The Canadian government is slapping the US with massive tariffs — Understanding Tradeoffs – June 3, 2018
In this world, we’d all like to image money as the only way to measure trade when I listen to Justin Trudeau my concern is I don’t think his government understands Canada’s current economic position.
When I watch the CBC and the people they’re putting in front of the camera it’s an indication to me that Canadians haven’t actually understood what’s been happening to our economy. There are already a lot of products that are in abundance in America that aren’t available in Canada, at all. Furthermore what Canadians don’t seem to comprehend is that there’s nothing stopping Canadian manufacturers from simply leaving Canada.
Canadian steel companies have been leaving Canada without the Tariffs, what do you think will happen with them? To make matters worse is Justin Trudeau’s Liberals raised the cost of doing business in Canada. So these tariffs are actually making Canada more isolationist, fueling this is the social safety net, the welfare programs the entitlements granted to Canadians via the private sector. If this slows down its game over. I keep forgetting the obvious Canadians are already in debt. There exists a lot of personal debt on the retail scale and guess what people in retail debt don’t do? They don’t Invest!
Debt used to be for business people now it’s sucked in the retail sector and if the Canadian economy stalls in any way, we are talking about a huge massive economic collapse. The Bank of Canada will have to fight off hyper
-inflation for years to come and debt collapses equates to financial institutions not even existing in Canada. When 2007 happened financial institutions simply left, when these finance companies leave, namely the subprime companies nothing replaces them, the debts owed are sold off to a collection agency who don’t loan money and only collect money.
When this happens the economy comes to a halt and when people realize they can no longer borrow there way out of their mess, they often declare bankruptcy, which more than anything hurts credit ratings, and detours future investment. I’m hoping for the best but as much as Canadians like to hold their heads high because they think they’re better off than Americans, I advise them to be prepared for what’s coming.
Interesting times ahead