Rich Diaz

Canada is a welfare state.

I think we should be very proud of the fact that we have a real strong safety net.

In order to pay for that safety net, we need to exploit natural resources.

And so if you're not interested in that, then you're in my view, you're basically by default saying you don't care about poor people.

Pulp and paper, minerals.

And we export loads of stuff.

We export autos.

We export airplane parts, goods, food, all kinds of stuff.

But what matters ultimately to our balance sheet and our current account balance is the net number.

And the net number is dominated by natural resources, oil, mining, software, lumber, excuse me, softwood, lumber, etc.

And that brings in US dollars, of course.

So right now our current account balance, which is exports minus imports, then you have income from capital and portfolio and direct investment.

And right now we're right in balance.

And if we don't continue to, and we basically, we pay, we sell oil to pay for consumer goods.

And if that number, because we have terrible productivity, high debts and foreigners own a, I think 42, 43% of our bonds,

If we screw with that current account balance, you'll have to have an internal devaluation, meaning all of us will have to consume much less of everything, services and goods.

And that means, by the way, less health services, less social services, less goods like roads or cars.

Or we'll have to have an external devaluation, which means our currency will fall significantly

which will ultimately increase inflation, which ultimately will lead to less consumption of goods and services.

And less realtors as well, Steve.