Skip to comments.Mark Steyn: The Disappearing Dollar. How much longer can it remain the world’s currency standard?
Posted on 04/23/2011 1:18:05 PM PDT by SeekAndFindEdited on 04/23/2011 2:37:53 PM PDT by Jim Robinson. [history]
Congressman Paul Ryan, one of the least insane men in Washington, has a ten-year plan.
President Obama, one of the most insane spenders in Washington, has a twelve-year plan.
After hearing the president’s plan, Standard & Poor’s downgraded the U.S. sovereign-debt outlook to “negative.” Ah, the fine art of understatement. In 1940, after the fall of France and the evacuation from Dunkirk, presumably they downgraded Britain’s outlook to “spot of bother.”
(Excerpt) Read more at nationalreview.com ...
Soros’s plan, through his puppet POTUS, is right on schedule.
Your the best Mark!!
When the US dollar is on parity with the Canadians, you know you are in trouble.
The rest of the world isn’t going to subsidize our govt any more.
Get ready for some real unrest that will make Wisconsin look like a walk in the park.
Another Keystone Kop Kaper from our fearless leader.
Mark nails it.
Same article I pinged you to earlier, but different title.
Indeed! Why can the Left not comprehend economic REALITY??!!
You are in a lot more trouble than you think.
I take no pleasure in these facts, except that our leaders hold us in less contempt than your president holds you.
I wish Steyn would steal my nickname for the current occupant of the WH completely. He’s got the Obammie part down.
The complete and accurate nickname is “Obammie the Commie.”
I wish I could see where Mr. Steyn was wrong, but as far as I can tell he’s right. The rest of the world is waking up to the fact that our economy is going down the drain. Unless we do something serious about cutting out spending and entitlements, they won’t put up with us much longer.
RE: We’re NOT on parity any more, the Canadian dollar is now worth $1.05 US.
I used to live in Australia. Historically it takes about 0.75 to 0.80 US cents to buy one Aussie.
Today, 1 Aussie is 1.07 USD !!
And oh yeah, take that third world country called the Philippines. It used to be 1 USD could buy 55 Philippine Pesos.
Today, 1 USD buys a mere 43 pesos !!
Yes, WE ARE IN TROUBLE.
We’re getting poorer compared to some of our allies.
Sorry kids. I am running on some old info. I had no idea the the Canadians surpassed the dollar by such a large amount. Last I checked it was close but had not overtaken us yet. Geez. How depressing.
it’s really Sad that only one Son of a B—ch like Obama could ruin the United States of America.
How’s that “free trade” thing working out?
Steyn in a realist in a world of “progressive” fantasies ...
Or as Spock would say, “In an insane world, the sane man must appear insane.”
I made Canadian dollars my reserve currency of choice a little more than a year ago.
I set up a global account with Etrade that allows me to exchange currencies and keep cash in a half dozen currencies, buy stock, bonds and such in foreign exchanges. Other online brokerages probably have something like that too.
It's pretty easy.
“Americans seem to have little or no appreciation, of how important having the reserve currency is. “
Elites in US government, academia, industry and finance clearly understand the importance of reserve currency status, yet they continue economic and trade policies which will soon result in the loss of that status. The US is a nation whose elites are intent on destroying its culture, economy, government and society.
On the plus side, imports are cheaper and we will pay less for US fruits and vegetables and other agricultural products. Of course the demand for oil, one of our largest exports to the US, is virtually inelastic.
If there is a total monetary collapse in the US, I don't know what is going to happen. So many countries, Canada included, depend on the US to buy our products that a market disruption might be devastating. If it happens slowly, things will be all right. If it happens overnight, all bets are off.
Here is something really scary, Laz. Your dollar is down about 70% vs the Canadian dollar since 2002. I guess that really is a collapse. And if that depresses you, imagine how you would feel if you were a Canadian manufacturer whose market is in the US. The price for your product has gone up 70% in 9 years and you didn’t get a dime of it. Kind of hard to stay in business.
Canadian travellers checks....?
