Economic War
Hope for the Best, Prepare for the Worst
I try very hard to be unbiased in the Be Prepared blog. However, I do have a bias. My bias is pro Canadian and has been for decades. Socially, I believe in our sovereignty. Economically, I believe in our natural resources as our real assets, the economic foundation for our sovereignty.
The US has started an economic war against us. Tariffs are getting the headlines, while issues like rebuilding our military and reduced international investment in Canada due to the chaotic news cycle will cause considerably more economic pain and volatility for our families and ourselves.
A recent NY Times article (1) documents Trump's approach to annexing Canada through 'economic force.' Renegotiation of borders and great lakes treaties have been put on the table by the US.
Although we likely don't face US invasion or outright annexation, Andrew Coyne (2) suggests a more probable outcome if we lose the war: 'incremental surrenders of our sovereignty .. a vassal state (3) in the end.'
I take this seriously. As a result, I now have a second bias - against the US economy.
What can we do?
1. Understand the scale or risk:
This is the largest external threat to Canada in our lifetime. Since World War 2.
2. Understand the timeline:
Be prepared for the worst, assume this economic war will last 2, 4 or more years.
3. Act. Our actions include:
· Accepting some sacrifice will be necessary
· Maximizing Canadian investment and eliminating US investment
· Maximizing pro-Canada and anti-US household spending
· Maximizing safer, defensive savings and investments, considering the timeline
· Looking for other ways to fight this war. Ideas?
4. After preparing and acting, then we will hope for the best.
5. Be Thankful:
This is an economic war not a shooting war. We may suffer economic hardship, but our children won't have to go to war.
What are you doing to fight for our country?
1. Matina Stevis-Gridneff, NY Times, March 7
2. Andrew Coyne, Globe & Mail, Tariffs are only the start, March 7
3. Vassal state: a state with varying degrees of independence in internal affairs but dominated by another state in its foreign affairs and potentially wholly subject to the dominating state (Merriam-Webster)