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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: philv who wrote (20122)10/17/2004 6:36:05 PM
From: Condor  Read Replies (1) of 110194
 
Hi philv,

I don't think Canada will easily accept a rapidly appreciating dollar. There would be severe economic consequences.

Perhaps but consider that the Canadian dollar has appreciated 20 % against the US $ in the past 16 months and I don't see pandemonium on Gov'ts behalf. Perhaps there should be.

low appreciation over years seems like a more probable scenario.

I agree about the probability of slower appreciation ahead but one never knows.

If the US goes to hell, Canada, which is joined at the hip, will be dragged right along, with other countries following closely behind.

You could be right but that doesn't allow for any change in dynamics of a burgeoning SE Asia. Perhaps with our resources there could be a decoupling of sorts. Witness China buying Noranda and looking longingly at our tar sands.

I try to resist the urge to think I've got it all figured out. As Jay Chen would be the first to explain "The only thing I know for sure is that I don't know".
Diversification IMO is the only safe route that I can think of.

Cheers

C
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