I went to college in Bellingham, WA many years ago and I remember many businesses would advertise “We take Canadian dollars at par.” This was when the USD was at about 0.70 Canadian. I’m curious if we’ll see billboards like that north of the border soon (if they’re not up already).
The reason I have so many Canadian investments is that, like the US, they have a large amount and a large variety of natural resources. Unlike the US, however, they are willing to use them and are not ashamed of making a profit off of them; oil, mining, hydroelectric, etc.
I think Canada would be wise to build a pipeline from the oil sand areas to BC for export to Asia rather than try to build a pipeline south to the Gulf. It seems our rulers have decided that we don’t want that “dirty” Canadian oil anyway. This would decrease Canada’s dependency on the American oil market.
I was in northern BC on 11 September 2001, and I remember the exchange rate was 0.53/1. I spent the night in a very nice B&B for 32 USD/night.
Yes, we still practice capitalism in Canada. Unlike where you are headed. Never, ever thought I would see this time.
You have summarized the pipeline deal, exactly. Hussein would rather borrow money to finance a Brazilian offshore oil field than:
1) let Canada finance and build a crude pipeline from Alberta, through oil lands in North Dakota and on to midwest markets.
2) let the US oil industry finance and develop a domestic offshore industy.
Then he wants to buy the Brazilian oil. He wants to finance and import Brazilian oil rather than buying Canadian OR Gulf Coast with no financing charges. Please, anyone, make sense of this.
This is transfer of wealth writ large. Hussein is looting America. I feel like playing the race card. Think about it.
The whole world is upside down.
I used the word “rulers” in my post to you, and that leaves a horrible taste in my mouth and goes against my every American instinct. I never thought I’d be using it about my own government, but it really is the only one that fits anymore.
I have thought of emigrating to Canada. It is on my short list of places to flee, but as long as there is a fight left to fight here, I’ll stay. I just hope the 49th parallel doesn’t become some kind of iron curtain before I bug out.
Immigrants who speak English, are familiar with English common law and the ways of North America are most welcome.
I live a couple of miles from a major border crossing, if you or any other freeper need help relocating, freepmail me.
Late Mark Steyn ping. I had a computer issue and was busy giving and grading midterm exams. So it took me a little time to get a copy of the list again.
Freepmail me, if you want on or off the Mark Steyn ping list.
Thanks for the pings Slings and Arrows and passionfruit. Here are a few more Steyn articles I missed pinging:
“The rest of the world isnt going to subsidize our govt any more.
Exactly. And not one in ten Americans understands what our world reserve currency status has meant to our standard of living. It’s like playing Monopoly and being the banker while playing, and only you can grab more $500 bills anytime you want, put them into play, and the other players must accept them.
This advantage is about to end. The dollar will just be another peso bidding for oil etc.
Just a minor quibble in agreement. It was not an advantage because we went soft, cannot produce and forgot what real work looks like.
I bought some shares in a Canadian bank (BMO) back in about 2000. The share price has since tripled and the quarterly dividends are ever juicier.
I'm sure it was unintentional, but Nancy may have done us a bit of a favorby exposing the republican party for what it is: socialism lite.
As long as we keep choosing between the democrat and republican parties, and the hacks that run them, elections won't ultimately mean anything. Just look at all the sound and fury that resulted from the pitifully small numbers involved in the recent budget debate and you can see that the vast majority of politicians in DC really aren't taking the problems facing our country seriously. As long as the train can hold itself together for them to get theirs, that's all that matters.
Someday, being a former politician is going to be a capital offense.
Thanks for the ping.
What is the national debt like in Canada, Australia?
The deficit, this fiscal year, will come in at around $40 billion Canadian. That would be $400 billion, proportionally vis a vis the US.
Next year's deficit is projected to be only $21.7 billion Canadian, proportionally $217 billion.
A conservative government would mean a balanced budget in two or three years.
With a stable but growing economy, a robust banking system, hopefully a majority conservative government elected on Monday, and bountiful resources the Bank of Canada might have a hard time keeping the Canadian dollar below $1.10 US in the near term.
If there is a true "fiscal crisis" in the US, I don't know what would happen, but I would rather be living north of the border.
Thank you for the information.