Will Canada join the United States? This has been a hot topic in the media because Donald Trump kept referring to Canada as the 51st state, writes Peter Watson.
The answer to the question of whether most Canadians would want that to happen is a strong no. A more important question is under what circumstances would Canadians welcome a takeover by our southern neighbour.
The answer can be given with one word: Finances.
If Canadian finances deteriorated to the point where we could not run the country, pay for our policing services, medical expenses, education then we might welcome a takeover.
According to Canadian Taxpayers Federation, the 2024 federal debt interest charges will be greater than what the federal government send to the provinces in health transfers.
Politically our leaders don’t have the foresight or courage to communicate this bad news.
What is good for Canadians is to understand we have an overspending problem and hear prudent strategies to improve our financial health. Voters do not like to hear this type of talk, so it appears our political leaders prefer to mostly stay silent.
At some point our debt spiral be so strong that it will be impossible to regain financial strength. Our Canadian house of cards will suddenly start to collapse.
They would assume our debt and, in the process, have access to our abundant supply of natural resources.
I have a request to our political leaders. Please have the foresight and courage to articulate Canada’s weak financial position. Provide a strategy to correct this problem so we can avoid financial bankruptcy.
Peter Watson, of Watson Investments MBA, CFP®, R.F.P., CIM®, FCSI offers a weekly financial planning column, Dollars & Sense. He can be contacted through www.watsoninvestments.com
