US Currency Collapse: Some Thoughts on the Canadian Economy
The Canadian dollar hits $1.10 US, oil futures rise to $98 a barrel, China announces it plans to divest more dollar denominated assets from its forex reserves (with Japan and Sudan following suit), while Saudi Arabia has already refused to cut interest rates along with the desperate Federal Reserve cuts in September and Iran, Russia and Venezuela have all abandoned the petrodollar oil trading system. An impressive line-up of currency experts believe the US dollar still has plenty of room to fall, since the underlying weaknesses in the US economy aren't changing any time soon, with the US on track to meet an $800 billion trade deficit for 2007. The International Monetary Fund has cut its forecast for US economic growth in 2008 to just 1.9 percent next year.
Between peak oil and climate change, we should seriously be talking about a post-automobile economy based on rail and shipping goods movement, with personal mobility based on proximity plus light rail. The collapsing US dollar could be the kick in the pants we need to start shaking off our addiction to easy motoring and long-distance, just-in-time goods trucking.
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