Quote:
Originally Posted by CaptainCrunch
Its almost too late to diversify away from the American Market, especially for energy.
There's no way that we will ever be able to build a energy pipeline to the East coast, and there's no way to expand capacity to the West Coast. Even if we could it would probably take decades.
We can put an export tax on Oil and Gas, but really, all that will do is trigger another set of retaliations from the States, Maybe they shut down line 5 who knows.
All that's going to happen is that we're going to dig in, the US is going to dig in, Canada is going to print hundreds of billions of dollars, which is inflationary and will further devalue the loony. On top of that, we put our retaliatory tariffs on American goods coming in, that will likely include a lot of food. so we're going to get blasted on coast of living.
The next 6 months or so is going to be ugly, and there will be no movement on either sides governments, and then maybe both sides will actually get serious about getting to the negotiating table.
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This. Canada has been backstabbed and checkmated by our closest ally. I don't see any way to "win" right now, since there are literally no good levers to pull. I'm not even sure the US states that will get hurt by this can do anything about it. If I'm PM, I'm offering up 2% national defense spending today including an agreement to buy US military gear (maybe even nuclear subs and break with that no-nuclear policy), because as nuts as that is financially, what is coming is going to be worse.
It's brutal, and even if we built EE and Northern Gateway, we'd still be vulnerable, but at least we'd have a real lever to pull.