Posted originally on Jun 12, 2025 by Martin Armstrong
While domestic small businesses suffered under Biden-Harris, Ukraine saw a boost in their small business thanks to billions in grants that were paid for by the US taxpayer. USAID subsidized Ukrainian businesses through co-investment programs, interest rate compensation on loans, cashback incentives for leading equipment, and direct financial support. All in all, USAID’s “Investment for Business Resilience Activity” provided $100 million in investments.
The Bureau of Labor and Statistics was altering data on domestic jobs while other branches of the government were focused on maintaining Ukraine’s workforce. The aforementioned USAID program supported over 1,050 businesses and allegedly saved nearly 18,000 jobs.
USAID was working directly with Ukrainian banks to help lower borrowing costs to small and medium enterprises. Trump immediately halted this program in January 2025. The average person simply does not understand how much money the Biden Administration was sending to Ukraine.
US taxpayers supported the entire Ukrainian government. Over $30 billion was sent to Ukraine in a two-year period to pay for “essential government operations.” Americans were forced to pay for public servants’ salaries, pensions, healthcare, and more. None of this includes the tens of billions spent on military-related items or humanitarian aid.
Americans did not vote to use their public funds in this manner. The domestic economy was suffering from record inflation post-COVID. Domestic entrepreneurs could not secure business loans. There is a clear pattern of one political party prioritizing foreign entities over its own citizens.
Now, the Trump Administration announced that it needs to make additional cuts to Ukrainian assistance. “This administration takes a very different view of that conflict. We believe that a negotiated peaceful settlement is in the best interest of both parties and our nation’s interests, especially with all the competing interests around the globe,” US Defense Secretary Pete Hegseth explained. The complete 2026 budget has not yet been released by the Pentagon, but Hegseth said it “provides a historic level of funding for military readiness, putting (U.S.) warfighters and their needs first.”
Using American funds to prioritize America—what a novel concept. This is why Trump and Vance had a shouting match with Zelensky during his failed Oval Office visit. Zelensky feels entitled to US funding after years of using US public funds as his personal ATM under Biden.
The European Union now funds around84% of Ukraine’s operations. It is expected that the bloc will spend around $40 billion on external financing needs in 2025. The Ukraine Facility instrument provides €50 billion in “flexible support” for Ukraine over a three-year period. They’re using frozen Russian assets to fund this account since the EU simply does not have the money to prop up a foreign government.
This has been an extremely expensive war and it is nowhere near over. I should add that US assistance was all provided outside the regular defense budget. This occurred during peacetime in a war that in no way involved the United States. This is what happens when a foreign nation blackmails the president of the world’s leading superpower.
Biden’s crime family received over $20 million from Ukraine in “influence peddling” schemes. Hunter Biden secured $11 million for his personal company through Burisma. FBI informant, Alexander Smirnov, said under oath that Burisma selected Hunter to “protect us, through his dad, from all kinds of problems.” The text messages stored on Hunter’s laptop revealed that he openly threatened people using his father’s name while his father was the vice president. Joe Biden accepted bribes and altered US policy to support his son and line his pockets. The CCP also had the Biden family in their pocket.
Decreasing, if not ceasing, funding for Ukraine is long overdue. Imagine if those funds were invested in the domestic economy rather than laundered through under-the-table deals. Americans are not responsible for subsidizing Ukraine.
Posted originally on CTH on June 9, 2025 | Sundance
Tucker Carlson traveled to France in order to interview Telegram Founder and CEO Pavel Durov who remains in French detention as he awaits the judicial system to release him. Telegram is used as a messaging ap by over a billion users worldwide. Pavel Durov was accused of noncompliance with EU judicial demands and arrested during a holiday last year. He remains under quasi-detention confinement.
Many people have increasingly expressed annoyance at the change in Tucker Carlson’s interview style. The increased interruptions, wandering rambling that takes the point off subject, inappropriate -borderline annoying- laughter at the wrong moments, and increasing Hannityesque behavior has been a sidebar topic of conversation. However, this is the first interview in which I can say these distracting interview traits have become unbearable.
I really wanted to hear from Durov, but I could not survive the inappropriate timing of the interruptions, and increasingly odd mannerisms from Mr Carlson. From a mental strength, stability and intellectual perspective, Carlson is way over his head trying to interview Durov. Perhaps that explains the performative and seemingly odd behavior of Tucker in this interview. It gets worse as it progresses. See for yourself. WATCH:
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Pavel Durov is a very deliberate man with an exceptionally stable disposition. He is one of the most important people in the world of information, communication and the free exchange of ideas. Yeah, I’m a little frustrated with this missed opportunity to go into important considerations in the world of information sharing.
