Canada’s Increasing Dependence on Chinese Manufacturing – September 23, 2018,

Canadians are making and manufacturing less and becoming a nation that sells resources, this is not necessarily a bad thing, but it can be a bad thing if your wages are higher than your competitors. As an example, Albertan oil in every stage is more expensive to refine than Saudi Oil. Because of Canada’s current position of lowering the Loonie to offset higher wages, this leads to a very complicated Canadian economy that has to use the power of the Government to redistribute money to Canada’s corporate elites. If you read the following statcan.gc.ca article which talks about the benefits of Canada exporting to China you’ll get a clearer understanding of where I’m going with this

Feeding the Dragon: Canadian Exporters and a Booming China

The Rosy pictured articles I will be using to justify my position with Canada China trade is to give Canadians the understanding that as our manufacturing sectors are replaced with Public Sector workers, Canada is going to be put in a very compromised position. In regards to current NAFTA talks as of September 23, 2018, Canada on the surface via the media appears to be putting itself on a pedestal, believing that we can hold out on the U.S because we have other trading partners. What’s not being explained to Canadians is that Tariffs are a Democrat position. In case Canadians haven’t been paying attention, the leftist media in the United States has focused its attention on Former White House Staff Secretary Brett Kavanaugh

A smart Canadian should ask the question why aren’t the Democrats in the United States as concerned with NAFTA trade talks as they are about Former White House Staff Secretary Brett Kavanaugh? It’s because tariffs are a Democrat thing, increasing Tariffs is a much easier sell than raising income taxes. Sure in time the Democrats would probably prefer to do both, but during their election campaign, they might probably ignore the whole tariff argument altogether.

Mexico already agreed to the terms with Trump and what Tariffs do is they give companies paying taxes in America more economic leverage on companies that are located outside the United States, meaning Donald trump intentionally or unintentionally just created a whole new breed of lobbyist groups. For Canada, this could mean a very rocky road in US-Canada trade relations going forward.

How this relates to China is that well, Canada is becoming increasingly dependent on trade with China. China is still a communist nation, China has a dictator, China can slap tariffs on Canadian made goods anytime it feels like it and because Canada has protectionist measures against the United States, that Trump is trying to tear down with free trade, Canada is putting itself in a very compromised position.

That said, right now in 2018, things look on the up and up for Canada especially if you’re an outsider looking in. Consider reading the articles below from tradingeconomics.com and tradecommissioner.gc.ca:

Canada Balance of Trade

How large is Canada’s trade deficit with China?

I intentionally point to those articles to explain to you that Canadian manufacturing is dwindling in exchange for a resource economy. Countries like Africa and many Middle Eastern and South Asian countries are resource heavy, yet for some reason, those resources haven’t exactly made those countries economic powerhouses? What good are resources if you’re forced to sell them to the highest bidder? What good are resources if you have to compete with other countries who may have lower regulations than you have? what good are resources if they can’t be manufactured in your country because your government priced their own citizens out of manufacturing or refining those resources.

Understand something Canada and this is something that’s very serious, most of the resources in Canada can be refined and/or manufactured for less money in other developed countries. That’s how bad things are here in Canada. I’ve said this over and over again, Canada has 4 Left-leaning parties and basically, the Progressive Conservatives have replaced the Liberals as the Centrist party. The Progressive Conservative Party of Canada has done an excellent job conserving Liberal policies and running them more efficiently. Ontario Premier Doug Ford is a prime example of the Progressive Conservatives. Doug Ford basically said that he had no plans to cut the size of government. Doug Ford tried to get rid of 25 Toronto city councilors and all of Canada heard about the uproar.

