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LOONIE TALK! CANADIANS CAN GET RICHER WHEN THEY CAN AFFORD TO BUY LESS OR SO THEY'RE TOLD!

So today, I came across a persuasion-in-propaganda piece, Weaker Loonie will help the Canadian economy, published by Shaw Communications' Global Canada news.

The piece of deceit is typical. In it, the writer suggests fallacy and what should seem as absurdity to all.

Export growth will boost domestic disposable income and the government’s tax take and will enhance the balance of payments so why wouldn’t Canada want a weaker loonie.



Ask Canadians in what time periods their living standard has risen.


A weaker Canadian dollar does not help almost all Canadians whose jobs consists solely in working in Canada. A weaker loonie means Canadians would need to work more hours to pay for the same products they buy now from foreigners.

Only 4% of Canadians work in primary industries — logging, oil, fishing, mining — which account for 58% of Canadian exports. Primary industry accounts for a mere 6.2% of GDP. Yet, the devaluate-the-loonie jokers would have you believe that weaking the buying power of the loonie would be a bonanza for a whopping 93.8% of the Canadian economy!

Three-quarters of all Canadians work in services, mostly servicing other Canadians.

A weaker Canadian dollar only helps those whose firms export and thus are trying to increase sales against other exporters from other countries. Such Canadian exporters hope to increase sales to foreigners to offset what amounts to lower prices owing to a lowered exchange rate.

If what they say were true, that a weaker loonie would make Canadians richer, giving Canadians more income, then why wait? Why the executives of the Bank of Canada, Canadians central bankers, should double the cash in circulation right now. That should cut the prices of exports in half instantly.

Why Canadians could become the richest people on earth, if merely having less buying power were the key to life. Why would anyone believe the fallacy preached by those who who claim you can get richer when your cash loses buying power? Why would anyone believe that anyone can get richer when that one can buy less for the same hours worked?

If merely cheaper export prices were the key, why don't exporters voluntarily cut their prices in half right now? Why try to force a lower exchange rate, which imposes a burden upon all Canadians who are not capitalists of export products?

Exporters want a lowered buying power of Canadian cash because exporters still need to pay Canadians their full wages, the ones who make those export products. Weaking the Loonie lets exporters pay less in buying power to Canadian workers who work in export.

So why the clarion call for less buying power for Canadians with a so-called "weaker" loonie? Some Canadian businessmen can't compete without bending the rules.

If the Chinese are slowing down, needing less natural resources, it means that Canadian bankers and investors have plowed too much cash and credit into primary industries to produce things for export. Their capital structures are wrong.

Those Canadian primary industries need to shrink. Bankers and capitalists who bet on those industries in what now is clearly over-investment, need to take losses.

Too many unprofitable firms involved in primary industries exports need to go out of business. The Canadian state of trade needs to adjust to the new reality.

What Canadians ought to hope is for a strong loonie that lets Canadians buy American know-how (technology) at favorable prices to Canadians so that Canadians can set the stage for new industries and more employment for Canadians.

Greater buyer power is the essence of what it means to be rich. However, believing that having less buying power against foreign goods leads to trade dominance and enriches everyone through undercutting rivals is to suffer from loonie-cy, er, lunacy.

Weakening the buying power of one's cash against foreign cash puts one's exports on fire sale prices. Fire sale prices might lead to more sales, but it does not follow that doing so leads to higher profit. It is profit whether from wages less living expenses or sales less outlays, which makes anyone rich.

Exports are not an end. Exports are the means to an end, paying for imports. The goal is to work for greater buying power. The goal is not to work for less buying power. If the goal were the latter, then why not enslave oneself to a people of another country?

Never in history has a country failed because its people suffered from having too much buying power. However, the list is long of those countries whose people were ruined by having too little buying power.

Oh, Canada. Talk about daffy, loonie lunacy.