Published by Charleston Voice, 06.02.12
Americans
in our lifetime have always had a myopic view of their own currency.
This is understood except for two occasions we can recall. In the
sixties and seventies peoples' eyes popped open realizing consumer prices were rising rapidly at the grocery stores and gas stations. Otherwise, they snored on as they do now; none the wiser about the decay of their own savings and paychecks. It was still "as good as gold", wasn't it?We're told the Japanese bullet trains have yen quote streaming forex screens on the overhead bulkheads.
Of course, the government propaganda conduits spewed forth the lies that the "Greedy Arabs are to blame, farmers, labor unions, corporations, gold hoarders, etc." Everyone was blamed except the government and its printing machine operated by the Fed.
We will collide up against another such monetary abutment when the US$ will lose relative value against other paper fiat competitors. A big pre-election boost to Obama!
One such benefiting paper will be the Canadian dollar. Our northern neighbors have a greater understanding of relative currency/commodity alternatives than we do.
We recall back in the 1960s the Maine Turnpike had hastily made signs taped to the toll booths: "Canadian Money discounted 30%".
Maine being the "Vacationland" state, derived much of its hospitality/tourist revenues from 'summer people' headed for Old Orchard Beach, or other southern state Atlantic beaches. With a US$ drop this summer we could see our vacationing neighbors to our north come to us realizing greater relative value for their paper vs. the US$. But NOT silver!
FLASHBACK to 2007
Wednesday, November 21, 2007
Falling dollar a windfall for some
Unless
you’re going abroad, the falling dollar can actually be a windfall.
Locally, they’re cleaning up. Because the dollar fell to below the
Canadian loonie, busloads of Canadians are coming to Maine malls to
shop, giving a nice boost to the economy of this less than prosperous
state. The Maine Turnpike, which used to give a discount to drivers
paying tolls with Canadian currency, has cancelled that discount.
Ch-ching!From the Washington Post:
Along the northern border, shopping patterns are reversing. Instead of Americans driving north to get cheap medicine and other goods, Canadians are traveling south for better deals.Exports and tourism are up, the embattled domestic manufacturing sector is reviving, Made in the U.S.A. is now a coveted label (see the next post for even more reasons) so let the dollar fall for a while and don’t fret. My Horse Sense theory of economics posits that economics is a cyclical phenomenon of fluidity. What goes up must go down, and the reverse is also so. Spend time, not money.
...
The stock markets soar on the expectation of higher economic growth and lending activity. U.S. tourism expects to get a boost as vacations overseas become more expensive. Big conglomerates such as Boeing, McDonald's and Coca-Cola earn more profit from their overseas divisions because foreign currencies are worth more when converted into dollars.
"When the dollar is weak, it increases the attractiveness of U.S. goods, keeps demand in U.S. domestic industries high, which benefits U.S. companies and jobs," said Kathy Lien, chief currency strategist at DailyFX.com.
END FLASHBACK
Now, we're not saying hold Canadian dollars instead of the metals - NO WAY! In fact, Canadians should be socking away silver and gold with the rest of the world. The chart below clearly shows why. Canadian dollars are just another diversifying option for Americans. If you get one in change for even money, take the 4 cent hit. If a local retailer has some in his till take 'em off his hands. I don't know if local banks will hit a C$ depositor for the 4 cent disparity. So what. In the past we've discovered immense teller ignorance of currency exchange matters.
For those of you who see the NAU & Amero on the horizon realize that a "leveling out" of currency divergences must be achieved before any political union can be achieved. It doesn't matter to the one-worlders whether it will work. They will use every means to achieve regional political unions all bundled under the UN. Germany's a good example.
(click image for larger view)
