Canada's Trifecta Win: Dollar, Stocks, Commodities

World: step aside for Canada.

Commodities, the Canadian dollar and Toronto Stock Exchange are headed onward and upward despite the world economy appearing to be only halfway through this Great Recession.
The U.S. is undertaking a managed devaluation of its currency to overcome the damage caused by the decades of managed devaluations undertaken by China and other Asian export nations.
But also important to note is a little known fact which was highlighted yesterday at a prestigious luncheon gathering on behalf of the Israel Cancer Research Fund in Toronto.
"Commodity prices have bottomed at their peak prices," pointed out David Rosenberg, Chief Economist and Strategist at money manager Gluskin Sheff Associates Inc.

Commodities didn't fall in price, they overshot and returned to earth. This is very significant. The fact that commodity prices have never retreated, except from a short period of excessive heights during part of 2008, means a higher Canadian dollar because two-thirds of the upside in the Canuck Buck is pegged to commodity prices.

Read more at Diane's blog

Comments

[blogisti]

Yeah, Canada is on the way to either high inflation or an 'echo crash'. An echo crash would occur when America finally falls to its knees because after this temporary modest rise in fortune. Canada depends on American consumption. America is in for another dive and will bring Canada with it.
Diane is just giddy because she has her Conservative Government in Ottawa. But Harper will dismantle Canada and hand it to the top 1% just like Bush did. He just has to get re-elected before the next crash.

[ventingcrone]

"will dismantle Canada" ??
that has been going on for years.

[lightningbolt]

This completely disproves the right wing myth that single payer will destroy the economy.