The recent trade spat between Donald Trump and Justin Trudeau shows exactly how out of touch Canada’s leaders and the Canadian population in general is with the reality of the modern world.
Yeah sure, Trump is a loudmouth bully, but the truth is Canada is completely dependent upon the US for its economy and it’s only the benevolence of the US that keeps the country going at all.
Canada’s controlled media only rarely tells the truth about the 270 percent tariffs that Canada imposes on US milk products, or the obscenely low stumpage rates that Canadian softwood can be harvested from the Federal and Provincially owned forests.
Canada has repeatedly hidden behind weasel clauses in NAFTA in order to win court battles with the US on these two issues. What is worse, the Federal and Provincial subsidies for these industries aren’t working either—both industries are losing ground in terms of employment and size.
Fracking and shale oil turned the US from an aggressive importer of Canadian oil to a competitor, and as the Canadian natural resource sector gets pummelled by the rent-a- green crowd, “services” have emerged as the mainstay of the Canadian economy.
Leading the service industry is real estate, which is about to undergo a fundamental reset as prices which have spiralled out of control in recent years are brought down to earth, primarily with curbs on foreign buyers, speculators and looming (US) interest rate increases.
The Canadian manufacturing industry (read automobile manufacturing) is as important as real estate was to the economy.
With auto parts crossing the US/Canadian border up to seven times as the assembly line is completed, there is tight integration between the two countries. However, should the US decide to move its auto manufacturing out of sky-high tax Canada, there is little doubt that their economy will turn on a dime and take up the slack very quickly. The Canadian economy will have a meltdown.
Trudeau needs to understand that economies don’t get created by building LGBT washrooms or pandering to special interest groups. Welcoming and subsiding even more Third World invaders costs real money – and the dead-end jobs at Walmart and Starbucks will only escalate inequalities.
The legalization of marijuana may blow a hazy cloud of complacency over the Canadian public but when it clears in the morning, reality will set in.