jaybird... I meant that assuming you put the money in a safe Canadian investment like a bank CD earning Canadian dollars, the investment would have been relatively safe or riskless.
The reason for the big move is multiple. Canada is a resource based economy. Commodities are big and Canada has them. That means Canadian companies are recording record profits in Energy, Mining, Agriculture. Due to these high profits, Canadian govts are collecting high taxes and are running surpluses.
Compare that to the US. We are simultaneously running domestic and war related deficits. In addition we know that baby boomers are going to usher in huge entitlement deficits in Medicare and Social Security. To fund the deficits, we are printing US dollars by the truckload.
Rather than rein in spending and increasing taxes, the US govt has decided it's politically easier to inflate. In the short term, there are few consequences but the size of these deficits has finally caused other countries to realize that we are no longer the safe investing haven and they are bidding down the dollar. There will be adjustments which will be painful depending on your position in the trade.
The US economy may be very efficient but the govt is on a spending binge. Bobwins
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