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To: Wyätt Gwyön who wrote (6323)	1/30/2006 10:20:34 PM
From: Cogito Ergo Sum	Respond to of 25575

Simply put for the same reason the Fed (and Canadian government) are able to claim low inflation... Expenses (especially wages). Wages are fixed for a certain fixed period. The spot price (why in a rising price environment we eschew hedged producers) of energy climbs... Wages are more static (and other expenses play catchup).. as to wages foreigners willing to work for fantastic salaries, still far less that they could ever get at home are hired... Remember the commodity price is also rising in CAD. It's not simple but net net it appears to be beneficial to those whose currency is depreciating. All MHO of course :O)

To: Wyätt Gwyön who wrote (6323)	1/31/2006 12:56:51 AM
From: whitepine	Read Replies (1) \| Respond to of 25575

Your case, to me, is clear. Nevertheless, hedging prices of CL/NG creates much greater potential for profit or loss. Good/bad hedges have a much greater impact on the bottom line of all Canadian companies and trusts than currency changes. wp