The Canadian Economy
The Digital Services Tax (DST) Fiasco
Since I published The Carney Chronicles: Ep6, Bill C-5; Liz Truss on Carney, we have had the Digital Services Tax (DST) fiasco. The back story is that the Trudeau government passed legislation a year or more ago on which a tax was to be assessed on foreign providers of digital services such as Meta and Google. Whether it was implemented directly, not implemented, or suspended, suddenly it appeared with a June 30 deadline for first payment. Carney had direct knowledge of it, if not a hand in its implementation.
Trump did what Trump does, went ballistic and suspended tariff negotiations (read: Trump Says US Ending All Trade Talks With Canada; also What is Canada’s digital tax and why is Trump killing trade talks over it?). Carney caved – a term widely used in global media other than Canadian legacy media. This reaction was no surprise except to the Liberals who seemed to be caught off guard, facing humiliation and making Canada appear even weaker in global eyes.
Headlines like Canada Rescinds Digital Services Tax After Trump Halts Trade Talks have all talked about “rescinding” the tax. I don’t know what this means. I understand what the word “rescind” means. However, the DST is enacted in legislation. It remains as such until repealed by legislation. Simply declaring that the act will not be enforced has no legal standing. The act remains and can be reengaged at any time. Simply declaring it gone does not make it gone. I assume the Americans understand this.
Carney’s Pivot to Europe
I first identified this trend at the beginning of May in The Carney Chronicles: Ep3, The White House Meeting. Recently he attended the NATO summit and made a commitment to join a new EU defence project (read: Canada, EU Sign Defence Pact During Carney’s Brussels Visit). Cost is unknown but doesn’t matter because Canada has no budget.
For an interesting article suggesting a deeper relationship between Carney and EU interests read How Canada’s Digital Tax Exposes Brussels’ Globalist Playbook: A Trump Retaliation.
The Orange Dome – Maginot Line of the 21st Century
Shortly after he announced the “Golden Dome” project which I think should more appropriately be called the “Orange Dome”, Trump offered to let Canada in on it for US$61 billion. Then, a few days later, he upped it to US$71 billion. If it is ever completed, expect the final cost to Canada to be 10x that price. However, we don’t need it unless we get really stupid and attack a country that can actually attack us back such as Russia or China. This in fact may happen when NATO formally attacks Russia.
The cold war was based on the premise that Russia would attack North America over the North Pole, being the shortest route. We had two lines of radar stations, the Dew Line and the Pine Tree line, both looking north. Any incoming attack would be intercepted over Canada.
The same thinking is behind the Orange Dome, any attack of the US will come across Canada, all or in part. Whether we are in or out, interception debris and failed interceptors falling to earth all land on our heads. We gain nothing from such a system other than a massive economic headache. Our best defence is to be a neutral country, leaving NATO and staying out of the European Defence project. Carney will have us in both.
I’ve followed the Ukraine conflict from the outset through the Military Summary channel on YouTube. With twice daily videos, I’ve watched a war in which old technology like tanks and armoured personnel carriers have become coffins, fatally vulnerable to drones, modified in the field to become lethal weapons. Modern warfare’s dominant components are missiles and drones, technologies which are evolving fast.
How the US can build a defensive system, apparently space-based that can defeat the current generation of hypersonic missiles which Russia, China and Iran have, but not the US (at least as an operational weapon), is a plan that seems more in the realm of science fiction.
Carney on Taxes
No one I watch seems to have caught this starting at the 4:58 minute mark:
Keeping in mind the former Liberal carbon tax, listen to Carney who says “it doesn’t make sense to collect tax from people and then remit them back“. Wisdom from a former central banker.
The Green Economy File
Nuclear Technology
As noted in The Carney Chronicles: Ep6, Bill C-5; Liz Truss on Carney, the government is likely preparing to make nuclear as their future green energy source. Ontario Power Generation is currently implementing a program of installing 4 Small Modular Reactors (SMR) from the US firm GE. Canada’s nuclear industry is based on the Uranium fuel cycle. A more rational approach is based on the thorium fuel cycle. Canada certainly has thorium as well as uranium. The following article, China to Become World Nuclear Energy Super Power, shows that India and China are leading in thorium-fuelled reactor technology. As an aside, the US did have an experimental thorium reactor running for many years.
Solar Blues
Reduction of subsidies in the form of tax credits in the US will cause widespread business failures (read “Real Distress” Hits Solar Industry as Bankruptcy Tsunami Looms). The point for Canada is that green technology on its own is economically unviable. We are seeing this with EVs in Canada.
The Left Trying to Make Sense
In a recent video I encountered a new term, “decarbonized oil”. Given that oil is generally a mixture of hydrocarbon chains of the form CnH2n+2, where n is a small integer greater than 0. removing the C (carbon) leaves you with mostly H (hydrogen). Is this what the term “green hydrogen” means? It makes about as much sense.
The Alberta and Saskatchewan File
Here is a video (14:01 minutes) about Saskatchewan’s interest in separation.
Fed up with Ottawa’s intransigence, the Western provinces are moving ahead with their own energy corridor, a “port-to-port project connecting ports on BC’s northern coast to ports on Manitoba’s Hudson Bay shores, both tidewater ports. (11:01 Minutes).
Also watch (11:25 minutes):
Series Index
Click on this link.
***
If you liked this post, consider subscribing – in right-hand sidebar – if you are not a subscriber already. Please forward it to anyone else you might think will benefit from it. We are at a critical point in time where we need to disseminate truth to those who have ears to hear, and be forming communities of like-minded individuals. If you want to discuss an idea or issue, contact me – see Contacts.
0 Comments