Our Leaders Are Rolling Up Their Sleeves… To Wave the White Flag

Another week, another series of baffling decisions from Ottawa that leave you wondering what reality our leaders are living in. On September 17th, the Bank of Canada, in a move that surprised no one paying attention to our sputtering economy, chopped its overnight rate by another quarter-point. While this offers a sliver of relief for those of us with variable-rate debt, it’s a glaring admission that the economic engine is stalling.

But the real headline came a few days later, on September 23rd, when Governor Tiff Macklem delivered a speech titled, “Time to Roll up our sleeves.” You’d think that would be a call to action, a rallying cry for Canadian industry. Instead, it felt more like a blueprint for surrender.

A DANGEROUS PIVOT FROM OUR GREATEST ALLY

Governor Macklem’s big idea? After 15 years of dithering, he’s decided Canada has relied too much on the United States. His solution is to now, finally, forge “stronger trade relations” with Europe and, get this, China.

Let’s pause on that for a moment. We’re being told to turn our backs on our closest neighbor, our strongest ally, and the destination for over 75% of our exports. Instead, we should cozy up to a communist regime with a deplorable human rights record, the world’s largest polluter, and a government known for actively interfering in our elections. So, we’re supposed to handcuff our own resource-rich nation with “green initiatives” to save the planet, but then jump into bed with the biggest polluter on Earth? The hypocrisy is staggering.

This isn’t about smart diversification. This feels like a poorly concealed tantrum because President Trump is a tougher negotiator. We can’t just rewire decades of economic integration overnight. This kind of shift would take decades, if it’s even possible. Meanwhile, our current federal government, after a decade in power, hasn’t signed a single tangible trade agreement of substance—just a portfolio of vague “future possibilities.” At this rate, it won’t take four years, it’ll take forty.

THE FISCAL HOUSE IS ON FIRE

As if the Bank of Canada’s misguided vision wasn’t concerning enough, the government’s own spending is spiraling out of control. Don’t just take my word for it. The newly appointed Parliamentary Budget Officer, Jason Jacques—a man appointed by this very government—just described the federal budget as “stupefying,” “shocking,” and “unsustainable.”

He’s forecasting a federal deficit that has never been higher and is set to double under the guise of “capital investment.” This isn’t investment; it’s a reckless spending spree with our money, piling debt onto our children and grandchildren.

CANADIAN GIANT ANNOUNCES $8.5 BILLION INVESTMENT IN THE USA AND WHO CAN BLAME THEM?

The writing is on the wall, and Canadian businesses are reading it. Just look at the recent announcement from TC Energy, the company formerly known as TransCanada Corp. They just announced a massive $8.5 billion investment. Fantastic news, right? Not for us. That entire investment is going to the United States.

An iconic Canadian energy giant is pouring billions into our competitor’s economy because our government has created a hostile environment for business. “Elbows up,” eh? It seems the only ones feeling the elbows are Canadian workers and entrepreneurs.

THE ONLY THING I AGREE WITH…

I’ll give Governor Macklem one thing. He’s right when he says, “Elbows up has been galvanizing, but now we need to roll up our sleeves. There is a lot of hard work to do.”

He’s absolutely right. But the hard work isn’t about pivoting to China. It’s about our government getting out of the way. It’s about getting back to the bargaining table with our most important trading partner. It’s about creating a competitive environment where Canadian companies want to invest their billions here, creating jobs here.

We need to get back to what makes people thrive: feeling useful, needed, and independent, not reliant on ever-expanding government handouts. This new culture of mandatory, permanent assistance is a path to ruin.

I’m tired and frustrated with the decade of smoke and mirrors. We need a government that will roll up its sleeves to unleash our economic potential, not tie it up in red tape and misguided ideology. It’s time to toughen up and demand a change in attitude. And if you don’t like that message, well, too bad.

I hope you will enjoy this article and if you have any questions or would like to discuss I am always available.

Your best interest is my only interest. I reply to all questions and I welcome your comments. Like this article? Share with a friend.

Steve Garganis: 416-224-0114; steve@canadamortgagenews.