Carney wants to follow $US down

[danmand]

Here is a quote from Carney:

"Governor Mark Carney spells it out: If international investors continue to push the loonie higher, the bank will intervene. If the currency continues to surge, Mr. Carney stressed that he retains “considerable flexibility” to stoke the demand required to get inflation back to the 2-per-cent target. His options would include creating money to buy U.S.-dollar denominated assets or direct intervention in foreign exchange markets." Analysts now opine that "the odds of currency intervention within the next year are higher than a rate hike.”

It appears he wants to follow the example of the US in running the
money presses in overtime to follow the $US down the drain.

 

[Malibook]

There are degrees to quantitative easing.
It isn't just a choice of off or on full blast endlessly into the drain.
Plus there is a big difference between having a soaring currency and choosing to do a little and having a collapsing currency and needing to do a lot.

 

[toguy5252]

The surging dollar is hampering the growth in the Canadian economy. he is simply stating the obvious. This is an exercise in prudence by a central banker. It has nothing at all to do with following the greenback down the drain. That is absurd.

 

[danmand]

The surging dollar is hampering the growth in the Canadian economy. he is simply stating the obvious. This is an exercise in prudence by a central banker. It has nothing at all to do with following the greenback down the drain. That is absurd.

To print lots of $Can in order to buy $US is absurd.

I never understood, as a not-so-recent immigrant to Canada, why Canada does
not enter into a currency block with the US, or adopts the $US as currency.
Canada follows the US in steplock anyway.

 

[toguy5252]

To print lots of $Can in order to buy $US is absurd.

I never understood, as a not-so-recent immigrant to Canada, why Canada does
not enter into a currency block with the US, or adopts the $US as currency.
Canada follows the US in steplock anyway.

Canada certainly does not follow American monetary or fiscal policy in lockstep. We maintain our own currency and monetary and fiscal policies as a matter of sovereignty. Although our interests are somewhat aligned because of the huge trading relationship our policies and aspirations are quite different.

 

[danmand]

Canada certainly does not follow American monetary or fiscal policy in lockstep. We maintain our own currency and monetary and fiscal policies as a matter of sovereignty. Although our interests are somewhat aligned because of the huge trading relationship our policies and aspirations are quite different.

Buying large amounts of a currence on the way down is absurd.

Reminds me of Gordon Brown selling all the UK's gold at $250. Then again,
they made him prime minister.

 

[toguy5252]

Buying large amounts of a currence on the way down is absurd.

Reminds me of Gordon Brown selling all the UK's gold at $250. Then again,
they made him prime minister.

There is merit in trying to maintain stability in our currency at levels that do not interfere with the recovery that now appears to be underway. Hard to understand how anyone could be critical of such a policy.

 

[danmand]

There is merit in trying to maintain stability in our currency at levels that do not interfere with the recovery that now appears to be underway. Hard to understand how anyone could be critical of such a policy.

If it was real stability, I would agree. And I would agree, if it was done by
lowering interest rates, which unfortunately is no more available as a tool.

The problem is that the $US is unstable, so hitching to it will not give stability.

 

[Malibook]

Buying large amounts of a currence on the way down is absurd.

With the trillions that trade daily on the forex currency markets, any US$ buying by the Canadian government would be a drop in the bucket with no significant lasting effect.

Quantitative easing can also mean printing money to buy your own debt and diluting the currency.

 

[danmand]

With the trillions that trade daily on the forex currency markets, any US$ buying by the Canadian government would be a drop in the bucket with no lasting effect.

It will have no effect on the $US, but it will effect the $CAn.

 

[Malibook]

It will have no effect on the $US, but it will effect the $CAn.

It would be temporary and negligible.

 

[toguy5252]

It will have no effect on the $US, but it will effect the $CAn.

You are not understanding what Carney is saying or doing.

 

[danmand]

You are not understanding what Carney is saying or doing.

I am too. He wants at all cost to avoid the $US go over parity with the $US.
And he might be correct in that Canada has no other option. However,
that means big trouble if the $US collapses further.

 

[bambam123]

Here is a quote from Carney:

"Governor Mark Carney spells it out: If international investors continue to push the loonie higher, the bank will intervene. If the currency continues to surge, Mr. Carney stressed that he retains “considerable flexibility” to stoke the demand required to get inflation back to the 2-per-cent target. His options would include creating money to buy U.S.-dollar denominated assets or direct intervention in foreign exchange markets." Analysts now opine that "the odds of currency intervention within the next year are higher than a rate hike.”

It appears he wants to follow the example of the US in running the
money presses in overtime to follow the $US down the drain.

yeh, fucking idiot !!!!!!!

im gonna be changing my money soon to swiss francs.....and i suggest everybody else do the same

 

[toguy5252]

It is incredible how many armchair economists know better than Carney who is widely considered to be one of the top central bankers in the world but also has access to all kinds of data and econometric models which I am guessing are not available on Terb.

 

[toguy5252]

If you had access to the data and models that Carney does you would not be making the silly statements you do.

 

[danmand]

If you had access to the data and models that Carney does you would not be making the silly statements you do.

You are entitled to your opinions, I am entitled to mine. There is no need for
personal attacks.

 

[toguy5252]

You are entitled to your opinions, I am entitled to mine. There is no need for
personal attacks.

Not a personal attack. just an observation. I know that you do not have access to the data etc as Carney by your comments. Did not mean to offend and I am sorry if i did.

 

[danmand]

Not a personal attack. just an observation. I know that you do not have access to the data etc as Carney by your comments. Did not mean to offend and I am sorry if i did.

I forgive you

But really, my comments are not silly; they are just made from a completely different
point of reference than what mr. Carney (must) occupy. In other words, he is doing
what he must do, according to the data and his models.

What I am saying is, that hitching the $CAN to the $US, when the $US is
in danger of disintegrating, may be opportunistic for Canada in the short term,
but may be very painful in the long term. Canada should in my view develop
other export partners than the US.

 

[bambam123]

It is incredible how many armchair economists know better than Carney who is widely considered to be one of the top central bankers

central bankers are fucking jackoffs, they are the 1 and the ONLY reason why economies go thru boom and bust cycles

why is it that THEY ARE allowed to print money whenever they want, but i cant jam some paper in my color deskjet and print me some cash ?????? WTF ???? that is the biggest fucking ponzi scam ever created !!!! and stupid people fell for this shit, just like they fell for the bullshit about the baloone boy last week!!!