This is the black swan event that is starting to look very real for the Canadian consumer.
If the Canadian dollar decisively breaks below US$0.70, technical traders could target significantly lower levels, potentially into the mid-to-high US$0.60s.
The Bank of Canada faces a difficult choice: raise rates to support the dollar and risk slowing an already weak economy(Stagflation), or tolerate a weaker dollar and accept higher imported inflation.
Years of weak productivity growth, persistent deficits, and policy uncertainty have all contributed to a weaker Canadian dollar. The result of 11 Years of policy failure and weak leadership.
There are winner, exporters of goods that sell in USD and pay wages in CDN. The wealthy that have most of their assets in USD. If you have debt in CDN and have offsets in USD, you win big.
The losers, and that is most of the population, meaning you.
It will be the person already struggling to get by, this will drive inflation.
This is the result of the govt spending.
This is important. A country's currency ultimately reflects investor confidence in its economy, fiscal discipline, productivity, and long-term policy direction.
A weaker Canadian dollar isn't just a number on a trading screen. It makes imported goods more expensive, fuels inflation, reduces purchasing power, and lowers Canadians' standard of living.
Currency markets are ultimately a vote of confidence in a country's economic direction.
The current polices are geared to benefit the few, and to hell with the masses, they are only good for votes.
South Korea just put its air defenses to the test against one of the fastest-growing threats on the battlefield: drone warfare.
During its first-ever live-fire exercise simulating a coordinated swarm attack, 50 drones flew in low from about a half mile away. Air defense crews shot down 44 with Vulcan guns, while a portable laser and shotguns took out the remaining six.
The drill comes as militaries around the world race to adapt to the growing use of coordinated drone attacks in modern warfare.
Hearing that the Florida Panthers are getting close to acquiring Brady Tkachuk from the Ottawa Senators.
I believe Ottawa will get three first-round picks and a second-round pick in the deal if finalized. More to come.