Trump’s logic, or lack of it, never seems to surprise me. What it will do is surprise Americans. Let me rephrase that. It will likely shock Americans. So far, trump has ensured that food prices will increase dramatically. Now he has ensured that buying a new car, a motorcycle, snowmobile, boat, gun, or any machinery, including aluminum boats, ships and defence industry expenditures, such as aircraft, both military, commercial and private, will go through the roof.
Canada, due to the buying value of its dollar, and the lower labour costs, will suffer, absolutely. But aside from the countervailing duties Canada will impose on American goods, the cost for Americans, who love their toys and the strength of their military, will find that the U.S. greenback will now buy decidedly less.
Either that, or the taxes of Americans will increase substantively.
Couple that with the fact that tariffs on almost everything the U.S. buys from China, Mexico and Canada will go up an equivalent amount, and Americans will see a reduction in what they can buy, or afford to buy.
America is already in debt to the tune of 123% of GDP, or 42 Trillion dollars. Trump’s actions will add another 8-10 Trillion to America’s debt ratio to GDP, meaning that debt servicing will be greater than the American military budget.
In four years, at this rate, Americans won’t be able to actually pay for old age security, Medicaid or pensions.
Let’s face it. There wasn’t much of a social safety net for Americans to start with, but when that disappears, Americans will become angry, maybe viciously so toward those who promised them a better standard of living, yet cost them their stability and forced many into insolvency.
And today, Trump has announced that tariffs on Canadian steel and aluminum may double!
Okay Canada. Turn off the taps, entirely. No oil and gas, and no electricity. May the East Coast go dark, thank you very much.
So much winning America. So much winning.
As an aside, Trump will have destroyed any cooperation between Canada and the United States, as well as that of Mexico.
It may seem strange, but we don’t take to blackmail and coercion. Not only will Canada thrive. It will ensure that its strategic metals, oil and gas, and yes, even water in the future becomes much more expensive to America, if it’s available at all.
Canada will likely shift its manufacturing, its raw materials, minerals and metals to more reliable and trustworthy partners, — like China.
And, it will provide Canada with the benefit and impetus to militarize and move as far away from America geopolitically as it can.
We weren’t particularly enamoured with America, its racism, guns, proclivity for violence and hate, — but now?
Canadians will gladly stay away in droves. Buying Canadian, or anybody else’s products, except Americas.
And I have already begun. This year I will spend $75,000 on new acquisitions, vacations and products.
Not one will be American.
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