In this episode of The Pipeline, Western Standard's Derek and Nigel discuss Canada's response to the Trump administration's proposed trade tariffs on the West. They also discuss the Prime Minister's meeting with the premiers of Ontario and Saskatchewan, and the upcoming leadership race.
00:01:55.500Okay, well, we're going to be, the main theme today is the rest versus the West.
00:02:04.900The plan that is currently developing right now, kind of as we speak today, of Canada's retaliation in the very near trade war that is coming up when Donald Trump is sworn in as, again, president of the United States.
00:02:25.640the retaliatory, what is Canada's retaliation going to be, and most of that tends to revolve
00:02:34.840around making Alberta pay, and to some extent Saskatchewan pay, the burden of that retaliation.
00:02:40.800We're going to be talking about that. We'll also be talking about the poison chalice that is the
00:02:44.880Liberal Party's leadership race. Can anything stop Mark Carney? Will it even be a race? Who knows?
00:02:54.400As liberals are in a bit of a crisis, they might just decide to coronate someone like they did with Michael Ignatio.
00:03:00.420They're going to Michael Ignatio, Mark Carney.
00:03:18.560If he has done it, it's been a long time.
00:03:20.280Probably made it a little easier that two of them, including Danielle Smith, came in over Zoom.0.99
00:03:27.680The close proximity wasn't quite so unnerving.
00:03:30.940Yeah, it wasn't quite as awkward in the room.
00:03:33.660You know, Canadians tend to be, we can be real jerks online, but face-to-face we tend to be a bit more polite.
00:03:39.200But the relationship between Justin Trudeau and Danielle Smith is awkward, to say the least.
00:03:47.220So, yeah, probably made it a bit easier that she was there via Zoom or however she was attending.
00:03:52.520But, you know, this all opened up earlier today with Doug Ford.
00:03:56.700You know, let's put a picture of Doug Ford. I'm wearing this hat.
00:04:00.280His Canada's not for sale hat. Kind of a Trumpian.
00:04:04.760I hate how it says, oh, that's being Trumpian. That's like Trump.
00:04:07.700But I mean, he was boring the baseball cap political visible messaging thing.
00:04:11.760So, you know, somewhat pioneered by or made famous by Donald Trump.
00:04:18.860I actually would like to know where that hat was made, because he was loviating towards the end of the press conference about how we've got to get things made in Canada.
00:05:30.900The problem is that if you really want to hit the Americans where it hurts, there's one pretty clear answer how to do that.
00:05:39.260And that is Alberta and to a lesser extent, Saskatchewan oil.
00:05:43.460The trade deficit that Donald Trump talks about doesn't really exist.
00:05:46.980I don't think he's gone into the numbers here.
00:05:49.960If you removed oil exports to the United States, the United States is actually in a huge trade surplus with Canada.
00:05:55.820Canadians, if you exclude oil and gas, Canadians buy significantly more from the United States than the United States buys from Canada.
00:06:03.080But we export a huge amount of oil to the United States, which is why there's technically a trade deficit.
00:06:08.280But the United States, because they're our only real customer and Ottawa for decades has been less than helpful in getting pipelines built across Canada and to the coasts, we have to sell our oil at a huge discount.
00:06:21.700So the Americans buy it dirt cheap, and then they get to refine it and upgrade it and add value to it for themselves and for export.
00:06:31.220And if you want to hit America, there really is the obvious thing to do is you put an exit tax on Alberta oil or you refuse to pump Alberta oil.
00:06:44.780Now, that latter option of turning off the tap to America, that's all bluster.0.56
00:06:50.000because if you look at the map, actually, let's put that map up on the screen, that map shows that
00:06:56.080to get Alberta oil to eastern Canada, it has to go through the United States first. Now, if only
00:07:03.040someone had proposed some kind of energy ease pipeline that would bypass the United States to
00:07:07.360get there. So that option's off the table. But what's really being talked about right now, Nigel,
00:07:12.080is probably an exit tax on Alberta oil to hurt the United States. But that would be really making
00:07:19.280human shields, economic human shields, out of Alberta and Saskatchewan to protect the
00:07:25.300manufacturing that's being hit by tariffs in Ontario and Quebec.
00:07:29.080Well, that is, you know, that is such an obvious, easy hit.
00:07:32.100It just happens to be that if it is applied, then it's Alberta, Saskatchewan that pay the
00:09:42.820And so should every Albertan who has hopes of doing well in this part of the world.
00:09:48.600Jared, Alberta Premier Danielle Smith has taken, has got some options on the table.
00:09:58.880And, you know, I was noodling this around actually with Nigel about some of the actions we could take.
