Lipstick on a Beaver - Why Titanium Rental Makes Doesn't Make Sense

Day 968, 15:30 Published in USA Canada by Jacobi
Lipstick on a Beaver
Why Renting from Canada Doesn't Make Sense


I may not always love you
But long as there are stars above you
You never need to doubt it
I'll make you so sure about it
God only knows what I'd be without you

- Jacobi to America 🙂


I don't want to call it an article, because its nothing like most of my tl;dr fests, but I wrote an article yesterday stating that Canada will never rent its titanium to anyone because it would lose its monopoly on the EDEN/Brolliance market. This led to a counter article by my friend Ligtreb and then a few other Canadian articles commenting on both of what we wrote.

I don't want my article, such as it is, to be misinterpreted as anti-Brolliance or anti-American or a bunch of things that were insinuated by some commenters; it was me making a demotivational poster and then an in joke about how 2600 gold was misplaced (rea😛 stolen) by the previous President. It was not meant as a serious commentary on a serious issue.

So here to set the record straight, is why Canada will not be renting a titanium region to anyone:

1. The Price

Here's the first fundamental mis-communication. For most Canadians who have a say in it, the minimum rental fee for a Canadian titanium region would be around 2000 gold a month. That's about what Poland was offering us for Manitoba (which is fundamentally less important to the economy) and it should be noted that the Canadian Congress rejected that 2000 gold offer anyway.

That price most likely doesn't make sense to any American planner because the region isn't worth that much to the US in terms of tax revenue. This is the first and primary stumbling block which leads into a general rule: The rental fee can either be worth more than the region is, in which case America should not rent, or less than the region is worth, in which case Canada should not rent. There is no way that both Canada and the United States both win.

2. NWT is not Karnataka

In Karnataka, a grateful Indian government made a generous lease offer because of Brolliance efforts to liberate that country from its oppressors. It was a decision made by a country that, until that point, had barely been operating as a force in the world and needed a generous gold infusion to develop. Also, India had no means of effectively using Karnataka at that point anyway.

NWT is currently being exploited effectively by a Canadian economy where 46% of migrated workers are harvesting and owned by a reliable and stable country that does not need gold to survive or develop. It'd be nice to have, but there's no desperation involved.

3. The Polish Scenario

Let's say, for the sake of argument, that America decides to pony up the cash to appease the Canadian elite, so about 2000 gold. It is highly likely that such an extravagant amount of gold per month is unsustainable for the wealth that would be generated and we would run into the situation that Poland recently did with the rental of American regions: A generous offer is renegotiated down to a more manageable level, something that would provoke the ire of Canadians who would believe it to be a bait and switch. A strain on North American relations would most certainly develop in any resolution, either if Canada said yes and felt resentful for being put into that position or if Canada terminated the deal we would see the same sort of trolling of India that was seen when the Karnataka departure was announced...only worse because our countries are so close and supposed to help each other. A purely business deal would be tainted by the cross-border friendship with the significant possibility of harming it.

4. Canada's Monopoly

Many have said that Canada does not need two regions. In a vacuum, if one region simply ceased to exist, they would be right. Canada would produce the same level of titanium from just one region. However, the people who use this argument to support renting are forgetting that the traded region wouldn't simply disappear economically, but would be placed in the service of directly competing against the remaining Canadian business'. Canadians would lose access to the US titanium market and start competing against stronger American companies internationally. An uneven competition it would be, as Canada's high dollar and higher wages would place it at a significant exporting disadvantage. Markets would be lost and titanium supply might even be doubled, leading to depressed prices, decreased wages and lost jobs in Canada.

Is that something America really wants for its bro?

5. Export Licenses

What I really think should be done, that is much less economically harmful to Canada and just as beneficial to the United States, is a export licensing program that extends brolliance wide. Canada concentrates on its core industry, titanium, and then imports the core industry of the US, weapons, back to Canada. A Common Market with the free exchange of gold and limited top-down government interference in the generation of wealth. The costs of subsidizing export licenses for land ought to be especially minimal considering most land companies got gold back from having their companies forcibly downgraded. There are very few negatives to a program like this, and a lot of positives, the best being that it does not put any strain on the North American friendship, and with economic integration and interdependency strengthens it.

Conclusion:

NWT is not Karnataka and Canada is not India

Canada will want much more gold than the US can or should offer, likely 2000 gold per month.

Even if the US gives Canada 2000 gold for titanium, the amount is likely unsustainable and will lead to awkward renegotiations that will strain our friendship.

Renting a region will hurt Canada unduly, and giving gold to Canada that doesn't cover the economic costs is not bro behavior

So renting from Canada is not feasible, practical, or desirable for any party, and could strain our relations.



I love America, and I love the Brolliance I helped create. And I also want what's best for the United States because what's best for it is likely what's best for everyone on this continent...and I want the best for my bros. But though this idea is attractive on face value, it isn't the best.

John "Jacobi" Carpenter