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First off the Dollar to Canadian Dollar is not in an American Vacuum. Canada has VAST quantities of ores in Iron and Copper. These two items have skyrocketted in value, especially considering the China/India infrastructure boom.
This whole Bush hiding the deficit theory belongs in Paranoia. Many countries devalue their money in order to create an economic boom.
"But Seaver, that makes no sense!"
They do it in order to make their goods sell for a relatively cheaper price compared to other countries. If we want to balance the trade deficit this is one way to go about it.
If you want to actually have an idea about our economic balance just look at the Euro. When they made it the Euro was a 1:2 with the Dollar. It's 1:1.3 now, having come closer to 1:1 even with all of the mortgage problems we're having.
In short, nothing to worry about. Instead of US tourists flocking to Canada spending money there, it will be fairly balanced if not in our favor now.
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"Smite the rocks with the rod of knowledge, and fountains of unstinted wealth will gush forth." - Ashbel Smith as he laid the first cornerstone of the University of Texas
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