So the USA is doing bad? How exactly? Real estate, sure after a long period of explosive growth. How about the fact that to date US GDP growth outpaces Canada and the EU? Stock markets are near all time highs? US economic growth has outpaced both for 12 of the past 13 years? US unemployment is lower than both and has been for 20 years? Growth is wages??? Much higher. That our budget deficit, 1.2% while financing two wars, is much lower than the EU? That our inflation is lower than both? Taxes are considerably lower etc.. etc.. that our workers enjoy about 25% to 30% more wealth then workers in Canada and the EU? Canada has a LONG, LONG way to go. Huge. The EU, in most ways longer…. unless you strive to earn 60K euro a year max with that wonderful social safty net.

Ever stop to think why China refuses to allow its currency to STRENGTHEN againsts trading partners????

Over 30% of the value of the Canadian stock exchange is derived from energy companies. 1/3 of the entire index! Take a look at the correlation between the price of oil and the Canadian dollar over the past 4 years.

Nothing new is coming from Canada. Canadian industry isnt so ultra competitive that its taking over North America. Canada sells lots of oil… coal… gold… silver… and timber… each is priced in USD and they have all shot up over the past 3-4 years thus considerably more USD sold (world-wide) and a lot more CAD being purchased. More demand for it thus the CAD goes up and the additional revenue derived from the oil industry has helped balance the budget (just like in Russia). Congrats on all the oil.

The rate of exchange at these levels is KILLING Canadian manufacturing… and Euro exports too. Ever think why the economy with the most wealth hasnt done a thing to support its currency? Perhaps because at this time its VERY beneficial to have a weaker USD. The fact that you can all drive about 100 miles to buy the SAME products for 25-30% less is just another bonus for US retail and those local economies (no insane GST in the US).

I have always liked Canada and I still do. But this country suffers from the worlds largest inferiority complex! I’ve lived in Europe and I thought that it was bad there but Canada truly takes the cake. 95% of everyone in Canada lives 100 miles from the border, so i understand why the exchange rate is such a visible thing here but this jumping around as if you have overtaken America economically just makes you sound WAY out of touch.

Compared to America the Canadian economy is tiny (not even 10%) and most importantly the Canadian economy is completely coupled to America. We grow… Canada grows. We dont, ya dont.

Canada = about $1.2 trillion economy with about 32 million people.

USA = about $13.2 trillion economy with about 305 million people.

Canada couldnt even compete with California if thats what was really going on today, to suggest that “the Canadian dollar is strong because Canada is so strong and America is so weak” demonstrates a complete lack of even a fundamental understanding of the current situation. 85% of everything Canada exports is sold in America, so hmmmm… wouldnt it stand to reason that so goes America so goes Canada?

Have a look at all the manufacturing jobs lost in Ontario since you all began cheering for the mighty Loonie. Unemployment is down nationally thanks to the oil patch but things arent so great beyond that. If/when the US does go into recession (yes economies are still cyclical… hear that Europe and Canada) and the loonie hits $1.25 everyone will hear a huge, drunken roar north of the border…. and when the hangover fades everyone who makes a living manufacturing anything sans a blackberry shall be looking for work (btw - my iPhone makes my Pearl look and fee like a 80s cell phone). Woo hoo for mighty Canada!! The middle east of North America… and what comes from there beside oil? Not much. Got some strong currencies though.

About your spending power issue:

If you get paid in USD…. figure out a hedge. Very easy to do. A company like this offer a suitable product:

http://www.xe.com/fx/

You can lock in at the current rate of exchange for 12 months and drawn down against the contract at any rate you choose. If the currency begins to trend against your position… sell and deliver the contract amount.

As far as moving to the US. By all means…. all of you please stay where you are if you are so inclined. Just a hunch but I believe we’ll somehow survive.

The only reason why the world is dealing with this problem I can think of is a certain person *cough bush cough*, but other then that America ain’t in thát much trouble is it? I have to admit that I haven’t been following the news that well lately… freelance jobs take a crazy amount of my time at the moment

And let me be one of the first to say, “don’t move to the USA!!!”