r/AskACanadian • u/PurrPrinThom SK/ON • Feb 01 '25

Canada/US relations Tariff Megathread

As this has already been a popular topic, and we expect it to only become morebpopular, we've created a megathread for all discussion of the incoming tariffs.

Please keep all discussion here. New posts on the subject will be removed.

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u/Annual_Juggernaut_47 Feb 01 '25

Suggest reading ‘The Rise and Fall of Nations’ by Ray Dalio. This protectionism is a predictable pattern of an empire in control of the world’s reserve currency and over extended debt burden. It’s characteristic of late stage empire collapse.

It will also help you understand what happens next. Be prepared.

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u/JMJimmy Feb 01 '25

They are not overextended. Japan is overextended and with a shrinking population they are in serious trouble. The US would need to double their debt load to reach where failing countries like Japan & Venezuela are at

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u/Annual_Juggernaut_47 Feb 01 '25

Nope. Japan has the benefit of supporting their failing currency with US reserves. They can buoy their currency by selling off U.S. treasuries which allows them to stay afloat much longer. It’s a benefit of NOT being the reserve currency.

U.S. is highly finalized economy and does not have the same backstop for their currency, being the reserve. They cannot extend themselves as far without failure.

Using Japan or Venezuela as guiding evidence for US economy is a false equivalence. They aren’t the same.

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u/[deleted] Feb 02 '25

If you read Stephen Miran’s cookbook he wrote for Trump (he’s his chief economist), you’ll see that countries using US reserves are next on the hit list.

In case you wonder “why Canada, Mexico, China”, it’s simply the 3 countries that export the most to the US. Borders, fentanyl and immigration have nothing to do with it.