How would you like the loonie to be the Reserve Currency?

[boarderbloke]

From the Financial Post,,,

<a href="http://business.financialpost.com/2012/11/19/imf-considering-loonie-as-reserve-currency/"target=blank>IMF considering LOONIE as Reserve Currency</a>

What would the consequences be be for Canada, How would that affect our debt?

Would that change anyone's view about inflation or deflation within Canada?

How would reserve currency affect farmers in Canada, how about commodity prices and input costs?

[cottonpicken]

We are so small it doesn't make much sense.

If we start getting used in international settlements
and countries of the world start putting us in their
forex reserves,houston we have a problem.

[cottonpicken]

Man o man,i know the consequences of an overnight
currency cut by heart but contemplating an overnight
increase makes me sick at my stomach.

[TOM4CWB]

Boarder,

I think someone is gone 'wacky' at the IMF... or this must be April 1 and we are in a time warp.

There is NO way with US currency negotiated globally for many decades... that folks would switch to the 'Loonie'.

[TOM4CWB]

Border,

OK you got me!

Grin!

"The International Monetary Fund said it’s considering classifying the Australian and the Canadian dollars as reserve currencies.

The two “are to be considered for inclusion” separately in the IMF’s “Currency Composition of Official Foreign-Exchange Reserves” data, the Washington-based lender said in a report published on Nov. 14. They’ve previously been included in an “other currencies” category in the COFER reports."

P.S.

Not 'The' Reserve Currency, but 'A' Reserve Currency.

[boarderbloke]

I believe $CDN and $AUS would be considered along with the other (so called ???)reserve currencies, as heard on CJME980, USA, EU, Swiss Franc, British pound, and I think they named 1 or 2 more, that have this so called status already. This was news to me as I've always thought, all USD, all the time!

[cottonpicken]

One scary thought is like we could be moving towards
a nato block single currency.

[mbratrud]

Google this guys Dinesh D’Souza. This is old new and the election is over but he has some wild theories about Obama if they are true it will be hard to tell who should have reserve status on their currency.... Time will tell I guess.

[boarderbloke]

mbratrud, did you see "2016"?

[sumdumguy]

What is tje downside of the loonie being reserve
currency?

[ColevilleH2S]

Sdg it means greater prestige and demand, which
will surely lead to a higher value when compared to
the USD. This will make us less competitive with
americain farmers.

[cottonpicken]

Essentially it is deflationary in measure.

Take gold as the prime example,if the loonie doubled
in value overnight it would take half as many dollars
to buy,so guys like me would be on the wrong side of
the trade.

Same with all tradable commodities.

And debt would be harder to pay back-twice as hard.

Savers who hold dollars would be richly rewarded.

Farmers would suffer horribly.

[cottonpicken]

We live in an economic bizarro world.

Even though a doubling in the loonie overnight is
doubtful,people need to know how to react to curve
balls.

[liberty]

If the Loonie became the world's reserve currency, it would eventually follow the U.S. dollar into oblivion as our central bank took advantage of everyone's gullibility and printed it like there was no tomorrow. The only currency should be gold and silver coin. Period. Then no government will be able to engage in inflation or reckless spending.

[mbratrud]

boarderbloke no I have not seen 2016 have you?