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Iceland Wants To Adopt The Dollar... No, Not That One, The Other One

Tyler Durden's picture


Not the US Dollar of course: why would the only country to successfully overthrow the chains of banker tyranny and default in their face want to ever have anything to do with the USD, the source of all the world's problems. No, the dollar in question is that of Canada. According to the Globe and Mail tiny Iceland, "is looking longingly to the loonie as the salvation from wild economic gyrations and suffocating capital controls...And for the first time, the Canadian government says it’s open to discussing idea. There’s a compelling economic case why Iceland would want to adopt the Canadian dollar. It offers the tantalizing prospect of a stable, liquid currency that roughly tracks global commodity prices, nicely matching Iceland’s own economy, which is dependent on fish and aluminum exports." Yes, yes, there are all the fundamental reasons, but more importantly, it is a huge slap in the face of those statists (and the United States of course) who keep repeating no matter the facts that the USD will never lose its reserve status. Here's a hint: it can and it will. And so much for the thought experiment of printing endless amounts of currency in non-reserve format and getting away with everything unpunished. Finally, there is this startling dose of reality from an earlier and calmer time, when S&P, back in 2006, released its long-term baseline scenario of sovereign debt ratings. This oddly prescient table speaks for itself.

And yes, reserve currencies come and go, not talking of Michaelangelo but of endless currency devaluation.

And some more from the Globe and Mail:

In brief remarks to be delivered Saturday in Reykjavik, Canadian ambassador Alan Bones will tell Icelanders that if they truly want the Canadian dollar, Canada is ready to talk.


But he will warn Icelanders that unilaterally adopting the loonie comes with significant risk, including complete loss of control over their monetary policy because the Bank of Canada makes decisions only for Canadians and the Canadian economy. He’ll caution, for example, that giving up the krona in favour of the Canadian dollar (CAD/USD-I1.01-0.004-0.34%) will leave the country with few levers, short of layoffs, to counter financial shocks and fluctuations in the loonie.


A group of prominent Icelandic business leaders approached Mr. Bones last year about the idea. And his speech Saturday, to a meeting of the opposition Progressive Party, marks Canada’s first public response.

Which is all well and fine, and congratulations to Canada, however remember that in a Keynesian world it is all relative, and the second one scale is tipped in your favor, it immediately starts the countdown on your own self-destruction, if one proceeds with reckless abandon. Such as the US.

So be careful Canada: with great power, comes great a desire to distribute wealth. And we have all seen what happens next.


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Fri, 03/02/2012 - 15:35 | 2217651 withnmeans
withnmeans's picture

Well well, looks like the FED is back in again today. buying "UP" the market. It is tough to play this market when the government owns all of the paint. They sure can paint the picture of "All is well".
Granted that sometimes you have to make the mood, however there is bad times and we have to take our lumps to make us stronger. Other wise if momma keeps giving us everything we want we become spoiled rotten brats with no backbone.

Fri, 03/02/2012 - 15:43 | 2217696 The trend is yo...
The trend is your friend's picture

I am slightly optimistic seeing the russell off 1.5% even though the other indexes are hanging in.  They can't buy up everything (at least not yet) and reality may come back to the markets at all is not well

Fri, 03/02/2012 - 15:48 | 2217718 Pladizow
Pladizow's picture

What does Iceland have the America can "liberate"?

Fri, 03/02/2012 - 15:50 | 2217737 VelvetHog
VelvetHog's picture

Mmmm, I dunno?  Ice?  Volcanic ash? 

Fri, 03/02/2012 - 16:15 | 2217881 BW
BW's picture

More fiat currency?  They never learn.  Back their currency with Gold and Silver and free themselves from the bankers control.

Fri, 03/02/2012 - 16:53 | 2218096 dwdollar
dwdollar's picture

Although the Icelanders are further along in their redicovery of what money really is, they still have a ways to go apparently.