Chapters: 0:00 Being Arrested in France 10:57 France’s Attempt to Humiliate and Tarnish Durov 15:54 Did the Russian Government Ever Try to Arrest Durov? 17:21 How Telegram Makes Money 20:04 Are They Attacking Durov Because He’s Russian? 21:19 Did Anyone Defend Durov? 24:23 What Did Durov Do in Jail? 25:17 Is Durov Allowed to Leave France? 30:37 The Real Reason They’re Attacking Durov 31:56 Europe’s Mission to Make Privacy Illegal 39:20 France’s Confiscation of Durov’s Phone 40:47 The Investigation Into Durov 56:52 How Telegram Stays Neutral in Global Politics 58:44 The Advancements of Encryption Technology 1:00:47 Is There Anything That Can Prevent a Government From Spying on You? 1:02:42 The Importance of Disconnecting 1:04:40 Durov’s Thoughts on Ross Ulbricht 1:06:54 Will Durov Stay in France After the Investigation?
Posted originally on Jun 4, 2025 by Martin Armstrong
Holding a 400 oz Gold Bar – Central Bank Standard
QUESTION: Hello Martin – Here in Canada, we have a vexing question – why no Gold Reserves at BofC? USA has a date with destiny aka Ft Knox Audit that Trump and Bessent seemed engaged on this file but are preoccupied lately with a litany of distractions, I’m 74 with health issues surfacing, which rearrange one’s priorities – many millions of Boomers in same boat – but that’s the price you knew was coming
jw
ANSWER: Canada’s lack of significant gold reserves is the result of a deliberate policy decision spanning several decades, primarily driven by the following reasons:
Opportunity Cost: Gold pays no interest or dividends. The Bank of Canada (BoC) decided it could achieve better returns by holding interest-bearing assets like foreign government bonds (US Treasuries, German Bunds, etc.) and deposits.
The Shift to More Liquid Assets: The BoC prioritized holding foreign exchange reserves (primarily US dollars, euros, yen, etc.), which are highly liquid and easily used for direct intervention in currency markets to stabilize the Canadian dollar (CAD).
Canada began the process of gradually selling off its gold in the 1980s, when gold rallied to $875 on January 21, 1980, and then began a 19-year decline to $250. Canada significantly accelerated its gold sales during the 1990s and early 2000s under the leadership of Finance Minister Paul Martin and Governor Gordon Thiessen, aiming to optimize reserve asset management. By 2016, Canada sold its last significant holdings. As of today, Canada’s official gold reserves are reported as zero tonnes (or negligible amounts – e.g., 77 ounces reported in 2022, worth a trivial sum relative to total reserves). In essence, Canada decided that the costs and lack of yield associated with holding large gold reserves outweighed the traditional benefits. They opted instead to hold foreign currencies and bonds that are easier to use for market intervention and generate income, relying on the strength of the Canadian economy itself to support the value of its currency.
Gordon Brown, as Labour Chancellor of the Exchequer (1997-2007), authorized the sale of a very significant portion (roughly half) of the UK’s gold reserves. He was a member of the Labour Party, which viewed gold as a rich man’s toy. He sold approximately 395 tonnes of gold. The sales took place between July 1999 and March 2002. This represented about 58% of the UK’s total gold reserves at the time (which were around 715 tonnes before the sales). After the sales, the UK’s reserves stood at about 310 tonnes, where they remain today. The sales occurred during a period when the gold price was near a 20-year low, averaging around $275 per ounce. Shortly after the sales concluded, the gold price began a historic bull run, rising dramatically over the next decade to peak over $1,900 per ounce in 2011. This timing led to massive criticism that the UK sold at the absolute bottom of the market, potentially losing billions of pounds in potential value. The period is often referred to as the “Brown Bottom” in financial circles. Brown was ignorant of how markets function. He announced in advance the strategy to sell its gold reserves, so the market held back, anticipating a greater supply. The proceeds were invested in foreign currency and government bonds. While these assets generated interest income, the capital appreciation of gold vastly outstripped the returns on those bonds over the following years.
