If the US dollar continues to tank against other major currencies, things could real bad real soon. Oil is traded in US dollars. That is the main reason why Oil will soon reach $100 a barrel. It is not that oil has become that much more expensive over the last couple of months, it is just that the US dollar is tanking. At some point in time, the world’s major oil producers will insist on being paid in Euros and not dollars. If and when that happens, the value of the US currency will plummet and the cost of Canadian goods will skyrocket.
Update:
Thomas Walkom, one of Canada's best columnists, has a good article on the dollars decline. http://www.thestar.com/Business/article/274630
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3 comments:
What the hell are you talking about? This is all Dion's fault.
We're all gonna die because Dion can't beat Harper in the next election!
Ummm, you do know that the CDN dollar is up against every major currency, right?
A UK pound is $1.91 CDN...I can not remember the pound being under $2.00 EVER.
"Ummm, you do know that the CDN dollar is up against every major currency, right?"
Yep, but the US dollar is also down against every major currency. It reached at record low against the Euro and it is the lowest it has been against the pound since 1981. "The New York Board of Trade's dollar index dropped to 75.077, the lowest since the gauge started in March 1973."
http://www.bloomberg.com/apps/news?pid=20601087&sid=aqsI_ZThsh_s&refer=home
"A UK pound is $1.91 CDN...I can not remember the pound being under $2.00 EVER."
Tell me about it. I used to live in England.
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