Sat, 03/03/2012 - 06:04 | 2219381 Ghordius
Ghordius's picture

at the moment the only option is fiat - no country (for individuals the preference is different) wants a too hard currency

and no country wants to have a too small currency, too. It's not the optimal environment for small/hard.

There is simply too much liquidity sloshing around looking for bets to be made and speculative pressure to be applied.

I'm told by a good source that Iceland opened talks about joining the euro (politically this was on the table there) but they were "persuaded" to be quiet about it...

Game theory would predict further amalgamations and some small-currencies-disasters ahead...


I repeat: collective preferences are often not in line with personal preferences - particularly when a collective is engaged in some form of conflict with another - a lesson lost to many

Sat, 03/03/2012 - 13:35 | 2219758 Fiat Currency
Fiat Currency's picture

Yep - Fiat Follies.

Canada sold off almost all of its Gold Reserves. Guess what backs the $CDN ??

Yep ... US Treasuries.

Stupid is as stupid does. 

Fri, 03/02/2012 - 16:18 | 2217895 flacon
flacon's picture

Paper is paper....

Canada has a major debt problem - and housing bubble, IMHO...

Sat, 03/03/2012 - 09:54 | 2219496 Savvy
Savvy's picture

Oh yes. We bought this house in 2005 for $139k it's now appraised at $290k. thas a bubble. Also Canadian banks have been hypothecating client assets (about $125 bn between RBC and CIBC alone) may smell pretty from a distance but the shit is just under the surface.

Sat, 03/03/2012 - 11:27 | 2219571 trav7777
trav7777's picture


Fri, 03/02/2012 - 16:13 | 2217870 Alpha Monkey
Alpha Monkey's picture

Do they convert thermal to other forms of energy?

Fri, 03/02/2012 - 19:49 | 2218587 steelhead23
steelhead23's picture

I am surprised no one bothered to respond.  Iceland has fantastic energy resources, primarily geothermal energy which it has exploited and is producing copious amounts of hydrogen and has conducted a number of hydrogen-based pilot projects.  I suspect that within 10 years most transportation will be pure electric, hydrogen, or electric/hydrogen hybrids.

Fri, 03/02/2012 - 16:03 | 2217826 bonderøven-farm ass
bonderøven-farm ass's picture

The Svalbard Global Seed Vault......(to protect the public from non-GMO life forms of course........)

Fri, 03/02/2012 - 16:10 | 2217852 spiral_eyes
spiral_eyes's picture

That's (as you might expect from the name) in Svalbard.

Fri, 03/02/2012 - 16:16 | 2217883 bonderøven-farm ass
bonderøven-farm ass's picture

I stand corrected......


Fri, 03/02/2012 - 18:41 | 2218294 GoodMorningMr.V...
GoodMorningMr.VanRumpoy...'s picture

It's there to protect someone, certainty not the public.

There is not much protection to come from the Svalbard Global Seed Vault when is owned by Bill Gates, the same international eugenicist who owns Monsanto, the company that is sowing the world with GMO destroyer seeds.

Fri, 03/02/2012 - 23:12 | 2218986 Cathartes Aura
Cathartes Aura's picture

thank you for this link - it very simply details an exact agenda that anyone who cares can understand.

well worth a read.

Fri, 03/02/2012 - 15:59 | 2217801 Village Smithy
Village Smithy's picture

Make sure you emphasize the "slightly" part of being optimistic.

Fri, 03/02/2012 - 15:45 | 2217707 Mark Carney
Mark Carney's picture

Crap, thought they said they would dump all their Corona's for our dollar....shit.  BRB, gotta get a Labatt

Fri, 03/02/2012 - 22:27 | 2218904 Western
Western's picture

Don't do anything stupid, Jamie Dimon might beat you up again.

