What Justin Trudeau and Chrystia Freeland Don’t Understand about their retaliation tariff fight – March 29, 2019,

A lot of Canadians in the mainstream media and in politics either don’t know or don’t care about Donald Trump’s stance on currency manipulation. I think Canadians forget that the Loonie should actually be at bare minimum on parity with the U.S dollar, it’s our protectionism and our ballooned public sectors, which include Crown Corporations that push the Loonie lower. Now, I’m not sure if Donald Trump knows the inner workings of our system of Governance, but it doesn’t take a genius to figure out that the Loonie is artificially low.

Ottawa considering new retaliation to end U.S. tariff fight, source says – CBC

Because I predicted Donald Trump winning the Presidency years before it happened, I had been following the Donald and one of his main talking points prior to becoming President of the United States was currency manipulations. If you’re in a rush consider watching the CNN interview of Donald Trump dated February 9, 2011, that interview, by the way, is nearing a decade old as of the publication of this blog post. Around the 1:50 mark of that video Donald Trump mentions CURRENCY MANIPULATION listen to him.

Now, I’ve been saying since around 2009, that currency manipulation is not in Canada’s best interests in the long term, because price controls lead to entire sectors being created that aren’t reflective of the global actual market. So in Canada what we have are a lot of bloated Government dependent Crown Corporations and private businesses who reside in Canada strictly because of the lower Loonie.

Now take a wild guess which industry in Canada make their homes in Canada strictly because of the benefits they get for a lower Loonie? If you guessed steel and aluminum! You’d be correct!

What Justin Trudeau and Chrystia Freeland Don’t Understand about their retaliation tariffs

What Justin Trudeau and Chrystia Freeland Don’t Understand about their retaliation tariff fight is that Donald Trump is playing a ruthless economic battle of attrition game. Now, if Trump wins 2020 chances are a lot of these companies might simply leave Canada, if you live in Canada, it’s important for you to understand that is currency is artificially devalued and Trump knows that, however, Trump can’t tell our Central Bank what to do, nor can he force Justin Trudeau to change policies, what he can do is stretch this trade war for as long as he’s the President of the United States.

Now, luckily for Canada, if Trump loses in 2020, this appears to be a trade war the Democrats would rather end, so if your Justin Trudeau or even Andrew Scheer who would also have the same problem, you better keep your fingers crossed, that Trump loses in 2020. This is not even a problem Andrew Scheer can fix, because you have to remember that Crown Corporations which have been allowed to flourish in Canada have completely distorted prices here.

When Stephen Harper was Prime minister, something terrible happened if you remember, the Loonie began to rise, then all of sudden Stephen Poloz began to talk down the Canadian economy, claiming bad things were happening, so Poloz lowered interest rates and then he lowered them again and again and then to make matters worse Stephen Harper lost the election to son of the most economically disastrous Prime Ministers in Canadian history, then interestingly enough, Americans decide they’ve had enough of their socialist experimenting under Obama and they hire a businessman named Donald Trump, who oddly enough is a Global businessman, that has to make bulk purchases in the global market place which means the forex markets and tariffs are a huge part of running his business.

Do you follow me here? Because if you don’t, then you’re not going to understand how to fix the recession that’s going to smack Canada in the face in the very near future. The type of recession that could lead to an economic collapse that’s on its way to Canada will be very painful because it’s going to require shrinking the size of Government, what’s so painful about that revolves around Crown Corporations and deflation and Canada’s new inability to inflate their way into prosperity. I see it clearly, but my guess based on reading the mainstream news is that most Canadians will have to learn this the hard way.

Regarding steel and aluminum tariffs, Justin would be better off making concessions, but I don’t think Justin Trudeau or Chrystia Freeland want to look weak in the face of someone they deem a tyrant. The thing to remember is that businesses are always free to leave, UNIFOR can complain all they want, GM is restructuring and there’s nothing any union can do about that.

Interesting times ahead.