Saturday, February 18, 2017

The Art of The Canadian F-35 Deal


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US President Donald Trump is in a position to make a deal with Prime minister Trudeau of Canada, AKA the Canadian government's winner of its national election who had no idea Trump would be the US President. Trudeau believed his deal making would be validated with a Democrat winning the White House back when Obama was still president. The prime minister made a campaign promise. It would suspend the acquisition of its F-35 procurement if elected. Go fish Lockheed but not in Canadian waters was his campaign promise. Trudeau being a sensible leader talked to his military chief and concluded the F/A 18C, "C" for Canada was the popular choice for defending the North Slope.

Boeing promptly popped another beer can gleefully and rendered to Canada a replacement deal for its F/A-18 CF ageing version even written on Canadian paper products. Thus upsetting the balance of power in North America. The power is not military might but a discussion who will defend whom and who will pay for it. Canada positioned itself as a country, if in a fix, will depend on the US taxpayers for bailing out the defense of the Canadian Shield, by coming from Alaska in a time of war. The Canadian brew has left the US with mud in its face on falling down on deal for about 65 of the F-35 type because it was "too expensive".

By the way, Canada still makes an F-35 engineering contribution and is getting US Taxpayer money for that R&D enterprise with the hope of Lockheed building those F-35's paid by the rich Canadian brew dollars going north. However, Canada while going on the cheap, is preferring to refresh its air wings with new F/A-18CF's and then will look to the US for its ultimate defense in time of war or invasion from the great white north.

But the deal maker Trump won the office of president and any self-respecting deal-maker would put pressure on Canada by saying the F-35 is no longer for sale to the Canadian military at any price since it canceled its deal with the US.

The F-18CF suits Canada just fine whether it’s the old aging version or a handful of new built Boeing versions. By the way, if Canada is invaded Trump will defend Alaska with its last F-35. Someone mentioned NATO or some such drivel about a treaty. Then Trump mentioned sending aging A-10's North in time of treaty trouble, as some kind of lend/lease deal coming from the same school of WWII lend/lease deal makers as an upgraded 3.0 deal package.

Trump came forward and tweeted, "keep your hockey sticks, they crack skulls, but we won't sell you Alaskan Dog sleds for your national defense". The follow-on tweet came. “I thought we were neighbors and you were allied with us on defending North America what happened?"

"If Canada has a problem with the F-35 talk to Boeing they will defend your airspace with a slightly used AF1",tweeted Trump. 

North American Defense Memorandum: When the invading hoards get within eye sight of Niagara Falls then we'll do a fifty-four-forty or fight routine and give Oregon back to Canada because we can! 

Tweet three,"The Portlandians will never know the difference anyways as the smoke rises from coffee houses within the greater Mt. Hood eye sore". 

"That's so Trump", said a bystander for treaty rights for which anyone with sense doesn't know America has treaty rights North of South Dakota pipeline. "It’s in the Bill of Right of the US constitution. Doesn't Trudeau know who's he messing with when you cancel a deal?" Tweet four,"One good action deserves an opposite and equal reaction." 

Trump again tweets, "we’ll build a Canadian Wall and take that Trudeau".

An eastern Montana farmer opposes the wall idea as he has 600 acres of good bottom land in Canada. Trump tweets again, "have a head ache- am going in the opposite direction Mar a Lago for some more Lockheed gratuitous shrimp.

"Is the Invasion of Canada still on?” shouts a crowd gathering at the Boeing/Everett assembly airplane center.

Before things get out of hand, President Trump and Prime Minister Trudeau of Canada find common ground in the saving face category. Trump strikes the deal that he will lease 65 F-35's for fifty years at 2 million Canadian dollars a year for each of the lot. The US will buy those 65 F-35 from Lockheed and promises Boeing, it will buy equal amounts of up to 100 each of the F-35C's and FA-18's -v -4.5 for the US Navy. 

Giving the Navy its replacement wings it desperately needs.

PM Trudeau makes a speech to the Canadian Parliament, “President Trump has made a deal with Canada for our F-35's for which no one could have foretold would happen when I was elected. In the best interest of Canadian defense, we will lease 65 F-35 for 2 million Canadian dollars a year based on the 2017 Canadian dollar value found on January 1, 2017. In total that will amount to the number of aircraft each year under lease when delivered and will grow to the full number in the next ten years when Canada receives its last F-35. It won't cost Canada a dime because the American Taxpayer will pay for it. I don't know how, but they’ll pay.

That sent the "press" to their calculators and came up with this. Canada will lease-on to 65 of the F-35's for about 1.5 million US dollars a year. The full potential revenue to the US after ten years will amount to an annual lease price of 94.5 Million in Canadian dollars at which time 65 F-35 (CF's 😀)will have been delivered during the first ten leasing periods. The lease completes December 2077 or there about (😅).

Trudeau quips, "Under the US/Canadian Treaty, we must have one of those somewhere, the US will supplement the Canadian defense budget by $2 Million US dollars a month per aircraft delivered until lease agreement ends in 2077 (maybe?). Canada does not pay one Canadian Dime in this deal even though Donald Trump is the world's best deal maker.

In a Canadian Parliament back room, a Boeing VP, pops open another brew in gleeful anticipation of the 100 F-18's the Navy and the Canadian F-18CF's 25 just ordered in the last 48 hours. The art of the deal isn't dead as everybody wins with a "Canada First" policy and then the "Boeing First" Policy shake of hands for 25 F-18 from its gratuitous F-18C's deal made just before the "speech". Ain't "America First" just a great Trump policy?