Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Canadian Dollar -- Ignore unavailable to you. Want to Upgrade?

To: TAPDOG who wrote (87)	8/24/1998 12:29:00 AM
From: High Grader	Read Replies (1) \| Respond to of 103

I don't think the Canadian Government understands what a unilateral declaration of independence is. The British Government had the same problem when Rhodesia made a UDI and basically rebelled against British rule. If Quebec was to declare UDI it wouldn't give 2 cents (Candian) if the Canadian Government was to think it legal or not. They would just do it. Like the Rhodesian UDI it would also be racially motivated. The Canadian Federal Government controls immigration and has flooded Quebec with French speaking immigrants from Haiti and any other place where French is spoken. These immigrants, along with Native Canadians in Quebec and other ethnic non-Francophone minorities, feel an allegiance to the Canadian Federal Government and were responsible for defeating the Sovereignty Referendum in Quebec by the narrowest of margins. They may speak French but they are not of Quebec. If Quebec declares UDI it is because the " true French Descendents" can no longer get the votes to control their own homeland and have to resort to rebellion to protect their identity and their culture. The white Rhodesians faced the same dilemma, abandoned by the British Empire they resorted to rebellion to try and protect their very existence. Quebec feels that is has been abandoned by Canada and faces a loss of self and a loss of control over its future as it is submerged in waves of immigrants. The rest of Canada has similar problems but is much more able to absorb immigrants and assimilate them being more like America than Quebec can ever be or ever wants to be. So much for the political theory...now for the Canadian Dollar. Agreed that commodity prices have to head up. The businesses in Canada are crowing at the profits they are making selling their products in US $. while paying their employees in 65c dollars. When the winter arrives and the average Canadian is buying lettuce, oranges and bananas and has to pay with 65c dollars for fresh produce imported from the US, the reality of this is going to set in. The little guys who aren't making windfall profits from a weak dollar are going to start screaming. for more money. The pressure on the government to do something will really start. Any thoughts on how this will affect the currency? Inflation? Interest rate hikes?

To: TAPDOG who wrote (87)	8/27/1998 10:41:00 AM
From: AreWeThereYet	Read Replies (1) \| Respond to of 103

Since our PM said "Our economy is still in good shape!", I told my peer that CDN$ will likely to see 0.65 and perhaps overshoot down to 0.64x. Well, the damage is more than I predicted obviously. I don't know why our PM is so passive , it always get forced to defence in the last minute. See how he handled last Quebec Referendum, last interest rate hike...(glad he didn't had my vote in last 2 elections, in fact nobody does) What he did is simply create a imbalance economy who focus on export export export. The exporters just enjoying a gov't planted economy advantages and focus less to improve fundamental competitive advantages. We importers are suffering like hell. We are doing even worst than our parent company in H.K.!!! It's funny and sad we have changed our internal U.S exchange rate twice since fall 1997 from 1.4 to 1.5 and 1.5 to 1.6. In our previous rate change, I even had to re-compiled our program to recognize CDN fell below 1.5!!!!!!! If CDN$ fail to return to 0.65 level, I think a interest rate hike is coming soon - probably too late again :o( In any case, it will make our bonds less attractive. aC