It's not about Tariffs - It's about currency values and central bank rates

It's not about Tariffs

It's about currency values and central bank rates

My fellow Canadians, I love you, but do not listen to political rhetoric. To date, the only potential crisis for Canada was identified by Danielle Smith. She's right.

Apart from the above let's look at the facts. If the U.S. added 25% tariffs to Canadian products said tariffs would ONLY hurt Canadians, not Americans. If tariffs are coming, an economic union is the ONLY solution, otherwise Canada WILL have to raise its central bank rate to 10% to strengthen the collapsing Canadian dollar and attract new foreign investment.

Let's look at the facts. We currently have a 68 cent dollar. Adding 25% to 68 cents would make it an 85 cent dollar. This would still be palatable for the American consumer, but not for Canadians. American goods would cost us $1.25 in U.S. funds. The tariffs would likely drag down our dollar to below 65 cents, making it even less painful for Americans, and deadly for Canadians. The only solution, as already stated, would be to increase the central bank rate. Inflation would become extremely problematic for Canada. 

If our dollar strengthens to 90 cents, Americans would pay $1.125 for our products. This would still be manageable for Americans. We are not in a tariff war, we are in a currency and interest rate war. If foreign currencies ever became a problem for the U.S. consumer, the American government and corporate structure would immediately create tax and rate incentives for investors (i.e. to invest in plant, equipment, employees and create supply chains).

Please remember the USA has the printing press for money, and they have the ESF - the Exchange Stabilization Fund. We have very little the USA cannot produce at home or acquire internationally. The biggest item, which makes placing a dollar value on, is the defense apparatus the USA provides for Canada.

We can't win this battle unless Trump says "OK, I won't hurt Canada". The only answer is an economic union. The borders will change by 2030 no matter what happens now. The Globalists have decided this. The ordinary person may argue but they will not be able to act or stop the transition. The Globalists will have full control of Artificial Intelligence to stop any opposition.  Optimus and Musk will see Tesla stock rise to unprecedented levels.

Canada is one of the United States' largest trading partners, with a significant portion of Canada's exports going to the U.S. In recent years, approximately 75% of Canada's total exports are destined for the U.S.

Trade in 2023 (Estimated):

• Total exports from Canada to the U.S.: Around $400 billion USD (this varies year to year based on market conditions, commodity prices, etc.)
• Top exported goods include:
• Energy products (primarily oil and natural gas)
• Vehicles and parts
• Machinery and equipment
• Minerals and metals

The United States is also a major exporter to Canada, which is one of its largest trading partners. In recent years, the U.S. has consistently exported goods worth around $350 billion to $400 billion USD annually to Canada.

Key Exports from the U.S. to Canada:

1. Vehicles and parts: Cars, trucks, and automotive parts are among the largest categories of U.S. exports to Canada.
2. Machinery and equipment: This includes industrial machinery, computers, and electrical machinery like telecommunications equipment and computers.
3. Mineral fuels: This includes petroleum products, natural gas, and refined products, though Canada is also a significant exporter of energy to the U.S.
4. Pharmaceuticals: Medicines, vaccines, and other healthcare products are important exports.
5. Electrical machinery: This category includes products like telecommunications equipment, computers, and electrical circuits.
6. Agricultural products: The U.S. exports a wide range of agricultural goods to Canada, including soybeans, corn, cereals, and meat (especially pork and beef).
7. Plastics and chemicals: The U.S. exports large quantities of plastics, chemicals, and fertilizers to Canada.
8. Aircraft and spacecraft: Aircraft and parts are also a significant export category, particularly related to the aerospace sector.

Thank you,

Joseph Pede