Wednesday, 25 January 2017

Banking on the Great Bluff

I will admit that this week, for a while rather, I have been stressed as I wonder and worry about my future. 

Factors outside of my control (such as a certain individual holding a certain influential office) could, almost overnight, put me out of a job.

As I have said before I work for a company which imports stuff from China (making sure it is top quality stuff that meets North American standards) and then exports them to customers in Canada and the US (mostly in the US).

So, as you can imagine, any one of a number of options taken by the new US administration could quite quickly lock us out of our overwhelmingly largest market. (Can you say sudden downsize of a company, anyone?)

If this were last year or next year, I would be much less stressed. As with each payday, a little more cash would be going into my saving account.

I could use that to live on as I look for other work. Not so this year with large fistfuls of cash that I am giving to the bank. (It still feels wrong to give most of my paycheque straight to the bank.)

I have to take solace, however, that with the intertwined nature of the economies of our two countries that limiting or hurting trade with/from Canada would hurt the US.

This is like cutting your nose off to spite your face or shooting yourself in the foot (pick your analogy). 

I am willing to bet (my mid-term fiscal future) on the fact that this noise and rhetoric is just pre-bargaining sabre rattling as the new administration down south looks for a good deal.

Personally I am inclined to strongly suggest that we recall our ambassador, expel their ambassador and cut off all diplomatic relations and trade with them if they do anything remotely to hurt us. 

The insult and shock would make the US Congress demand that the pres make things right, thereby putting us in a stronger bargaining position. (But I digress.)

This administration or at least most of the state governments and Congress knows how important free flowing trade is to them (and us), and won’t do anything to seriously jeopardize this.

They will, however want to ensure that we, as a trading partner, lose money in any and all trade with them. (If they even suggest this, do what I said earlier).

As fun as all that is to say, I am banking on this continued trade to keep the dollars flowing back and forth across that border (and thus me gainfully employed).

So, I will keep handing cash over to the banks and slowly buy my freedom by the end of this year. I will trickle-save what I can so I have a modest amount of cash on hand, just in case.

I will do so resting somewhat easier that a trade war is unlikely (and that our Prime Minister would never do what I had suggested . . . as fun as it sounds).

As always: Keep your head up, your attitude positive and keep moving forward!

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