Fri, 03/02/2012 - 15:45 | 2217709 Mark Carney
Mark Carney's picture

Crap, thought they said they would dump all their Corona's for our dollar....shit.  BRB, gotta get a Labatt

Fri, 03/02/2012 - 22:32 | 2218917 memyselfiu
memyselfiu's picture

A Labatt....I'm pretty sure you're not Canadian

Fri, 03/02/2012 - 22:50 | 2218950 A Nanny Moose
A Nanny Moose's picture

I Prefer a Maudite or a Fin du Monde.

Sat, 03/03/2012 - 07:48 | 2219414 CPL
CPL's picture

Man they are good beers, there isn't anything that Unibrew makes that won't make a grown man cry in shame for drinking anything else.

Sat, 03/03/2012 - 18:25 | 2220356 debtandtaxes
debtandtaxes's picture

I love a good micro-brewery, too but Maudite??!  It's shite! Clearly you are not Canadian! Try Mills Street, Great Lakes Brewery or Okanogan. You'll probably go catatonic.

Fri, 03/02/2012 - 15:56 | 2217777 LongSoupLine
LongSoupLine's picture

LMAO...Spain, UK and Germany "AAA in 2020".  Great work (yet again) S&P.

Fri, 03/02/2012 - 16:19 | 2217903 battle axe
battle axe's picture

I am moving to Canada..

Fri, 03/02/2012 - 17:18 | 2218171 GOSPLAN HERO
GOSPLAN HERO's picture

Belize is better ... very lttle snow.

Fri, 03/02/2012 - 20:15 | 2218654 oddjob
oddjob's picture

Some people like snow, you should go to Lytton in the summer,its a pleasant 40 C

Fri, 03/02/2012 - 18:09 | 2218324 JennaChick
JennaChick's picture

Good points again from FX guys: It all makes sense, again:

Fri, 03/02/2012 - 18:18 | 2218340 SPAREPARTS
SPAREPARTS's picture

Thats the spirit

Fri, 03/02/2012 - 15:37 | 2217655 redpill
redpill's picture

Time to go for the 1000x levered CAD/USD trade finally?


Good luck to Iceland

Fri, 03/02/2012 - 15:43 | 2217694 prains
prains's picture

If iceland wants the loonie the canadians should force them to take the edmonton oilers in trade and have them renamed the panty soilers

Fri, 03/02/2012 - 16:39 | 2218042 Desert Irish
Desert Irish's picture

Screw that send the Oilers to Toronto and the Leafs to wouldn't notice the difference and we get first draft pick.

Fri, 03/02/2012 - 18:38 | 2218377 Toronto Kid
Toronto Kid's picture

Would this mean we would finally be able to watch the team on the tv play in the finals ... in colour?



Sat, 03/03/2012 - 09:57 | 2219500 Savvy
Savvy's picture

Can they take Luongo too? Pretty please?

Fri, 03/02/2012 - 16:39 | 2218043 Bolweevil
Bolweevil's picture

Go Leafs!

Fri, 03/02/2012 - 15:45 | 2217703 GeneMarchbanks
GeneMarchbanks's picture

Canucks starting their own Ponzi? Can't say I'm surprised.

Fri, 03/02/2012 - 15:57 | 2217789 CPL
CPL's picture

As a Canadian all I can say is one thing.


Turks and Cacos


...don't need to go any farther in the conversation than that.  If anyone recalls the tiny island community wanted to be part of the dominion of Canada.  It was however kiboshed by Quebec because it would lessen their bargaining position (aka welfare payments).


I don't see Iceland getting much farther than T&C

Fri, 03/02/2012 - 16:05 | 2217832 ZeroPower
ZeroPower's picture

Interesting, thanks for that.

Pretty ridiculous that quebec has any say in these sorts of things. They should be happy the country allows those seperatists (not speaking for all Quebecers (i.e. Montreal) here, just the hicks) to stay within the nation despite its attempts.

Fri, 03/02/2012 - 16:28 | 2217986 FranSix
FranSix's picture

Haven't heard the words:  'The Dominion' since Deep Six Nine went off the air.  Icelanders are obviously loonie.

