Update: Manufacturing returning to the US series
I am "CA" Atreya (PMP, MBA), the author of this blog. I help businesses in Atlantic Canada achieve their BHAG successfully. You may subscribe to this blog using a feed reader (RSS).
I hate to be saying, “I told you so”, but I came across an article on the CBC website whose headline proclaims, “Baltex, Canada’s largest swimsuit maker, folds“. Reason citied: “The Canadian Dollar being equivalent to the American Dollar has diminished the profitability of the company”, its bankruptcy trustee said. My heart goes out to the 350 employees now without work. Regular readers of this blog may recall that I wrote about the US current account deficit and how it may be balanced; and how the NAFTA countries (Canada and Mexico) and Europe may pay the price.
Canada is now staring at the American Dollar nearly at par. When it hits par; i.e. 1 US Dollar = 1 Canadian Dollar, the psychological barrier will have been broken and it will not take long for the US dollar to slide further. I am looking at a par exchange rate by mid 2008 - unless the market goes to hell in a handbasket or if the US economy improves considerably.
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