Never say never. The Canadian dollar was worth more than the US dollar back in 1952, and many people said that it "can't stay this strong for long" as well, as you put it. In fact, the Canadian dollar's premium over the US dollar lasted for 8 whole years until 1960. Nothing says it can't happen again. As I said, never say never - making such absolute statements is simply naïve with the way global economics and the markets work.:
so I will correct myself and say.....the charts point to this not happening....MAY get close.....and this isn't the 50's. Canada's economy has changed drastically. I have a teamster buddy ( car haulers ) and cars moving out of Canada are drying up, ( due to cost , maybe?????) and they are moving far move Asian made cars. Time will tell, either way the market decides to go with it, I will try to be on the right side.....Thanks for calling me on that statement!
True, an absolute statement as "never" can make one eat humble pie one day....and makes me sound sorta like an economist....and we know they are mostly wrong!!
I would also not say that the state of the auto industry is an accurate representation of the overall Canadian economy - that is not what the Canadian economy is built on. When talking about Canada's economy, the area you want to be looking at is resources, which is absolutely huge. To this end, your statement, "Canada's economy has changed drastically" could not be more true - the global reliance on natural resources has increased exponentially, bolstering Canada's economy as an exporter. One could argue in fact Canada's economy is stronger right now than it has been in many decades. The oil sands in Alberta, precious metals throughout, the largest deposit of uranium in the entire world in Saskatchewan - not to mention the fact that Canada is the largest foreign supplier of crude oil to the U.S. - and the scary fact is not many Americans even realize this fact! Further to this, the US is a country of importing. As prices rise and US demand increases, exporting nations such as Canada, Australia, etc. will benefit and the US will be paying for it dearly.No worries, just saying it the way it is.
For the above reasons, I could easily see the Canadian dollar hitting parity again, or perhaps even surpassing the USD once again.
Never say never. The Canadian dollar was worth more than the US dollar back in 1952, and many people said that it "can't stay this strong for long" as well, as you put it. In fact, the Canadian dollar's premium over the US dollar lasted for 8 whole years until 1960. Nothing says it can't happen again. As I said, never say never - making such absolute statements is simply naïve with the way global economics and the markets work.
Well stated Shard.....I am one that is familiar with what you stated, my example of the auto was only example I could think of that could hurt the loonie.....and oil and the others have definitely help the loonie....no doubt there. Seems I let my US mentality and the fact I had gotten used to the loonie as being "cheap" in my lifetime affect my vision. Times do change....and an older dog as myself doesn't change as fast as the times!! Thanks again!
Dude you should not care about all currency rates before 1971 because the world is on Bretton Wood, a fixed exchange rate regime, and the dollar is pegged to gold ag $35 per ounce. Any fluctuations is purely due to government manupulation, not market forces. Pound sterline was worth $4 for a couple of centuries before WWI, but tha this because the UK defined it to be so, both dollar and pound was pegged to gold.
the floated exchange rate and hence forex market we all love here only got started in 1971 when Bretton Wood collapsed and Nixon removed the dollar peg and floated the currency.