Fri, 03/02/2012 - 16:44 | 2217992 GoinFawr
GoinFawr's picture

If the separatist referendum that province held in the mid 90's had involved all Canadians, like it should have, I'd wager Quebec would have become a US state, and lost every last one of it's privileged 'distinctions', years ago.

Why tf does Iceland want to adopt the currency of a heavily indebted country that is in all likelihood about to be Manifest Destinied by the US anyway? Don't they know  'mark to mark' Carney works...oer worked for GS for 13 years? You'd think they'd have learned their lesson on that one...

Fri, 03/02/2012 - 17:14 | 2218147 fiddy pence haf...
fiddy pence haff pound's picture

you got it right, goinF.

The latest politicians in Canada are doing the old Conservative trick of passing their legislation

under the noses of the Amerks first, before it goes to parliament. They did that lately for

copyright. So, they are already in the pocket of the American government.

It's only a matter of time before the US asks for Canadian help for a disaster which the US

will cause to happen to itself, and then ask for Canada to house hundreds of thousands of

Americans, and before you can say 'ipso facto', Canada becomes "Northern America".

I'm thinking of fracking victims with poisioned water as potential migrants. Maybe a nuclear

accident. Either one is the perfect crime. rich guys get richer and shift the plebes out of their own homes

and into the lap of the hapless Canucks.


I'm sure the conspiracy guys will say that it's already been written.


So, there's absolutely no chance of the US spinning this Iceland/Canuck currency to their favour. @sarc

Fri, 03/02/2012 - 18:36 | 2218327 GoinFawr
GoinFawr's picture

Conspiracy? Nah, Canucks know all about it, they must, ~26% of the eligible electorate gave a majority gov't to a party whose leader says shit like,

"And we cannot be effective at major economic matters any longer unless we work with our economic partners around the world and work with them closely and intimately. That is essential. I know some people don't like it. It is a loss of National Sovereignty but it is a simple reality. It is a simple reality." - PM Stephen Harper (emphasis mine)

Since when does losing National Sovereignty have to follow 'working closely and intimately' with your partner exactly? Oh. Oooooooooooooh.

Like you said,

"The latest politicians in Canada are doing the old Conservative trick of passing their legislation under the noses of the Amerks first, before it goes to parliament." Old tricks are the best ones when you're dealing with the unbelievably short memories of Great White Northers, apparently.

 USean tag alongs the lot these days, for the most part.   Suits me: let's clean 'em out and let 'em clean it up! They'll probably thank their 'intimate partners' for the privilege,  and apologize for not doing it sooner too, lol! Hapless berks indeud.

Tread carefully Iceland.

Fri, 03/02/2012 - 22:36 | 2218925 memyselfiu
memyselfiu's picture

yeah wtf is that about? Seems like we're lockstep with the americans now on mideast policy, see netanyahu trolling for kisses on his way to the US?

Fri, 03/02/2012 - 23:24 | 2219010 Cathartes Aura
Cathartes Aura's picture

we're already trading troops in the homelands, BFF!!!!

Canada and the U.S. have signed an agreement that paves the way for the militaries from either nation to send troops across each other’s borders during an emergency, but some are questioning why the Harper government has kept silent on the deal.


solves that pesky question of "firing on your fellow countrymen" eh?

Sat, 03/03/2012 - 19:04 | 2220423 debtandtaxes
debtandtaxes's picture

The new Canadian copyright act has been shelved because our politicians have been forced to listen to us.  Tho, like the US, our political parties are all corporate footsoldiers - every party backed it! My emails demanding that the new law be quashed were met with pro forma replies about the need to protect copyright holders.  Such bullshit. 

But at least I can still legally download peer to peer at my house without worrying about the Emergency Task Force (Cdn SWAT) descending upon me OR being hit with a lawsuit from CRIA (our RIAA).

