American Dollar
American Dollar Being Chased By The Canadian
The American dollar has always had the upper hand against the Canadian. The economy in America has seen massive growth over the last 20 years, and although Canada hasn’t been doing too badly either, they have never been able to emulate the strength of their southern cousins. However, as people going on Canada holidays may have noticed recently, with the recession in full flow, Canadian money in closing the gap and their economy looks to be more stable than in the States.
This is largely due to two factors. To start with, America’s spending habits have long been a little less modest that Canada’s. Avoiding too much technical talk, American people and the country as a whole have borrowed a great deal more money than Canada has done. This initially helped the economy grow somewhat, but has meant that as banks themselves struggle for credit, lots of people are finding themselves in trouble and unable to meet the payback demands from banks. This has caused quite a large drop in the power of the dollar.
Secondly, the GNP of America is heavily reliant on the oil and industry sectors. In fact these two areas alone contribute to around a third of all national product, which is a bit of a blow when you consider they have been hit hardest in the recent recession. There is simply less demand for industry products at the moment and as the oil markets become more and more competitive, they are being flooded by cheap oil from the Far East, who have resources too large for America to match.
This is good news of course for Canadians who are planning to go on American holidays, as they their money will go further than it has done for a long while. However, if you are an American thinking about visiting Canada, it’s probably best to stick to Alaska holidays for now.
The American Dollar – Anything You Synthesize (Produced By Onesize)
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