World voting with its feet on the dollar

The American Thinker ^ | November 26, 2009 | Peter W. Dunn

[Scanian]

As an American living in Canada and a do-it-yourself (DIY) investor, I've decided to short the US dollar and to keep the majority of my holdings in Canada resource companies (oil and gas, gold mining). This is a play that has worked well so far. When the resource-heavy Canadian stock market felt serious pressure during the credit crisis I was able to pick up some bargains.

I am far from alone in this strategy. PetroChina's purchase of a $1.9 billion stake in Alberta's Athabasca Oil Sands Corp. and Korean National Oil Corp.'s plan to acquire outright Harvest Energy Trust for $4.1 billion are transactions which are bringing serious new money into the Canadian oil and gas sector, which is well on its way to recovery from its lows in March. China and other creditor nations have demonstrated a desire to diversify out of US dollar reserves and one way is through the acquisition of Canadian resources.

[x_plus_one]

The falling dollar is keeping manufacturing alive and well in America. In a global economy, it’s easy to take jobs away from Europe and Asia with the dollar so weak.

[darkside321]

The falling dollar is keeping manufacturing alive and well in America. In a global economy, it’s easy to take jobs away from Europe and Asia with the dollar so weak.

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well maybe from parts of europe but not from Asia. You would have to inflate the dollar “Zimbabwe like” first to beat them in manufacturing costs. btw. since the US imports a lot more than it exports i don´t think that a falling dollar is something good. (ok definitely good for me because this will put me on a shopping spree next week when i visit the US ;-)

[kingpins10]

Your statement is the most ignorant thing I have ever read on FR. There is no manufacturing in America anymore !

The dollar’s days are numbered. The main reason is our manufacturing is in Mexico and China now. And if cap and trade is passed, you will see a MASS exodus of food producers to Canada, Mexico, and even China to escape the higher energy costs.

[rbg81]

Funny, everytime I look, the trade deficit increases. Weak dollar or strong, it seems to make no difference.

[x_plus_one]

There is no manufacturing in America anymore !

Well tell that to my 500 manufacturing customers who are having a good year....

[kingpins10]

Further proof of your ignorance.

Go do some research on the percentage of America that has a manufacturing job compared to 1980. Talk is cheap.

[MSF BU]

I’m guessing Canadian Oil Trusts may turn out to be an excellent investment if you believe the oil price will rise and the dollar will decline.