iceberg17

Dow 10k: The Higher They Rise, The Harder They Fall

I agree with you...but you got to draw the line somewhere!


On Oct 15 05:40 PM Albertarocks wrote:

> On Oct 15 04:50 PM iceberg17 wrote:

Dow 10k: The Higher They Rise, The Harder They Fall

"The Canadian dollar, once the laughingstock of the world, is almost at parity (again) with the American dollar."

While this may seem like a trivial point, it is very tiring to constantly read this type of commentary about the Canadian currency and for that matter about Canada in general. Unfortunately most if not all of it comes from the United States.

In the not so distant past when Canada, in addition to primary materials, exported considerable quantities of manufactured goods to the US, it was very much in Canada's interest to have its currency held considerably below the US dollar. Now that the word "commodities" is on everyone's lips, the secret is out that Canada's immense quantities of natural resources along with the lowest population of the planet in terms of territory make Canada a very interesting market to say the least. What is more, Canada does not indulge in the financial engineering that occurs south of the border. For a pertinent example take a look at the large Canadian banks that are not in the headlines: Royal Bank of Canada, CIBC, TB, etc... There is no need to go on at length regarding the fact that the US dollar has greatly benefited over the past 50 years from the fact it acted as a global currency.

Last, if the author wanted to pick a currency that was the laughingstock of the world, perhaps Venezuela, Zimbabwe or Italy prior to the Euro would be more appropriate examples.

I wonder who will have the last laugh?
Signed, a Canadian (of course!)