Santiago Capital
Milkshakes Markets Madness Podcast by Brent Johnson
Realpolitik
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Realpolitik

Is Trump reviving the Monroe Doctrine with a twist of economic blackmail? Canada, swap lines, and the Dollar Milkshake all collide. What’s realpolitik look like today?

“A hegemon never knocks. It kicks the door down, smiles, and asks for tea.”

If the world seems like it’s teetering on the edge of geopolitical chaos… it’s because it is.

Call it entropy. Call it Trump. Call it the $36 trillion elephant tap-dancing on the kitchen table.

But whatever name you give it, the tectonic plates of global power are shifting, and the aftershocks are being felt everywhere…from swap lines in Europe to pipelines in Alberta.

Welcome to the realpolitik of global hegemony.

Spoiler: it’s not for the faint of heart.

If you’ve been investing like it’s still 2010…back when we pretended central banks were apolitical and everyone held hands under the glow of global cooperation…this article is your wake-up slap.

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"Canada’s Our Attic"

Let’s begin with a joke that’s not a joke: Canada, that nice upstairs neighbor with universal healthcare and maple syrup, may be warming up to life as the 51st state.

No, Trump isn’t sending tanks into Banff. But annexation by economics?

That’s already underway.

Trump floated the idea of Canada joining the U.S. not as a punchline, but as a pragmatic policy option…and realpolitik makes it plausible.

Here’s the setup: The U.S. is grappling with a $36 trillion debt, 3.2% inflation, and a citizenry done pretending things are fine.

Meanwhile, Canada’s GDP is a modest $2.2 trillion, its military spending hovers around $30 billion, and it ships 75% of its exports right to Uncle Sam’s doorstep.

That’s $450 billion in goods. Mostly oil, minerals, and timber.

So when Trump tosses around 25% tariffs on Canadian exports, it’s not just a negotiating tactic…it’s a sledgehammer to the Canadian economy.

Energy makes up 20% of Canada's GDP. Block that, and things get frosty fast.

Mark Carney vs. Reality

Canada’s ruling elite, caught flat-footed, chose escalation over strategy.

Former Bank of England head Mark Carney is reportedly prepping a run for PM, buoyed by anti-Trump sentiment.

Liberal polling surged from 25% to 38% after Trump's inauguration in January.

The party line? “We’ll pivot to Europe and China!”

But here’s the math: Canada lacks the infrastructure to reroute that much oil, gas, and lumber.

Pipelines don’t build themselves overnight, and China doesn’t pay in friendship bracelets.

Even if they could pivot, would Washington allow it?

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