Fri, 03/02/2012 - 22:45 | 2218940 jackinrichmond
jackinrichmond's picture

the french get special treatment in canada.  most canadians don't understand why.

according to the history, if it wasn't for the french and the canadian indians, there wouldn't be any 'canada'.  their support during the war of 1812 and 1814 played a pivotal role in repelling the american invading force (which was about 10x the size of the combined canadian and british forces at that time in north america).  so, we sorta owe our sovereignty to them.  canada would not exist today if they did not cooperate in our defense at that crucial point in our history.

Fri, 03/02/2012 - 23:31 | 2219024 FrankDrakman
FrankDrakman's picture

Nice piece of revisionism. After the Brits defeated the frogs at the Plains of Abraham (1759, a date that shall live in frog infamy), they had a choice: try to enforce British religion, law, and custom on a largely hostile population, or, as they did in other areas (India), let the locals keep those while overlaying British rule of law, parliamentary procedure, and justice.

Since 1759, France has had a monarcy, an anarchy, two emperors, and what - 5,6,7,8 republics (who can bother to keep count)? Plus, it's been overrun by the filthy Huns twice, and bailed out by North America twice. (Interesting side note: in both WWI and WWII, while English Canada was volunteering, French Canadians sat at home rather than help their linguistic forebears. Nice.)

Quebec has had one British gov't, and one Cdn gov't. That stability enabled Quebec to grow and prosper until some pampered fools thought they would be better off on their own. That sent the province into a financial tailspin, as all the smart money (e.g. English) left for Toronto. Now, they depend on the Rest of Canada (ROC) for about "equalization" payments.

And in 1812 - what was the frogs' choice? Help the Brits who allowed them to retain their own culture, or throw in with the Yanks, who would never have allowed such an accomodation. This wasn't a real choice for the frogs, it was the only way their culture could survive.

Montreal has the best dressed/looking women in North America, outside of maybe South Beach.

Sat, 03/03/2012 - 18:17 | 2220343 Matt
Matt's picture

From what I've been told, Quebec french is derived from old kingdom french, and they have alot of catholiscism there. In France, after the Revolution, they changed the language and were enemies of the Vatican. As a result, there is quite a difference between Quebec and France.

Totally agree with the best dressed comment.

As far as the Americans go, I recall a big part of it was that the militiamen refused to cross into Canada, as they existed as a volunteer force to defend their own country, not to invade other ones. Small wonder the State militias have been replaced with a national military.

Sat, 03/03/2012 - 19:09 | 2220438 debtandtaxes
debtandtaxes's picture

Canada still owes our sovereignty to Quebec. We'd be the 51st state if not for the resistance of Quebec and the fact its very "different-ness" makes it impossible to envelope into the U.S.of A. 

I love Quebec.  I hope they always decide to stay in Canada.  Canada will be annexed in 20 yrs if they secede.

Fri, 03/02/2012 - 16:41 | 2218055 graymnzrc
graymnzrc's picture

Beaches has a great resort in Turks and Caicos. Good scuba diving also.

Fri, 03/02/2012 - 16:46 | 2218075 Canuckistan Al
Canuckistan Al's picture

@ CPL: Damn you,ripped the scab off that old issue. Arrgh, still frosted over the T&C thing. Sure woulda been nice to have a bit of Canada in the warmer Caribbean. And, in retrospect both a nice warm place to winter (FU to Florida and that BS) and perhaps a vacation spot that you can get to without subjecting onesleves to the TSA Dept of Motherland Security "gropefest" & peepshow.

 Woulda been a win win f you ask me... oh well, not the first or the last stupid decision our govt has made, probably wont be the last.

I have to ask what good is in this for us Canadians? Can someone (credible) splain to me the upside here for Canada?

PS: Sorry no disrestect meant to Floridians... love them, just never been all that impresseeds by the place itself.

Fri, 03/02/2012 - 19:09 | 2218478 Big Picture
Big Picture's picture

From Sea to shining Sea.

T&C on wrong side, no sea.

