Canada faces its most perilous security environment since the Second World War. As we did back then, we must now give the Canadian People the opportunity to invest directly in our national survival.
These are dangerous times for Canada.
The United States is moving into closer alignment with authoritarian states like Russia, and the NATO alliance is at risk.
Canada could find itself dangerously isolated, stuck next to an increasingly unrecognizable USA and with Russia and China seeking to infringe on our sovereignty in the Arctic.
If NATO collapses (something we should hope never happens), European countries can rapidly form a geographically coherent defence pact, while Canada would find itself far away from allied nations.
All of this means Canadians must rapidly reconceptualize our level of safety and security.
As the U.S. shifts into – at best – a ruthlessly transactional nation – and at worst – a ruthlessly authoritarian nation, Canada must act quickly to ensure we can survive as a free and independent country.
And this means we need a response on the level of our Second World War economic and societal adjustment.
Before the Second World War, Canada’s military was underfunded, and our military-industrial capacity was minimal.
Yet, in a short amount of time, we built a massive war industry and mobilized hundreds of thousands of Canadians, punching far above our weight and helping contribute to the Allied victory.
During the Second World War, Canada produced over 5,000 tanks, over 1 million guns, over 40,000 field guns, naval guns, anti-aircraft guns, 16,000 aircraft, 850,000 trucks, and 466 ships.
We financed such a dramatic military buildup through Canada Victory Loans (war bonds). The government asked Canadians to lend their money to the government for the war, with the promise of long-term returns. And after a slow start, Canadians responded:
“In WWII, following the slow-moving second war loan of 1940, the Victory Loan returned with the panoply of colourful posters, patriotic pleas and vast sales apparatus which had become familiar in WWI. There were 9 Victory Loans dating from 15 June 1941 to 1 November 1945, having total cash sales of almost $12 billion, about 52% from corporations and the rest from individuals.”
Take a moment to consider the scale of this.
Adjusting for inflation and population growth, were Canada to raise an equivalent amount of money today, that would equate to nearly $800 billion – over four years (so $200 billion per year).
It’s a staggering sum and goes to show the extent to which Canadians mobilized en masse to ensure our nation and our allies achieved victory in WW2.
Now, we need that same spirit to face escalating threats.
Now is the time for Canadian Sovereignty Bonds.
CANADIAN SOVEREIGNTY BONDS
Canadians are feeling a surge of patriotism amid threats from the United States. As the United States moves in an authoritarian direction antithetical to Canadian Values, more and more Canadians will be looking for a direct way to contribute to our survival as an independent nation.
A Canadian Sovereignty Bond campaign – modelled on the Victory Loan campaign of the Second World War – would be a way for Canadians to invest in our national defence and help ensure that the debt burden incurred by rapidly building up our military is sustainable – since the money borrowed would be paid back to the Canadian People.
Here’s how it would work.
Canadian Sovereignty Bonds
The Government would start by officially announcing the launch of the Canadian Sovereignty Bonds (CSBs).
The goal would be to mobilize the national savings of Canadians – and in limited cases the foreign capital of those who support Canada abroad – to fund a massive and rapid Canadian military expansion.
The goal would be to raise $200 billion within a year.
Parliament would need to pass an Emergency Defence Financing Act, to authorize the government to issue $200 billion worth of Canadian Sovereignty Bonds. The legislation would include a provision to allow the Bank of Canada to purchase the bonds under emergency circumstances.
The legislation would include ‘ring-fencing,’ to ensure that money raised from the sale of Canadian Sovereignty Bonds would only be used for the Canadian military & national defence procurement.
Returns on the bonds would be tax-free to incentivize purchases.
Further, there would be a quarterly mandated reporting process in Parliament to ensure transparency and accountability in the use of the funds raised.
How would the Canadian Sovereignty Bonds be structured?
The bonds would be available in denominations of $100, $1,000, $10,000, and $100,000+, giving Canadians of various income levels the chance to participate. That would be essential since a key part of the program is to show Canadians we are all working together to help secure our country.
The maturity period of the bonds would range from 5-30 years.
Interest rates would be set at a competitive level of around 3.5%-5.5%, enough to incentivize bond purchases but not so high as to cripple the government long-term.
All interest earned would be exempt from both federal and provincial taxes.
And the bonds would be guaranteed by the Government of Canada, erasing the risk of default.
Who would buy them?
The main goal would be to ensure Canadian Citizens buy up as many of the bonds as possible. However, outreach to institutional investors like Canadian pension funds, banks, and mutual funds would be also essential.
And some bonds would be made available to foreign investors – particularly in countries like the U.K., France, Germany, Japan, and other nations that have a vested interest in standing with fellow democracies. Further, those countries have well-developed defence industries and an investment in Canadian Sovereignty Bonds could benefit their economies if Canada purchases military equipment from them.
