Mark Steyn: The Disappearing Dollar. How much longer can it remain the world’s currency standard?

National Review ^ | 04/23/2011 | Mark Steyn

[SeekAndFind]

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

[Aquamarine]

Ha!

[jessky]

might be time to buy some Canadian money how do you do that?

[spodefly]

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.”

[seowulf]

might be time to buy some Canadian money how do you do that?

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.

[Soul of the South]

“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.

[Former Proud Canadian]

Conventional opinion is that the Canadian dollar is going to float up to about $1.10. This do a lot for Canadian's pride but WILL NOT help the economy. It makes our exports more expensive.

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.

[Former Proud Canadian]

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.

[spokeshave]

Canadian travellers checks....?

[seowulf]

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.

[seowulf]

Your dollar is down about 70% vs the Canadian dollar since 2002.

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.

[Former Proud Canadian]

You ask about accepting the US$ at par in Canada. I think a lot of places, especially mom and pop shops with high margins will, but don't advertise it.

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.
or
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.

[seowulf]

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.

[Former Proud Canadian]

You won't see an iron curtain on this side of the border. We've taken three waves of refugees before from the US, another wave now would not be an historical anomaly.

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.

[JLS]

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:

http://www.freerepublic.com/focus/f-news/2708739/posts

http://www.freerepublic.com/focus/f-news/2707655/posts

http://www.freerepublic.com/focus/f-news/2707076/posts

[Travis McGee]

“The rest of the world isn’t 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.

[AndyJackson]

Just a minor quibble in agreement. It was not an advantage because we went soft, cannot produce and forgot what real work looks like.

[TheRightGuy]

might be time to buy some Canadian money how do you do that?

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.

[zeugma]

At Tufts University, Nancy Pelosi urged her “Republican friends” to “take back your party, so that it doesn’t matter so much who wins the election — because we have shared values about the education of our children, the growth of our economy, how we defend our country, our security and civil liberties, how we respect our seniors. Elections shouldn’t matter as much as they do.”

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.

[GOPJ]

Thanks for the ping.

[dervish]

What is the national debt like in Canada, Australia?