As a consumer of travel parity of course is nice, but wishing for that is the same as when we were all wishing Gas Prices were at .70 cents instead of a $1.30 earlier last year, how does it feel now that that wish came true?
The same may happen if the Canadian dollar reaches parity, due to a falling US dollar. Why? Well for starters as we are trying to recover from the slowdown the last thing we need is the inflationary presure that a strong Canadian dollar brings as this slows interest cuts or worse makes it necessery to raise interest rates. The second bad thing is the pressure it puts on many bsinesses that export their goods, which when they are all teetering on the brink of disaster now, what could that do those businesses and more importantly the jobs.
China is poised to maybe dump some of their $1.3 TRILLION dollars of short term debt, and they are saying they may not be in much of a position to pick up some of the $800 BILLION Obama dollars coming soon in a US budget deficit. Who else will buy Obama’s debt offering? Doesn’t matter but if demand to buy it is low which it will likely be and the US printing more money, combined with China dumping US dollars MAY tank the US dollar by year end.
For the reasons above this could slow our recovery some more…sigh. Whatever you do, PLEASE don’t wish for the Canadian dollar to have parity has your collective Karmic forces may make it happen and then you will feel like you do right now about your wishes for gas prices to fall…
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