Potential Canadian Currency Crisis: Trump makes Buy America rules more restrictive, demanding 75% U.S. components – July 16, 2019,
Like a few others, I had predicted Donald Trump would become President long before he fully committed to running. When he ran for President as a Canadian I had hoped that Stephen Harper or some type of Conservative Politician would have been Prime Minister. Reason being? Well, Leftists are disarmed by Trump, I think they forget he spent his entire career in the private sector bribing Politicians. When you’re in business a rule of thumb is to “know your client”. Leftists are rather predictable in that most of them don’t have any creative ideas that require taking personal responsibility. Leftist prefer blaming something externally.
Trump, inherently knows this because of his run-ins with Politicians during his time in the Private Sector. Alexandria Ocasio-Cortez referred to Amazon as a tax cheat who doesn’t pay its workers a livable wage I believe she called it, well as a politician AOC should have been aware that Amazon doesn’t only generate Income taxes, it also generates a lot of sales taxes that otherwise wouldn’t exist. Even better is that almost all of Amazon’s sales are done digitally, which makes them unlike most small businesses unable to cheat on sales taxes, plus having an Amazon nearby creates other businesses, what Alexandria Ocasio-Cortez did was unforgivable, however when it’s all said and done what Justin Trudeau’s Liberal cabinet did can also be considered unforgivable.
To be blunt, Justin Trudeau really messed up on NAFTA. The reality was that Donald Trump wanted to do a bilateral deal with Canada. Mistake number 1 made by Justin Trudeau was to wait on Mexico, well Mexico got a deal done with Trump which put a lot of pressure on Justin Trudeau to sign the new NAFTA deal(USMCA) which the Canadian Liberals and their followers call CUSMA!? This from a political standpoint is potentially what’s led to Trumps added hostility towards Canada.
Now, the problem Justin Trudeau whether he knows it yet or not is that as it stands right now, the Canadian economy is heavily reliant on the United States buying our products. The Canadian dollar is low for one reason and one reason only, to pay for public spending. Our economy is structured and this dates back to Pierre Trudeau to do whatever necessary to pay for public spending. Quebec is a perpetual “Have Not Province” why? Because our ability to manipulate our currency next to the Greenback allows Western Canada to provide the income necessary via equalization payments to pay for public services.
Worse than paying for public servants are the public servants who aren’t counted. Crown Corporations should be considered public services, unfortunately, they’re not. CMHC, Canada Post, these Crown Corporations prevent competition from existing in particular markets in Canada and this will prove to be the most problematic in the event of economic downturn.
CMHC is one of the main players in ballooning rental and housing market prices, but you see, it’s almost like they don’t exist, Canadians would never associate CMHC with higher rental prices, because on the surface, it’s hard to see the correlation, well my dear reader, similar to Canada Post, if CMHC isn’t generating profits and is insolvent, because of a housing crash, guess who has to bail out CMHC? You guessed right the Canadian taxpayer!
So what does this mean exactly? This means a proactive approach of prevention, which from my standpoint equates to a currency crisis. Why am I not big on a Gold Standard? Because money revolves around a countries inability to impose austerity measures. Canada qualifies s a country that would have a difficult time shrinking the size of government. Sure it could happen, but I don’t think it would be easy and that’s why in my opinion Justin Trudeau when it’s all said and done could go down as one of the, if not the worse Prime Ministers in Canadian history.
What’s even more embarrassing for Canada is that Trudeau could get a second term. Our system works because of how we’ve been able to take advantage of the United States economically. We have a much higher standard of living in Canada, so ask yourself the question why is the Loonie so much lower than the Greenback? You know the answer to that question it’s no secret, and because I’ve been following Trump for such a long time, guess what one of his specialties are? Currency trading! Trump understands the forex markets, if you’re in real estate, currency trading is extremely important when building a building. Trump’s life in the Private Sector revolved around real estate, do you honestly think he’s not aware of what we’re doing with our currency?
CUSMA as the Liberals call it, was not a win, devaluing our currency under the USMCA is not a win for Canada, Canada’s tariffs, against American goods, is no longer a win for us, if Trudeau had taken the time to get to know Trump, he’d understand what Trump’s plan was and been able to make sure that Canada was out of harms way. Think about this for a moment, Japan and South Korea are now fighting for U.S market share, why? Because Donald Trump has reshaped the WORLD economy, and both companies know it. Does Justin Trudeau know it? Can Canadians comprehend it yet?
A little refresher for Canadians unaware, Canadian Politicians have been outsmarting U.S politicians on trade for years and years. those tariffs we charge Americans at the border, to my fellow Canadians that costs Americans a lot of jobs, we’ve been engaging in unfair trade for a very long time. Justin Trudeau basically told the press and Trump that he’s not going to pay for NATO. Have you seen the Canadian military under Justin Trudeau? Consider doing some research about Canada’s military. Why, because why is it that we Canadians feel entitled to America’s military to defend us from conflict? Who put those thoughts into your head, who sold you on this docile existence?
Canada better shape up soon, I get that people are assuming all is well and quite frankly I can’t blame many of you for feeling this way, but change appears to be in the air. So, consider being prepared.
Trump makes Buy America rules more restrictive, demanding 75% U.S. components – CBC
Interesting times ahead