Will The Petrodollar Reward Canada: Some Analysts Predict Canadian Dollar Will Rise Bank of Canada Rates 4.5% While Federal Reserve Rates are 5.00%-5.25% range – May 3, 2023,
I like reading news that goes opposite to my personal belief, and Reuters FREQUENTLY describes narratives that are the complete opposite of what my data is telling me. With that said the Forex markets are very interesting in that they’re BELIEVERS in the petrodollar.
If the price of oil rises, commodity countries like Canada will often find their currencies ascending against the U.S. dollar, but that’s typical with an economy without a war on fossil fuels.
This war on fossil fuels economy has to take into account Environmental, social, and corporate governance (ESG), which should be called FASCISM because, economically, that’s what it is. ESG is the merger of State and Corporate interests, we can pour syrup on that shit all we want, but ESG is clearly Fascism.
Why this matters is that the Forex markets has to take this into account, FASCISM which is a fancy word for NATIONAL SOCIALISM, is indeed a brand of SOCIALISM, and economically socialism has a bad track record that often leads to economic DEFLATION.
The government taking on such a large regulatory role in the economy, sticking its hands everywhere to make sure every corporation is ESG friendly by government standards, equates to all sorts of MALINVESTING in the economy, which is EXPENSIVE and DEFLATIONARY because unless you have the capital to keep pace with the HIGHER PRICES due to higher ESG energy costs, you’re going to spend fewer dollars likely.
Meaning that putting money into Canada when energy prices are rising may not get you the same bank for your buck, it did prior to this ESG movement. Left Wingers tend to believe in WEALTH EFFECT news, which is why you’re seeing a lot of Left Wing pundits attempting to talk up the economy or make excuses as to why this economy sucks.
I always like to remind people that Franklin Delano Roosevelt (FDR) who in my opinion, was a piece of shit, won several elections in a LANDSLIDE. Why? Because no matter how dumb his ideas were and no matter how bad the economy got under his watch, the stupid voters believed in his vision for the future.
Oddly enough, the FEDERAL minimum wage law, social security, and most of the other crap in the NEW DEAL have left America TRILLIONS of FIAT dollars in debt. FDR had to revalue the price of gold to pay for his stupidity, and finally, the gold window was closed after another idiot, Lyndon B. Johnson and his “Great Society” ended any hopes of America maintaining a gold standard.
Now the world is headed down a path in which FIAT DOLLARS are insolvent. We’re at a point in which people can’t comprehend why a Central Bank Digital Currency will only lead to more malinvestment.
The politicization of money is MALINVESTMENT, in Canada nothing Justin Trudeau does cash flows positively; I actually think Canada is in a much worse position finally than America because at the very least, in America, they have STATES’ rights, so in America, you’ll notice a huge difference between the Red and Blue States.
In fact, what’s even more crazy is that almost every major city in America is run by Democrats, and even the cities in Republican States with Democrat mayors are horribly run. Democrats, after destroying a State, will usually flee to a Republican STATE, taking their thoughts, actions, and VOTING HABITS with them.
So if a person doesn’t look into the MICRO of statistics, they might imagine that Republicans and Democrats have the same results economically, but this is actually far from the truth, and Conservative Republicans appear to have a much better COMPREHENSION of the overall economy, and this is EXTREMELY problematic for an EXTREMELY Liberal Canada.
In the U.S., there are the Republicans and the Democrats; the Libertarian Party might have 1% of the vote, but they’re a non-factor, but in Canada, the Left Wing accounts for over 60% of the voting public. Left Wing Political parties in Canada include the Liberals, The NDP, The Green Party, and the Bloc Quebecois, which is a Left Wing Political Party that threatens to secede if its left-wing FEDERAL Agenda for Quebec is not taken seriously.
If the Conservative Party of Canada doesn’t run a CENTRIST candidate, it doesn’t have a chance to win a federal election; that’s Canada, and if we’re, to be honest, Canada’s best asset based on its politics is that it borders with the United States and has America as its largest trading partner.
Based on the information presented in this post, should the Canadian dollar rise? I don’t think it should, but that doesn’t mean it won’t. Currently, America is engaging in massive bank bailouts, whereas in Canada, Canadian banks are solvent, as banking regulations in Canada mostly were written by actual BANKERS.
In America,, many banking regulations were championed by left-wing politicians; recently, someone in the Biden administration went so far as to make people with good credit finance the mortgages of people with bad credit.
Now, obviously, this will be extra income for American banks who CAN NOT be forced to lend out money to people who can’t pay it back. So in America, capitalists often use idiot Democrats’ legislation against them.
Although I’m picking on the Democrats, I should also point out that American banks made a fool of George Bush with their “teaser loans,” which was basically the only way to get people to QUALIFY for those HORRIBLE mortgages. On the bank end, bankers also made sure to BUY BARACK OBAMA, who gave them a BAILOUT!
People tend to forget how smart capitalists are, which is why government people have no business getting into the markets. Capitalism as a system rewards BOLDNESS, which is reminiscent of NATURE; if you want to FLOURISH in nature, you need to STRATEGIZE.
Regardless of the obstacles in your way, you must find a way to align yourself with the laws of the universe. The Forex Markets are genuinely good indicators of what’s going on in the global economy. I personally see the Canadian economy in far worse shape than the U.S. economy; The Canadian government required a U.S. fighter jet to shoot down what it imagined was a Chinese spy balloon.
The additional costs that America pays are often ignored by people when they look at the DEBT LEVELS of nations. Can Canada defend its own borders without the U.S.?
What I’m getting at here is that although the U.S. national debt is on full display for all to see, one shouldn’t ignore Canadian debts, many of which are HIDDEN in plain sight. The Federal Reserve was BOLD enough to raise interest rates while the Bank of Canada has already paused? Yet, some forecasters see Canada as the better bet.
Interesting times ahead