Black Friday Tariffs and Your Investments

A Swiss Cheese Border and Dishonest Prime Minister Seal Our Fate

 

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As you get set to enjoy the sales and the shopping crowds today, remember that it may be the last Black Friday discount day for a while.

During the US election, President-Elect Trump discussed tariffs on Canada and Mexico. He was concerned that the Canadian Border was not protected and that Canada was not keeping up with its promise to increase military spending. In return for our failures, he promised a 25% tariff on all products crossing the border.

 He was right.  We have a Swiss Cheese of a border and have lied about spending 2% of our GDP on the military as required by NATO.  One person is responsible, and that, of course, is the Canadian Prime Minister.

While we have no money to fulfill our promises to the US immediately, according to Trudeau, we apparently have enough to send 18 million Canadians a $250 check in April and exempt some goods from HST for a few months. That will cost some 7 billion borrowed dollars. Thank your grandchildren and great-grandchildren for their generous donation.  Future generations will be paying for this for a very long time.

 The solutions are simple, but there is no willingness to do them.

Here are the two things we could do.

1. Place our military on the border to the US, where illegal immigration is a problem.  Could you do it now?

2. Initiate Defence Bonds, aiming to reach 2% of GDP within 6 months.  Provide a 5% tax-free payment on those bonds to Canadian and US Citizens.  The goal would be to raise 40 billion dollars annually for the next 5 years.  At that point, a shift to funding the military needed from cuts to other areas.

3. Create an advisory board at arm's length to monitor the use of those military funds and ensure they are used for their intended purpose.

 Now, with that in place, let’s talk about those tariffs. 

 As an investor, I have never been a great fan of consumer goods. The problem is that the tariffs suggested will disrupt our economy. Everything.  Having some safety cushion of cash and gold for uncertainty is vital to economic survival. Increasing that to 10% of assets as we move through the next two years makes sense.

 Justin has over a year to continue to destroy our economy.  I’m about 95% sure he will continue to do that.  It’s going to get ugly as our team of clowns tries to threaten and cajole America.  Get the red noses out and floppy shoes on.  We are the joke in this game and everyone knows it. With one exception.

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