We were up at Blue Mountain for Family Day weekend.
That's me with a new friend.
Right past that wooden guy in the village is a new cookie place called, Death Cookies...highly, highly recommended. LOL!
I swore I was only going to have two bites and I devoured the entire monster-sized cookie within 12 seconds. Incredible.
There was more snow at Blue than I can remember in a long time.
Honestly, if we're going to have to deal with winter we're all for the proper thing...massive amounts of snow and temperatures in the -3 to -10 range.
None of this grey, wet skies, and temps around +2 to -1 for three months.
Let it snow!! Let it snow!!
OK, there's A LOT going on in the world of geopolitics and it's going to have big, big implications for your Canadian dollar so let's dive right in.
Here's a message Trump put out today...
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So for any of you out there that don't like the guy...try and put aside any emotional response you have to all of this and let's focus on what's behind it.
Why would a sitting president say such things?
Remember, park any emotional responses.
Trump's Treasury Secretary, Scott Bessent, is clearly a very intelligent guy who understands the plumbing of the monetary system.
Trump chose the guy for a reason.
Here's what's going on...
The U.S. is caught in what's called "Triffin's Dilemma".
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Here's what you need to understand.
Because the USD is the world's reserve currency, the United States must run a trade deficit with the rest of the world.
Why?
Because they need to be sending out more US dollars than they are taking in. This is mandatory because there is no way for the rest of the world to get US dollars without the US spending them.
(Quick Aside: for you monetary policy geeks out there we're not bringing up the Euro Dollar market for simplicity's sake).
So the US must import more goods than it exports. This is how the world gets US dollars.
But this then also means the US hollows out its economy.
Because it keeps importing goods, eventually corporations move their manufacturing out of the US. And this is what's happened.
The US then produces less and less itself and it loses great middle class jobs.
Both things have occurred.
What the economist, Robert Triffin, pointed out was that after years of running deficits to fund all these imports, the US dollar would eventually lose its status as a safe currency.
As more and more dollars are printed to fund this system, people are losing trust in the long-term value of the dollar.
You can't print currency units forever without confidence in that currency eroding...suddenly, then very quickly.
This is Triffin's Dilemma.
Now let's get back to what Trump is saying today.
He's talking about tariffs on Canada as a way to force corporations to put factories, production, and jobs BACK into the USA.
They have the consumer and he believes that if he puts tariffs in place some corps will get around them by moving production back into the USA.
Will it work?
Likely. To what extent? No idea.
Now, why does he keep talking about Canada as the 51st state?
As a currency loses purchasing power it becomes obvious that the real value is in "goods", not paper money that is printed for free.
It's why China has been loading up on commodities and gold.
You can't print energy.
Guess what country has a lot of really great natural goods?
Well, it's obvious right?
CANADA.
Fresh water, ocean access, lumber, minerals everywhere, gold in the ground, oil reserves, hydroelectric power, Arctic sea passages, etc.
We have it all.
We're rich in natural resources. Ridiculously so.
Heck we should be the richest country in the world if we had any leadership at all.
Canadians should be getting money back from the government from all the goods we export to the world.
But we're too focused on silly pet projects instead of creating an economic superpower...which we should be.
So Trump sees all that Canada has and he wants it.
As local "goods" become more valuable for production and become more valuable in "paper US dollar terms" Canada becomes more important.
If only we had anyone running the show that really understood this.
Ah!!
If we were to be leaders of any country in the world...heck...Canada would be a great one to lead right now.
So this is what's going on.
Triffin's dilemma is coming home to roost and the US is aware of this.
Tariffs are their way to try to rebalance the entire global monetary system.
This is going to be a bumpy ride for some time.
For years we've been saying this is the decade of volatility and to brace for more. Well, we're in it now.
Own income producing hard assets (hello good rental properties), don't count on your Canadian dollar to hold value as we debase ours faster than the US does theirs, buy gold, better yet, learn about Bitcoin and hold on tight. HODL!!
The opportunity to front run this madness exists if you're aware of what's going on.
You can live life on your terms, it's 100% possible.
On Saturday April 12, 2025 we're going to dive into all of this and how to prepare.
The next YLYT Event is going to be a game changer.
We are going longer than ever before, we have more A+ speakers than ever before, we're doing our best so share our message of FREEDOM.
Heck, in honour of our Mom who is Scottish and the Braveheart theme of Freedom we're going to have bagpipes at the event!
Who doesn't like bagpipes, right!?
Today is the last day to grab early bird tickets.
You can check out all the details right here: www.YourLifeYourTermsEvent.com
And of course if you're a Rock Star Inner Circle member you can register with us for no cost. Do so now.
Happy snow days, everyone!!
Tom & Nick
p.s. You can check out everything we have going on at the next YLYT Event by visiting www.YourLifeYourTermsEvent.com
p.p.s. Go Team Canada tonight, come on McDavid, let's do this!!
