I have to disagree with your first point. Exchange rate is affected by a variety of factors but the most applicable are 1. interest rates, 2. National economic performance and 3. Inflation including economic outlook. the point I was making was that In order to keep the exchange rate low the Bank of Canada uses interest rates to keep the value of the Canadian dollar low in comparison to the USD. This is how we keep the exchange rate low. We are using factors within our control to manipulate our exchange rate to promote the greater trade potential that a lower Canadian dollar has with our greatest trading partner.The CAD is low because the economy is weak and stimulus must be injected. The only country that intentionally devalues their currency is China, but they can afford to do it. Many Americans approve and support Trump’s actions. There are no friends in business and this is business. Canada places tariffs on the US and hopefully soon it will become reciprocated. I seriously doubt many Americans will lose sleep if Canada is placed in a recession. Actually many Americans are offended that Canada is subsidized by the US. This is tit for tat, Canadians are not use to paying their fair share, which is the reason most up North are angry. Dear god, at least pay for NATO…..actually I think NATO is obsolete, but 1.3% is embarrassing. I know the war machine, which I agree to a point, but do your part and quit complaining about Trump and Russia. If Canada cared, they would pay to support NATO, but they live in the shadow of the American taxpayer. Pride will not put food on the table and an equal partner would support a common cause. I want lower taxes, you are fine with paying for those that do not pay for themselves and accept taxes for the good of mankind. We are obviously different, but that doesn’t mean we should attack each other. I was born in Ontario and still own property in Calgary. I made my money via capitalism, not socialism. My brother is a socialist head to toe and still struggles in Ottawa. Currently Canada survives on immigration, but in the long run, those immigrants will cost you even more taxes. You probably buy into the climate scam. To each their own.
Yes economic performance is a factor, but I would point out that by many metrics the USA is in worse shape than Canada. The debt to GDP ratio for Canada is roughly 70% (2024) whereas the USA is 124% (2024).. in your comparison of someone spending outside their budget it would appear that Canada is actually within budget whereas the USA overspent by 24%. The USA is doing better than us in terms of unemployment, USA around 4% and Canada just under 7%, On the other hand inflation in Canada is 1.8% (2024) with the USA at 2.9%.. the cost of living in the USA is a serious issue (one that Trump campaigned on) and Trump's actions by starting this trade war are going to make things much worse in terms of inflation at least, and likely in the unemployment rate as well... especially since he's engaged in mass layoffs of the Federal workforce.
The biggest factor impacting the Canadian dollar exchange rate is the economic uncertainty posed by Trump's actions in starting this trade war. Incidentally this trade war will have a similar affect in the USA as it does in Canada.. So, in conclusion, those in glass houses shouldn't throw stones. To complete the comparison, our house is much smaller and has less windows, we are going to have a higher percentage of our windows broken because we have overall less windows, but the USA is going to suffer as well especially since Trump is smashing the windows in his own hose and encouraging others to small the USA's windows as well.
Yes many Americans approve and support Trump's actions. Please admit that many Americans disapprove and are actively working against Trump's actions. In rational discourse you need to acknowledge the truth of the points made, or disprove them. Simply restating your own talking points or saying the opposite of what I'm saying doesn't negate the points I'm making. Trump is opposed by a significant portion of Americans. Yes he is also supported by a significant portion of Americans.. but you can't ignore the fact that his popularity is hardly universal.
Tariffs between Canada and the USA are already reciprocal. We've always had reciprocal tariffs. The trade agreements we sign are largely designed to remove those barriers and improve globalization of trade. Again.. I have no disagreement with tariffs.. my disagreement is with illegal tariffs. The Trump talking point that "Canada is subsidized by the USA" is simply untrue. You need to stop believing everything Trump says - the man over simplifies everything and blatantly lies whenever it suits his purposes. Using this as a stick to beat us over the head trying to make out that Canada has somehow been taking advantage of our oh so generous southern neighbours is ridiculous. Yes Canada gains advantage from our relationship with the USA, but the USA also gains advantage from their relationship with Canada. Do you really believe that the trade partner in this relationship with the greater economic might (USA) hasn't been using that strength to ensure that they get the better of every single trade deal that we've ever made? Do you really think that Americans are that stupid?
If you believe Trump the last trade agreement signed by USA, Canada and Mexico was the best trade agreement ever !!. until he needed it not to be.. now he says that only a moron would have signed that agreement. And just because he's right and a moron (Trump) signed it, doesn't mean he's right again. After all you shouldn't trust the incompetent moron that signed it in the first place.
You and I seem to agree on NATO. But that doesn't mean that I would be in favour of overtly supporting a dictatorship. I must point out that there is a huge difference between opposing a dictatorship in nominal fashion where the impact to our own country is also nominal, and openly espousing the talking points and validity of the reprehensible actions a dictatorship has undertaken (which Trump is doing).
I happen to believe that properly controlled and undertaken immigration is an excellent economic driver. I'm sure that you can come up with examples of negative effects from immigration which are quite real.. but so are the factual positive effects. We'll just have to disagree on this one, after all, you're an immigrant so they can't all be bad can they?
If in referring to "the climate scam", you mean do I believe in the scientifically proven effects of greenhouse gases?,.. then yes, I believe in climate change. I do believe that not all of the projected effects are as straightforward as some espouse, but I do believe in these effects. I don't believe in the alternate facts that if I simply say things aren't real they won't be. I am a firm believer in telling the truth no matter how unpleasant. Climate change is real. Disagree on the outcome, disagree on the severity, disagree on what we should do about it.. but don't pretend it isn't real, that's just ignorance.
GJ