until today. This marks a rather proud moment in time for most Canadians, since it’s been over 30 years that Canadians have seen their dollar literally worth MORE than the U.S. dollar after the trading markets had closed for the day. The question is, will this be a temporary surge of Canadian pride, or will it become the new reality, with the U.S. dollar bowing in value to the loonie? I believe that the varied and layered problems in the U.S. economy and broad financial markets are going to get much worse before they recover, and I expect that the Fed will continue its attempts to quell inflation (and prop up the real estate and stock markets) by continuing to reduce interest rates. This will have the result of further eroding the value of the U.S. dollar, giving even more strength to other world currencies, including the Canadian dollar. We’ve been telling investors for many months now to GET OUT of the U.S. dollar, and our suggestions are now proving very profitable for those who have done so. I believe that there continues to be significant risk is U.S. assets, and that this risk will extend into 2008 and possibly beyond. Until the real estate market in the U.S. finally capitulates and the looming threat of the mortgage crisis and massive inventories start to clear up, the U.S. will remain a generally risky place to be investing. I expect the Canadian dollar to remain higher against the U.S. dollar for some time now. There will be fluctuations, but I do believe we’re in a new era. And until the U.S. gets its “stuff” together, this is not going to be a short term situation.]]>