Best of the Week
Most Popular
1. US Housing Market House Prices Bull Market Trend Current State - Nadeem_Walayat
2.Gold and Silver End of Week Technical, CoT and Fundamental Status - Gary_Tanashian
3.Stock Market Dow Trend Forecast - April Update - Nadeem_Walayat
4.When Will the Stock Market’s Rally Stop? - Troy_Bombardia
5.Russia and China Intend to Drain the West of Its Gold - MoneyMetals
6.BAIDU (BIDU) - Top 10 Artificial Intelligence Stocks Investing To Profit from AI Mega-trend - Nadeem_Walayat
7.Stop Feeding the Chinese Empire - ‘Belt and Road’ Trojan Horse - Richard_Mills
8.Stock Market US China Trade War Panic! Trend Forecast May 2019 Update - Nadeem_Walayat
9.US China Trade Impasse Threatens US Lithium, Rare Earth Imports - Richard_Mills
10.How to Invest in AI Stocks to Profit from the Machine Intelligence Mega-trend - Nadeem_Walayat
Last 7 days
US Dollar Rallies Off Support But Is This A Top Or Bottom? - 19th June 19
Most Income Investors Are Picking Up Nickels in Front of a Steamroller - 19th June 19
Is the Stock Market’s Volatility About to Spike? - 19th June 19
Facebook's Libra Crypto currency vs Bitcoin: Five Key Differences - 19th June 19
Fed May Trigger Wild Swing In Stock Index and Precious Metals - 19th June 19
How Long Do Land Rover Discovery Sport Brake Pads Last? - 19th June 19
Gold Golden 'Moment of Truth' Is Upon Us: $1,400-Plus or Not? - 18th June 19
Exceptional Times for Gold Warrant Special Attention - 18th June 19
The Stock Market Has Gone Nowhere and Volume is Low. What’s Next - 18th June 19
Silver Long-Term Trend Analysis - 18th June 19
IBM - Watson Deep Learning - AI Stocks Investing - Video - 18th June 19
Investors are Confident, Bullish and Buying Stocks, but… - 18th June 19
Gold and Silver Reversals – Impossible Not to Notice - 18th June 19
S&P 500 Stuck at 2,900, Still No Clear Direction - 17th June 19
Is Boris set to be the next Conservation leader? - 17th June 19
Clock’s Ticking on Your Chance to Profit from the Yield Curve Inversion - 17th June 19
Stock Market Rally Faltering? - 17th June 19
Johnson Vs Gove Tory Leadership Contest Grudge Match Betfair Betting - 17th June 19
Nasdaq Stock Index Prediction System Is Telling Us A Very Different Story - 17th June 19
King Dollar Rides Higher Creating Pressures On Foreign Economies - 17th June 19
Land Rover Discovery Sport Tailgate Not Working Problems Fix (70) - 17th June 19
Stock Market Outlook: is the S&P today just like 2007 or 2016? - 17th June 19
US China War - Thucydides Trap and gold - 16th June 19
Gold Stocks Bull Upleg Mounting - 16th June 19
Gold Price Seasonal Trend Analysis - Video - 16th June 19
Fethiye Market Fruit, Veg, Spices and Turkish Delight Tourist Shopping - 16th June 19
US Dollar Gold Trend Analysis - 15th June 19
Gold Stocks “Launch” is in Line With Fundamentals - 15th June 19
The Rise of Silver and Major Economic Decline - 15th June 19
Fire Insurance Claims: What Are the Things a Fire Claim Adjuster Does? - 15th June 19
How To Find A Trustworthy Casino? - 15th June 19
Boris Johnson Vs Michael Gove Tory Leadership Grudge Match - Video - 14th June 19
Gold and Silver, Precious Metals: T-Minus 3 Seconds To Liftoff! - 14th June 19
Silver Investing Trend Analysis - Video - 14th June 19
The American Dream Is Alive and Well - in China - 14th June 19
Keeping the Online Gaming Industry in Line - 14th June 19
How Acquisitions Affect Global Stocks - 14th June 19
Please Don’t Buy the Dip in Nvidia or Other Chip Stocks - 14th June 19
A Big Thing in Investor Education is Explainer Videos - 14th June 19
IRAN - The Next American War - 13th June 19
Boris Johnson Vs Michael Gove Tory Leadership Grudge Match Contest - 13th June 19
Top Best VPN Services You Can Choose For Your iPhone - 13th June 19
Tory Leadership Contest Betting Markets Forecast - Betfair - 13th June 19
US Stock Market Setting Up A Pennant Formation - 13th June 19
Which Stocks Will Lead The Cannabis Rebound? - 13th June 19
The Privatization of US Indo-Pacific Vision - Project 2049, Armitage, Budget Ploys and Taiwan Nexus - 12th June 19
Gold Price Breaks to the Upside - 12th June 19
Top Publicly Traded Casino Company Stocks for 2019 - 12th June 19
Silver Investing Trend Analysis - 12th June 19
Why Blue-Chip Dividend Stocks Aren’t as Safe as You Think - 12th June 19
Technical Analysis Shows Aug/Sept Stock Market Top Pattern Should Form - 12th June 19
FTSE 100: A Top European Index - 12th June 19

