As the European Union has reached a deal with the Trump administration, imposing a fifteen per cent tariff across the board, Canada's fate now hangs in the balance. Trump now has the upper hand, and he knows it.
Trump has never wanted a trade deal with Canada. He set his objective out very clearly from the outset, which was the fifty-first state solution. This was his baseline, and that has not changed. The danger here is that Trump now knows he can economically starve us out, and unless Canada moves swiftly to umbrella itself within the European Union, any notion of our sovereignty will disappear.
Some believe that Canada can continue to address its challenges, but there is an underlying economic issue that governments have not addressed since the 1980s. The country's financial foundations have eroded to the extent that creating the magical and mystical recovery both the Liberals and Conservatives want to achieve would take many years and trillions of dollars to rectify. None of which Canada has now. Leaving Carney in a position where he is acting tough but in reality, running scared and walking his way through a minefield where he can do nothing more than step on mines. He is trapped, and he knows it, and although he tries to put on a brave face, it is clear by his tone that he is about to give in.
In a previous blog, I suggested that Canada should protect its sovereignty by joining the European Union, and I think most readers laughed or scoffed at my idea. I tell you this without the strength and numbers behind the European Union, we are pretty much going to take a ride on the Titanic, as the American administration puts a stranglehold on our resources and capital exports.
Canada cannot capitalise on the economy, and this is where the destruction of the economic foundations of our country comes into play. This issue is the high levels of both national and consumer debt combined with the massively increasing numbers of working poor and those now living in a much more abstract poverty. This makes up now well over 25 per cent of the Canadian population, with many more falling into this category every day.
While the Government and opposition discuss housing for purchase, they say little about the real and more pressing issue of decent, affordable, income-geared rental housing. What is the point of giving money to the private sector that Carney and Poilievre keep touting as our saviours to build houses that the demographic to which they are promoting this fantasy cannot afford? These are but wasted words in the apocalyptic race to the bottom. Even if it could work, he does not have the vast amounts of capital at his disposal to even get this off the ground. First, it is due to the erosion of the tax base, and second, it is Canada's lack of education and promotion of the building trades or working with the provinces to provide Canadians with the opportunity to educate themselves without the high student debt load they must carry for years afterwards.
As most economists will tell you, a structured economy requires a solid foundation upon which to build itself. The foundation of course is its people. Consumers drive the capitalist economy, without the consumers' ability to buy the goods and services we produce; more people will continue to fall into this never-ending spiral of indebtedness. When a nation's citizens must borrow from banks and credit card companies to make ends meet, they have shattered the foundational aspects of the economy.
Our politicians must take a firm stand, and the need to make these changes is now. Canada has run out of time, money, and political leverage to maintain its sovereignty against the economic starvation about to be imposed on us by the Trump administration. Mr. Carney, you have run out of time, and with the wolf breathing down our neck, what's your next move, and do you realize the urgency this now takes on?