CAD to drop as US economy rebounds

CAD to drop as US economy rebounds

ca.news.yahoo.com

OTTAWA - The high-flying loonie is likely to descend to the 90-cent-US level later this year and continue weakening into next year, says a new forecast from Canada\'s largest bank.

The Royal Bank research report predicts the Canadian economy will outperform that of its southern neighbour, but a U.S. recovery in the second half of 2008 and the curtailment of Federal Reserve interest rate cuts will strengthen the American dollar.

\"By the end of the year, we expect the loonie to average 90.9 US cents,\" says the report from RBC economist Craig Wright.

\"This depreciating trend will extend into 2009 with the currency dropping further to 87 US cents by the end of that year.\"

(visit the link for the full news article)

I am not sure about this, either the NWO is failing, the Amero is something they want to avoid or our dollar is starting to falter, however the lower it goes the more likely people from different countries will buy from us.

None the less I am unsure what to take of this.

ca.news.yahoo.com
(visit the link for the full news article)

LOL @ "as the U.S. economy rebounds"....When, in 2030? Sounds like a propeganda piece to me...How exactly is the economy going to rebound with gas prices sky-rocketing with no end in sight, and the inflation driving up the prices of EVERYTHING?

I am not sure hehe, but I know if we get forced to use the Amero, we will be forced into a bad currency that has a very bad exchange rate.

i'm wondering if the push to an amero is a ploy to say "oh, we owe the fed trillions of DOLLARS? sorry, we don't use DOLLARS anymore. =P"

i'm sure it's not that easy, but i can't help but wonder if i'm on to something with that line of thinking. anyway, i would be concerned about the CAD vs USD drop if the USD stays crappy. if the USD is merely rebounding, then it becomes a simple matter of comparison. for all we know the CAD vs other currency could still grow at that point, just not as fast as the USD. just because CAD vs USD isn't as good doesn't mean your money is losing value. i didn't read the article, but those are some initial thoughts.

[edit on 3-4-2008 by an0maly33]