American Debt

[marcinmoka]

In stark contrast to Jarislawski,

Don't peg loonie to greenback, incoming Bank governor says

Since the dollar has been so volatile lately, "it is not surprising that some have called for Canada to fix its currency to the U.S. dollar," he said in an opening statement. "In my opinion, it would be a mistake to do so."

The Globe & Mail

[August1991]

Debt is going up all over the place.

Huh? Who are we borrowing from, Martians?

If debt is going up then other people must be lending (ie. saving). For every person who borrows in this world, there must be someone else who lends - unless we can borrow from UFOs.

Now then, is it bad to borrow? Not at all. If you are young and have life before you, then it's a good idea to borrow, invest wisely in yourself (buy a house, find a good honest mate and get a good education) and increase your earning potential. You'll pay off your debt easily with a higher income. And how will you pay off your debt? You'll pay for your children's education, help them to buy a house and give them good guidance in the choice of a mate.

At any given moment, a society as a whole is in debt because many of its members are in debt. I consider debt to be a signal of one's confidence in others in society. A society without debt is a society without trust.

Edited December 9, 2007 by August1991

[August1991]

Stephen Jarislowsky, money manager and investor of Globe&Mail newspaper is talking to Canadian parliamentay committees to change to the Amero so North America can compete against the Euro.

Canada has always taken a contrary position wrt currency policy. Canada was late to join Bretton Woods and it was first to leave Bretton Woods. When the IMF system collapsed in August 1971 and Europe sought its own way to return to a fixed currency regime, Canada had already broken free of the US dollar.

An iconoclastic Canadian dollar is part of our history. Indeed, a Canadian-born economist won a Noble Prize for his theories - now standard fare in macro textbooks - about open macroeconomics. He developed the basic economic theory of fixed and floating exchange rates, current account and capital flows, that were welded onto the Keynesian model.

Sadly, most Canadians don't know or understand this and I suspect no poster here knows the name of the Nobel Prize winning Canadian economist. French Canada knows itself and I like to think that French Canada knows its history.

English Canada doesn't know its history and it doesn't know itself. The Liberal/CBC version is too bureaucratic. That's sad.

[jdobbin]

An iconoclastic Canadian dollar is part of our history. Indeed, a Canadian-born economist won a Noble Prize for his theories - now standard fare in macro textbooks - about open macroeconomics. He developed the basic economic theory of fixed and floating exchange rates, current account and capital flows, that were welded onto the Keynesian model.

If you are referring to Robert Mundell, I think you will probably see the flat tax proposal he made used by the Liberals in the next election. His work already affected Canada in that this country became a hawk on fiscal and balance of payments. It is this discipline that allowed Canada to eventually see the dollar rise to where it is. The right in the U.S. has been Mundell's harshest critics in terms of these deficits.

Edited December 9, 2007 by jdobbin

[August1991]

If you are referring to Robert Mundell...

Cudos to you Dobbin for knowing him. Most (English-)Canadians don't.

More relevant, IMV, is how only a Canadian could develop such a theory. To our benefit, we have our own currency despite trading mostly with a country using another currency. Remarkable? Well Finland traded with the Soviet Union.

Among economists, Robert Mundell is mostly famous because he posed the question of "optimal currency areas". It's a good question.

The right in the U.S. has been Mundell's harshest critics in terms of these deficits.

Like many smart people, Mundell spouts nonsense later in life. For example, Mundell is now a gold freak.

It happens.

Edited December 9, 2007 by August1991

[jdobbin]

Cudos to you Dobbin for knowing him. Most Canadians don't.

More relevant, IMV, is how only a Canadian could develop such a theory.

I would like it very much if he advised the government on tax policy. Flaherty seems to be making it up as he goes along.

[Topaz]

Last night or this morning, I was listening to Geo. Noory and he had on a minister who worked in Alaska in the 1970's who had seen a a document of the oil companies. He found that there's enough oil in Alaska alone to last at least 200 years. That the oil companies have planned and scammed the public for years. He also said America shouldn't be paying anymore then $.1.50 for gas, that the Iraqi war was nothing more than about oil which I think we all that about now. That the only thing the big oil companies are afraid of is the masses of the public getting angry with them. He also talked about the US $ which is about to go under. That Bush won't invade Iran, even though Cheney lives and breathes it. Russia and China has told the US you touch Iran, you fight us too. China gets almost of their oil from Iran. China also could pull the string and the US $$ is gone, worthless. The interest alone on the debt that Bush has created is 9 BILLION and they keep making money to pay for it. Whoever is the next president will not be able to stop the damage that Bush has done but there again that is part of the plan to merger the 3 countries together as the North America Union like it or not.