USD finally tops over the CAD!

the USD is headed higher

Canada, Australia and the other commodity based currencies are very vulnerable. If the plunge in commodity prices continues, it could seriously impact their balance sheets and drive up their CDS - something which is already happening this morning as South Africa's CDS spreads blew to new highs.

Every generation seems to forget how fast commodities can fall. Whoopsie

I have been living in Canada, and the cost of living was getting painfully high. Despite oil falling like a rock, they have kept the price of Gas firmly over $5/gallon, and where I lived, you could see the impact of high prices ($4/loaf bread, $8/gallon milk, $3.50 eggs) on the local economy: restaurant parking lots were mostly empty, stores were closing, retail space stayed vacant for months, and people were worried, but they don't talk about it as openly as Americans

I know from my cousins in Brazil that the cost of living there is higher than the US, although salaries are lower and crime continues to be a problem. This is the distortion created by too much foreign investment, everyone looking for fast riches.

Australia has a big housing bubble, and the most indebted consumer.

Australia Has Highest Household Debt to Disposable Income Ratio in World
[link to www.dailyreckoning.com.au]

Canada is in the same boat:

Canada's Household Debt Soars To New High As Economy Leaves Little Room To Maneuver
[link to www.huffingtonpost.ca]

Rising household debt a threat for Canadian banks: Moody’s
[link to www.cbc.ca]

Those economies have high debt, housing bubbles and high cost social programs. They were in debt trouble in 2009 but have been deluded into getting deeper into debt these past 3 years on the belief that China - their sugar mamma - would keep pumping their markets for decades.

At least you could say that in the past 3 years, Americans had no illusion about the state of their country's balance sheets or their own, and due to tight lending standards were not allowed to get deeper into debt even if they wanted.

Aussie, Canadian currencies, the Brazilian Real even the Euro, were priced for perfection, as it were, while the US dollar has been undervalued, burdened by negative sentiment left over from the GWB years as well.

Brace for impact, and get ready to hear the sound of popping bubbles and considerable crashing

It's more beneficial for Canada to have a low dollar... we create more business this way.

interesting loony theories so far

Only 60% more to go from when I was exploiting Canada on some awesome vacations lol.

USD = TP

It's more beneficial for Canada to have a low dollar... we create more business this way.

is that a pun?

In Canada we hear:

- The U.S. dollar is weakening, and losing value against the world economy.

- The Canadian Dollar is strong in the world economy.


In Canada we see:

- Our Dollar has been roughly at par with the U.S. Dollar for years, while the U.S. Dollar is supposedly sinking.


I think we are all getting screwed.

Stephen Harper has said that he will not allow the Canadian dollar to get too high. If the US dollar goes down so does the Loonie. Buy gold and silver!