Canadian Finance Blog

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An American’s POV on Our Nations’ Joint Financial Future Posted: 06 Jun 2011 02:00 AM PDT I’m definitely not a CNBC analyst or anything near it and I’m not trying to be one. But if there’s one thing I feel certain about, it’s that the United States and Canada are destined for a friendship on a level that makes our relations now look like an awkward first date. If there’s anywhere you can trust to make an investment, it’s still south of your border. As a young American fascinated with world financial news and socio-economic events that shape decades worth of forthcoming stock market activity, I can’t help but take this opportunity to share with you my thoughts, albeit amateur ones, on how important the Canadian-American alliance will be in the 21st century. Let’s talk about oil. Your country has a lot of it. The United States already relies on Canada for 21% of its foreign oil and that number is certainly going to increase. Now let me say I’m an avowed environmentalist and I find the oil industry to already be archaic and its power the product of malicious megalomania and government cowardice spanning decades. With that said, it can’t be denied that the oil alliance alone is enough to give you confidence in investing in the American dollar and vice versa. While the US shifts towards a more clean energy future, it will be our most geographically foreign oil ties we break first. In that meantime, the percentage of our oil imports from Canada are sure to rise, resulting in growth in industries that both run on oil and make it their mission to make it obsolete. There’s no way for my Wall Street game ignorance to provide you with particular tips on the stock market about where in the U.S. is a good place to put your money. But I will say that so long as the United State’s energy needs in the clean and renewable energies transition are secure, so will its economy and Canada’s as well. However if this event were occurring sometime in the near future I’d be a little cautious to make such an assumption based on the recent Canadian election results and the likely resulting easement of tax burdens and regulations on the Canadian oil industry. If Canadian big oil is able to keep the windfall of supplying American oil to herself and not distribute the benefits to the Commonwealth and her citizenry the benefits north of the border could be threatened. Maybe I will make a stock market suggestion. Why not invest in American alternative energies? That’s probably the most counter-intuitive piece of advice I could give after talking about oil being the uniting factor between our two nations but hear me out. The oil industry doesn’t need any help staying afloat these days and helping our joint economies strengthen while they suck us dry in the meantime. We do need help in ensuring that we’re prepared for the day when even Canada’s mega-supply of oil runs out. Either way our future friendship will be driven by energy. Here’s to it being an unlimited supply. Author Bio: Lauren Williams is a freelance writer from Seattle, Washington, which is about a two and a half hour drive from lovely Vancouver, British Columbia. Related Posts: Future Financial Literacy Is In The Hands Of Parents Are Canadian American Express Cards Better? Take Advantage of American Black Friday Sales An American's POV on Our Nations' Joint Financial Future originally appeared on Canadian Finance Blog on June 6, 2011.

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