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On the other hand, we need the oil big time and they've got it, so why waste time talkin' when we should be diggin'.
But seriously, the Canadians cannot say no to us, not in the real world. Canadians have a attitude to the US similar to most small countries situated next to big ones. They resent the big brother little brother relationship, but can't do much about it, and anyway we might as well make some money out of it.
This kind of relationship has existed for a long time. It's almost a classic case of "colonialism". When we talk about "Canadians" it's important to realise there are lots of different types of Canadians with different interests. In classic Marx, just to illustrate the point, we're dealing with the narrow interests of the ruling-class, that is to make millions, as opposed to the objective interests of the working-class to use their natural resources for their own development. The situation the Canadians are in, isn't, in principle, all that different from that of the inhabitants of the Niger delta we've all read about recently on TOD. They are going to get screwed!
It is true that a small economy operating adjacent to a large economy will benefit; Canada has benefited economically from its position relative to our neighbor to the south.
Canada presently has a long standing softwood lumber trade dispute with the US. Canada's position is that the US is in violation of NAFTA and acting preferentially to support US softwood producers and inhibit Canadian access to the US market. One can think of this as a variation on the recent rejection of Dubai Ports World. The US is all for free trade as long as the benefits of that trade favours the US. Of course if someone else stands to benefit the US never heard of trade agreements, international law, or the accepted conventions of OECD nations. The US simply takes the position of "screw you."
Long term one has to consider the fact that when the US wishes to purchase Canadian resources, it may not be able to afford them. If it is accepted that you cannot continue exponential growth based on the availability of a finite resource, then it is also likely to be true that one cannot continue with the exponential export of debt on an indefinite basis. The US is going to have to learn to be very, very nice to its creditors.
I expect a typical uninformed response along the lines of "we will just march north and take what we need."
My response is march north with what? You have elected a president who has destroyed America's credibility abroad, who has insulted many of your former allies and friends (freedom fries, anyone?), that has bogged America in Iraq such that you can neither leave nor stay, and who has rundown the American military in the process. On top of this he unilaterally abrogates the constitution on a legal whim of his own conception and no American citizen gives a god-damn. I suspect you are all too busy hot-tubbing it and discussing how to enforce the christian lifestyle on others and what caliber rifle will be required.
I think you may wish to reflect a little more cogently on exactly who has been screwed, how, and by whom.
As for the environmental destruction, health impacts, and EROEI, none of those concerns has yet had significant inhibitory impact on the course of western capitalism. Don't understand why they should start to matter now.
In the short to medium term debt isn't a problem for the world's greatest military power. It would be imprudent in the extreme to refuse to grant the United States the credit it desires, in much the same way as it would be unwise not to grant the United States access to raw materials and markets. We are, after all, global Capitalism's army. So, be afraid, be very afraid.
Push will come to shove. Something's gotta give here as PG's cited report inevitably concludes.
Can't help thinking of Japan and the late 1930s, early 1940's.....
How right you are. God save us from people who don't understand irony.
Then maybe some scraggly prophet comes in from the wilderness of God-Knows-Where and says something to some assemblage of Imperial Big Shots, and the empire crumbles.
What did the scraggly little prophet say? Well, in this case it might be "Peak Oil says you are so very over," or "Peak Water..." or "Peak Everything...."
And so it goes.