00:00:00.000Canadian Prime Minister Mark Carney is in a world of trouble.
00:00:03.600This comes after Fox News in the United States dropped the bomb on him and his government over the ongoing trade dispute with Donald Trump.
00:00:10.900The fact of the matter is that Canada, we don't really have a good history when it comes to electing leaders that are well received by the international press.
00:00:18.920Justin Trudeau, our former Prime Minister, he also wasn't very well received by the British and American press, to name a couple.
00:00:25.860One example, a newspaper in England called The Telegraph described Justin Trudeau as a tyrant for trying to censor the internet with the Online Harms Act.
00:00:33.760Now under this proposed bill, a person could be sent to jail for life, and I'm not kidding, sent to jail for life for posting something on the internet the government deems to be offensive.
00:00:43.240Fox News in the United States also criticized Justin Trudeau for how he handled the Freedom Convoy protest.
00:00:48.840And when it came out in court that his use of the Emergencies Act, otherwise known as the War Measures Act, was illegal, they called it an embarrassing loss for Trudeau.
00:00:59.080And of course, Justin Trudeau is now gone. He's no longer the Prime Minister of Canada.
00:01:05.500Mark Carney, the former banker and self-described globalist. Make of that what you will.
00:01:10.220And let's be fair, Mark Carney is a lot more intelligent than Justin Trudeau, and he's been laying off a lot of the virtue signaling statements that Trudeau was known for, or should I say infamous for.
00:01:23.260But despite all of that, Carney is still not being very well received by the international press.
00:01:28.840As Canada and America remain at odds over a trade dispute that Donald Trump started over fentanyl, there's now a new chapter to this story.
00:01:35.660And it involves a bridge, the Gordie Howe Bridge to be exact, which connects the Canadian province of Ontario to the American state of Michigan.
00:01:43.320So Fox News recently aired a segment where they completely ripped Mark Carney apart.
00:01:48.020And just for some quick context, in Canada, where I'm making this video, we don't have a dedicated right-wing news station that broadcasts on TV.
00:01:55.720We have news stations, but all of them are very left-wing.
00:02:00.500If you ask these companies, they say they're politically neutral.
00:02:03.940However, the people on my side, the conservatives, the consensus is that they're pretty left-wing.
00:02:09.060President Trump turning up the pressure on Canada.
00:02:13.200Is it really Canada? It's really Carney.
00:02:15.960Warning that he could, president, could block the opening of the Gordie Howe International Bridge,
00:02:22.780which connects Michigan and Ontario, until the United States is fairly compensated for that project.
00:02:29.960The fact that Canada will control what crosses the Gordie Howe Bridge and owns the land on both sides is unacceptable to the president.
00:02:38.760It's also unacceptable that more of this bridge isn't being built with more American-made materials.
00:02:44.180He also believes that the U.S. should own at least half of the bridge, have shared authority over what passes across it,
00:02:50.240and participate in the economic benefits generated by its use.
00:02:53.660The president's battle over the bridge, the latest in a long spat with Canadian Prime Minister Mark Carney,
00:03:01.740who Trump is accusing of dragging his feet on trade amid Trump's push to renegotiate the U.S. MCA trade agreement.
00:03:10.240U.S. Trade Representative Jameson Greer addressing this this morning with our own Maria Bartiromo.
00:03:15.700And we baked this into the U.S. MCA because for a long time, under NAFTA, there was no review scheduled.
00:03:23.680There was never any opportunity to take a look at the agreement and adjust it if necessary, which makes no sense.
00:03:29.040It makes no business sense. It makes no economic sense.
00:03:31.380The Mexicans are being quite pragmatic right now. We've had a lot of discussions with them.
00:03:35.120With the Canadians, it's more challenging.
00:03:36.980The thing to keep in mind with Canada, this is a country that's 75% dependent on the United States for its gross domestic product.
00:03:45.760We're always going to have some kind of a trading relation with Canada.
00:03:48.480We have to make sure that it's fair. We have to make sure that it's equal.
00:03:52.400I want to point out that what Fox News showed you here was just Donald Trump's side of the story.
00:03:56.460And there's another side of the story.
00:03:58.320However, I'm not going to get into that right now.
00:04:00.640And I just want to show you what Fox News is saying about current...
00:04:03.140Joining us now on set is the Heritage Foundation Chief Economist and Unleash Prosperity Senior Fellow E.J. Antony.
00:06:22.000And I think the longer the Canadians wait to make some kind of deal with the president, the longer they wait to come to the table and negotiate in good faith, the worse off it's going to be for them in the long run.