Iceland lots of sea.

Fri, 03/02/2012 - 23:44 | 2219047 FrankDrakman
FrankDrakman's picture

WTF is wrong with you people? T&C NEVER asked to join Canada in even the slightest way. The idea was floated by some Canadians, and never gained traction in the T&C.

Not that it was a bad idea, but it's not like Canada asked and T&C turned us down. It never got beyond a trial balloon.

Sat, 03/03/2012 - 10:01 | 2219503 Savvy
Savvy's picture

I'd thought it was the Grand Caymen Isls that wanted to join Canada.

Fri, 03/02/2012 - 15:36 | 2217656 Dead Canary
Dead Canary's picture

The appointed time as come for me to reveal myself. I represent a group of former HSBC traders, unjustly fired, who have devised a scheme that will allow us to use our inside knowledge to retaliate against our former employer. I can't say any more at this time. All I can say is it involves silver, and you can profit from our little endeavor. More details will be revealed when the time is right.

Summer Benson

Fri, 03/02/2012 - 15:39 | 2217671 bugs_
bugs_'s picture

is that you conrad?

Fri, 03/02/2012 - 15:42 | 2217688 Alea Iactaest
Alea Iactaest's picture

I just love the tradable information I get here on ZH.

Fri, 03/02/2012 - 15:52 | 2217755 Pladizow
Pladizow's picture

To: Dead Canary

That role has already been filled by Andrew Maguire:

Fri, 03/02/2012 - 15:39 | 2217674 pacu44
pacu44's picture


Fri, 03/02/2012 - 15:45 | 2217697 redpill
redpill's picture

Let me guess.  Buy silver, screw the bankers?  Well that's a new one!


By the way, the 1 oz silver coin Ron Paul held up the other day and waved it at Ben Bernanke was one given to him by the producers of an upcoming movie "Silver Circle" - they had the rounds made for promotion and are selling them at a pretty reasonable price, I got mine for $38.


Fri, 03/02/2012 - 16:14 | 2217876 slewie the pi-rat
slewie the pi-rat's picture

that was some patty-cake, wasn't it?

To end the Fed, Paul will have to start questioning it

Fri, 03/02/2012 - 15:46 | 2217705 Struan
Struan's picture

Danger! Anarchist, taliban anti-capitalist, gold bug, enemy of the state detected!


Hope yer using tor or something, these words awake the NSA.

Fri, 03/02/2012 - 15:46 | 2217706 Struan
Struan's picture

Danger! Anarchist, taliban anti-capitalist, gold bug, enemy of the state detected!


Hope yer using tor or something, these words awake the NSA.

Fri, 03/02/2012 - 16:59 | 2218110 Silver Pullet
Silver Pullet's picture

WTF with all the double posts today?

Fri, 03/02/2012 - 16:59 | 2218111 Silver Pullet
Silver Pullet's picture

WTF with all the double posts today?

Fri, 03/02/2012 - 15:47 | 2217713 GeneMarchbanks
GeneMarchbanks's picture

Oh, Lowd...

Cue the inquisitive mouthbreathers...

Fri, 03/02/2012 - 16:08 | 2217845 sun tzu
sun tzu's picture

Why do you clog the boards with your inbred stupidity?

Fri, 03/02/2012 - 16:36 | 2218032 Zero Govt
Zero Govt's picture

my thoughts exactly watching CNBC the other day

Fri, 03/02/2012 - 15:48 | 2217720 VelvetHog
VelvetHog's picture

I was all with you until "...,and you can benefit from...".


Fuck 'em hard and fuck 'em long (please!), but I'm not interested in gettin' rich quick.

Fri, 03/02/2012 - 15:53 | 2217766 walküre
walküre's picture

Blythe: Et tu, Brute ... Summer Benson?

Longus, Shortus, Maximus Profitus?

Spill the beans, SB!

