0.4% Interest… that’s what you’ll get.. 0.4!!

How brutal is that eh? Department of Finance Canada has the report and I can’t help but think back to when the bonds were paying off a health 7% interest rate and my little $100 bonds that my parents made me buy were doubling every 7 years… good lord, at 0.4% interest.. I dont’ even want to guess at how long it would take, it’s not even worth the effort!

Well, if it makes you feel any better, I decided to do up a chart compounding that great rate over a period of 35 years

Ok awesome.. after 35 years of saving $1000.. we now have a grand total of $150 saved.. SWEET! Makes you wonder why they even posted this information to begin with. If you want to see what ‘real’ interest rates of return can do for your portfolio, check this my post on the two best financial screenshots you’ll ever see and the compound interest examples.

Now I don’t claim to be an expert on bonds, however from what I understand.. Governments issue them when they want to raise money.. such as to fund wars, infrastructure, etc.. That said, it doesn’t look like our government needs any extra money.. hmm.. so why don’t they cut us a break on income taxes! Screw the 1% GST cut.. let’s see them make a real difference!

The good news from that point is that it also appears that our government/banking system/economy is in good shape. I wish I could say the same for our US brothers… but I certainly can’t… they’ve simply printed out too much money to fund bailouts, wars, etc.. that they can’t pay back.. they’re in for a rude awakening.. it’s just a matter of time.