CIBC Sees Canadian Dollar Falling to 15-Year Lows on Weak Exports | General financial discussion | Discussion forum

Of course they say the dollar needs to fall. There isn’t anything left to spur the economy. Consumers, corporations, businesses, governments are all tapped out and loaded with debt from an extremely long period of super low interest rates.

At this point in a growth cycle, companies generally invest money to expand, upgrade and hire workers to create better efficiency of production. But the money for expansion was spent on stock buybacks and dividend increases. And hiring more workers is super hard in this 40 year low unemployment condition.

The only thing left is for a low currency to make our exports more desirable.

If the global economies don’t get their acts together, the ultimate enemy will be deflation, which comes after the initial fallout. And the downward spiral of dealth, from deflation, will create global economic devastation.

Personal gains have led economies to abandon the 2 centuries old concept of comparative advantage and opportunity cost. The return to proven sound economics is what’s needed.