{"id":15187,"date":"2015-12-12T08:33:51","date_gmt":"2015-12-12T13:33:51","guid":{"rendered":"http:\/\/olduvai.ca\/?p=15187"},"modified":"2015-12-12T08:34:14","modified_gmt":"2015-12-12T13:34:14","slug":"bank-of-canada-crushes-loonie-creates-mother-of-all-shorts","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=15187","title":{"rendered":"Bank of Canada Crushes Loonie, Creates Mother of All Shorts"},"content":{"rendered":"<header>\n<h3 class=\"entry-title\"><a href=\"http:\/\/wolfstreet.com\/2015\/12\/12\/bank-of-canada-crushes-loonie-dollar-creates-mother-of-all-shorts\/\" target=\"_blank\">Bank of Canada Crushes Loonie, Creates Mother of All Shorts<\/a><\/h3>\n<p class=\"entry-meta\"><strong>Clear winners: rich Chinese who buy homes in Canada.<\/strong><\/p>\n<\/header>\n<div class=\"entry-content\">\n<p>The Canadian dollar swooned 1% against the US dollar on Friday, to US$0.7270, after having gotten hammered for the past six of seven trading days. It\u2019s down 5% in November so far,\u00a015.5% year-to-date,\u00a0and 31% from its post-Financial Crisis peak of $1.06 in April 2011. It hit the lowest level since June 2004.<\/p>\n<p>The commodities rout would have been bad enough. Given the importance of commodities to the Canadian economy, the multi-year decline in the prices of metals, minerals, and natural gas, and then starting in mid-2014, the devastating plunge of the price of oil, would have been sufficient in driving down the loonie.<\/p>\n<p>That the Fed has tapered QE out of existence last year and has been waffling and flip-flopping about rate hikes ever since made the until then beaten-down US dollar, at the time the most despised currency in the universe, less despicable \u2013 at the expense of the loonie.<\/p>\n<p>Those factors would have been enough to knock down the loonie. But it wasn\u2019t enough, not for the ambitious Bank of Canada Governor Stephen Poloz. The man\u2019s got a plan.<\/p>\n<p>He is in an all-out currency war. He\u2019s out to crush the loonie beyond what other forces are already accomplishing. He\u2019s out to\u00a0<em>pulverize<\/em>\u00a0it, and no one knows how far he\u2019ll go, or where he\u2019ll stop, or if he\u2019ll\u00a0<em>ever\u00a0<\/em>stop. He has singlehandedly created the short of a lifetime.<\/p>\n<p>It should spook every Canadian with income and assets denominated in Canadian dollars and those wanting to buy a home in Canada (we\u2019ll get to that bitter irony in a moment).<\/p>\n<p>Poloz has been in office since June 2013, and this is what he has accomplished so far:<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-20019 size-full\" src=\"http:\/\/wolfstreet.com\/wp-content\/uploads\/2015\/12\/Canada-CAD-USD-2009_2015-12.png\" sizes=\"auto, (max-width: 526px) 100vw, 526px\" srcset=\"http:\/\/wolfstreet.com\/wp-content\/uploads\/2015\/12\/Canada-CAD-USD-2009_2015-12-260x258.png 260x, http:\/\/wolfstreet.com\/wp-content\/uploads\/2015\/12\/Canada-CAD-USD-2009_2015-12.png 526x\" alt=\"Canada-CAD-USD-2009_2015-12\" width=\"526\" height=\"521\" \/><\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Bank of Canada Crushes Loonie, Creates Mother of All Shorts Clear winners: rich Chinese who buy homes in Canada. The Canadian dollar swooned 1% against the US dollar on Friday, to US$0.7270, after having gotten hammered for the past six of seven trading days. It\u2019s down 5% in November so far,\u00a015.5% year-to-date,\u00a0and 31% from its [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[942,103,1861,1851,2590,11005,11004,10957,4254,4255],"class_list":["post-15187","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bank-of-canada","tag-canada","tag-canadian-dollar","tag-commodity-price-collapse","tag-devaluation","tag-export","tag-loonies","tag-stephen-polo","tag-wolf-richter","tag-wolfstreet"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15187","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15187"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15187\/revisions"}],"predecessor-version":[{"id":15189,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15187\/revisions\/15189"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15187"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15187"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15187"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}