US-China and Canada's importance...

"The global geopolitical implications are very important. Canada's role in the global economy and in the political sphere is about to increase dramatically in importance. 's nice to have a world-class bounty that the two largest economic powers desperately."
Sherry Burns, chief economist at BMO Nesbitt Burns.

This quote is from an article about the improtance of the Alberta Oil Sands for America and China in today's Taipei times.

With the huge increase in the price of oil oilsand projects have huge margins for profit. Canada, as the article states, has the second largest proven oil reserves in the world at 175 billion barrells. This will certainly helps the soft power that Canada weilds become that much stronger. This can certainly be leveraged against the US if need be (soft wood lumber?! US get off our back if you want some oil action) and can also provide Canada with a carrot to weild in negotiations with China on everything from trade to human rights.

China is certainly in a rock and a hard place with its soaring economy but few stable sources of oil. Certainly new projects and cooperation with countries such as Venezuela, Kazhakstan and Iran will go a long way but Chinas thirst for oil will only be quenched from a number of sources.

Another article ran in today's paper about China's navy. There are a lot of articles about the rapid build up of China's navy in the media lately. This one is by a retired vice-admiral in Japan's self-defense forces. Sounds like it's time for a Pacific arms race! Japan's turn to rise and forced by China's hand. China's accusations of Japan's increased potential for a return to a more aggressive stance could turn out to be self-fulfilling.