Our 'War Plan Red'
Nova Scotia had to be the first province to fall.
The Canadian island was home to the Port of Halifax... a significant British naval base. But if 25,000 American soldiers stormed the port by sea, they could seize the base – preventing the Brits from sending reinforcements.
With Halifax secure, the U.S. Army could advance into other parts of Canada. It would destroy Canadian power plants near Niagara Falls... capture Montreal and the rest of Quebec... seize Winnipeg and Vancouver... shut down the Canadian Pacific Railway... and take over Ontario's nickel mines.
Other U.S. forces would guard the American cities of Buffalo and Detroit against any attempted offensive. And the Navy would control the Great Lakes.
Canada and its British allies would be powerless. American forces would overwhelm Canada's 98,000 soldiers. Electricity shortages would shut down its production of Canadian weapons. And the Brits would be an ocean away with no way to help.
Canada would belong to America.
Not that anyone in the U.S. really wanted to follow this plan...
When the U.S. Department of War approved "War Plan Red" in 1930, the idea wasn't an unprovoked invasion of a neighboring country. Rather, it would be a preemptive strike against a British Empire that, in this hypothetical war plan, had become an enemy of the United States.
In this scenario, planners feared that British forces could land in Halifax, mass in Quebec, and then cross the border to attack America's northern industrial cities.
War Plan Red was an offensive move to head off this invasion.
Now, let's take a step back...
No one in the War Department expected Britain or Canada to attack the United States. But it wasn't impossible.
Canada, as a British colony, had clashed with its southern neighbor several times before, including in the American Revolution, the War of 1812, and even the Pig War in 1859... where the U.S. and Canada came to blows over an American farmer killing a Canadian pig that was stealing food from his garden.
And while tensions between Canada and the U.S. had largely subsided in the years following World War I, the war's legacy showed the value of preparing for global conflict.
War Plan Red went beyond just paper... In 1935, the War Department approved funding for three airfields along the Canadian border – disguised as civilian facilities.
Then Canada found out. The Government Printing Office accidentally released notes from a confidential briefing in 1935, which quickly wound up in the New York Times... resulting in some emergency diplomacy from then-President Franklin D. Roosevelt to calm the Canadian nerves.
The full War Plan Red remained classified until 1974. These days, you can browse the whole thing online.
War Plan Red is a parable of preparedness...
Again, no one believed Britain was going to attack the U.S. through Canada. But the military must plan for all contingencies. If an unlikely scenario occurs, having a few thoughts down on paper could provide a huge advantage by speeding up reaction time.
That lesson applies to investors as well. We constantly think about potential outcomes... like what would happen to our portfolio if the market crashes, if energy prices spike, or if the global economy shuts down for six months.
It's absurd to consider that for decades, an invasion plan for Canada sat deep in some Pentagon drawer. But because that outcome was so far-fetched, it models the lengths of good preparation.
International relations do change. At one point, you couldn't imagine England and France ever being allies. As the saying goes, "Never say never."
However, a war with Canada did seem like a "never" scenario... until 2025.
Yes, we're still far from a physical war with Canada. But if you've learned anything from this year's global political rhetoric, it's to not be surprised by events you never thought possible.
We're not going to bother trying to predict the next big political move. Instead, we're going to prepare for whatever may lie ahead... whether that may be more tariffs, a bear market, or even a recession.
It's time to devise your own War Plan Red.
This morning, I released a video where I detail the three central dilemmas of American retirement that every single person seeing this will inevitably face... and a straightforward solution to each one, based on everything I've learned in half a century as a professional investor... medical doctor... business owner... and an author and expert on wealth in retirement.
So if you want the retirement you always dreamed of – and to grow your wealth during the "Great Devaluation" I believe we're headed for – click here to take action today.
What We're Reading...
- Jerome Powell continues to keep rates steady.
- Something different: The science behind the birth of lightning.
Here's to our health, wealth, and a great retirement,
Dr. David Eifrig and the Health & Wealth Bulletin Research Team
July 31, 2025