00:10:05.140And all of them were pretty radical things that we would have to do to retaliate against Ottawa.
00:10:10.960Because, you know, I shouldn't think I was going to say at this point, but actually, historically, Ottawa has been a more hostile foreign power to us than the United States.
00:10:19.700The United States actually tends to take our products and happy for us to make money.
00:10:23.440Ottawa, historically, much less consistently so.
00:10:29.020But one of the options she is preparing behind the scenes, according to some reports, and this is quite a genius,
00:10:35.300is that if Ottawa slaps an exit tax on Alberta oil and Saskatchewan oil going into the United States,
00:10:45.000that she will circumvent it by the Alberta government actually buying all of the oil
00:10:49.380and then shipping it to the United States.
00:10:51.760Because constitutionally, one order of government in Canada cannot tax another.
00:10:56.080The federal government could tax our oil when it crosses international boundaries.
00:11:00.840They have that power. It would be extraordinarily unfair and unjust.
00:11:33.240And I mean, he's there, but, you know, we know that it's the premiers who are going to be pushing the solutions.
00:11:41.600And we've seen in in British Columbia, Premier Eby, he's pushed back pretty hard against Trump's claim that, you know, there's nothing in Canada that the U.S. needs.
00:11:50.980For example, yesterday, he he proposed maybe cutting off supply of rare minerals that the U.S. needs for night vision goggles and other electronics.
00:12:00.780And the thing with these minerals is you can only find them in B.C. or in China.
00:12:06.980And the U.S. has said they're not going to do that business with China.
00:12:11.040So it's pretty much Canada or nothing.
00:12:52.920Yes. Where they said, you know, the burden will be shared. So if, you know, if one part of the country is disproportionately affected by retaliatory measures against the United States's tariffs, then we're going to have to find a way to join together, help each other.
00:13:06.980That was pretty ill-defined. But let's say for sake of argument, you know, the federal government decides, okay, we're going to cut off rare minerals to the United States as a part of this retaliation.
00:13:22.260Okay. The federal government could theoretically then step into those companies and say, we're going to make you whole.
00:13:29.260well, how much were you making per month before this?
00:13:32.220And we're just going to pay you that in the meantime.
00:13:34.940And the B.C. government, oh, okay, how much were you making?
00:14:21.640It's not going to be very long till creditors start getting pretty itchy around our balance sheet.
00:14:26.680We simply don't have the physical capacity for Ottawa to step in and say, OK, well, we're going to cut off Alberta's oil to the United States, but we're going to make Alberta oil companies whole.
00:14:38.340Essentially, we're just going to give you money for not producing and we're going to make the Alberta government whole for the royalties that's missing.
00:14:45.400Even if they even if Ottawa wanted to be that generous to us, they simply couldn't.
00:14:50.720don't have the money it's not it's simply not physically possible you know that that's so true
00:14:55.920and it was actually frustrating to listen to that particular press conference and realize that all
00:15:03.840this is based upon borrowing money there is there is not the money to pay for it the only way to do
00:15:13.920what ottola is talking about or more particularly what mr trudeau is talking about is to
00:15:20.720borrow money. Well, they have borrowed, what, $700 billion in the past 10 years. They've
00:15:27.300given it out as CERB. They've given it out in so many different directions.
00:15:30.700And add to that, most of the Harper government was also under deficit as well. Some of them
00:15:34.760pretty significant. They got to a balanced budget at the very end of it, but essentially
00:15:39.160one balanced budget in 20 years almost here.
00:15:41.420Oh, no, no, no. It was better than that. It's considerably better than that. What actually
00:16:58.040What I'm saying is Canada has not been running balanced budgets for 20 years.
00:17:02.180The last 10 of those 20 years, we have borrowed incredibly recklessly with total abandon and out even the pretense of getting back to a balanced budget at some point.
00:17:11.620So we are not in any position now to open up the spigots again on a scale that would be even greater than the borrowing that took place under COVID.
00:17:19.020We have not been responsible for a long period of time here, and we simply don't have the fiscal capacity to spend like this, even if we thought it was a good idea.
00:17:27.720Actually, I have to go back to the 60s before the last century before you get to the sequence of balanced budgets.
00:17:54.860We've already maxed out the credit card, and now we're talking about taking on new credit cards.
00:17:59.940That's exactly what they're talking about.
00:18:02.080They're not saying it, but that's what they're talking about.
00:18:06.340Jared, what was your impression from David Eby with the first minister's meeting today?