The head of the Bank of Canada during the main phase of Canada’s gold reserve sell-off (mid-to-late 1990s) was Gordon Thiessen (born 1938). He served as Governor from February 1, 1994, to January 31, 2001. Thiessen spent his entire career within the Bank of Canada, joining in 1963. However, it was his predecessor, John Crow (1987-1994), who began reducing its gold reserves significantly in the 1980s. While the Bank of Canada managed the sales operationally, the ultimate decision to sell the gold rested with the Government of Canada (specifically, the Minister of Finance and the Department of Finance). The Bank acted as the government’s agent in this matter.
Posted originally on Jun 1, 2025 by Martin Armstrong
The Trump Administration has stated that it was NOT informed in advance. Ukraine was putting out the fake news claiming that they had previously told the Trump Administration in advance. They were most likely trying to scare Putin to prevent him from retaliating, implying that Trump has his back. This was indeed Russia’s Pearl Harbor. Zelensky wrote on X on Sunday wrote:
“Head of the Security Service of Ukraine Vasyl Maliuk delivered a report regarding today’s operation. An absolutely brilliant result. A result achieved solely by Ukraine. One year, six months, and nine days from the start of planning to effective execution. Our most long-range operation. Our people involved in preparing the operation were withdrawn from Russian territory in time.”
Note that Zelensky also goes out of his way to state another lie: “A result achieved solely by Ukraine.” There is absolutely no way Ukraine did this alone. All of the EU was involved, just as MI6 instructed Ukraine to invade with the Kursk maneuver. Claiming Trump was informed in advance but not NATO or the EU after Trump threw him out of the White House, and everyone I speak to on Capitol Hill lost respect for Zelensky after that staged attempt to embarrass Trump into keeping the funding going.
The ruthless Neocon who was the fake Republican on the January 6th Committee that tried to stop Trump from even running for president, Adam Kinzinger of Illinois, also wrote on X: “Important to note: the targeting of Russian bombers is COMPLETELY LEGAL and expected in a war. A response from Russia will target civilians and be a war crime. But it’s Russia. They bombed hospitals in Ukraine and Syria. They are…. A terrorist state.” This is the same guy who claimed NATO can take out Russia in three days.
Let’s make this very clear. These bombers were NOT being used in Ukraine. They were by no means an act of defense. This was an act of aggression – PERIOD!
This is indeed the Russian ‘Pearl Harbor.’ If I were Putin, this is the time to annihilate Ukraine and eradicate it from the face of Europe. Peace will NEVER happen. Putin should now destroy Ukraine to remove it as a proxy war client. Drop the leaflets and give the Ukrainian people 5 days to migrate to Europe. This is akin to Rome’s destruction of Carthage, which put an end to the Punic War and ensured that no city would ever rise there again. Only then will the EU be forced to come out of the closet and admit that it is the real enemy. The US engaged in WWII after Pearl Harbor. That is the magnitude of what Ukraine has done. I would expect Russia to now go on full nuclear alert against the EU.
DEFCON 3
I believe that Russia has now gone to DEFCON 3 out of 5. The wild card is Macron. My sources in Romania confirm that Macron was there for the election to ensure that the EU won and the people of Romania would be the next wave of pawns to die for the EU agenda led by Macron to vanquish Russia. They call Macron the Petite Napoleon. He is behind WWIII and is the leader pushing for war, as is now Germany’s Merz.
This is the picture of the German GDP. Germany could even be the first EU state to crumble. Note that June has been the primary target for the whole year. Look at the Volatility for July and August. Germany is 25% of the EU economy. Speaking to political sources, I am informed that it is now Germany really pushing hard for war against Russia using Ukraine. This is looking really bad with each market you review.
Posted originally on Jun 1, 2025 by Martin Armstrong
COMMENT #1: Hi Marty,
Just observation form Croatia, it is just unbelievable how much lies MSM and Senators like Lindsey Graham are spreading about war in Ukraine.
Lindsey just visited Ukraine and labeled peace talks as a joke and he is saying that Russians are not trying to negotiate. As well he is voicing support for War against Russia and he is saying that Ukraine is not losing war. In my opinion at this stage of the war this is such an obvious lie. It is hard to understand and accept that someone as a USA senator can be so mean and hateful. What price we as USA will have to pay for such a senatorial behavior? For him to spread War Agenda vs Russia and China even thou he is hiding behind statements that he is supporting the peace talks that Trump is pushing, is just very mean.
I am now in Croatia and have to say that nobody here believes that war will spread. Whenever I mention that war will spread and it will escalate in to 2027 people here think that I am crazy. I think that lots of Europeans are the same they will be super surprised when this thing explodes during next year per Socrates.
