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Retail Growth: While US retail sales have dipped, Canadian retail sales grew by 1% in May 2026, marking five consecutive months of increases (0:46-1:00).
Job Market: Canada added 75,100 jobs in July 2026, reaching its lowest unemployment rate in two years, contrasting with job losses in the United States (2:27-3:22).
Investment and Markets: The Canada Pension Plan is reported to be performing strongly, and the Canadian stock market has outperformed many global peers, including the US, since March 2025 (4:25-5:04).
Strategic Partnerships: The creator highlights significant new investments and trade deals between Canada and Germany, particularly in sectors like defense, critical minerals, and green energy, as a sign of successful economic diversification (6:12-8:25).
Ultimately, the video encourages Canadians to maintain optimism and pride in the national economy, emphasizing that individual consumer choices play a vital role in supporting domestic growth (9:28-10:07).

And Klause did study economics, so I tend to believe him.

BREAKING - Trump has paused new 50% tariffs on Canada for three days because he says there is a deal on trade

He blinked. TACO TUESDAY

Trump Blinked at Midnight: How Banker PM Carney’s Quiet $436 Billion Weapon and America’s $40 Trillion Debt Trap Might Have Influenced His Decision

The guillotine—a 50% tariff hike on a host of new products—was set to drop at midnight on Tuesday.

Donald Trump backed down, and events related to U.S. sovereign debt may have influenced his decision.

Let’s look at the timeline of events in the financial and bond markets on Tuesday, August 18—the day before the deadline.

U.S. debt officially crossed the $40 trillion threshold (more on that later).
Yields on 30-year U.S. Treasury bonds surged to a 19-year high, matching levels seen prior to the 2007–2008 financial crisis.
A few hours later, U.S. Treasury Secretary Scott Bessent announced a surprise, massive buyback of the government's own debt (!) to prevent a collapse of the U.S. bond market.
That evening, Trump announced he was suspending the tariff hike. The bond market reacted with immediate relief, marking the link between the the two events.

SHORT-TERM DEBT TRAP

Why and how sovereign debt (Treasury securities, the bond market) and its financing are linked to our negotiations.

On Tuesday, Scott Bessent executed the following financial maneuver to stop bond yields from climbing (to 5.3%!!!).

Using U.S. Treasury funds, he bought back long-term Treasury bonds while simultaneously issuing short-term Treasury bills.

His goal: to prevent long-term sovereign debt from being locked in at a 5.3% rate and to drive that rate down. Otherwise, the government would have been forced to pay that rate to its debt holders for decades—potentially ruining the budget—while consumers would have paid that same rate through their home mortgages and auto loans.

However, the risk taken in doing so is considerable: all this debt is now short-term (spanning weeks or months), and its interest rate is subject to the usual risks—inflation, exchange rates, geopolitics, and so on.

Simply put, the "short-term debt trap" is akin to the U.S. government choosing a high-risk variable-rate mortgage over a 30-year fixed-rate mortgage.

That day, letting massive tariffs hikes fall at midnight, causing rates to spike, was certainly on Trump and Co's minds....
Just listen to Trump in video worrying about interest rates Wednesday..

HOW PM MARK CARNEY CAN (and likely has) LEVERAGE THIS

As the former head of two central banks, PM Carney understands these issues better than anyone. It is reasonable to assume that, behind the scenes, he is exploiting this U.S. vulnerability. Here are a few cards he could play:

Threats of inflationary retaliation: As we have seen, the U.S. cannot afford a significant rise in inflation given its debt, which is now largely short-term and variable-rate. By imposing counter-tariffs on key sectors of the U.S. economy (steel, agriculture, energy, autos), Canada could drive up prices—and thus inflation—in the United States.
Faced with this inflation, a hamstrung Federal Reserve would be forced to keep interest rates very high to douse the flames. This is where the massive debt comes into play: the U.S. must refinance $40 trillion in short-term debt on a weekly basis; even the slightest rate hike instantly costs them hundreds of billions of dollars. Ultimately, the revenue generated by the tariffs they impose on Canada would be less than the money lost due to rising interest rates.

“Trump” card, Canada

Using our holdings of U.S. sovereign debt as a deterrent: It is worth noting that, under our "banker Prime Minister," Canada has made massive purchases of U.S. sovereign debt since he took office. Our holdings have surged by $110 billion over the past two years, reaching nearly $436 billion. While it is standard practice for governments to buy U.S. debt (it retains its status as a liquid, safe-haven asset, albeit to a lesser degree), it is interesting to note that this trend runs counter to that of other G7 nations, which are either reducing their U.S. debt holdings, keeping them stable, or increasing them only marginally.
What, then, distinguishes Canada from the other G7 countries?
The United States wants to annex it and is waging a ruthless trade war against it. While not certain, one might hypothesize that there is a strategy behind this staggering accumulation of debt. By holding $436 billion in U.S. debt, Canada has reached a threshold where it could influence interest rates and inflation if it decided to sell off its holdings. We know just how sensitive U.S. debt is to such factors now. Prime Minister Carney—an accomplished banker—surely has these calculations in mind. He does not even need to carry out the threat; merely possessing the weapon is enough.

“Trump” card, Canada

In short, within this trade war, U.S. finances represent a vulnerability that works to Canada’s advantage—one that Prime Minister Carney can surely exploit.

What about you? Do you think Prime Minister Carney had the vulnerability of U.S. finances in mind throughout the negotiations?

#cdnpoli #polqc #cdnecon

Hoisted by his own petard

Dr Strangelove wrote: Thu Aug 20, 2026 11:35 am
What about you? Do you think Prime Minister Carney had the vulnerability of U.S. finances in mind throughout the negotiations?

Haven't seen the final deal, but all of a sudden we heard dick shit about lumber. Just aluminum, steel and cars.
Eby should say Fuck You to putting US liquor back on the shelves if we get left out yet again.

In this news conference held in Winnipeg on August 20, 2026, Manitoba Premier Wab Kinew addresses ongoing trade negotiations between Canada and the United States. Key highlights include:
Status of U.S. Alcohol Sales: Premier Kinew states that as of the briefing, a decision to return American alcohol to Liquor Mart shelves has not been finalized (0:01-0:07). Should a federal trade deal require it, he urges Canadians to exercise their agency and choose to continue buying Canadian products instead (0:31-0:40).
Trade Strategy and Leverage: Kinew expresses skepticism regarding the Trump administration's trade tactics (1:21-1:25). He argues that Canada should maintain a firm stance, emphasizing that provincial measures—such as reducing government procurement from American firms—have been effective in getting the U.S. to negotiate (9:24-9:53).
Unified Approach: While he expresses full support for "Team Canada" and respects the Prime Minister's role in the negotiations, he is critical of the concessions being requested (0:16-0:18, 11:49-12:05).
Local Impacts: The Premier highlights the importance of protecting workers at facilities like the Gerdal steel plant in Selkirk, noting that the province has provided various supports to help them navigate trade uncertainties (2:07-2:15, 21:17-21:30).
Additionally, the Premier briefly touches on provincial matters, including a staggered rollout of bus passes for students starting in September (21:32-22:13) and general investments in front-line healthcare staffing (23:06-23:17).


Master class. This guy is gonna be PM

Eby should take notes on Wab and mirror his approach. Put the booze back only if there is a tangible return.