Canadian businesses would also be key purchasers, and businesses that invest in Canadian Sovereignty Bonds would receive public recognition from the government for their patriotic contribution.
Advertising Campaign
As Canada learned in the Victory Loans campaign, advertising is key to the success of war bonds.
It is important to make the case to the public so people know that their money is going somewhere important, and is being utilized to help secure the nation.
Right now, Canadians are in a very patriotic mood, and that mood is likely to endure given the ongoing nature of the threats we face. Russia and China aren’t going to become less interested in the Arctic anytime soon. The United States isn’t going to shift away from isolationism anytime soon.
And so, Canada needs to act big and act now.
That sense of urgency and patriotic duty should be the backbone of a Canadian Sovereignty Bond ad campaign.
Messages like “Defend Canada, Invest in Canada,” “Sovereignty is Priceless – But Your Investment Helps,” and “Protecting Our Future – One Bond at a Time” can be utilized as the overarching themes, drawing parallels to the strength and resilience of Canadians during WW2, and leaning on more modern images of Canadian military personnel, military equipment, and Canadian technological advances.
Given the fragmented media environment, the ad campaign would need an ‘all of the above’ approach to reach a critical mass of Canadians.
Ad campaigns on TV and streaming services would feature Veterans, active-duty military personnel, and Canadian military families speaking about the need to build up our armed forces through Canadian Sovereignty Bonds.
Social media ads would utilize online influencers promoting $100 bonds to young Canadians.
Print ads and digital ads in papers like the Financial Post and Globe & Mail would be utilized to reach a wealthier audience.
Significant investment in Google ads and Facebook ads would reach micro-targeted groups with specific messages to promote the bonds.
Canadian corporations and banks would be incentivized to not only purchase the bonds but promote the bonds to their workers.
Public service announcements featuring famous Canadians – including retired Canadian Astronauts and Generals would be launched on all platforms.
Posters would be put up throughout the nation, and ads would be bought at all Canadian NHL games, MLB games, and CFL games. The bonds would also be promoted at every Canadian sporting event right before the Canadian national anthem is played.
And political party leaders would all promote the bonds to their supporters.
All of Canada would be awash in ads for Canadian Sovereignty Bonds, and there would be constant market testing to fine-tune the message to ensure maximum uptake.
Timeline
We can look at this being done in three phases:
The first phase (months 1-2) would be to pass the legislation authorizing the sale of the bonds, and putting the framework for ‘ring-fencing’ and tax exemptions in place.
The Department of Finance and the Bank of Canada would coordinate closely to get the program up and running.
In the second phase (months 3-6), the first tranche of $50 billion worth of bonds would be launched.
The focus would be on building momentum, encouraging institutional investors to make some of the first large-scale purchases and launching the ad campaign. The campaign would feature tangible evidence of the Canadian Sovereignty Bonds being put to good use, with images/videos of new bases being constructed, new guns being purchased, new helmets and body armour for Canadian troops, new domestic drone production, and more.
In the third phase (months 7-12), the remaining $150 billion worth of bonds would be issued, with the focus on wide-scale public buy-in based on the momentum built in the previous phase.
Regular public updates would continue, and the ad campaign would be continually adjusted to show Canadians what the bonds are being used to fund and how Canada is being made more secure.
And once $200 billion worth of bonds are purchased, the government could issue another $200 billion for the following year.
This would provide Canada with an immense amount of money for rapidly rebuilding our military and would send a clear message to friends and foes alike that we are a serious nation willing to do what is necessary to ensure our ongoing status as a free and independent country.
And this is all entirely feasible. As noted earlier, $200 billion per year is proportional to what we raised on average every year during the Victory Loan campaign. Canada has a total net worth of roughly $19 trillion, meaning there is a lot of money available in this country, despite our current economic challenges.
Defend Canada or Lose Canada
As Canadian singer-songwriter Joni Mitchell said, “Don’t it always seem to go that you don’t know what you’ve got ’til it’s gone”.
Canadians are realizing that we may lose our country if we don’t step up now, and this is rekindling a sense of patriotism that can lead to national renewal. Canadians want to help save our nation, and Canadian Sovereignty Bonds are an effective way of channelling that patriotic energy.
If you find value in this proposal, I encourage you to share the idea of Canadian Sovereignty Bonds with others and reach out to your Member of Parliament to encourage them to consider it.
Spencer Fernando
If this piece left you clearer than it found you, that's the point. I write for readers who want to think past the week, to see the longer pattern beneath the daily story, and to come away steadier rather than more agitated.
That longer view gets built somewhere. On Patreon, essay by essay, I'm constructing The Long Work, a body of analysis meant to outlast the news cycle that prompted it. The readers there make it possible. No subsidies, no strings. The work answers to them.
$8/month to read it as it's built, and to have a hand in building it.