The descent

Big Daddy was in Tokyo to cut a new strategic Canada-Japan deal yesterday. Before that he was taking selfies on the tarmac in Australia. Another deal there. And he went to India, too, rekindling friendlies with the world’s biggest market.

The contrast between Carney and Trump, between Canada and America, grows starker with each day. It seems we can’t find new BFFs fast enough.

Here’s the latest. None of it good.

The US labour market has hit a wall. The latest jobs number is a disaster. Over 55,000 new hires expected, and yet a loss of 92,000 reported. The three-month average for new positions created is a paltry 6,000. Compare that to the Biden-era average of 300,000.

The unemployment rate went up. The number of unemployed Americans grew by 203,000 (to 7.5 million). Job losses were everywhere. One major tech outfit (Block) laid off 40% of its workforce (four thousand people) because AI is taking their jobs.

And, no surprise, consumers are spending less. The January retail sales report sucked, with declines in health, clothing, sporting goods and cars. Recall that almost 70% of the entire US economy is made up of consumer spending, so this hurts.

More coming, too. Gas prices in the States have topped anything seen in either of the Trump presidential terms. Oil is flirting with $90 a barrel now. The Strait of Hormuz had zero tankers moving through yesterday (normally there are 60) and analysts say a hundred bucks is close at hand. That’s global recession territory.

Of course the Iran War continues. There is no good outcome possible, most wise people say. Now Trump insists that country of 92 million must have a new leader he approves of. Seriously. The States is spending over $1 billion a day on this. The first 100 hours cost $3.7 billion. If the mess lasts a couple of weeks, the total cost could be $210 billion, says the Penn Wharton Budget Model. And that doesn’t include all the stuff that was broken.

There’s more. Cuba. Trump today stated the government there is ready to fall and the US may be making a move “within two weeks”. Seriously. Venezuela, Iran. Cuba. Greenland. Alberta?

Meanwhile 27,000 commercial flights have been cancelled in the Middle East and Gulf states region, causing chaos and losses in that vital industry. Inflation concerns, thanks to the rapid escalation in energy prices, are hitting financial markets. The White House bragged endlessly when the Dow passed 50,000 a couple of weeks ago. Now it’s at 47,000, and jittery. Bond prices have dropped as yields increased and investors demand inflation protection.

Of course, Trump had to fire Kristi Noem yesterday. It wasn’t because she created chaos on the streets with a masked paramilitary force of thugs. Or that her employees shot and killed two US citizens without cause. Or that she labelled dead protestors as domestic terrorists, which was a lie. It was over a $220 million TV ad campaign she authorized, featuring herself, which she said Trump approved. He didn’t. She embarrassed him. Out.

Polling shows most Americans oppose starting a war on Iran. Most are against the ICE tactics used for mass deportations. Trump is under water when it comes to handling the economy, the cost of living or general approval levels. But the guy doesn’t really care. He’s building a golden ballroom at the White House and a USA empire out there in the world, through force, coercion and anachronistic tariffs – while his ‘America First’ agenda frays.

What next?

The coming weeks, maybe months, won’t be placid. Oil and energy costs could run higher. Markets could be volatile and prone to a few scary sessions. Trump seems more extreme as his days pass by, and America is losing prestige, allies, admiration and friends as it runs up deficits and runs amok.

You should stay invested in American assets, howwever, since this is (and will remain for now) the largest economy in the world. Don’t rip apart your RRSP or TFSA because Tehran and Beirut are being bombed or Netanyahu seems to be running the US Department of War. Do not conflate moral, political and ethical decay with economic decline. You can benefit from the unbridled achievements of the American people and their powerhouse companies without having to suffer the embarrassment of citizenship.

You can have it all, and still be Canadian. Winning.

About the picture: “This is Gandhi,” writes Fred. “He is a Polish Tatra mountain dog and is turning 5 years old next month.  He has treed five blacks bears and has chased away one grizzly mother with two cubs out here on our property near Creston BC.   The only thought on his mind at the moment are some Canada geese.  Other than that no worries of the world.   He is a good boy. Thank you for educating us every day in some way.  And all for free!”

To be in touch or send a picture of your beast, email to ‘garth@garth.ca’.

Source: https://www.greaterfool.ca/2026/03/06/the-descent-2/