00:06:32.460Just really quickly, I get we hold the cards leverage-wise, economic leverage-wise, but does it, we talk about consumer sentiment in the narrative.
00:06:40.540Does it create the sense, like, that we're not moving forward?
00:06:44.180Does the American public look at this and say, oh, man, another fight with Canada.
00:06:47.280Gosh, shouldn't we be teaming up with people to fight China instead of fighting our neighbors?
00:06:58.120When we break out things like the Consumer Sentiment Survey, when we break it out by political affiliation, Republicans think things are pretty much fine.
00:07:06.480Their inflation expectations are darn near zero.
00:07:09.360Meanwhile, Democrats think we're going to have the worst inflation in our nation's history.
00:07:12.740So it really is just, I think, Trump derangement syndrome clouding some of those respondents' actual thinking.
00:07:18.080That being said, I think what people are most concerned about is not the headlines, not what they see on the Wall Street Journal front page.
00:07:25.020What they're really concerned about is things like, can I afford a home?
00:07:29.180How much does my weekly paycheck actually buy me?
00:07:31.800And as long as that is less than it was four, five, six years ago, I think people are going to be unhappy.
00:07:36.880Even if things are heading in the right direction, because we haven't yet fully recovered all of our lost ground, that's what I think people are most upset about.
00:07:44.420The soon-to-be head of the Federal Reserve, President Trump's pick, Kevin Warsh, there's much—he's talked about for a long time about how the blowout of the Federal Reserve's balance sheet,
00:08:00.460which he was against, starting with the financial crisis in 2008, and then it was done again, up to almost $9 trillion during COVID, how that was a reverse Robin Hood, that it made the rich so much richer.
00:08:15.280The closer you are to the spigot, the more wealthy you become, and it hurts working men and women.
00:08:21.680So his goal, and he talked about Larry Kudlow last year, is to reduce the size of the balance sheet and then actually cut rates, which helps working folks.
00:08:33.160But will he run into problems trying to reduce this balance sheet, which is only now about $6 trillion because of, well, because our markets, even our short-term funding markets for banks, can't handle it?
00:08:48.640Right. Dagan, it's a great, great point. And I think this is where somebody like Warsh has a much better understanding of monetary policy than somebody like Powell does.
00:08:56.640And actually, I think Warsh better understands what Powell has built than even Powell does.
00:09:01.400Powell has created a very unique monetary framework that we never had before March of 2020.
00:09:06.780And you can't simply do things like we're going to draw down—we're going to draw down the Fed's balance sheet or bank reserves and not undo everything else,
00:09:14.860because you're going to run into the problem we had just at the end of last year, where reserves fell too low and the repo market was blowing up.
00:09:22.260Sounds like he's going to have to put the puck in the net, kind of like Gordie Howe.
00:09:25.580Maybe it's going to take a little finesse to get that done.
00:09:29.760Dagan's still thinking about it, though.
00:09:51.060Fox News just said what a lot of Canadians, a lot of people, a lot of Americans are saying to themselves.
00:09:56.840And of course, Canada and America are better off as allies, not as enemies, not fighting a trade war.
00:10:03.540And I don't think anyone, including myself, is arguing that.
00:10:06.320And I will point out, I've been very critical of Trump in this whole process, but I'm not going to repeat what I've said before.
00:10:11.740If you want to look that up, check out some of my other videos.
00:10:14.100But I think the best criticism of McCartney, fair criticism, is that he definitely did oversell his ability to deal with Donald Trump.
00:10:21.160He sold himself as this master negotiator, the chosen one to deal with Donald Trump.
00:10:26.040He was supposed to get a deal with Donald Trump long before I made this video, and I just checked, and there's still no deal.
00:10:33.000The question is, will this whole ordeal sway people over to Polyev's side?
00:10:37.500Well, do you want the straight opinion?
00:10:39.220I would hope so, but the reality is, we need to get this whole trade dispute resolved before we can have a serious conversation about getting Polyev into the Prime Minister's office.
00:10:48.520There's so many things that Polyev wins on, such as cost of living, the economy, crime.
00:10:54.200And he can win if he pushes those things.
00:10:57.460I think if and when the political climate changes, Polyev will have a clear advantage.
00:11:02.240And I still maintain hope that Polyev will be the next Prime Minister of Canada.
00:11:05.520However, I do acknowledge that the path ahead is tricky.
00:11:08.300The best we can do is just have faith, have patience.
00:11:11.800We've made it this far, so we need to hold on just a little bit longer.