Regards,
GD
COMMENT #2: Hello, Mr. Armstrong;
Thank you for doing podcasts here in Serbia. I can say that we are getting very concerned when Macron is telling Asia to forget about China and focus on Ukraine, and then Merz is handing NATO missiles to Ukraine, which will attack Moscow. The mood here is viewing the EU and NATO as the aggressors. You know that NATO bombed us into submission because Serbia is generally pro-Russia, since we saw NATO in action, and you are correct, never trust a Ukrainian. Your quote from Churchill is correct that the truth needs a bodyguard of lies to protect it.
Thank you for your courage. So few have that today.
VO
REPLY: The European press is doing everything to downplay the spread of the war spreading. They keep claiming Ukraine is winning and that Russia is failing. They run stories that make it sound as if Putin fears being hanged, as if a single person is waging this entire war. Zelensky tried to assassinate Putin on May 20th. They know the truth. Putin is the ONLY adult in the room, who may not be on Cocaine. Remove Putin, and you will have World War III, for the guys behind him are Russian Neocons.
The European press pretends this war is only about Ukraine. Yet, several European leaders have described the Russia-Ukraine war as a “proxy war,” but the most prominent and consistent figure using this terminology is Hungarian Prime Minister Viktor Orbán. Back in July 2022, in a radio interview, he explicitly stated:
“This is a proxy war: the infrastructure is Ukrainian, but the money and weapons come from America, and the soldiers are Ukrainian.”
Orbán framed the conflict as a battle between the U.S./NATO and Russia, arguing that Ukraine is a “battleground” for larger powers. He has consistently echoed this view, criticizing Western arms deliveries to Ukraine and EU sanctions against Russia. He claims Hungary seeks to “stay out of this war” to protect its national interests.
French President Emmanuel Macron (June 2022) suggested avoiding humiliating Russia, warning that the conflict risked becoming a “proxy war” if diplomatic solutions were ignored. However, he later attempted to back out, clarifying his support for Ukraine’s sovereignty.
Leaders of both Serbia and Belarus (non-EU) have also used similar language, warning that this has been a deliberate strategy to wage war against Russia. The fake news tries to mislead the public, claiming that it is a war of Russian aggression against Ukrainian sovereignty. If that was the case, Putin could have taken all of Ukraine instead of just protecting the Russians in the Donbas, for which he gets criticism from the hardline Russians.
Orbán’s stance has isolated Hungary within the EU/NATO, with critics accusing him of parroting Kremlin propaganda and undermining European unity. However, the EU needs this war and has not taken any measures to resolve the conflict or promote peace. Merkel even admitted that Germany and France never intended to honor the Minsk Agreement that would have prevented this war. Moreover, the NEOCON #1 rule is to avoid communication, ensuring there will never be peace. This is why not a single European leader will talk to Putin. It took Trump to open communications, and they are doing their best to push Trump into this war.
Sun Tzu in his Art of War states that sowing doubt, fear, and discord within the enemy camp is key. However, this is what the fake News and European politics are doing to their own people, pretending that this war is confined to Ukraine vs Russia and will not spread, yet pushing for NATO troops to enter Ukraine, which is starting drafts throughout Europe. A blind man can see that the Fake News narrative is indeed fake when the governments are doing the exact opposite. Putin was fooled once with the Mink Agreement that the West refused to honor, so he would be a fool to agree to any peace deal while they are constantly rearming Ukraine and boosting all their military preparations.
Sun Tzu prioritized indirect knowledge gathering (espionage) and strategic deception over open communication or negotiation with the enemy. His focus was on gaining an overwhelming informational and psychological advantage to win efficiently, often by making the enemy act against their own interests based on false beliefs. Direct communication was generally seen as a potential vulnerability or a lesser tool compared to the power of deception and superior intelligence.
Sun Tzu also advocated Winning Without Fighting. This is the NATO/EU strategy of using Eastern Europeans as pawns to reduce Russia, so they can later walk in without a fight. They are clearly positioning to force Russia to submit or make disastrous mistakes, making battle unnecessary between the EU, letting Eastern Europeans die for their objectives. This is why they intered into the Romanian elections so they too can use Romanians as pawns in this battle to conquer Russia. Trump will NEVER get a peace deal unless he wakes the hell up, for he is being played again by American NEOCONS. They cleverly got the two neutral countries during previous wars to put their citizens at risk for their goals – Switzerland and Sweden.
The Conservative Party leader Kemi Badenoch made the plain statement on Sky News:
“Israel is fighting a proxy war on behalf of the UK, just like Ukraine is on behalf of Western Europe against Russia. We have to get serious.”
