Peter Zeihan on Canada and Changes in Globalization

 In the conversation with Peter Zeihan, the author of the New York Times bestselling book "The End of the World is Just the Beginning," they discussed several topics related to the collapse of globalization, and how it affects different countries, especially Canada.

Zeihan discussed how the net worth of Americans by age bracket influences the global economy. He stated that the real magic happens when one turns 50 years old as their single biggest expense (their children) leave home and the money saved from that goes towards paying down their home, which is typically the second largest expense. By age 55, on average, the home is paid off, and the decade from 55 to 64 is the richest one in a person's life, as they have released thinking about retirement and have more capital to invest. He pointed out that this decade of wealth accumulation is 70% of the global private capital and drives the global economy. When people retire at 65, they tend to liquidate most of their holdings, usually moving from stocks and bonds into T-bills and cash, which tend to be very liquid and non-volatile investments.

Zeihan also discussed how globalization has changed the world, and how the US created a different sort of investment environment accidentally. He noted that previously, to industrialize, a country needed iron ore, coal, food, and oil, but in a globalized system, one only needs one of these because the others can be traded for. He also discussed how the US has changed its stance on supporting the global system and globalization, which has led to the rise of more isolationist and economically nationalist candidates, such as Joe Biden.

Zeihan pointed out that the US stepping back from the global system will result in a series of powers around the world either out of desperation or opportunity, trying to take matters into their own hands, leading to more conflicts in the future. He mentioned the ongoing Ukraine war as an outcome of deglobalization, and expected to see more conflicts in the future as the economic norms of globalization change. He highlighted the Russian space, the battle between the Saudis and the Iranians, and the battle over the Chinese space as zones that can reach out and touch someone and try to change their situation. He also made a significant comment that the Chinese system is failing and will have to adapt to whatever is next.

Canada has been heavily impacted by the global economic slowdown and the resulting job losses and business closures. The country has seen a rise in unemployment rates, with many workers facing long-term joblessness. The Canadian government has responded with several stimulus packages aimed at supporting workers and businesses, but the road to recovery is expected to be a long one.

In a speech, Canadian Prime Minister Justin Trudeau stated: "The COVID-19 pandemic has had a profound impact on our economy and on Canadians. Too many people have lost their jobs and their businesses. We're doing everything we can to support them through these challenging times and help them get back on their feet."

Additionally, Canada's trade and economic relations with the US, its largest trading partner, have been affected by the pandemic and the ongoing trade disputes. This has led to uncertainty and instability in the Canadian economy, with businesses and consumers feeling the effects.

In conclusion, the global economic slowdown and the COVID-19 pandemic have had a significant impact on Canada, leading to job losses, business closures, and economic uncertainty. The Canadian government has implemented various measures to support workers and businesses, but the path to recovery is expected to be a long and difficult one.