As with every other problem, Ontario Premier Dalton McGuinty is showing 'action' on the devastating effects of the high dollar by complaining to Ottawa - Harper Urged to Slow Dollar (Post). He and his fellow all-talk-no-action Quebec counterpart want a First Ministers' summit to try to convince Harper to lower the interest rates in an effort to tame our strong loonie.
And here's the smack-down (Post):
"This notion that Canadian premiers, through a complaint, are going to change the course of the U.S. dollar is lunacy," said Finn Poschmann, director of research at the C.D. Howe Institute, a Toronto-based economic think-tank.
Interest rates are not set by the prime minister, but by the Bank of Canada, which operates independently of the government. And experts question whether the Bank of Canada could yield any influence on forces pushing up the dollar.
"There's nothing the Bank of Canada can do to stop a global trend, which is that the U.S. dollar is going to weaken," said David Watt, senior currency strategist at Royal Bank of Canada.
I said that days ago, and I'm no economist - just your average Jo. (What do you say now, LKO?)
Post Reporter Paul Vieira notes at the end of the article:
Openly complaining about the central bank and the high dollar does allow the premiers to say they are fighting for their local economies --even if they know they yield little power to alter the actual course of exchange markets.
Or maybe they just don't have a clue, Paul.
You blew it Lemmingland. Four more years of whining and inaction.
Four more years of passing the buck to Ottawa.
Get used to it.
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Late morning update: This should help the Premiers relax a bit - Loonie dips a little lower.