Canadian writer fears Canada will become a Vassal of China instead of a Vassal of the USA and wants Canada to merge with the USA

Diane Francis makes the case that the USA and Canada are declining relative to the rest of the world and particularly China. She proposes a simple and obvious solution: What if the United States and Canada merged into one country? The most audacious initiative since the Louisiana Purchase would solve the biggest problems each country expects to face: the U.S.’s national security threats and declining living standards; and Canada’s difficulty controlling and developing its huge landmass, stemming from a lack of capital, workers, technology and military might. Merger of the Century builds both a strong political argument and a compelling business case, treating our two countries not only as sovereign entities but as merging companies.

Scenario where China makes Canada a Vassal

Over decades Chinese companies will buy Canadian banking and drilling firms to secure Canada’s oil and natural gas fields. Canada gets muscled out of its Arctic claims by extraction companies with the backing of the Russian government. A network of Chinese ports has secured the sea lines along the Northwest Passage, circumscribing Canadian sovereignty, and Canada’s military, enfeebled after years of reliance on the United States, is powerless to resist. Canada effectively lapses into a vassal state, reliant on neocolonial patriarchs in Beijing and Moscow

Diane Francis is a director for Aurizon Mines Ltd., which operates a gold mine in Quebec. She wants to see the United States invest in infrastructure in Canada’s far north, which currently lacks the roads, ports and pipelines necessary to make resource extraction possible. “That kind of a Marshall Plan with infrastructure and so on — that would create millions of jobs, both sides of the border,” she says. “The Americans should just roll up their sleeves and get on with it, because they’ve got the capital and they’ve got the market for the stuff. At the very least, there’s got to be some kind of a joint venture, economically, and I say, ‘Let’s pick our partners.’ “

Nextbigfuture response

1. Canada has already been a semi-Vassal of the US since at least 1959. Canada unofficially transitioned from English control at the end of World War 2.

Here is a history of the military contribution Canada made to US wars and the economic dominance of the US over Canada.

2. Diane Francis is arguing for massive US investment in Canadian infrastructure ? The US has been underinvesting in its own infrastructure. Hundreds of billions are needed to bring roads and bridges in the US up to proper maintenance.

More details on Diane Francis Dream

Francis imagines a half-dozen ways a merger could take place — how the United States might buy out Canada, Louisiana Purchase-style, or set up resource funds to pay dividends to Canadian citizens. Politically, Canada’s provinces might seek entry as U.S. states — or perhaps as a commonwealth if Quebec wished to preserve a government of its own. They could form a federal union, à la unified Germany, create an overarching council (the Swiss model), or establish a coordinating government (the European Union model). Francis never coins a name for her potential superstate. If Canada’s provinces became U.S. states, then they would simply be absorbed into the United States of America. But as for the other models, who knows? Canamerica reads too much like a question, while Ameri-Canada sounds slightly better.

What would a united Ameri-Canada look like? In terms of acreage, it would be the largest country in the world — surpassing Russia, even all of South America, in size. Its economy would be larger than the EU’s. Since each country is the other’s largest trading partner, trade deficits would shrink. Canadian oversight at the Fed would bring stability to American banking. With all its energy needs met domestically, Ameri-Canada would be a lucrative petrostate, exporting oil to the developing world.

Nextbigfuture on what the situation already is and what will happen

The European Union is a merger of weakening countries. Merging together might have slowed the decline into lower tier relevance but the trajectory is unchanged.

Canada, USA and Mexico could beef up the Free trade agreement for a more EU style union.

Almost all of Canada’s oil and natural gas goes to USA already.

The US is choosing not to build or to delay the Keystone pipeline. It is in Canada’s interest to make a pipeline to the ocean and ship some oil to China and other buyers to get more market access. US oil is increasing from North Dakota and Texas and US imports have already halved. The US could eliminate imports by 2018-20. If not imports could drop from 6 million barrels per day to 2-3 million barrels per day. Canada will be producing 4 million barrels per day. The US would not be absorbing all of Canada’s oil and Canada would need to sell elsewhere anyway.

The USA will not let Canada have influence over the Federal Reserve. The Federal Reserve is mainly controlled by elites in New York, Boston, Chicago and Washington DC. The rest of the United States does not have much say in the Federal Reserve. Yes, the federal reserve banks are from across the USA. However, the powerful banks and financial institutions are mainly New York Based. It is the Goldman Sachs and other big companies that call the shots and set the policy.

Diane Francis is a classic east coast of Canada elite. She wants to merge Toronto and New York.

Assuming China continues its economic rise and passes the US economy in 2019/2020 and heads to double the US economy in about 2030. Both the US and Canada will be selling large portions of their economy to China.

Combining Canada and the US will not change the equation any more than having the Ukraine remerge with Russia will change or not change the decline of Russia. It also would not change the oligarchs in both Ukraine and Russia stealing and controlling the countries. Although depending upon how it played out the Russian oligarchs would push out the Ukrainian oligarchs. It would mean that certain companies and people would have a chance to skim even more, but the overall situation in 2030 would change from China double the US to China 1.8 times US and Canada.

The US could choose to double immigration from 1 million per year to 2 million and the US could have more pro-growth policies and get a stronger economy. Canada could follow similar policies. Those would do more for maintaining stronger economies and relevance.

In business when Sears and Kmart were put together they both still declined relative to Walmart. Merging two weak countries or two weak companies is the same. The true solution is to manage better.
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