I return to my axiom of “Trump is Trumpier than you think, in ways you haven’t seen, but will turn out to be unsurprising.”
Currently I believe that Trump really does not want to invade Canada nor annex it. Nor Greenland. Nor Panama.
He’s just doing the typical gangster thing of making threats and extracting concessions, with a side helping of insider trading off the movements of the affected securities.
Now, do I believe he could be willing to do tariffs, annex Canada, and maybe invade it? That’s a complicated question. I assume we’ve all seen a dog eating shit, why do they do that? There’s no desire or thought that goes into it. No planning. That’s just a thing they do when circumstances are favorable, the question of intent isn’t really involved.
He’s just like any other animal with a feeding strategy. When he approaches a situation, there’s an unthinking evaluation of a tree of probabilities, costs, and outcomes. Trump is just running a decision tree to see how much he can get out of it. As he works down the tree, he’ll get closer to invading Canada. He’ll have a better view of the pain it costs him and the possible payout he can get. If that seems like the best cost-benefit balance of all the other decision trees he’s running, then he’ll do that. If not, he’ll declare victory and move onto some other decision tree that at a minimum pays off by distracting from the last failure. And there’s always something.
It’s really not about what Trump wants to do, it’s about at what point does squeezing Greenland or Panama or some other weaker entity seem like a better risk/reward calculation than squeezing Canada. It’s all about wherever he can find the easiest payoff, whether that’s politically or financially.
Trump is Trumpier than you think, but the full meaning is only evident in hindsight, because his thoughts and motives are obscure, his behaviors erratic, and his decisions contingent on constantly evolving risk-reward calculations.