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View Full Version : Canadian Dollar, Cons vs Lib years



RangeBob
08-23-2017, 10:43 PM
It looks like by next year the Liberals will have mired themselves in more economic debt, screwed up the negotiations with NAFTA and continued to make a disaster out of illegal immigration over our border.

A sneaky way to pay off debt is to lower the dollar, i.e. devalue the debt. If you have $600 billion in debt, and the dollar drops from $1 US to $0.7 US, that debt is effectively now only worth $420 US.
The lower dollar also increases exports (and export competitiveness), and employment in exports, increasing the tax base -- as long as the decline is slow and gradual and monotone decreasing.

Going the other way, if you raise the $ from $0.70 US to $0.80 US, and at the same time take out $30 billion in debt, then that debt actually becomes $35 billion, simply because of the change in the dollar.

http://www.rangebob.com/election2015/CanadianDollar_Conservative.png

http://www.rangebob.com/election2015/CanadianDollar_Liberal.png

Forbes/Hutton
08-23-2017, 11:01 PM
That's what Cretin/Martin did, dive the dollar to .62 (Jan 2002) to keep exports alive and manage the debt. Of course the price of imports meant that everyone actually paid for their shell game and subsidized the exporters for over a decade.

lone-wolf
08-23-2017, 11:26 PM
A sneaky way to pay off debt

pay off debt? What is this concept you speak of?

firemachine69
08-24-2017, 04:04 AM
pay off debt? What is this concept you speak of?



Something most Liberals will never aspire to in their lives...

tdod101
08-24-2017, 05:52 AM
So we're no different than the Chinese. Currency manipulation at its finest.

But if this concept were true, why not eliminate the national debt all together and we can achieve monetary sovereignty

firemachine69
08-24-2017, 06:07 AM
So we're no different than the Chinese. Currency manipulation at its finest.

But if this concept were true, why not eliminate the national debt all together and we can achieve monetary sovereignty


Economic suicide. Our GDP is over 70% cross-border trade.

GTW
08-24-2017, 07:30 PM
Ladies and gentlemen, if incurring debt and devaluation of your currency is the way to go, Greece should be a superpower.
Skippy and his minions don't care about the future, it's how much you and your friends can gorge yourself at the public trough until the voters catch on. Which will be unlikely because if all goes according to Lieberal plan, we'll all be half-baked and more concerned with satisfying the craving for munchies than debt or dollar.