Over the next few years, we are going to see an enormous increase in the money supply of the United States. Make no mistake, this will be extremely inflationary and all asset classes not directly tied to hard assets, will suffer as the US pays off its debts in reduced value US Dollars.
As a consequence, all other things being equal, we should see a continuing increase in the value of the Canadian Dollar, relative to the US Dollar, as will be true with all currencies closely tied to hard commodity based assets. This group will include, Canada, Australia, Russia, Brazil, China.
Though as a US citizen, it pains me to see such, I firmly believe this trend has been firmly put in place and ultimately, no amount of obfuscation or " jawboning " by the US monetary authorities will be able to change this reality. The only element capable of ameliorating this situation to any degree at all, will be a willingness on the part of the US to develop their own resources so as to participate in the increased valuation of such assets. This of course, will include petroleum, metals, and all other hard assets.
The days of an irresponsible US population and government are rapidly coming to an end. There will be much accompanying pain. Unfortunately, only a minority percentage of the mass US population, has any cognizance of the difficult times ahead!
Brian