Market Oracle FREE Newsletter

Gold Price Trend Forecast Summer 2019

Canadian Dollar is No Haven from a US Dollar Collapse

Currencies / Canadian $ Jun 01, 2011 - 06:46 AM GMT

By: Jeff_Berwick

Currencies

Best Financial Markets Analysis ArticleWe spend a lot of time here at The Dollar Vigilante chastising Ben Bernanke and the Federal Reserve and preparing our subscribers for a collapse of the US dollar - something which has been paying off very handsomely, with gold and silver at record highs this year - but don't take that to mean that we prefer any other fiat currency.  No fiat currency in the western world is any better than the US Dollar.  In fact, in every case, they are worse.


The Federal Reserve is still, despite its secrecy, one of the most transparent central banks in the world.  It also has, over the last century, despite inflating the dollar downward by 97%, been one of the least inflationary banks.

We often hear of people denounce the US dollar and correctly divine that it is headed to worthlessness, but, in the same breath, they say they own other fiat currencies like the Canadian dollar.

This is a case of ignorance of the workings of banks like the Bank of Canada - or virtually any other major central bank in the world, for that matter.

There are numerous reasons why the Canadian dollar will not survive a US dollar collapse:

  • The Canadian economy is very tied to the US economy
  • The Canadian Government is intent on devaluing the Canadian dollar alongside the US
  • The Bank of Canada has virtually no gold backing the Canadian dollar
  • All that does back the Canadian dollar is the US dollar and other fiat currencies
  • The Canadian dollar is not used globally

The Canadian Economy is Very Tied to the US Economy

We need only show one graphic to make this point:

It is obvious that if the US goes through a monetary collapse or even just a major depression, the Canadian economy will be hobbled significantly.

The Canadian Government is intent on devaluing the Canadian dollar alongside the US

The Canadian Government has made it painfully clear that they have no intention of allowing the Canadian dollar to rise much more than par with the US dollar.  The reason: lobby groups and voting blocks from export based industries will depose of any government which allows this to happen.

The Bank of Canada has virtually no gold backing the Canadian dollar

Since 1980, Canada has sold 99.5% of it gold.  Canada now has the 78th largest holding of gold of all countries.  Countries such as Bolivia, Bangladesh, Cambodia and Macedonia have more gold than does the Bank of Canada.

The Bank of Canada used to have 653 tonnes but today it only holds 3.4 tonnes.  To give a rough idea of what all of Canada's gold holdings look like, we created this rough estimate of what it would look like if Canadian Prime Minister, Stephen Harper, was standing beside it:

All that does back the Canadian dollar is the US dollar and other fiat currencies

If you believe that the US dollar is headed to zero then it makes no sense to own the Canadian dollar.  Practically all that backs the Canadian dollar is US dollars.

The Canadian dollar is not used globally

The Canadian dollar is not a true global currency.  There is only one, current, true global currency: the US dollar.  It is accepted on the streets of New Delhi, Phnom Penh, Buenos Aires, Moscow and practically everywhere.  Try bringing some Canadian monopoly money to Shanghai and try buying some street noodles.  You'll see how valid of a global currency the Canadian dollar is.  No soup for you!

Subscribe to TDV today (90 day moneyback guarantee) to access our Special Report on How to Own Gold as well as get complete access to our newsletter and portfolio selections.

The Dollar Vigilante is a free-market financial newsletter focused on covering all aspects of the ongoing financial collapse. The newsletter has news, information and analysis on investments for safety and for profit during the collapse including investments in gold, silver, energy and agriculture commodities and publicly traded stocks. As well, the newsletter covers other aspects including expatriation, both financially and physically and news and info on health, safety and other ways to survive the coming collapse of the US Dollar safely and comfortably. The Dollar Vigilante offers a free newsletter at DollarVigilante.com.

© 2011 Copyright Jeff Berwick - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

david smith
08 Jun 11, 14:26
canadian dollar

It doesn't take a genius to see that the Looney is manipulated. All you have to do is remember what happened about 4 years ago when the Canadian dollar went above par with the US dollar for the first time in decades. It got all the way to about $1.10 US. Then the Canadian manufacturers started screaming. They couldn't sell to the US, their biggest trade partner. What to do? Magically, the Looney went to within a couple of cents to par with the US$ and has stayed there ever since. Knowing how fast the US$ is being devalued, we know that the Can$ is being devalued just as fast. The same with the Euro. There's no stable measuring stick among the currencies.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules