Comments by "Neolithic Transit Revolution" (@neolithictransitrevolution427) on "Is Canada secure from a Trump invasion?" video.
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@michaelenman9498 Potash is one of the very few hands we could play. However, the US will retaliate to such an obvious aggressive action. They could go so far as to cut us out of SWIFT or even sanction us which will make any goal of trade diversion impossible. And Frankly, I wouldn't put it past them to buy it from Russia. The 25% flat tariff they are applying is almost ambivalent toward us, if they choose to be actively harmful they have the ability.
If we cut off Electricity, we also have regional markets that rely on the US. And, 3/4s of Ontario's NG comes from the US, which could be cut off or taxed leaving Southern Ontario with no Alternative for peak power generation.
We could Toll the highway, but a lot of our trucking moves through the US as well.
If we want international trade, we need to have commodities that can be exported internationally, and realistically that means we need to have coastal pipelines as a part of the solution. The alternative is an enormous drop in exports that took decade to develop.
I'm happy to list the areas of manufacturing I would like to see policy toward. But ultimately, I have no way to say definitively what our new export strategy will look like, because it will be determined by government policy choice. I can only say what I think should be done..
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@michaelenman9498 you need to understand this really isn't true. I am very frustrated at Canadians for not understanding we can in fact be hurt by these policies and Americans largely won't be.
Let's look at oil. We have seen during Covid and 2018 what happens when we do not have sufficient take away capacity. All oil is priced out of Hardisty, AB. 600k bbl/d goes south through Keystone to the Gulf Coast refineries. If a selective tariff is placed on Canada, then for our oil to sell in the Gulf where international crude is available, the purchase price, aka the price in Hardisty + the fee for the tariff, cannot be higher than the global price. We will see a discount on oil to accommodate the additional cost purchasers pay in tariff, or else we will lose the 600k bbl/d to international competition, which would be worse for prices. A discount that will be available to all purchases, including the Midwest. We literally saw price movements the day of the tariff taking off an immediate 4% relative to US WTI.
Let's look at Aluminum or Iron. What is the alternative market? We will have to ship by rail to the Pacific, and then oversea. That is significant transportation cost. So long as a Tariff does not drive down prices to the point producers are losing revenue, we will adsorb most of the cost in the form of lower profits and capital write downs.
Manufacturing and the complex supply chain will be reflected in substantially higher prices. But a new car is not an essential or regular purchase. Auto manufacturers will move production to the US over the next few years, even without a tariff, if this uncertainty continues. Do you think Trump, backed by Musk, cares if Ford goes under? If they destroy a massive private sector union? Tariffs here will increase prices in the medium term, but that will only make Tesla more competitive in the US and take manufacturing away from Canada.
And all of this is going to weaken the CAD. A weaker CAD will suppress our export prices across the board. There may be some level of higher prices on certain goods. But they did the same thing to China in 2018, and the renminbi fell to adsorb almost the entire price difference. And Canada is far more reliant on US trade, and in particular export purchases.
We cannot fight this trade war if we aren't going to acknowledge the impact. Do you honestly believe these tariffs will have nearly the impact on us it will on them? What do you think happens when our economy crashes? I don't understand how people can believe this Econ 101 nonsense is actually applicable.
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@michaelenman9498 you need to understand this really isn't true. I am very frustrated at Canadians for not understanding we can in fact be hurt by these policies and Americans largely won't be.
Let's look at oil. We have seen during Covid and 2018 what happens when we do not have sufficient take away capacity. All oil is priced out of Hardisty, AB. 600k bbl/d goes south through Keystone to the Gulf Coast refineries. If a selective tariff is placed on Canada, then for our oil to sell in the Gulf where international crude is available, the purchase price, aka the price in Hardisty + the fee for the tariff, cannot be higher than the global price. We will see a discount on oil to accommodate the additional cost purchasers pay in tariff, or else we will lose the 600k bbl/d to international competition, which would be worse for prices. A discount that will be available to all purchases, including the Midwest. We literally saw price movements the day of the tariff taking off an immediate 4% relative to US WTI.
Let's look at Aluminum or Iron. What is the alternative market? We will have to ship by rail to the Pacific, and then oversea. That is significant transportation cost. So long as a Tariff does not drive down prices to the point producers are losing revenue, we will adsorb most of the cost in the form of lower profits and capital write downs.
Manufacturing and the complex supply chain will be reflected in substantially higher prices. But a new car is not an essential or regular purchase. Auto manufacturers will move production to the US over the next few years, even without a tariff, if this uncertainty continues. Do you think Trump, backed by Musk, cares if Ford goes under? If they destroy a massive private sector union? Tariffs here will increase prices in the medium term, but that will only make Tesla more competitive in the US and take manufacturing away from Canada.
And all of this is going to weaken the CAD. A weaker CAD will suppress our export prices across the board. There may be some level of higher prices on certain goods. But they did the same thing to China in 2018, and the renminbi fell to adsorb almost the entire price difference. And Canada is far more reliant on US trade, and in particular export purchases.
We cannot fight this trade war if we aren't going to acknowledge the impact. Do you honestly believe these tariffs will have nearly the impact on us it will on them? What do you think happens when our economy crashes? I don't understand how people can believe this Econ 101 nonsense is actually applicable.
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@michaelenman9498 you need to understand this really isn't true. I am very frustrated at Canadians for not understanding we can in fact be hurt by these policies and Americans largely won't be.
