Soaring Loonie (NF)

[Zib]

You're right about being the highest debt ridden, however, I don't know about being the wealthiest. With the amount of debt/deficit they have, they wouldn't have the proverbial pot to whizz in if everyone collected on what they owe. On the other hand, maybe that's what they are trying to do, pay off their debts with "cheap" money. I'm glad books are in the green, I don't mind the present value of the loonie.

 

If the US collected all the debt owed to them they could pay off their own debt & then some.

[TennesseeGuy]

This began as a great thread until some posters started winging it by adding misinformation. Don't think I'll stick around for the silly stuff.

[Vanselena]

You're right about being the highest debt ridden, however, I don't know about being the wealthiest. With the amount of debt/deficit they have, they wouldn't have the proverbial pot to whizz in if everyone collected on what they owe. On the other hand, maybe that's what they are trying to do, pay off their debts with "cheap" money. I'm glad books are in the green, I don't mind the present value of the loonie.

 

You have a good point here, a cheaper $US means their debt is cheaper provided they previously made that hedge with Gold or some other currency. The other way they can have cheaper debt is through inflation. With high inflation the value of the dollar becomes less. One other way is for the US to simply print money to pay off their debt, since the US$ is no longer backed by gold and is supported by itself. Let the printing presses run at full steam, problem is that devalues the US$, kinda like a company increasing it's # of shares while the companies value stays the same, the shares are worth less.

[Roy]

Group Hug time....