Two third of Canadian economy is tied to US, 85% of Canadian exports are going to the state. An extremely weak dollar will not be the interest of Canada. So Amero is definitely on table, A commodity backed Amero or even dollar is also a possibility when the international community loses confidence on paper. Remember country like China has a trillion of foreign reserve ( 70% - dollar ) , and they would not be very happy to trade with another worthless version of paper money should the worst happen.
China should 'pick right time' and buy gold, government economist says | Gold Anti-Trust Action Committee Quote:
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BEIJING -- China should buy more gold at the right time as part of a strategy for diversifying its $1 trillion in foreign exchange reserves, a prominent government economist said in remarks published on Wednesday.
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China expected to buy gold and platinum but wait for lower copper prices - International Herald Tribune Quote:
Of China's $1.3 trillion (€900 billion) in cash reserves, nearly 65 percent is in U.S. Treasurys and only 1.6 percent is in physical gold, said Bill Reynolds, investment adviser and commodity specialist with Wellington West Capital.
"This past year — rightfully so — their belief that the U.S. dollar was and will continue to devalue ... has had the Chinese government and others continuing to purchase gold," Reynolds wrote in an e-mail. "This, along with a more liberal Chinese government, which has allowed the citizens to now purchase more luxuries, such as jewelry."
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The Worldwide Crack Up Boom, According to Ludwig Von Mises Ludwig von Mises Institute - Homepage
The following is a possible outcome (the worst of all) beside the hyperdeflationary depression due to continuous weakening of dollars/paper money and rising commodity price around the world. Anyone involves in construction/ manufacturing knows that the surging of steel price has hurt the business ( including ours )
Quote:
What is a "Crack-Up Boom?" Von Mises explains (with thanks to Ty Andros for reminding us):
"'This first stage of the inflationary process may last for many years. While it lasts, the prices of many goods and services are not yet adjusted to the altered money relation. There are still people in the country who have not yet become aware of the fact that they are confronted with a price revolution which will finally result in a considerable rise of all prices, although the extent of this rise will not be the same in the various commodities and services. These people still believe that prices one day will drop. Waiting for this day, they restrict their purchases and concomitantly increase their cash holdings. As long as such ideas are still held by public opinion, it is not yet too late for the government to abandon its inflationary policy.'
"But then, finally, the masses wake up. They become suddenly aware of the fact that inflation is a deliberate policy and will go on endlessly. A breakdown occurs. The crack-up boom appears. Everybody is anxious to swap his money against 'real' goods, no matter whether he needs them or not, no matter how much money he has to pay for them. Within a very short time, within a few weeks or even days, the things which were used as money are no longer used as media of exchange. They become scrap paper. Nobody wants to give away anything against them. |