Gab@StFerdinandIII - https://unstabbinated.substack.com/
Plenty of cults exist - every cult has its 'religious dogma', its idols, its 'prophets', its 'science', its 'proof' and its intolerant liturgy of demands. Cults everywhere: Corona, 'The Science' or Scientism, Islam, the State, the cult of Gender Fascism, Marxism, Darwin and Evolution, Globaloneywarming, Changing Climate, Abortion...
Tempus Fugit Memento Mori - Time Flies Remember Death
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The value of a nation’s currency is dependent on a number of factors. Chiefly there are 4 main contributor’s in evaluating a currency's worth:
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These factors ensure that the C$ in the long term will decline and in 2005 I would expect the C$ to reach about US 74 cents and in 2006, 68 cents.
Nevertheless Canadian firms must invest more in productivity and lobby harder to reduce tax and spend in Canada and create a regime that is more business friendly than in the US. Such a regime would stimulate jobs, pay for social programs and improve living standards. Canada should strive for a high dollar policy not a cheap export driven/interest group driven currency value.
A strong or weak currency affects national sovereignty, productivity and wealth. Floating or Fixed exchange rates are the 2 essential theories that help form the monetary regime. Currently politicians believe that the exchange should float because shocks to the Canadian and US economies are asymmetric (due to Canada's supposed dependency on natural resources). However this logic is flawed.
The industrial areas of Canada are net importers of natural resources whose business cycles are symmetric with the US'. International trade is 3x more important for the industrialized areas of Canada as a share of GDP than intra-Canadian trade. A fluctuating C$ and the transaction costs associated with it, are an impediment to our economic health. It is not outrageous that the rationale for EU monetary integration (at least its economic component), namely; a reduction in transaction costs, the symmetry of business cycles, the furtherance of foreign investment and the control of inflation could be applied equally with the same rationale to Canada and the US.
Once the C$ devalues expect the clamor for fixed exchange rates to rise.