CANADIAN DOLLAR MELTDOWN

Posted by George Freund on January 23, 2014

There has been a disturbing trend since the start of the new year. The Canadian dollar has been declining vis a vis the American dollar at a regular pace. Such action hasn't been seen since the last financial reset. Economists have pined for a lower dollar against other world currencies as an incentive for exports. That may seem like a reasonable course except by starting a slide can we stop it if it gets out of control? At what point does a loss of confidence turn into a rout?

I would suggest we may be at the verge of finding out. We are not alone either. The Australian and New Zealand dollar are also under the spell of softening. Not that long ago the Australian dollar was a little stronger than the Canadian. Both were above par with the U.S. dollar. Now it has fallen below the Canadian dollar as well. We are told there are reasons. The powers that be speak in strange tongues never being clear. Today's Bank of Canada mantra says "inflation is expected to remain well below target for some time, and therefore the downside risks to inflation have grown in importance." What that means in plain English is that we may very well be in a deflationary spiral. That is not  the end of the world, but it portends a bumpy road.



1.00 USD = 1.13942 AUD

1.00 USD = 1.11381 CAD

There may very well be another facet to our slide that the beautiful people in Ottawa may be loathe to see. Prime Minister Harper is on an ass kissing visit to Israel. He is trying to solidify the Jewish vote in anticipation of the next election. He is the first Canadian Prime Minister to address the Knesset. He received an honorary degree. However, in economics there is something called opportunity cost. My concern is that the investment dollars of the Middle East oil producing nations may be on hiatus. Whereas our reputation has been generally considered benign, we are no longer appearing that way. In fact the kiwis, koalas and loonies have been banging the war rhetoric drums harder that the Department of Homeland Security.

That may allow the perpetrators to feel powerful and in league with the eagles fighting Islamic fascism, but the silent flow of voting with your investment funds may be turning the planned adjustment into a slide. The danger is that if panic sets in, the wholesale abandonment of the currency could set the stage for disaster. It has happened before. My suggestion then and now was to have other allied central banks buy our currency unexpectedly and bash the short sellers hard. These are perilous times. It is no time to attempt instigating effects that may be far reaching and difficult to control. Herr Harper had to cancel his trip to the Dome of the Rock over security concerns.



Of course you read the CX-3. C=3, X=24 which is six. 666 to the third degree. Demons can disguise themselves as angels of light, but the shadow of the higher plane casts light. The pointing of the index finger is the Masonic symbol for OK and the other the oath. Harper is singing the Beatles classic Hey Jude. In German Jude means Jew. The Bible has the book of Jude. Though we can write everything off as coincidence, the man at the table with his hand raised over the Canadian flag is replying with a masonic symbol as well.

Verse 6:

6 And the angels which kept not their first estate, but left their own habitation, he hath reserved in everlasting chains under darkness unto the judgment of the great day.



Nero fiddled while Rome burned. Harper played the keyboard. It is a global world as far as investments are concerned. As the laws of physics imply, for every action there is an equal and opposite reaction. That economic dam has been breached. The boys from the bank cannot even grasp the reason. The monetary water has started to flow in an uncontrolled fashion. Will Israel buy Canadian dollars in return to stem the tide? Perhaps not. Take heart if you prepared a golden lifeboat. If it doesn't slow down, you'll have something left. We'll never really know how and when we'll sink. All we can do is keep our lifeboat ready. They laughed at Noah. They may laugh at you, but as my Dad always said he who laughs last laughs best.

Categories: Economy