A Soaring Canadian Dollar Part 2!

Have you heard of the "Amero" or the "North American Union?" Well all this is new to me. Recently I have come across some rather disconcerting news, if you look hard enough you can find more information on it. I will definitely be doing more research on the topic, but here is some speculation based on what I have read and heard so far. An article of note on the topic of the N.A.U. (North American Union) is Debut of the 'amero' written by Judi McLeod, which is the inspiration for this post.

The collapse of the American Dollar and the rise of our Canadian Dollar has been fore casted. According to some sources, the collapse of the American Dollar was planned many years ago behind a curtain of secrecy. The purpose is to help usher in the "Amero" as the currency of the "North American Union." All of this information that I have come across sheds a new light on free trade agreements between Canada, Mexico and the United States. The strength of the E.U. (European Union) and the "Euro" illustrates strength in numbers, but can a similar system prosper here between Canada, Mexico and the U.S.?

A stronger Canadian dollar illustrates to many economists, the high cost of living here in Canada. Minimum wages are relatively higher here in Canada, for instance, an employee at McDonald's wage in Alberta or British Columbia is higher than it is here in Ontario. But here in Ontario, the Minimum wage is currently on a rise towards $10/hour. The cost of living has increased throughout the years and Canadians are suffering from price gouging every where we turn. How would a centralized currency affect the Canadian economy?

My opinion is that a N.A.U. would serve to drive prices down here in Canada, but would that really be good for the masses? Initially, if the cost of living for Canadians was reduced, the increase in disposable income would help out many Canadians throughout the country, and our GDP would be on the rise based on the increase in disposable income. However there is a draw back to falling prices, the reduced cost of products and services will in turn reduce wages across the board as companies reduce operating costs to increase profit margins. I'm no financial wizard, but reduced wages will force people to search for better paying jobs and most likely affect the national unemployment rate.

To Be Continued...