Every time Donald Trump makes a new political or economic move, the world reacts with confusion and concern. However, this unpredictability is not a flaw—it is a strategic method he employs to achieve his broader objectives. His actions, while seemingly erratic, serve a clear purpose: to strengthen the U.S. economy, regain leverage in global trade, and set the stage for a significant monetary reset.
The Reality Behind Trump's Trade Posturing
Despite his claim that the U.S. does not need Canadian imports, Trump understands that American businesses and consumers rely on oil, steel, aluminum, potash, uranium, auto parts, lumber, and other Canadian goods. Tariffs on these imports do not harm Canada as much as they harm American businesses that are forced to pay higher costs.
This is why Trump has continuously postponed or adjusted tariffs rather than fully implementing them. He uses the threat of tariffs as leverage, ensuring he maintains negotiating power without causing outright economic damage that could backfire on him politically or economically.
The Migrant and Fentanyl Issues: A Convenient Pretext
While the fentanyl crisis and border security are significant issues, they also serve as convenient political tools for Trump. They provide a justification for tougher trade policies and domestic economic strategies aimed at reducing dependence on foreign manufacturing and investment. The true objective appears to be revitalizing U.S. manufacturing, bringing back investments, and renegotiating trade agreements such as the United States-Mexico-Canada Agreement (USMCA) to favor American industries.
The Bigger Picture: The Strong Dollar Dilemma
The long-term challenge for the U.S. economy is not just trade imbalances but the strength of the U.S. dollar itself. A strong dollar makes imports cheap while making U.S. exports less competitive. Additionally, the American economy is burdened with a massive public debt, financed largely through the creation of fiat money, which is enabled by the dollar’s status as the world’s reserve currency.
Trump likely aims to address this fundamental issue through a monetary reset—one that could involve devaluing the dollar and remonetizing gold. There is growing evidence that the U.S., along with global powers such as Russia and China, is preparing for a shift away from the current dollar-dominated financial system. Both Russia and China have been accumulating gold, signaling their desire to dedollarize. Trump may seek to orchestrate a global economic deal that realigns the financial order.
Canada’s Unpreparedness
Canada is dangerously unprepared for this looming shift. Unlike other major economies, Canada has no gold reserves to fall back on in the event of a monetary reset. The country has become excessively dependent on the U.S. economy and has spent the past decade engaging in reckless fiscal policies—spending heavily, increasing taxes, and over-regulating businesses. As a result, Canada’s economy lacks competitiveness and flexibility to adapt to global economic shifts.
Compounding the problem is a political establishment that appears more focused on ideological battles and political theatrics than on understanding the fundamental economic transformations taking place. If Canada fails to recognize and prepare for these changes, it risks significant economic consequences.
Conclusion
Trump’s moves, no matter how erratic they may appear, follow a calculated strategy aimed at strengthening the U.S. economy and preparing for a global financial reset. The strong dollar, trade imbalances, and national debt are at the core of his policies. If Canada remains complacent and fails to anticipate these shifts, it may find itself in a precarious economic position. Instead of reacting with hysteria to every Trump decision, Canadian policymakers should focus on strengthening the nation's economic resilience in anticipation of the changes ahead.
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