I heard/read somewhere last week that a couple of major bank economists are forecasting a rate of USD 0.83-0.85 by end of next year or something in that frame. The current level was forecasted some 4 years ago but took about 2-3 years to materialise. Apparently high energy prices as well as inflation differentials will drive the loonie up.
So long as the world continues to value things in terms of the $US dollar, the United States has virtually an unlimited line of credit & can support its deficits by borrowing more & more.
True, but a lot of those foresighted enough know this will eventually come to an end. Their timing may all be wrong and it may not even occur in any of our lifetimes but when it does come to and end, it will come very suddenly and dramatically. A
classic book by a certain
Edward Gibbon may become relevant and contemporary reading soon.
Some who chart gold and oil prices noted that oil and gold appreciated at approximately the same rate and at the same time as the Euro against the USD. Some sign of pricing in other currencies?