How Low Will The Looney Go?
C$ rattled after Canada posts trade deficit – the first since 1976.
Now that our trade surplus has evaporated, say goodbye to vacations to the US, and hello to higher prices.
The dollar dropped under 80 cents yesterday and there’s nothing to suggest it can recover for quite some time.
The Canadian dollar equaled the U.S. dollar in September 2007 for the first time in thirty years. This was because of record prices for commodities such as crude oil, copper and aluminum, which account for about half of our export revenue.
It’s now plummeted 18 percent, the most ever, as demand for our commodities has dried up.
Not that we’re seeing any benefit to low oil though – Vancouver gas prices are stuck at 95 cents/litre.
Also, retailers may have a tough time upping prices with sales falling.
Don’t cont on Obama for any help – when was the last time a President declared that we’re screwed… and announced that we’re in a Great Depression?
That’s got to help…
