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THE North American Union/SPP Thread (merged)
Re: What happened to the North America Union?
by Nickel » Thu 25 Sep 2008, 22:06:55
$this->bbcode_second_pass_quote('DaleFromCalgary', 'S')outhern Ontario desperately misses the days of Can$=US$0.70 because the current situation of the loonie at par value or thereabouts has destroyed their manufacturing industry.
This is an unrealistic appraisal of the situation. Manufacturers in central Canada are NOT interested in returning to a dollar worth 70¢ US for the simple reason that the Canadian dollar has not GAINED in value against the US dollar -- in truth, the US dollar has LOST value against ours. Everyone wants to be paid in something worth something, and US dollars have been remarkably poor vehicles for maintaining their face value over time in recent years. Anyone Canada, east, west, or north, who was paid in US dollars in 2002 when ours was worth 62¢ US ($1.62 Canadian) and held onto them now holds a US dollar worth about $1.05 Canadian. In other words, the money he was paid six years ago has retained only about 64% of its value over time. The same holds true for oil dealers in Alberta. This is one reason why Canadians are increasingly interested in expanding our trade ties, particularly with the EU, which has a stable currency nowhere near as debt-laden and vulnerable as the US dollar. Manufacturers in central Canada don't want a 70¢ US Canadian dollar again; they just want to be paid in a currency that's going to be WORTH something in five, ten, twenty years, regardless of the exchange rate.
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Nickel - Heavy Crude
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