Have The Australian And Canadian Dollars Been Pegged To The US Dollar?
Wed 9:32 pm +00:00, 5 Jan 2011 2
Nothing surprises any longer, and it is not possible to get the real news from the MSM. Sometimes you can find some kind of report on the internet. Sometimes you have to try and deduce what is really going on from what you see.
Observers of Forex markets cannot have failed to notice the combined arrival of both the AUS$ and the Canadian $ to parity with the US$, both at exactly the same moment. They have hardly budged since they reached parity just before Christmas.
It is very possible there is more to this than mere coincidence. Has the OWG bagged a couple of countries to fit the One World Currency plans, in which all currencies are merged either with the Dollar or the Euro, the Aussie and the Loonie two earmarked to become permanent US$ fixtures? The Yen and Sterling would be tolerated as independent currencies in the plans as suggested for the IMF’s Special Drawing Right. All other currencies are to be pegged.
Maybe there is an attempt going on to fix them in situ, as there was with Sterling and the Euro in 2009, when Sterling got very near to parity with the Euro. The OWG seem to like round numbers.
The Sterling/Euro excitement all blew over pretty quickly when market forces intervened, and Sterling rose again as stock markets recovered. No doubt the Aussie and Loonie will head off on a big fall as commodities turn down, but at this moment, you can almost see the OWG boys salivating at fulfilling their dream of world domination through a OWC, linked at parity.
I can assure you there is practically zero interest in Canada in a One-World Currency, and the Canadian dollar is not pegged to the greenback. A Canadian dollar at parity hurts our economy, because our biggest trading partner (around 85% of our exports) buys local when they can’t get a great deal here. A Canadian dollar at around 85 cents against the USD is about the optimum from a trade standpoint.
Besides, Canada came out of the financial crisis with the most stable economy on the planet, according to the IMF. We don’t need to peg our currency to one that’s sliding. That’s China’s game, and I must say it worked out very well for them.
marknesop, the US$ is sliding against the loonie, and the aussie, at the moment. It is rising against most others though (recently).
But I take your point. The loonie does well when commodities rise, and they’ve just put in quite a flurry with oil, copper and precious and most others hitting two year highs.
Once commodities top, I think you’ll your target level (eventually), or lower against the US$. I prefer the Prechter deflation forecast myself.