While several figures have used the term, behind the curtain, most European leaders and NATO admit the Ukraine war is a “proxy war,” reflecting their unique stance within the EU. This framing remains highly contentious and is widely seen as undermining Ukraine’s legitimacy in defending its territory.
I have supported Trump because he was against the war. I fear he has taken a severe wrong turn and has taken advice from NEOCONS who are still in the closet. His harsh words against Putin are outright provocative, and this is not about negotiating a business deal. If he cannot open his eyes and see that it is the EU and NATO who are sabotaging any peace deal with Russia because they want war and do not give a shit about their own people, then we are watching World War III in the making as our ECM model turns on Monday – June 2nd.
Former Russian President Dmitry Medvedev, on Tuesday, appeared to warn Trump about the possibility of World War III as he is escalating tensions between the nuclear powers. He wrote on the social platform X: “Regarding Trump’s words about Putin ‘playing with fire’ and ‘really bad things’ happening to Russia. I only know of one REALLY BAD thing — WWIII,”Medvedev wrote Tuesday“I hope Trump understands this,” he added.
Medvedev has pointed out Trump’s inflammatory threats on Truth Social. Trump wrote that Putin was “playing with fire” after Sunday’s deadly Russian air strikes on Ukraine. I thought Trump had better instincts than this, but I suppose I was wrong. There can be no peace when the EU is stabbing Trump in the back and has even admitted that, as long as Kaja Kallas, the ruthless, bloodthirsty Neocon in charge of EU foreign policy, has outright said that the EU will not honor any peace deal Trump creates.
Trump will walks us into World War III with this bullshit. Kaja Kallas has openly stated that Russia is too big and it must be broken up. I do not know who is feeding Trump geopolitical advice, but they are manipulating him into World War III. I had hoped I could at last defeat my own computer, but I will fail again. This is not going to end well for the entire world.
Republican lawmakers have encouraged Trump to place additional sanctions on Russia, arguing that economic pressure could cause the Kremlin to ease up on the battlefield. Sanctions have NEVER worked even once in history. All they do is confirm to the Russian people that they are a piece of shit and the West is trying to get them to overthrow their government for what purpose? To allow Macron and his horde of pirates to invade Russia and strip mine its natural resources to propel the EU to the pinnacle of power and leave North America its vasal state?
Trump, who vowed to end the war in last year’s presidential campaign, and against whom the Neocons launched a criminal investigation to stop him, and even Dich Cheney endorsed Kamala for president because he did as she was told. The NEOCONS are in complete control of the EU. They are in Paris and London. If Trump does not know this, then he is being fed FAKE NEWS and it is not CNN, but Neocon sympathizers in his own ranks.
Trump responded when asked whether he was considering sanctions on Russia and Putin, Trump said, “Absolutely. He’s killing a lot of people. I don’t know what’s wrong with him. What the hell happened to him, right?” “He’s killing a lot of people, and I’m not happy with that.”
Trump has stepped up his criticism of Putin when he should be looking in his side and rear mirrors. Stating publicly that Putin has gone absolutely CRAZY was not conducive to a working relationship. I would slam the door on his ass.
If Trump cannot see what Europe is doing, then there is ZERO hope for peace, and the USA will be involved in World War III along with Canada. Putin would have to be insane to agree to any peace deal with Trump, while Europe does not want peace and is using Ukraine as a proxy war, and they do not care if a single Ukrainian survives as long as they take one Russian with them.
Putin should agree to peace when EVERY WU leader, except Hungary, is pushing for World War III? I do not know who is advising Trump, but they are a Neocon still in the closet who can taste Russian blood. The EU will collapse if it does not resort to war to try to unify its members. The EU needs war to stay together, for they can feel the power slipping through their fingers. Every podcast I do in Europe now asks WHEN will the EU breakup, not IF.
Trump is on the wrong side, and he will be the president of a bloodbath. China will join Russia because they know this is a war against NATO, not Ukraine. There is ZERO interest in any peace deal in Europe so Trump is on the wrong side of the negotiations.
Russian Foreign Minister Sergei Lavrov rejected Trump’s proposal of a follow-up at the Vatican, where the president met with Ukrainian President Volodymyr Zelensky in April.
Then we have developments coming from Capitol Hill as House GOP members, including Rep. Marjorie Taylor Greene (Ga.) say the U.S. should pull out of the war, despite a push from Trump and Senate Republicans for more sanctions on Moscow. The Hill reported Greene’s comments:
“With President Trump, both countries could be pursuing a peace deal that would lead to historic trade deals. That would be overwhelmingly incredible for the people of their countries. But instead, they are both crazy and pursue war. Shame on both of these countries and shame on any politician that wants to continue to engage America in more meddling actions in more foreign wars.”
