I find it amazing to watch the media reaction, as though the dollar is a symbol of national pride. Beaming smiles from the newscasts, "a proud currency", our insecurity on full display, so desperate to be "on par" with the Americans. "How high can it go?", "Loonie on a roll", etc, etc. The dollar's rise is Canada's rise, we are as good as the Americans.
Reading between the lines, "ugly cousin" syndrome aside, I'm not quite as ecstatic about the abrupt rise of the loonie. In a rare move, it would appear Mr. Flaherty isn't all that proud either. The fact of the matter, stability is a pre-requisite for sound economics. The rapid rise has changed the dynamics so fast, that beleaguered industries can't adapt. The manufacturing sector is getting hammered, and no investment in new techonology or productivity can keep pace with a 16% rise in one year. Slow and steady, people can adapt, meteroic, a death sentence.
The illusion of lower prices on imported goods is a longer term reality. Today, I heard a retail representative say that prices wouldn't be lowered, because the price of rent and other fixed costs has increased, all the dollar has done is mitigate any increases- translation, a great time to gouge and maximize profits. Ditto for the auto industry, books.... The savings will not be passed on to the consumer, in the way first blush would suggest, at least not anytime soon.
You know who is ecstatic, downright delirious? American border towns. I can't even describe the shit kicking grin on the auto dealer's face today in Bellingham, Washington. I swear his eyes turned green, so kind he offered to fill out the border papers for the purchase. Take a stroll down to the border, watch the traffic flow, south in the morning, north at night- it tells a story.
I'm not saying the story is entirely negative, but I am decidedly miffed at the loonie hysteria, as though Team Canada is "soaring". The loonie isn't a muscular penis, that tells the world, look at us, pretty impressive isn't it? I just wish we could seperate our national insecurity from economic realities, because the balance sheet is a mixed bag.