Some in Canada aren’t too happy with Ben Bernanke:
He just declared war on your job, and the whole Canadian economy.
Of course, so did the European Central Bank, the central bank of the Peoples’ Republic of China and others.
All of them are engaged in the same practice. They’re printing money. Gobs of it, in programs that have no end point.
Some are doing it to apply stimulus to revive their economies. Some are doing it to play extend-and-pretend games to hold their banks together.
For a country like Canada, with an economy in reasonably good shape, a government that’s not out of control, banks that are healthy and dependent on exports, it’s a declaration of war.
The game everyone else is playing is “beggar thy neighbour.” All this excess cash, whatever its stated purpose, is designed to bring their currencies down.
Like a see-saw, as they push their currency down the honest Canadian currency goes up. That’s why the Canadian dollar is worth so much more lately relative to the U.S. dollar and the other world currencies. It’s a measure of their weakness more than it’s a measure of our strength, but it doesn’t matter. It kills our exports just the same.
Must be more of that “smart diplomacy.”