I don't pretend to know a lot about economics. I never studied it in school. One thing to keep in mind is that the rise of Canadian dollar is against the USD not against the Euro or British Pound. All major curencies are gaining on the USD right now. We are not alone in this boat. The U.S. needs the low USD to help its own exporters win back much of the ground lost to other countries.

It also shows that Canadian exporters have for too long been too reliant on an easy access market called USA. Its like putting all your eggs in one basket. Do you put all your RRSP into one stock or one mutual fund? Sure our common language, close proximity, history all play a role but being too reliant on one country means you are at the mercy of their decisions that could really hurt you. Just look at Beef, lumber, wheat export to the U.S., they slap on the tariffs and we are up the creek because all our eggs are in one basket. If you are diversified in your export customers base, then you still have other sources to earn your income.

Right-wing think tanks have for years complained our low dollar contributes to the decline of our standard of living. A strong dollar will in the long run be better for this country. Our homegrown companies can now afford to buy some American companies and become stronger and more profitable. I think we are on the right road.

Back in 1988, the CAD was at $0.90 USD. How did our business compete back then?

Just my two cents.