From Dollarette to Parity
The stock markets closed Friday afternoon with the loonie at an all-time high.The dollar was up 0.21 of a cent, at 97.04 cents US, from Thursday’s close. ctv
We are very close to parity with the US dollar and any number of chin-pullers are being written about what this portends for the glorious Canadian economy.
Part of the reason are energy prices, another part are interest rates and the wobbliness of sub-prime credit. But mainly it is the knock on effect of governments, Liberal and Conservative, deciding that government spending deficits are unacceptable and taxation is a bane to be reduced not increased.
This is not yet fiscal conservatism; rather it is a bi-partisan rejection of tax and spend. It is not enough yet. And it won’t be until Finance drops the idiocy of referencing program spending to GDP and begins to actually limit, if not reduce, spending. But the reality seems to be that Canada’s fiscal house is in order.
One of the tasks in the next election will be to vote against any party which is unwilling to commit to keeping it that way.
Written by jay on September 15th, 2007 with
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