Bank of Canada Governor Mark Carney acknowledged Tuesday that the U.S. Fed’s easy-money policy is making life difficult for many Canadians,
effectively boosting the Canadian dollar and making Canada-made goods more expensive—and less competitive.
I hope the Fed knows what it is doing. Sure destroying the value of the USD will hurt Canadian Exporters but isnt a strong Canadian Dollar a good
thing for them? Wont other nations just turn to being Import based economies at some point? I know Carney says its an overall positive for Canada but
is it for America?
But if the Federal Reserve devalues the USD too much it might risk its status as Reserve Currency. I cant understand why its a good idea to devalue
the USD when other countries like China are trying to unseat the dollar as Reserve. Isnt the Fed helping them?
“It is in the interest of everybody on this planet that the U.S. and major advanced economies are growing,” Mr. Carney said Tuesday.
That sounds alot like what Nixons Treasury Secretary, John Connally said after the Federal Government decided to scrap the Bretton Woods system. He
said, "The dollar is our currency,but your problem." Will the world really accept new rules from the Federal Government again? Countries are already
starting to avoid the USD in international trade and worse still, many countries are moving away from the petrodollar set up. Why would consumers buy
US products with their stronger domestic currencies when Asia is chock full of cheap products and holidays? Does the Fed have a clue what its doing?
Im not so sure.
edit on 11-12-2012 by spangledbanner because: (no reason given)