James W. Dean argues in today’s Financial Post (article here) that the Canadian dollar should be merged with the Greenback. Are you kidding me? That would be like handcuffing someone in a life preserver to a sinking boat. Moreover, Dean has long been an advocate of keeping the loonie separate. His lengthy three-page article fails to convince me.
From my perspective, the whole idea of a merged dollar system – what some used to speculate on as the “Amero” (ha ha, very funny and imperialist) – has no grounds to even be on the table for debate right now. Why should a successful economy merge its currency with a failing one? Canada is a medium-sized economy with extremely open trade laws internationally. Our biggest hindrance is that currently 85% of trade is with the US, but Canada has been working to lower this number. Perhaps the key part of this is our oil exports to the US, which are denominated in US dollars.
Oil is perhaps the essence of any problem, because it means Canada isn’t paid real wealth for its oil (we are where the US gets most of its oil, a little publicized fact), but only what the greenback is currently going for. I agree that this is a major problem.
But there are other consequences and implications with having a merged currency that Dean does not seem to notice or address. Canadians do not want to be any part of the US. We are not American. We should not be American just due to geographical association and imperialist impositions. Heck, one of the US States – Vermont – doesn’t even want to be American anymore. That’s beside the point, but my point is clear.
I once joked with an Obama campaign representative back in October 2008 about the cool sign that a Canadian in Toronto had put up on his garage door. It said, “OBAMA FOR PRIME MINISTER!” The girl I spoke with said something relating to the fact of Canada’s merging with the US. I didn’t say anything back because I was in a bit of a rush, but I was thinking “No, no. That’s not what this means. Canadians do not want to become the US or unite with it. It was just a show of proud support.”
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{ 3 comments… read them below or add one }
First and foremost what I am about to say is in favor of Canada and not the US. If the two currencies/countries were to join as one, that would be sheer and utter disaster for Canada. When I think of this, I think about the EU using the Euro, did more harm than good for the Italian economy and probably others within the Euro zone. Prices literally doubled but salaries/pensions stayed the same. One reason why we want out of here and go to Canada. A lot more potential there than here and better quality of life.
BTW just sent you a message on Entrecard about the Canadian Carders list.
Sad to say, but I have to agree with you. It would be a bad move!