“I along with most Americans want nothing to do with either of these countries while they are at war with one another. And I’ll extend that to any country that wants to engage in war with others. The people of the world want peace and prosperity and that’s what I support.”
Then there is the Neocon Sen. Lindsey Graham (R-S.C.), who is eager to impose harsh sanctions on Russia, which has more than 80 co-sponsors. Graham would be in prison for a hate crime if he weren’t a Senator. Suppose he said that in London, he would be thrown in a dungeon to rot. And this is the impartial advice that Trump is listening to? I hope to God he is not. But I fear my computer will be right again. We are going down the path that leads to hell.
Posted originally on CTH on May 29, 2025 | Sundance
The current Canadian Prime Minister is genuinely a walking meme of a Canadian Prime Minister parody.
During his remarks to parliament today, Prime Minister Carney waxed gleefully about the U.S. federal trade court ruling against President Trump’s tariffs, just moments before the federal appeals court stayed the opinion of the lower court. It’s a little funny.
PM Carney doesn’t seem to recognize the reality of the economic landscape before him. He complains about blocked access to the U.S. consumer base with a level of entitlement that’s genuinely humorous. Meanwhile, the Canadian economy around him is collapsing. WATCH:
♦ BACKGROUND – Following the 2024 presidential election, Prime Minister Justin Trudeau traveled to Mar-a-Lago and said if President Trump was to make the Canadian government face reciprocal tariffs, open the USMCA trade agreements to force reciprocity, and/or balance economic relations on non-tariff issues, then Canada would collapse upon itself economically and cease to exist. In essence, in addition to the NATO defense shortfall, Canada cannot survive as a free and independent north American nation, without receiving all the one-way benefits from the U.S. economy.
To wit, President Trump then said, if Canada cannot survive in a balanced rules environment, including putting together their own military and defenses and meeting their NATO obligations, then Canada should become the 51st U.S state. It was following this meeting that President Trump started emphasizing this point and shocking everyone in the process. However, in the emotional reaction to Trump’s statements, no-one looked at the core issues outlined by Trudeau that framed President Trump’s opinion.
Representing Canada, Justin Trudeau was not expressing an unwillingness to comply with fairness and reciprocity in trade with the USA, what Trudeau was expressing was an inability to comply.
Quite simply, after decades of shifting priorities, Canada no longer has the internal economic capability to comply with a fair-trade agreement (FTA). Trudeau was not lying, and President Trump understood the argument; hence his 51st state remarks.
This is where it becomes important to understand the core reason why Trump, Ross and Lighthizer (2017) did not structurally want to replace the NAFTA agreement with another trilateral trade deal. Mexico and Canada are completely different as it pertains to trade with the USA. President Trump would rather have two separate bilateral agreements; one for Mexico and one for Canada.
♦ Firstly, Canada is a NATO partner, Mexico is not. As President Trump affirmed to Justin Trudeau during the meeting, it would be unfair of President Trump to discuss NATO funding with the European Union, while Canada is one of the worst offenders. Trump is leveraging favorable trade terms and tariff relief with the EU member states, as a carrot to get them into compliance with the 2.0 to 2.5% spending requirement for their military.
If the NATO member states contribute more to their own defense, the U.S. can pull back spending and save Americans money. However, Canada is currently 26th in NATO funding, spending only 1.37% of their GDP on defense (link).
Canada would have to spend at least another $15 billion/yr on their defense programs in order to reach 2.0%. Justin Trudeau told President Trump that was an impossible goal given the nature of the Canadian political system, and the current size of their economy ($2.25 trillion).
♦ Secondly, over the last 40 years Canada has deindustrialized their economy, Mexico has not. As the progressive political ideology of their politicians took control of Canada policy, the ‘climate change’ agenda and ‘green’ economy became their focus. The dirty industrialized systems were not compliant with the goals of the Canadian policy makers.
The dirty mining sector (coal, coking coal, ore) no longer exists at scale to support self-sufficient manufacturing. The dirty oil refineries do not exist to refine the crude oil they extract. Large industrial heavy industry no longer exists at a scale needed to be self-sufficient. Instead, Canada purchases forged and rolled steel component parts from overseas (mostly China). Making the issue more challenging, Canada doesn’t even have enough people skilled to do the dirty jobs within the heavy manufacturing; they would need a national apprenticeship program. Again, all points raised by Trudeau to explain why bilateral trade compliance was impossible.
