Jay,
I have been enjoying to the following light Sunday listening:
"The Coming Collapse of the Dollar and How to Profit From It: Make a Fortune by Investing in Gold and Other Hard Assets"
financialsense.com
Nothing new that we haven't heard before. The same pro-commodity, pro-gold arguments as before. Along the lines of the confiscation of assets, however, I have been thinking about the role of Canadian assets in one's portfolio.
Going forward, if we assume that an oil and gas company or an iron ore miner, for example, might want to sell their product in a currency other than USD, for example. I can see where a Norwegian Oil Company may price in Euro and a Chinese oil company may price in Yuan. What happens to a Canadian oil company who tries to price in Euro, for example, and tries to shun USD clownbucks. Will 'they' let them?
In that scenario, I wonder if Canadian (and maybe Mexican, for example) commodity suppliers will be less protected from a fall in the USD than a more 'independent' company (maybe in another country).
On an independence rating, I'm afraid I would have to rate Canada low, as I don't believe the country has the option of turning down US requests for a better price on oil, NG, wheat, uranium, timber. copper, zinc, gold, silver, etc etc.
D |
