Canada finance minister Chrystia Freeland resigns from cabinet. Mark Carney next?

Deputy Prime Minister and Finance Minister Chrystia Freeland has resigned. She was once thought of as the future of the party but she’s tied herself too closely to Trudeau, who has now evidently cut her loose in an attempt to save his political life.

The Liberals are evidently trying to get Mark Carney to come on board.

The resignation comes after Trudeau promised a $250 cheque to working Canadians only for her to balk, in part due to the NDP wanting to add more to it.

Here resignation letter isn’t the usual “thank you and good-bye’ it highlights her differences with Trudeau, which is likely true but also an effort by her to distance herself.

It has been the honour of my life to serve in government, working for Canada and Canadians. We have accomplished a lot together.

On Friday, you told me you no longer want me to serve as your Finance Minister and offered me another position in the Cabinet.

Upon reflection, I have concluded that the only honest and viable path is for me to resign from the Cabinet.

To be effective, a Minister must always speak on behalf of the Prime Minister and with his full confidence. In making your decision, you made clear that I no longer credibly enjoy that confidence and possess the authority that comes with it.

For the past number of weeks, you and I have found ourselves at odds about the best path forward for Canada.

Our country today faces a grave challenge. The incoming administration in the United States is pursuing a policy of aggressive economic nationalism, including a threat of 25 per cent tariffs.

We need to take these threats extremely seriously. That means keeping our fiscal tools ready today, so we have the reserves we may need for a coming war/fair. That means eschewing costly political gimmicks, which we can ill afford and which make Canadians doubt that we recognize the gravity of the moment.

That means pushing back against ‘America First’ economic nationalism with a determined effort to fight for capital and investment and the jobs they bring. That means working in good faith and humility with the Premiers of the provinces and territories of our vast and diverse country, and building a true Team Canada response.

I know Canadians would recognize and respect such an approach. They know when we are working for them, and they equally know when we are focused on ourselves. Inevitably, our time in government will come to an end. But how we deal with the threat our country currently faces will define us for a generation, and perhaps longer. Canada will win if we are strong, smart and united.

It is this conviction which has driven my strenuous efforts this fall to maintain our spending in ways that will give us the flexibility we will need to meet the serious challenges presented by the United States.

The government in Canada is unpopular and will almost-surely be defeated in the next election, which is due next October, but could be considerably sooner given the way the winds are blowing.

This article was written by Adam Button at www.forexlive.com.