US-Canada Merger thoughts? Seems dilutive...

As per the news there seems to be a lot of interest in getting this deal done. Was wondering this forum's thoughts.

US real GDP per capita: ~82k

Canada real GDP per capita: ~53k

Seems dilutive to me, but perhaps there's some real synergies that can be realized? (free movement of goods, talent, cost synergies for defense, border) Would certainly benefit Canadians recruiting in the US.

Still seems motivated by ego reasons from incoming US Chief Executive if you ask me.

13 Comments
 

Let’s play it out. 
 

What does Canada get: an NFL franchise (finally!), ability look down on Europe. Hopefully more Latinas. More high finance seats, lower taxes

What does the US get: the Leafs, Tier II / III finance hardos, more liberals and freeloaders, Quebec and a bunch of people who want to have sexual relations with Justin Trudeau

This would be some AOL / TimeWarner level shit. The worst deal in the history of deals. 

 

Why would we want any of that dilutive low growth beta garbage? Let them run themselves into the ground like they're doing and we can pick it up for pennies. They're the nation equivalent of a used cigar butt. What we SHOULD be buying is Greenland.

"If you don't have any enemies in life you have never stood up for anything" - Winston Churchill | "It's a testament to the sheer belligerence of the profession that people would rather argue about the 'risk-adjusted returns' of using inferior tooth cleaning methods." - kellycriterion
 

True. I'm freedom delivery to Canada to liberate those neglected resources. Not like they're using them. We won Mexico in the war way back when too but decided not to keep... Should reclaim and decimate the cartels while we're at it. Secure the Panama canal and buy Greenland, control all the Western shipping routes. North to south, sea to shining sea baby!

"If you don't have any enemies in life you have never stood up for anything" - Winston Churchill | "It's a testament to the sheer belligerence of the profession that people would rather argue about the 'risk-adjusted returns' of using inferior tooth cleaning methods." - kellycriterion
 

As a Canadian living and working in US, this would be a total disaster for US. You're going to have at least 3~4 million surplus of votes going to Democrats, you're going to have to deal with the grossly overstaffed bureaucracy coupled with labor unions and labor laws that makes absolutely 0 sense. Quebec in and of itself cancerous, Toronto/Vancouver is not any better. Typical Canadians believe they live in a better country than US (in terms of safety might have been true 30-40 years ago). They have government funded areas in downtown Toronto where people can 'safely' (not get caught and be jailed) consume/inject/snort whatever drugs into themselves. Only real productive area of Canada is mining and energy but even the energy sector in Canada is nowhere near that of US. You have uranium mines that may be useful somewhere down the road but that's it. Personally, I want to get a green card in US and become a citizen here and this would help immensely but for the sake of US, the only country the sane people still outnumber lefty loons, definitely not recommended...

 

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Think of every land deal the US has done. Almost all of them have made wild amounts of money:

1. Revolutionary War: Unseat the British crown for the approximate cost of 50,000 lives and some treasure. Approximately 2% of the country killed. Ultimately led to most powerful nation on the planet. Seems like a good deal in terms of power.

2. Annex Vermont for free. GDP of $35B today. IRR infinite.

3. The Louisiana Purchase had a cost of $15M in 1803, which is basically $400M today. Crazy good return (some people place at 7% return after inflation).

4. Acquisition of Florida from Spain for $5M in 1819. Equivalent to $125M today. GDP of $1.7T today.

5. Annexation of Texas for free, followed by Mexican-American War, followed by purchase/cession of California, Texas, New Mexico, Utah, Nevada, and Arizona, and parts of Colorado, Oklahoma, Kansas, and Wyoming for $15M in 1848. Texas GDP is $2.7T on its own, to say nothing of California, the world's 5th-largest economy.

6. Gadsden Purchase for southern Arizona and New Mexico for $10M. Not nearly as good as the Mexican Cession, but still successful for Tucson. 

Alaska Purchase, Danish Virgin Islands, Guantanamo, Panama Canal Zone (gave it back), and Water Island were all good land deals. The only deal that was less than stellar, but still pretty good was the Philippines, because we let it go after WWII when we probably should have held onto it. They're still a great ally and friend, but it could have been like an even powerful Hawaii if we had held on, and there was no real threat of rebellion. Should have just made it a state and taxed it. 

The US also would have had Cuba were it not for the pesky sugar lobby which lobbied against it for their own narrow interests. Idiots.

Basically every land deal the US does is stupidly successful. Every time we have fought a war of conquest for land, it has almost always worked to America's favor. A merger with Canada would be equally as good as all of the other integrations for free that we already did. They are a democracy. The electoral politics would work themselves out. It would be a very good thing. And assuming Canada's debt would be net de-levering for America's national debt, which is another bonus.

 

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