The downside to manipulating the value of the Canadian dollar: Why Canadians should diversify their investments – July 13, 2020,
So, Canada has a dollar valuation problem, the Canadian dollar is artificially low, Canada economically has been working to suppress the value of the Canadian dollar and this has caused Canada’s public sector to grow. This big government problem that Canada has, is now engravened into Canadian culture, to the point now, that the value of the Canadian dollar is often ignored in the discussion.
This is part of the reason why it’s hard for most Canadians to see the economic disaster headed our way. The Canadian economy up-close looks weird, the Canadian economy has been looking weird since Stephen Harper artificially devalued the Canadian dollar, when the markets started to realize that Obama was really, really bad for the U.S economy.
The U.S economy never recovered under Barack Obama, what happened was the U.S dollar was devalued, that’s what spurred growth, this was something Donald Trump tried to replicate, but Trump couldn’t replicate it, because his policies were and still are good for the U.S dollar and there’s nothing the Federal Reserve can do about it.
Donald Trump attempted to blame Powell for the markets not being any higher, but what Donald Trump still wasn’t realizing was how much damage Barack Obama caused to the U.S economy, the U.S economy merely wanted to recover, how this affects Canada is that all of our numbers, the prices for goods and services in Canada are all screwed up, but when really inflation hits, Canadians are going to faced with a rude awakening about their purchasing power.
I agree with the article below, and I recommend Canadians do it soon, because, what most people have a hard time comprehending is how big the government gets when the private sector goes bankrupt. Government workers do not wor for free, the money they get comes from money collected from the private sector, if the private sector is collecting fewer dollars for the government and the government is not shrinking in size, you should be able to see the problem headed Canada’s way.
The worst part of the inflation heading Canada’s way is that the Forex markets, won’t be a good indicator of the Canadian domestic economy! Because of our tariff system and other things, it might be a lot cheaper for Canadians with Canadian dollars to use those Canadian dollars outside of the country! Again this doesn’t bode well for Canadian public sector deficits!
Interesting times ahead@