♦ Thirdly, the trade between Canada/U. S and Mexico/U. S is entirely different. The main imports from Canada are energy, lumber and raw materials. The main imports from Mexico are agriculture, cars and finished industrial goods. Mexico refines its own oil; Canada ships their oil to the USA for refining. There are obviously some similar products from Mexico and Canada, but for the most part there is a big difference.
♦ Forth, USA banks are allowed to operate in Mexico, but USA banks are not allowed to operate in Canada. USA media organizations are allowed to broadcast in Mexico, but USA media organizations are regulated and not permitted to broadcast in Canada. The Canadian government has strong regulations and restrictions on information and Intellectual Property.
All of these points of difference highlight why a trilateral trade agreement like NAFTA and the USMCA just don’t work out for the USA.
Additionally, if President Trump levies a tariff on Chinese imports, it hits Canada much harder than Mexico because Canada has deindustrialized and now imports from China to assemble into finished goods destined to the USA. In a very direct way Canada is a passthrough for Chinese products. Canada is now more of an assembly economy, not a dirty job manufacturing economy.
When Trudeau outlines the inability of Canada to agree to trade terms, simply because his country no longer has the capability of adhering to those trade terms, a frustrated President Trump says, “then become a state.”
There is no option to remain taking advantage of the USA on this level, and things are only getting worse. Thus, the point of irreconcilable conflict is identified.
Because the Canadian government became so dependent on their role as an assembly economy, they enmeshed with China in a way that made them dependent. The political issues of Chinese influence within Canada are a direct result of this dynamic. In fact, China was the big winner from the outcome of the recent election because all of their investments into Canada are grounded on retaining Liberal government dependency.
If Trump targets China with punitive tariffs, the Canadian economy will be collaterally damaged. Canada will end up paying a tariff rate because they use cheap Chinese component parts in their finished goods. Canada has structurally designed their economy to do this over multiple years.
Understanding the unique nature of the Canadian economic conundrum, the only way to address the issue is to break out the USMCA into two separate bilateral trade agreements. One set of trade terms for Mexico that leverages border security, and one set of trade terms for Canada that leverages NATO security and border security. The only substantive similarity between them will be in the auto and agriculture sector.
If you think the multinational corporations, political leftists and UniParty Republicans in the USA are strongly opposing Trump now, just wait until later this year when the Trump administration proposes the elimination of the trilateral North American trade agreement, USMCA.
According to the World Bank, the USA economy is $27.3 trillion. Canada is $2.1 trillion.
Do the math!
[…] The expectation, according to two people close to the White House, is that negotiations to permanently remove the threat of painful 25 percent tariffs on Canada — which Trump mostly rolled back earlier this month — and other sector-specific tariffs are likely to be folded into the upcoming review of the U.S.-Mexico-Canada Agreement. That review is due in 2026, but the Trump administration wants to accelerate to this calendar year.
“It makes sense to separate out Canada and Mexico from the rest because they are going to want to redo the USMCA,” said one of the people close to the White House, who were granted anonymity to discuss ongoing deliberations. “They’re going to have separate tariffs that focus specifically on Mexico and Canada, and they’re going to take some actions to squeeze them a little bit.” [LINK]
Posted originally on May 29, 2025 by Martin Armstrong
Mark Carney’s call for aligning with the EU in a war against Russia reveals more about his ideological alignment than any strategic necessity. As a former central banker turned World Economic Forum alumnus, Carney has long abandoned the notion of free markets in favor of globalist control. He is keen to support the EU’s Marxist-style top-down approach, which has economically gutted Europe and driven capital flight, and is extremely eager to distance Canada from the United States in every possible way.
“Seventy-five cents of every dollar of capital spending for defence goes to the United States. That’s not smart,” Carney stated about his nation’s former top ally. He does not want the United States to remain the world’s superpower, per WEF protocol, as this sentiment was felt long before Trump. Carney would like to spend at least $1.25 trillion on defense over the next five years. “We’re making great progress on that, and by Canada Day, we’d like to see something concrete there,” Carney said, noting that Canada will be penning a deal with the European Union in the coming weeks.
Meanwhile, US President Trump has offered Canada protection under his proposed “golden dome.” As he continues to pressure Canada to become a state, Canada runs further into the arms of the EU. NATO Secretary General Mark Rutte is also keen to find a way to support his plans for war without the support of the United States. Rutte is expected to ask the 32-member alliance to up current spending to around 3.5% of GDP.