Let's look at oil. We have seen during Covid and 2018 what happens when we do not have sufficient take away capacity. All oil is priced out of Hardisty, AB. 600k bbl/d goes south through Keystone to the Gulf Coast refineries. If a selective tariff is placed on Canada, then for our oil to sell in the Gulf where international crude is available, the purchase price, aka the price in Hardisty + the fee for the tariff, cannot be higher than the global price. We will see a discount on oil to accommodate the additional cost purchasers pay in tariff, or else we will lose the 600k bbl/d to international competition, which would be worse for prices. A discount that will be available to all purchases, including the Midwest. We literally saw price movements the day of the tariff taking off an immediate 4% relative to US WTI.
Let's look at Aluminum or Iron. What is the alternative market? We will have to ship by rail to the Pacific, and then oversea. That is significant transportation cost. So long as a Tariff does not drive down prices to the point producers are losing revenue, we will adsorb most of the cost in the form of lower profits and capital write downs.
Manufacturing and the complex supply chain will be reflected in substantially higher prices. But a new car is not an essential or regular purchase. Auto manufacturers will move production to the US over the next few years, even without a tariff, if this uncertainty continues. Do you think the guy by backed by Musk cares if GM goes under? If they destroy a massive private sector union? Tariffs here will increase prices in the medium term, but that will only make Tesla more competitive in the US and take manufacturing away from Canada.
And all of this is going to weaken the CAD. A weaker CAD will suppress our export prices across the board. There may be some level of higher prices on certain goods. But they did the same thing to China in 2018, and the renminbi fell to adsorb almost the entire price difference. And Canada is far more reliant on US trade, and in particular export purchases.
We cannot fight this trade war if we aren't going to acknowledge the impact. Do you honestly believe these tariffs will have nearly the impact on us it will on them? What do you think happens when our economy crashes? I don't understand how people can believe this Econ 101 nonsense is actually applicable.
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@ryuuguu01 Okay well Alberta sends a $100 billion in oil south but clearly you don't think there is economic justification for a pipeline. So obviously you understand that we have to figure in the cost of infrastructure to this conversation. Connecting Thomson Manitoba, where the hydro is, to Edmonton is 1000km transmission project. Maybe this makes sense if the BC option didn't exist.
But as you point out, Manitoba has a market in the US. If it loses that Market, than Manitoba is drastically over provisioned and doesn't need excess. If it keeps that Market, it doesn't have a lot of spare capacity, and Minnesota isn't exactly primed for growth.
In 20 years, if you already have a bipole connecting to the Ring of Fire and Toronto in Ontario, and US demand has grown, and Alberta's need for dispatchable power outgrows what trade with BC could supply, then maybe. Although I would imagine by that time energy storage is good enough that if such transmission is justified it's because we are undamming our rivers, not bilateral trade.
Also, please stop claiming I am from Alberta. I am not. I am from and in Ontario. I simply do not want to see our country cut in half. I am referring to how much Alberta stands to lose in Oil revenues, how that will push their economy into deep depression, and how the US administration will leverage that toward their stated goal of annexing Canada. You are the person who started referencing Electrical generation as relevant to the discussion I started with oil.
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@ryuuguu01 Okay well Alberta sends a $100 billion in oil south but clearly you don't think there is economic justification for a pipeline. So obviously you understand that we have to figure in the cost of infrastructure to this conversation. Connecting Thomson Manitoba, where the hydro is, to Edmonton is 1000km transmission project. Maybe this makes sense if the BC option didn't exist.
But as you point out, Manitoba has a market in the US. If it loses that Market, than Manitoba is drastically over provisioned and doesn't need excess. If it keeps that Market, it doesn't have a lot of spare capacity, and Minnesota isn't exactly primed for growth.
In 20 years, if you already have a bipole connecting to the Ring of Fire and Toronto in Ontario, and US demand has grown, and Alberta's need for dispatchable power outgrows what trade with BC could supply, then maybe. Although I would imagine by that time energy storage is good enough that if such transmission is justified it's because we are undamming our rivers, not bilateral trade.
Also, please stop claiming I am from Alberta. I am not. I am from and in Ontario. I simply do not want to see our country cut in half. I am referring to how much Alberta stands to lose in Oil revenues, how that will push their economy into deep depression, and how the US administration will leverage that toward their stated goal of annexing Canada. You are the person who started referencing Electrical generation as relevant to the discussion I started with oil. I was literally calling conversation around electrical generation a red herring to a conversation about oil..
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@ryuuguu01 Okay well Alberta sends a $100 billion in oil south but clearly you don't think there is economic justification for a pipeline. So obviously you understand that we have to figure in the cost of infrastructure to this conversation. Connecting Thomson Manitoba, where the hydro is, to Edmonton is 1000km transmission project. Maybe this makes sense if the BC option didn't exist.
But as you point out, Manitoba has a market in the US. If it loses that Market, than Manitoba is drastically over provisioned and doesn't need excess. If it keeps that Market, it doesn't have a lot of spare capacity, and Minnesota isn't exactly primed for growth.
In 20 years, if you already have a bipole connecting to the Ring of Fire and Toronto in Ontario, and US demand has grown, and Alberta's need for dispatchable power outgrows what trade with BC could supply, then maybe. Although I would imagine by that time energy storage is good enough that if such transmission is justified it's because we are undamming our rivers, not bilateral trade.
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