DOLLARS TO DOLLARS. US=CANADIAN

It is probably not news to most of the learned readers of the Desert of the Real, but the Canadian Dollar and the US Dollar are now at parity.

A Canadian Dollar is worth .99xx American dollars. The currencies have not been at parity since 1976.

A lower dollar will spur US exports, as a lower dollar makes US goods cheaper. It also raises the cost of imports.

But of course the greatest risk is a flight from US debt instruments and a defunding of the American deficits.

IN THE DESERT OF THE REAL WE ARE LONG THE WORLD AND BEARISH ON THE US!