Canada currently spends 1.37% of its GDP on defense, below the current 2% NATO target. Carney believes Canada can meet NATO standards by 2030, but NATO is increasingly requesting more. “We are going to have to spend more, sooner,” the prime minister said. “That’s one of the reasons why we will have a fall budget, not a budget tomorrow, because we’re part of deeper discussions on the defence side.”
Canada has already stationed troops in the Arctic on a near-permanent basis. Operation Nanook in the Far North has expanded as Canada attempts to secure its place in the Arctic region. Canada and Greenland are both in strong opposition of the current US administration as Trump continues to pressure both to abandon sovereignty. But the true nature of Arctic operations is to intimidate Russia.
“We want to be in the Arctic on a near permanent basis,” Lt.-Gen. Steve Boivin stated. “The current approach to Operation Nanook puts us in the Arctic for five to six months a year. We’re looking at being there 10 plus months per year.” The federal government has already spent an additional C$420 million on the operation.
In a way, Trump is receiving everything he once requester,d from increased NATO spending to forcing nations to defend their own lands without the support of the US. On the other hand, nations are now eager to begin offloading their increased defense budgets outside the US. The capital expended on war would funnel back into the US. NATO was not entirely a charity case for the US as it did receive those funds recycled back into the US economy.
It is clear that Carney is eager to join the alliance of nations taking their arms up against Russia. Russia poses no threat to Canada. Carney’s eagerness to join EU efforts has nothing to do with Ukraine and everything to do with consolidating power by forcing the West into a global war.
Posted originally on May 27, 2025 by Martin Armstrong
We know we are approaching a major high in Bitcoin when Trump Media and Technology Group (TMTG), a publicly traded media company controlled by the U.S. president’s family, announced a plan to purchase $2.5 billion worth of Bitcoin on Tuesday. This is a warning that we are in the throes of a typical bubble that will not end nicely.
As a trader, you come to understand that every market, no matter what, acts the same because it is NOT the instrument, be it tulips, stocks, commodities, or bonds – it is human nature and the madness of crowds. A crash becomes inevitable when 97% of the people are all long and they run out of fresh buyers. Like the Russian collapse, because all the bankers were long and the hedge funds, then they tried to sell and discovered that they were the market. When they try to sell, the broker says there is NO BID! Bitcoin is a trading vehicle like everything else. It is no exception to the rules of markets. It is just the next Tulip or Dot.COM or AI craze.
I would NOT invest in Trump Media and Technology Group. It appears to be a brief rally, but this decision is misguided and emotional. They are risking the company on a speculation and are all caught up in the typical bubble, assuming the majority is correct. Why not convert your cash to yuan or euros when your expenses and revenue are in dollars? I can’t even recall the number of companies that came crawling to me for help after making the same risky FX trades.
The problem remains, the majority is ALWAYS wrong, and that is why no market is ever exempt from the inevitable boom and bust cycle. This is also when it only takes a minority to bring down a government or a market.
Posted originally on CTH on May 27, 2025 | Sundance
I’m sorry, but when I finally got around to review the appearance of King Charles in the Canadian Parliament, I could not get past the optics on display.
My background thoughts are HERE, but boy howdy does this picture encapsulate the dynamic.
And yes, King Charles waxed eloquently in both French and English about the terrible issue that Canadian sovereignty is facing.
The same issue, albeit to a lesser -but increasing- extent, is the core impetus between U.S. President Trump’s manufacturing policies in the USA. President Trump is urgently attempting to rebuild a collapsed industrial manufacturing base. However, from the leftist position of Canada, the easier route that affords them the ability to chase the green energy rainbows is to retain a dependency manufacturing model. These are political decisions.
At the core of this dynamic you will find the reason why President Trump is likely to dissolve the U.S/Mex/Canada (USMCA) trade agreement and instead turn toward two independent bilateral trade agreements between the USA-Mexico and USA-Canada. Extend this reasonably accurate predictive economic reality to its logical conclusion and you see why the U.K wants to help bolster Canada.
In the battle against President Trump’s economic ferocity, Canada is relying on the friendly, duplicitous and influential mask work by Great Britain.
I have created this site to help people have fun in the kitchen. I write about enjoying life both in and out of my kitchen. Life is short! Make the most of it and enjoy!
This is a library of News Events not reported by the Main Stream Media documenting & connecting the dots on How the Obama Marxist Liberal agenda is destroying America
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