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So, just why do we keep our loonie anyway? Is it to protect the illusion that Canada has a monetary policy truly independent from that of the U.S. Federal Reserve Board?
“Suppose the U.S. dollar goes so far down that the Canadian dollar goes to $1.30 instead of 95 cents. Is that what we want?” Canada could just adopt the U.S. dollar and be done with it. But we would be better off with a formal currency union that allowed for some Canadian representation, and influence, in the Federal Reserve System.
I find that article exceedingly odd, particularly after the recession that US economic policies helped to drive the world into. If Canada had been following US monetary policy, would our banks have enlarged themselves to the point of being little more than Ponzi schemes, and given loans to people who could never have afforded them? There were no Canadian banks that failed.
And what would have happened here in that event when the stock market crashed? And the US is concerned, as I understand it, that the US dollar is going down against other currencies. If they are concerned about it, how could tying ourselves to the US, with their out-of-control debt, be a good thing? Wouldn't that be like the US deciding to tie itself to the peso?
I don't claim to be any sort of economic specialist, but that just makes no sense to me particularly since Canada has little in common with US style capitalism, and Canada has been seeking closer ties to the EU. CTV News | Canada, EU working towards 'historic' agreement: PM
At some point I suspect, the entire economic system of the world will be changed, and there will be a single currency, like the Euro. But I simply do not see how that article makes any sense at all, as it is predicated for reasons not entirely made clear, on the US returning to its previous status as an economic powerhouse. That seems like wishful thinking.
I find that article exceedingly odd, particularly after the recession that US economic policies helped to drive the world into. If Canada had been following US monetary policy, would our banks have enlarged themselves to the point of being little more than Ponzi schemes, and given loans to people who could never have afforded them? There were no Canadian banks that failed.
And what would have happened here in that event when the stock market crashed? And the US is concerned, as I understand it, that the US dollar is going down against other currencies. If they are concerned about it, how could tying ourselves to the US, with their out-of-control debt, be a good thing? Wouldn't that be like the US deciding to tie itself to the peso?
I don't claim to be any sort of economic specialist, but that just makes no sense to me particularly since Canada has little in common with US style capitalism, and Canada has been seeking closer ties to the EU. CTV News | Canada, EU working towards 'historic' agreement: PM
At some point I suspect, the entire economic system of the world will be changed, and there will be a single currency, like the Euro. But I simply do not see how that article makes any sense at all, as it is predicated for reasons not entirely made clear, on the US returning to its previous status as an economic powerhouse. That seems like wishful thinking.
I agree with you that Canada has a completely different banking and financial services market from the US. However, the article does make one valid point: Bank of Canada doesn't really has an monetary policy independent from the Feds 1) they set interest rate that is always closely linked to the US rate, which means, if Feds cut rate, BOC does as well 2) BOC freaks out whenever CAD climbs close to USD.
The financial system in the US proves to be a complete failure which only benefits greedy bankers (what value do those hedge funds create anyway to deserve those bonuses??), and let's hope Canada will NEVER do the same thing.
I agree with you that Canada has a completely different banking and financial services market from the US. However, the article does make one valid point: Bank of Canada doesn't really has an monetary policy independent from the Feds 1) they set interest rate that is always closely linked to the US rate, which means, if Feds cut rate, BOC does as well 2) BOC freaks out whenever CAD climbs close to USD.
The financial system in the US proves to be a complete failure which only benefits greedy bankers (what value do those hedge funds create anyway to deserve those bonuses??), and let's hope Canada will NEVER do the same thing.
hehehe. My stepson manages one of the top 50 hedge funds in the world.
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