RE: RE: RAGINGI agree with the majority of your post. We are well positioned as a commodity based country but I believe the rise in price of commodities has more to do with the decrease in value of the world reserve currency (US Buck) than the need for more "stuff"
Not to mention that commodities are the speculative play in hedging against the same inflation the dollar is getting slammed with. We are only at the beginning of the dollars downfall here.
But my basic question is still not answered. How will this effect Canada? Sure we got lots of stuff but if the US tanks further it will drag us down. Will our dollar rise aginst the US as theirs fall? Or will it also have problems as their economy falters? And as in love everyone is with china they are a nowhere near the US in size and scope (For now).
China is a centrally controlled command economy. If I were to describe it I would call it Fascist not capitalistic. And with all centrally controlled economies it is only a matter of time before they fail. Unless the chinese are smart enough to begin to move away from this. There are still about a Billion peasants who are beginniing to get antsy. (You here about this from time to time. Riots, Uprisings ect. Usually put down harshly) But the Chinese will not be able to hold the tide forever. The slaves always fight back in the long run and its the slave masters who get their heads chopped off.
A major reason for the Chinese success is there unwilingness to allow their currency to rise. If (WHEN) they do this it will be a game changer. Does anyone think Obamas romance with the Indians is a coincidence? He's giving China notice. The Indians Billion plus peasants are just as good (if not better) than Chinas.
I believe this is a consideration of the Feds as they do the QE2. They are playing with fire and we could be enetering into currency wars in the near future as countries begin to devalue their currencies to compete.
But I must admit I admire the Chinese for their business accumen. No Bull shat. Just make it happen. We used to be like that.
As for the pipeline. I believe it is going to Kitimat not Prince Rupert. And the Indians aren't after more "education" or "Opportunities" They are after the cash. Bribe. Buyout. Whatever you want to call it. I have a friend who is high up in a pipeline building company. He says the pipeline will be built. As for the Indians its only about how much money they can "buy them off." His words not mine. Its a matter of business with the reserves.
The Econazis and their army of lawyers are what takes so long.
I for one will breathe easier when it begins to flow.
still not sure what to make of all this on a Macro scale.
Good discussion though
Rage