“Canada’s Dollar imbalance with the U.S. is unacceptable,”
By which he means the Canadian dollar at around 70 cents US is too cheap.
Trump continues:
“It has been that way for years - but no longer!”
Oh yeah?
What's the economic genius gonna do about it?
Trump continues:
“It has been that way for years - but no longer!”
Oh yeah?
What's the economic genius gonna do about it?
Um, well, he could use America's currency reserves to buy Canadian dollars. That would raise the price of the Canadian dollar relative to the US dollar.
Thing is, what would Trump then do with the accumulated Canadian paper?
Hoard it?
Burn it?
Either way, that would be fine with Canadians.
It would mean despite all the stuff we're gonna buy with the American dollars Trump used to buy Canadian dollars, we wouldn't have to supply anything in return..
Alternatively,
Other than buying Canadian dollars to destroy them, there is no way to raise the price of the Canadian dollar relative to that of the US dollar other than for Americans to buy more Canadian stuff.
So what would Trump like Americans to buy more of?
The Canadian hydro-electricity that keeps the lights on in New York and of which more is soon to come on stream?
Canadian tar sands oil to add to the million barrels a day for which American refineries are specifically designed to process?
Canadian-built Bombardier executive jets, which already have half the US market?
Canadian potash in addition to the million tons a month the US currently buys of this fertilizer essential to the productivity of American farms?
Oh, and Canadians could help President Trump raise the value of the Candian dollar by spending less on American stuff: Gulfstream executive jets for example, Hawaian vacations or California wine.
What's not for Americans to like about that?
The fact is Trump is a whining economic illiterate.
The free, fair and international market in currencies says the Canadian dollar is fairly valued against the US dollar at whatever the price is that it trades at now.
The fine people of the United States deserve better of their national leadership than Trump's blatherskite ranting about the US of A being ripped off by sneaky Canucks.
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