00:18:11.220I thought he made some good points look pretty strong. But I think like you guys are pointing out, like, you know, rare minerals in BC, that's, that's small fish compared to, you know, oil in Alberta and everything that Ontario has to offer. So I think when it comes down to it, it's going to be Alberta and Ontario, that we see the most, the most action coming out of this.
00:18:33.560um so let's talk about some of the things
00:18:39.200Canada might just put in place a 25 percent uh tariff against the United States I think that's
00:18:48.240probably the main given is okay they do 25 against us we're gonna do 25 against them
00:18:53.140you know I actually can live with that uh I mean it's bad we shouldn't these trade wars are stupid
00:18:59.340to begin with, shouldn't be in it. Trump might be good for the United States, but this action's not
00:19:06.440good for us, obviously. But he's not the president of Canada. He is the incoming president of the
00:19:10.480United States, and they're all about America first. So, fine. I can live with a 25% tariff
00:19:17.560on American goods coming into Canada as a retaliation until we can finally come to some
00:19:22.620resolution hopefully one day but the problem is that we're we're the mosquito
00:19:29.520getting shot with a cannon we simply cannot retaliate our 25% tariff against
00:19:34.980them will annoy them it will hurt them a bit but their tariff against us will
00:19:42.060kill us it'll absolutely devastate Canada which is why Ontario Quebec and
00:19:48.420and by extension Ottawa are looking at more targeted measures in addition to a blanket tariff
00:19:55.060and that is Alberta energy um this sorry and Saskatchewan um I don't know uh Nigel
00:20:07.140what's the fight back strategy for this because uh you know the left-wing media uh subsidized by
00:20:13.060Ottawa has been pretty, they've been saying some nasty things about Danielle Smith. The Toronto Star
00:20:20.100just last night said, Danielle Smith is essentially a traitor.1.00
00:20:25.380You know, Alberta oil is responsible for the fire in Los Angeles. And if Alberta really wants to
00:20:31.540keep on increasing its oil production, maybe it should just join the United States. Now that's
00:20:35.700That Toronto Star article by Gillian Stewart is probably the outer reach of the craziness coming from the legacy media here.
00:20:45.700But the tone has been that Alberta's not playing on Team Canada.
00:25:00.500But yeah, it's really putting things in perspective for the other premiers right now.
00:25:06.560Before we move on, I want to come back to that beautifully idiotic column
00:25:12.380from Gillian Stewart in the Toronto Star.
00:25:14.780She is the local viceroy representing Toronto.
00:25:22.020Oh, sorry, I was referring to Trans Mountain.
00:25:25.940Not Northern Gateway, I was referring to Trans Mountain.
00:25:27.880Sorry, yes, I was referring to the Trans Mountain pipeline earlier.
00:25:30.740So I want to come back to that beautifully idiotic column from Jillian Stewart.
00:25:34.760But in it, she, you know, she criticized, you know, she blamed the L.A. fire on Alberta oil and Danielle Smith and conservatives, you know, you know, you know, the narrative.
00:25:52.580But then, you know, said, you know, criticized Danielle Smith and Alberta's government for wanting to double oil production.
00:25:58.560How dare we try to actually make money without government subsidies in Alberta?
00:26:04.860It should be more like Ontario and build government-subsidized EV batteries for cars that absolutely no one wants to buy anymore.
00:26:12.740But said, you know, if Alberta really wants to double its production, maybe it should just become the 51st state and join the United States and leave Canada.
00:26:22.600And it's just things that make you go, hmm.
00:26:28.560Like, think that through, Toronto Star.
00:26:32.520What would happen to Canada if Alberta's hook you up on the offer?1.00
00:26:38.420I'm pretty sure Donald Trump would jump at it in a nanosecond.
00:26:43.360It's like, oh, actually better than Canada would be just taking Alberta.
00:30:08.620The race now with Christy Clark's kind of disastrous soft launch where she ended up lying about her history with membership in the Conservative Party and the Liberal Party.
00:30:19.720She crashed and burned real fast, so it never got off the ground.0.72
00:30:23.460All eyes are really just on two names, Christy Freeland and Mark Carney.
