The World’s Going Loonie? | Goldman Sachs says get rid of US Currency

And so it has begun. Goldman Sachs, a global bank holding company that engages in investment banking, securities trading, and investment management, has recommended that all Americans, anyone for that matter, get rid of their US paper money and switch over to the Canadian dollar..’aka’ The Loonie.

“We think the Canadian dollar … has potential to play catch up” as the U.S. currency sees broad declines, Goldman said in a note to clients.

It listed three factors for its recommendation. First, the economic picture has “deteriorated less” in Canada than in most other G10 economies, because of relatively strong consumer spending.

As well, the Canadian government continues to run a surplus, “which provides some cushion against deteriorating global credit markets.”

And the banking system “appears to be in relatively good shape, in comparison with the rest of G10,” the report said.

Lower commodity prices will limit gains, but much of the weakness in commodity prices is already reflected in the current level of the currency, it said.

Other currency strategists agreed that the Canadian dollar has room to strengthen. “The U.S. dollar is in a bit of a freefall and Canada has not appreciated as much as the euro, sterling or yen so I think we are seeing a catch up,” said Firas Askari, head of currency trading at BMO Capital Markets.

“We are relatively better off in a couple of ways – our financial system is more sound, we don’t have the same kinds of subprime problems as in the U.S. and also the huge appreciation in the housing market that happened in Ireland or Spain didn’t happen here. So the bubble has less of a pop when it bursts.”

This is the beginning of the end for the US Dollar and a trend to spread the world over. I wonder if the Loonie will be the new currency that all other currencies will be based on? I know it will not be the US dollar for much longer.  I know that it is worthless junk and when a company as big as Goldman Sachs makes such a bold statement, you know that the general public will soon begin to realize it too.

It would seem fitting that the new top dog in the currency market may end up being the Loonie. It may become the poster child for what the world has become!

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