggi vanished there — timing that drew the kingdom’s heir-apparent closer to the columnist’s apparent demise.

Turkish officials say Maher Abdulaziz Mutreb flew into Istanbul on a private jet along with an “autopsy expert” Oct. 2 and left that night.

In Washington, Pompeo, who was just back from talks with Saudi and Turkish leaders, said of the investigations in Istanbul:

“I told President Trump this morning that we ought to give them a few more days to complete that so that we, too, have a complete understanding of the facts surrounding that, at which point we can make decisions about how, or if, the United States should respond to the incident surrounding Mr. Khashoggi.”

Although Pompeo suggested the U.S. could wait longer for results, an official familiar with his meetings in Riyadh and Ankara said the secretary had been blunt about the need to wrap the probe up quickly.

The official, who was not authorized to publicly discuss details of the private meetings and spoke on condition of anonymity, said Pompeo told the crown prince that “time is short.” The official added Pompeo had warned him that it would be “very difficult for you to be a credible king” without a credible investigation. The prince is next in line for the throne held by his aged father King Salman.

Shortly after Trump and Pompeo met at the White House, Mnuchin announced that after consulting the president and his top diplomat “I will not be participating in the Future Investment Initiative summit in Saudi Arabia.”

The Saudis had hoped to use the forum, billed as “Davos in the Desert,” to boost their global image. But a number of European finance ministers and many top business executives have pulled out as international pressure on Riyadh has intensified over Khashoggi.

Pompeo said that whatever response the administration might decide on would take into account the importance of the long-standing U.S.-Saudi partnership. He said, “They’re an important strategic ally of the United States, and we need to be mindful of that.”

Matthew Lee And Darlene Superville, The Associated Press







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Taxpayers Federation calling on BC Government to scrap failed Carbon Tax

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From the Canadian Taxpayers Federation

By Carson Binda 

BC Government promised carbon tax would reduce CO2 by 33%. It has done nothing.

The Canadian Taxpayers Federation is calling on the British Columbia government to scrap the carbon tax as new data shows the province’s carbon emissions have continued to rise, despite the oldest carbon tax in the country.

“The carbon tax isn’t reducing carbon emissions like the politicians promised,” said Carson Binda, B.C. Director for the Canadian Taxpayers Federation. “Premier David Eby needs to axe the tax now to save British Columbians money.”

Emissions data from the provincial government shows that British Columbia’s emissions have risen since the introduction of a carbon tax.

Total emissions in 2007, the last year without a provincial carbon tax, stood at 65.5 MtCO2e, while 2022 emissions data shows an increase to 65.6 MtCO2e.

When the carbon tax was introduced, the B.C. government pledged that it would reduce greenhouse gas emissions by 33 per cent.

The Eby government plans to increase the B.C. carbon tax again on April 1, 2025. After that increase, the carbon tax will add 21 cents to the cost of a litre of natural gas, 25 cents per litre of diesel and 18 cents per cubic meter of natural gas.

“The carbon tax has cost British Columbians a lot of money, but it hasn’t helped the environment as promised,” Binda said. “Eby has a simple choice: scrap the carbon tax before April 1, or force British Columbians to pay even more to heat our homes and drive to work.”

If a family fills up the minivan once per week for a year, the carbon tax will cost them $728. The carbon tax on natural gas will add $435 to the average family’s home heating bills in the 12 months after the April 1 carbon tax hike.

Other provinces, like Saskatchewan, have unilaterally stopped collecting the carbon tax on essentials like home heating and have not faced consequences from Ottawa.

“British Columbians need real relief from the costs of the provincial carbon tax,” Binda said. “Eby needs to stop waiting for permission from the leaderless federal government and scrap the tax on British Columbians.”

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The problem with deficits and debt

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From the Fraser Institute

By Tegan Hill and Jake Fuss

This fiscal year (2024/25), the federal government and eight out of 10 provinces project a budget deficit, meaning they’re spending more than collecting in revenues. Unfortunately, this trend isn’t new. Many Canadian governments—including the federal government—have routinely ran deficits over the last decade.

But why should Canadians care? If you listen to some politicians (and even some economists), they say deficits—and the debt they produce—are no big deal. But in reality, the consequences of government debt are real and land squarely on everyday Canadians.

Budget deficits, which occur when the government spends more than it collects in revenue over the fiscal year, fuel debt accumulation. For example, since 2015, the federal government’s large and persistent deficits have more than doubled total federal debt, which will reach a projected $2.2 trillion this fiscal year. That has real world consequences. Here are a few of them:

Diverted Program Spending: Just as Canadians must pay interest on their own mortgages or car loans, taxpayers must pay interest on government debt. Each dollar spent paying interest is a dollar diverted from public programs such as health care and education, or potential tax relief. This fiscal year, federal debt interest costs will reach $53.7 billion or $1,301 per Canadian. And that number doesn’t include provincial government debt interest, which varies by province. In Ontario, for example, debt interest costs are projected to be $12.7 billion or $789 per Ontarian.

Higher Taxes in the Future: When governments run deficits, they’re borrowing to pay for today’s spending. But eventually someone (i.e. future generations of Canadians) must pay for this borrowing in the form of higher taxes. For example, if you’re a 16-year-old Canadian in 2025, you’ll pay an estimated $29,663 over your lifetime in additional personal income taxes (that you would otherwise not pay) due to Canada’s ballooning federal debt. By comparison, a 65-year-old will pay an estimated $2,433. Younger Canadians clearly bear a disproportionately large share of the government debt being accumulated currently.

Risks of rising interest rates: When governments run deficits, they increase demand for borrowing. In other words, governments compete with individuals, families and businesses for the savings available for borrowing. In response, interest rates rise, and subsequently, so does the cost of servicing government debt. Of course, the private sector also must pay these higher interest rates, which can reduce the level of private investment in the economy. In other words, private investment that would have occurred no longer does because of higher interest rates, which reduces overall economic growth—the foundation for job-creation and prosperity. Not surprisingly, as government debt has increased, business investment has declined—specifically, business investment per worker fell from $18,363 in 2014 to $14,687 in 2021 (inflation-adjusted).

Risk of Inflation: When governments increase spending, particularly with borrowed money, they add more money to the economy, which can fuel inflation. According to a 2023 report from Scotiabank, government spending contributed significantly to higher interest rates in Canada, accounting for an estimated 42 per cent of the increase in the Bank of Canada’s rate since the first quarter of 2022. As a result, many Canadians have seen the costs of their borrowing—mortgages, car loans, lines of credit—soar in recent years.

Recession Risks: The accumulation of deficits and debt, which do not enhance productivity in the economy, weaken the government’s ability to deal with future challenges including economic downturns because the government has less fiscal capacity available to take on more debt. That’s because during a recession, government spending automatically increases and government revenues decrease, even before policymakers react with any specific measures. For example, as unemployment rises, employment insurance (EI) payments automatically increase, while revenues for EI decrease. Therefore, when a downturn or recession hits, and the government wants to spend even more money beyond these automatic programs, it must go further into debt.

Government debt comes with major consequences for Canadians. To alleviate the pain of government debt on Canadians, our policymakers should work to balance their budgets in 2025.

Tegan Hill

Director, Alberta Policy, Fraser Institute

Jake Fuss

Director, Fiscal Studies, Fraser Institute
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