Did anyone notice a breathtaking unprecedented historical moment this weekend?
(HINT: How many Canadian dollars makes an American dollar?)
Take a look below the fold...
The US dollar is now equal to the Canadian dollar. First time ever, so far as I know.
Why is this happening? I'm sure bonddad will chime in shortly, but in advance of his excellent commentary, I'll just mention that when you cut interest rates, you make your bonds less valuable. So fewer people want to buy US bonds. And the dollar falls.
Why should you care (besides the fact imports become more expensive)? Because this administration is asking $200 billion more for a war that has no end, and we're going to continue to plunge further and faster into an unsupportable debt.
End this war now. It's the first step to making sure the coming recession won't cut so deeply.
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EDIT: Apparently, November 1976 it happened, too. Anyone know what things were like then?
EDIT II: My sense of history is obviously incomplete. That said, I'm referring only to the period of floating exchange rates, i.e. 1973 on. Parity did exist for some time under the fixed rates of the 50s and 60s, but that diminishes those rates power as indicators of economic status.