Canadian Dollar
The Canadian dollar is up which hurts my American holdings. I don’t even want to calculate the loss when translated into Canadian dollars. My real money also comes from American dollars and thus that really sucks. Canada’s dollar is riding two separate waves. One is that our good government in the recent past while as corrupt as can be did pay off a huge amount of Canada’s debt. The present government doesn’t seem to be racking up any new debt so our currency seems sound. The second wave is that Alberta has buckets of oil and doesn’t seem to care about making a mess while getting it out. This is eating every other resource that Canada has while piling the money mostly from the US directly back into Canada. Then due to various incentives people reinvest the money back into Canada.
So how does this affect me and my Virtual 10 mil? Well this boom just like every other boom will end. This boom blows every other boom clean out of the water so will the crash blow every other clean out of the water. I suspect that the crash will mostly blast Alberta leaving it with a huge mess, an expensive infrastructure to run and nothing to show for years of money. Norway has the same thing happening there except they are making sure that the money piling in doesn’t destroy the country and also secures their future. Not here. When this money ends the party is over. So what does that do to the economy? I don’t really know. This is a question that will be interesting. Personally I live at nearly the opposite end of the country from Alberta so I don’t get a great read on this. I suspect that one must look to history and see what happens when such a huge boom industry goes bust in other countries.
The US had a recent bust but it is combined with a US debt that is stunning.
This must be researched. Where best to put the virtual money when Alberta tanks? Europe? Asia? US?