00:30:30.220um let's uh so mark carney is going to be uh launching his campaign uh probably within 24
00:30:39.140hours or so uh but he soft launched his campaign all but saying you know when a politician says
00:30:44.520well stand by i'll have an announcement soon you know you know that thing he did that on
00:30:48.940with john stewart on the daily show uh just the other night uh let's roll a small clip from that
00:30:53.760let's say the candidate wasn't part of the government let's say the candidate did have
00:31:00.880a lot of economic experience let's say the candidate did deal with crises let's say the
00:31:06.020candidate had a plan to deal with the challenges in the here and now you sneaky you're running as
00:31:11.720an outsider i am an outsider okay so we showed you one short clip uh the whole thing was 20 odd
00:31:20.020minutes long. So I don't want to take anything out of context
00:31:23.200here. I don't think we are. I'd say he was actually a fairly
00:31:27.580smooth interviewer. It was boring, but he didn't have the
00:31:31.840back five fingers yet, the punchable face that Justin
00:31:35.180Trudeau had, he has that going for him. He does not have a
00:31:38.000punchable face, which is some, you know, the next liberal
00:31:42.100leader, the liberals would be smart to punch a leader without
00:31:44.440one. But to choose a leader without one from Freudian
00:31:49.900slip. Yeah, you're thinking in German and speaking in English. It can happen there.
00:31:55.580But it was overall, I think, reasonably well. If we're trying not to be partisan here,
00:32:03.940it was a fine interview. But that part there, Jon Stewart doesn't know the intricacy of
00:32:10.780Canadian politics, so I can forgive him for it. But not calling him out when he says,
00:32:17.140I'm an outsider. Nigel, you've got a piece on this. Tell us just how much of an outsider Mark
00:32:24.200Carney is. Well, he's not an outsider at all. He's a conservative insider. Look,
00:32:29.120he has been a bank governor, not only in Canada, but in Great Britain. He is a member and associates
00:32:37.580with about five international organizations, all of which share a common view of something that
00:32:45.240Mr. Carney is deeply interested in, which is, of course, is climate change and cutting production of carbon to apparently to ameliorate that.
00:32:55.460So he's in with the World Economic Forum. He's in with the Bloomberg group. He's in with the Chatham House.
00:33:02.860There's a list. Read my column. They're all listed there. And these are where the great or the Bilderberg is. That's the other one.
00:33:10.400And the UN special envoy. And he's the UN special envoy on climate change.
00:33:15.240so you know he's about as in as he can be with that but in addition he has also been
00:33:23.400special advisor to the prime minister from at the time of covet so if you don't like what was done
00:33:31.160during the covet era you probably have to ask wonder or be suspicious of because it's never
00:33:38.120been fully revealed what was the influence of mark carney when the federal government
00:33:43.880was making regulations to control the spread of COVID.
00:33:52.240And then since, I think, was it about April of last year,
00:33:56.260he has been back as a special advisor.
00:33:59.540This is not a guy who gets his phone calls returned.
00:34:04.180This is a guy that the federal government phones
00:34:10.920And I think Michelle Rempel-Garner put it beautifully when she said in, I think it was a Substack article that she wrote, I know I stole the line and I thank you very much for it, Michelle, if you're watching, but he's not in the club, he runs the club.
00:34:29.840So he is not an outsider, he's the shoe-in boy.0.84
00:34:35.040Before we go to the other major likely contender for the leadership, Chrystia Freeland, I'm going to go to you, Jared, for the major third candidate who is no longer the third major likely candidate.
00:34:53.760For some time, Christy Clark, former BC Liberal Premier Christy Clark, has been trying to pave the way, putting up the flag.
00:35:03.760She's been putting up the flag for like a year or so, as it became clear to anyone whose name is not Justin Trudeau, that Justin Trudeau should probably not lead the Liberals into the next election.
00:35:13.140She's been putting up the flag saying, well, keep me in mind, folks.
00:41:26.860All right. I want to point out that some of Trump's trade war is likely to be very positive for Canada.
00:41:33.840There is some silver lining here. One is he is likely to demand that Canada scrap the Online News Act.
00:41:40.760You guys, regular watchers and listeners will know how much I and the Western Standard passionately hate this grifting piece of legislation.
00:41:49.320The idea was not to break up Facebook and Google's monopoly on online advertising, which would be a potentially worthy venture.
00:41:56.780But it was instead to cash in on their monopolies, take money from Facebook or Meta and Google and give it to lazy, bankrupt Canadian news publishers.
00:42:09.260Google gave them a little bit of money and Facebook quite rightfully said, this off, we want nothing to do with it, we're going to block the news in Canada.
00:42:18.020Well, I think it seems likely Trump is going to put that on the agenda as an anti-trade measure that Canada is going to have to get rid of.
00:42:26.740I think Peer Polly would want to get rid of it anyway, so that's an easy one.0.92
00:42:29.500But the really good one is the big cheese.
00:42:32.860If there is anything crazy about trade and consumers in Canada is that it is damn near illegal for us to get foreign cheese.
00:42:41.360We have to pay massive, massive tariffs to bring in dairy from anywhere outside of Canada.
00:42:48.020because of our supply managed Soviet style command and control economy over the dairy sector.0.85