This is the state of Canada, if Canadians aren’t understanding that an increased dependence on China is not a good thing well they should consider clicking the article below:

Canadian government should ignore media queries about human rights abuses in China, ambassador says
(China’s ambassador to Canada said this country’s government should disregard Canadian journalists preoccupied with human rights and get on with negotiating an important free trade agreement)

wealth doesn’t come from resources, mineral wealth has been on this planet before humans evolved, the wealth came from what humans were able to do with those minerals. Manufacturing, refining, production, innovation this is what made China the second largest economy. One of the main problems the Western world has been facing is a labor shortage, which of course has led to the governments of the world assuming that the cure for this labor shortage is to increase immigration. Unfortunately, that’s not the problem, the problem is protectionism, the western world has become obsessed with protecting what it has and protecting its ever-growing protection culture. This is what leads to fascism.

Fascism is the combination of socialism and nationalism, I’m not anti-union but unions were formed to protect workers from exploitation? Why does exploitation exist in the first place? How can exploitation exist in a free country? Exploitation exists because the idea of our modern society was rooted in volunteerism, not force. With the exception of communist countries, there’s no industrialist that’s holding a gun to someone’s head forcing them to work for them. People choose to work for companies to exchange their labor for money if you don’t want to work for someone you quit.

For every action, there’s a reaction, so when Unions or the government force private companies to pay their employees more, the government as the intermediary gets their slice of the pie by enforcing income tax hikes or laws on the population. All of the sudden income taxes become the norm and accepted because the people agree that the government has helped them to squeeze money out of the evil capitalist. Now, the reason why Communist China has been able to exploit the rest of the world is that China doesn’t respect intellectual property rights. It’s important to understand that the west was founded on Christian values, Christian morality, China by Christian standards is atheistic, in many mays Leftists are atheistic in their thinking as well.

Any way to enforce control is okay economically when it comes to the majority of atheistic thinkers. The Chinese government views the world from a place of control and dominance. This is why China is hell-bent on remaining a manufacturing powerhouse. China doesn’t care about the money as much as most people would like to believe. They care about money because money is a convenient form of barter, but what the Chinese would prefer is the ability to control property, so they can control the cash flow of other nations.

Now it took a U.S President that spent 50+ years in the private sector to actually challenge the Chinese, and you can see the uproar this has caused primarily because a lot of people around the world don’t understand the rules of barter. Most countries Canada included think that the country with more money has the power. Well, if any Canadian looks at a Canadian $5 bill they’ll notice that their money is nothing more than Legal tender. Legal tender is variously defined in different jurisdictions, which means it’s value is subjective depending on where you are. One of the reasons it’s a good idea to have a VISA CARD when traveling is because VISA is accepted almost all over the world. Canadian dollars aren’t accepted all over the world. Most Canadians that travel know that if they don’t have a VISA it’s a good idea for them to travel with US Dollars.

This is the real world, money is not as important as a financial analyst will have you believe, what’s important is your knowledge of how wealth is created. Public sector job creation is a privilege, not a necessity, Canadians don’t need government, Canadians don’t need welfare, Canadians can survive without selling natural resources, however, if Canada is dependent on another nation to provide it manufactured goods it can produce on its own, in the real economic world this is called buffoonery and in time we will pay for this with a collapsing economy.

Canada’s Increasing Dependence on Chinese Manufacturing equates to a very scary future for Canada if the Loonie depreciates

Personally, I don’t even know why the Canadian dollar is as high as it is now. I honestly think we’re in a suckers rally. Based on my analysis the Canadian loonie should be hovering around the 69 cents worth of Greenback would buy you a Canadian dollar mark. However, if you looked at the financial numbers you might think otherwise. Canada is in a world of trouble and we have ourselves to blame. Justin Trudeau whether intentional or unintentional has made Canada very uncompetitive, but it’s not going to show until Canadians realize that his deficit spending scheme hasn’t worked. The real problem Canada faces going forward as it relates to China is if the Canadian dollar falls, Chinese made goods will become more expensive.

Chinese made goods aren’t exactly known for their quality, a lot of Canadians don’t even realize that durability in products used to be an accepted reality until China started dominating manufacturing. Now even the iPhone which is the most expensive smartphone on the market easily breaks. Be warned Canada there’s an economic storm coming.

Interesting times ahead.