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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: KyrosL who wrote (56221)	11/21/2004 7:37:28 PM
From: Taikun	Read Replies (2) \| Respond to of 74559

KyrosL <Among currencies I would say the CAD beats all others hands down.> The Canadian currency is a good call option on Canadian resources and commodities. As a bet on a wasteful gov't that can't defend itself and overtaxes (which the OECD has warned on) it is a poor bet. Canadian productivity lags because productive capital is leeched by the Federal gov't, leaving the provinces with weakened funds with which to run their systems. Ottawa is rich, the Provinces are poor. Ottawa tries to fund programs that should be run by private industry, in the process enriching the insiders and deploying capital wastefully. The Canadian dollar has done well largely because it is an oil exporter (the is high correlation with rising commodity prices and a rising currency vs the USD, just look at Norway) and because it is rich in commodities. The Canadian dollar is not rising because investments are being made to improve productivity and improve the welfare of the average Canadian. the wealth resides the the Federal gov't level. The Canadian healthcare system, for example, attempts to treat everyone, and in the process provides all with lacklustre treatment at best. Recognize the Canadian dollar for what it is (a call on commodity prices) but don't mistakenly use that success as a proxy for defining the success of the entire system. Canada is just France with resources. David