Just kidding, but I wrote a while back that in today’s world the Bank of Canada has little effect on the Canadian Dollar.  Here is an example.

Yesterday the Dollar was really strong and starting to rebound from the small dip it took because the Bank of Canada dropped interest rates.  This was caused by the fact that the US federal reserve announced plans to cut their rates again due to reports that their Trade deficit increased in October.

On a side note Canada’s trade SURPLUS increased in October.  Just another solid sign that our economy is much stronger then our US friends.

We all know that the high Canadian Dollar has exacted some pressure on the Canadian Manufacturing sector but in the words of Jim Collins in “Good to Great” companies that survive have to face their brutal realities.  In the typical Canadian way we have seen many of the leaders of these companies whine and ask for help from the government.

The reality is that there is not much the government can do, except lower corporate taxes, which they did.  They can have little effect on global economics.  Therefore Canadian manufacturing companies need to help themselves.

Enter Colin Mcdonald, CEO of Clearwater Seafood Income Fund is looking at the glass as half full, “the benefit of the high Canadian dollar is that we have had to focus on productivity and get our costs down.”  I love that.

Mr. Mcdonald went on to suggest that the Bank of Canada can help by continuing to cut rates, I wholeheartedly agree.  Finally he said direct government bailouts, like the $400 million the government has given to the auto sector, is short sighted and stupid, again I agree.

Governments need to invest in post secondary education, and investments that foster a good economy in Canada to allow companies that are led by excellent CEO’s like Mr Mcdonald can have a fighting chance.

I need to go to Clearwaters website now and order some Lobster! Ha!

Greg