Well, what would have been unthinkable even five years ago has now happened. The Canadian dollar is now roughly equal to the US Dollar. As of this writing, the Loonie is equal to .99730 dollars, but was trading higher than the US dollar yesterday.
Why did this happen. Well, right now, everyone is pointing to the Fed rate cut this week. That might have been the impetus for this particular decline, but it isn't the real answer.
Part of the answer is that Canada has what we all want; oil. Another part of the reason is the fact that collectively, the US market has been buying goods on credit for far too long. We buy more than we sell, and as a result, our creditors (primarily China) are banking huge reserves of US Dollars.
Since about 2003, our Administration has been pushing a weaker dollar as part of the answer. Ideally, it should be strengthening our exports and putting the cold water on imports.
In any case, hopefully we will see more Alberta plates in front of our shopping establishments.
My musings. Usually, I use this space to talk about what is going on in my hometown, Great Falls, Montana. I also talk about the State of Montana, Jewish theology and anything else that percolates to the top of my mind. Enjoy the read.
About Me
- Treasure State Jew
- Great Falls, MT
Full Disclosure
I try to be active in my community. However, if you are going to read my posts, I think it worthwhile that you know something about the organizations with which I affiliate.
I am the current chair of Great Falls Neighborhood Council 7. If you live in that district, please feel free to contact me about any issue you would like brought before the council.
I am on the board of my synagogue, Congregation Aitz Chaim; the Great Falls Hebrew Association. Aitz Chaim is the only organized Jewish community in Northcentral Montana.
I am on the board and a former past-President of the Montana Association of Jewish Communities. MAJCO is an umbrella organization that attempts to help the growth and strength of all seven organized Jewish communities in the State of Montana.
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Information courtesy of Greaterfalls.com. Thanks, David!
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2 comments:
Pushing the dollar down, but also pushing average wages down with a surge of illegals.
Nobody wins but the multinational companies and the money traders.
Anon;
Not even sure that they win. Well, the money traders do, but I am not sure about the multinationals.
Who really wins is those with hard assets. Oil, which is at an all time high. Gold, which hit $732 yesterday. Hells bells; copper is closing in or $4/lb!
Which usually means more money going to corrupt, violent regimes. Well, a lot of violent, corrupt regimes and a lot of polite Canadians, anyway.
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