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What if Alberta becomes the 51st State - Part One

US teases Alberta with the mention of a pre-established system for welcoming new states. Fair enough. But that system comes with a price tag—and right now, the United States is carrying over $40 trillion in unfunded liabilities and a national debt exceeding $35 trillion, growing by trillions annually.

Joining the Union isn't just about getting Senate seats and constitutional rights. It means Alberta immediately assumes a proportionate share of that debt load, along with exposure to the insolvency risks of Social Security, Medicare, and federal pension obligations that are actuarially underwater. Alberta has no debt comparable to that burden. We'd be swapping a relatively manageable fiscal position for a drowning one.

The US says Albertans would benefit enormously. How? By trading equalization payments for a federal government that borrows 20 cents of every dollar it spends? By swapping the Bank of Canada's stability for a Federal Reserve that's cornered into monetizing deficits? The US pre-established system for new states also means pre-existing liabilities—and Alberta didn't rack up that bill.

An insolvent partner can offer the world on paper, but when the credit rating gets downgraded, the dollar weakens, and entitlement cuts or tax hikes land, the newest state will be first in line for austerity, not bailouts. That's not a better deal. That's a bigger cage with more polite paperwork.

What if Alberta becomes the 51st State - Part Two

Alright, putting hard numbers to the comparison makes the picture starkly clear. An independent Alberta joining the U.S. wouldn't just be taking on an abstract "share"—it would mean each Albertan's personal government debt load more than triples overnight.

· When you add provincial debt ($16,684 per Albertan) to the federal debt ($56,432 per Canadian), Albertans currently shoulder $73,116 per person. With federal transfers, Albertans contribute about 2.1 times more than they see returned—a raw deal, but one that is contested within a shared system.

· Joining the U.S., every Albertan would immediately be on the hook for a share of its $38.98 trillion gross national debt**—amounting directly to **$114,000 US dollars per person.

The moment the American flag goes up, the debt burden on an Albertan family of four jumps from roughly $292,464 to **$456,000 US dollars**—without a commensurate rise in income. You'd be trading a busted pickup for a sinking aircraft carrier, all while the U.S. credit rating gets downgraded and the Federal Reserve is cornered into monetizing deficits. As the newest state in a 51-state federation, Alberta wouldn't be calling the shots on any federal stabilization. We'd be stuck hoarding our own capital in a debt-fueled ship.

This paints a crystal-clear picture of the raw financial stakes involved. Would you like to explore how this kind of debt load might impact a fledgling nation's credit rating and borrowing costs?

May 31
at
10:00 AM
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