Par!

[bjarvis]

This morning, the Canadian dollar was at par with the US dollar. Only five years ago, the loonie was at $0.62 USD.

This says more about the relative weakness of the US dollar than anything else, and I see the weakness as directly related to enormous trade and budget deficits. While a weak US dollar might be useful to correct the trade imbalance, it's an uphill battle: as of last week, the US' largest trading partner isn't Canada but China, and China loosely pegs their currency to the US dollar in large part to maintain the trade imbalance in their favour.

Comments

[bjarvis.livejournal.com]

A currency reevaluation is going to happen eventually. Neither China's expansion nor the US trade & budget deficits can go on forever. I hope for a slow and controlled correction but a correction is required.

The folks at Walmart and other megacorps are pretty bright: I'm sure they'll find a way to make a buck off whatever happens.