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The Loonie Stabilizes? What do You Think?

Day 730, 11:19 • Published in Canada Canada

• by Wilhelm Gunter

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It may well be too small of a window to know for sure how long it will last, but the last 2 days has seen the Loonie stabilize at .033 gold/CAD (1 gold = 30.30 CAD).

This newspaper believe this is because the William Duncan government has put almost $18000 CAD on the market at this price. With this sheer volume of CAD offered, it should prevent much movement one way or the other. This is because no one is likely to buy a CAD for more than this price, and anyone who offers less than this is going to see their offer snapped up so quickly that the predominate offer will still be the one offered by the Royal Canadian Mint (not to mention the seller would be losing money at the cheaper selling price).

So while we here at the The McGee Herald say "Kudos" to the Duncan government for preventing the Dollar from rising any further, the government could easily bring down the price of a CAD by lowering their price. Other offers would have to follow suit, or suffer the consequence of being ignored.

So reader, what would you like to see happen? A higher or lower CAD and why?

Comments

Banach Day 730, 11:29

I want to see 40 CAD-1 GOLD.

Chuckleton Management Services Day 730, 11:34

I am pleased to see this (even if short lived) stabalization. Now if we could just get congress to raise import taxes and keep them high 😉

Spencer Magee Day 730, 11:35

Use to be 35 CAD-1GOLD 😑

Jayson V Day 730, 12:21

Stabilization is nice, but I would like to have seen the value set somewhere between the former 35 CAD - 1 Gold and the amount Banach is suggesting. I certainly see why it is in the government's best interest to set the value where it is, I am just not sure if it is in everyone elses best interest ...

Duke Leto Day 730, 12:33

But I like Gold being so cheap. I then can help stimulate the economy by selling gifts to the people 😮

Jayson V Day 730, 13:54

I would buy more products if I could exchange my gold for more dollars. For now I am going to hang on to my gold 😉

Citizen B Day 731, 12:08

I want to see the CAD value per gold to be the best possible for Canada. Not some randomely picked number, like 30.

Citizen B

Wilhelm Gunter Day 731, 12:53

so, how does one determine what is the best possible? 🙂

Citizen B Day 733, 12:45

"so, how does one determine what is the best possible?"

The only real way to do so, and include all of the intangible effets, is by testing various price points and evaluating the effects over a suitable period of time. By setting different points, graphs can be built of tax revenues, salaries, pricing, trade surplus, etc. Each of these graphs will have a maximum point which evaluated collectively will be the best rate for all of Canada. Right now, we have a dot on each of these graphs, and nothing to go on in terms of real evidence.

Spreadsheets can be created until we are blue in the face, but none of them (besides the point we are at right now), will end up being realistic. The more evidence collected, the more it will point to where our dollar should be for the maximum benefit to all of Canada.

Citizen B

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