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Finally, Inevitably, Parity

Via John Ludwig, via Marginal Revolution, the Canadian dollar reached parity with the US dollar this week. As John put it:

Wow. The world has voted on the US economy and government policies.
Exactly. Now, part of this rise is due to good government (as they like to say) in Canada, but much of it is surely due to bad government here in the US. And I'd like to thank both President Bush and Congress for both doing their part to debase our currency.

I blogged about the difference between Canadian budget surpluses and US budget deficits back in 2003, and the simple fact is that, given massive, year-after-year deficits with no end in sight, the world is going to place less of a premium on the US dollar.

With the dollars at parity, now it's Canadian shoppers who are coming to the US for bargains. Oh, how times have changed.

Tracey Carle checked the Web on Friday morning to see the wait times at the border and then bolted to the United States to shop.

Ms. Carle left her home in the border town of Surrey, British Columbia, cruised through the increasingly tight border here in a relatively breezy 34 minutes, stopped immediately to gas up her sport utility vehicle on the cheap at the U.S.A. Mini Mart and shot down Interstate 5 toward her real target, Target.

"Anytime in the last few years it's been better," said Ms. Carle, 49, explaining that she has long crossed the border for bargains. "But now, this is just whoo-hoo!"

Four months ago, I wrote:

Before long, the Canadian dollar will be at parity with the US dollar, and then surpass it. I hope someone in our elected government sits up and takes notice then.
I doubt that's going to happen. No one in our government seems to care.


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