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Op-Ed: The Loonie Gains, The Dollar Slumps

By KJ Mullins     Sep 29, 2007 in Business
What does the strong loonie mean to those in the United States? While Canadians are well aware of their stronger loonie are Americans as aware of the decline of their currency? On Friday the loonie rose yet again above the dollar up to 100.52.
This rise is the highest one since Nov. 25, 1976.
As Canadians continue to prosper are those on the southern side of the border beginning to panic?
"In recent days, the Canadian dollar has moved sharply above the trading range assumed (by the bank in July) and we are now having to examine the causes of this strengthening, should it persist," governor David Dodge said in a speech Tuesday at the Vancouver Board of Trade.
"There is uncertainty about the extent and duration of the tightening of credit conditions in Canada and, hence, about the tempering effect this will have on the growth of domestic demand."
When the world's "Top Dog" starts to have a declining currency does it change the way other nations look at it? Of course it does.
The United States has been overspending on a war that hasn't shown any real progress other than the loss of lives on both sides of the gun. The country has been ruling with an iron fist as it goes further and further in debt. It will take years for the debt to be balanced out while other countries such as Canada rise up.
The loonie is expected to rise to an even higher $1.03 on Monday during the fourth quarter of the fiscal year which starts on Monday. The euro has trumped the dollar on each of the last seven sessions.
The United States is in a credit crisis that has been sparked by the U.S. subprime mortgage market. Will it be able to make it's way out of it?
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