Fri, 03/02/2012 - 15:59 | 2217800 LongSoupLine
LongSoupLine's picture

Let 'er rip Summer ol' boy.  Sink those wankers for good and take all us noble ZH'ers up to the heights we justly belong.

Fri, 03/02/2012 - 16:24 | 2217940 falun bong
falun bong's picture

Just turn whistleblower on your former employer and pocket the millions. Change your name, get plastic surgery, and move to Monaco.

Fri, 03/02/2012 - 23:28 | 2219018 Cathartes Aura
Cathartes Aura's picture

lol, Summer Benson. . .

must be nearing the end of Wynter then. . . *cheep cheep*

Sat, 03/03/2012 - 07:52 | 2219417 CPL
CPL's picture

Then get your ass into FinAnon.  It's where the thieves catch other thieves.

Fri, 03/02/2012 - 15:36 | 2217660 bugs_
bugs_'s picture


Fri, 03/02/2012 - 15:37 | 2217662 pacu44
pacu44's picture

So the sane people are going loonie?


up is down, peace is war, etc etc etc

Fri, 03/02/2012 - 15:40 | 2217679 The trend is yo...
The trend is your friend's picture

Which country will be next in line to steal become the reserve currency of the world?  China perhaps?  It's a merry go round to rape and pillage the wealth of citizens

Fri, 03/02/2012 - 15:41 | 2217684 Clayton Bigsby
Clayton Bigsby's picture

How can we get in on this action?

Fri, 03/02/2012 - 16:05 | 2217692 Kreditanstalt
Kreditanstalt's picture

This smells like desperation...there must be some problem with the krona that we aren't aware of.  And Canada?  Here?  The Canadian economy is BUBBLEICIOUS.  Debt per capita is at 153% of income.  Jobs are not being created, unless you are one of the rich guys in resources.  Small business is D-E-A-D in the water and profits are no doubt shrinking everywhere up the chain...when no one buys anything except when it's on sale, you know there's trouble ahead.

Fri, 03/02/2012 - 16:50 | 2218087 walküre
walküre's picture

Look at it this way..

Iceland is talking AND Canada is listening.

Could Canada be preparing for the Unthinkable?

Fri, 03/02/2012 - 16:55 | 2218102 xela2200
xela2200's picture

Answer to your question --> No

I think China is further along in that arena.

Fri, 03/02/2012 - 21:19 | 2218760 memyselfiu
memyselfiu's picture

i don't know about that.... i can step out of my job tomorrow and get six north of 50k per yr- don't know where you live...i'm in ontario

and i've been hearing about the canadian 'bubble' since before the american one burst. still waiting....

Fri, 03/02/2012 - 15:43 | 2217693 TahoeBilly2012
TahoeBilly2012's picture

Another just awesome peice of research. I love the historical reserve curreny chart!

Fri, 03/02/2012 - 15:43 | 2217695 citrine
citrine's picture

Michael Burry suggested opening an account in Canada a while ago. In addition to investing in gold.

Fri, 03/02/2012 - 15:46 | 2217710 Scisco
Scisco's picture

Anyone know where I can find the Tangible Common Equity Ratios for the Canadian Banks?

Sat, 03/03/2012 - 07:55 | 2219419 CPL
CPL's picture

Why bother with that?  Canada is a resourced based economy with a tiny population, all you need to look at is shipping and trucking. 


Both are at their lowest since 2008...again.

Fri, 03/02/2012 - 15:48 | 2217721 Aunty Christ
Aunty Christ's picture

Spain to retain it's AAA rating in 2020? Hmmm nice call

Fri, 03/02/2012 - 15:54 | 2217770 walküre
walküre's picture


Fri, 03/02/2012 - 15:48 | 2217723 AndyDufresne
AndyDufresne's picture

If you just ignore the public debt at the provincial level all looks well, oh the housing, and lets not forget the growing personal debt level. Thank you Iceland for taking on this on. 


Fri, 03/02/2012 - 15:49 | 2217729 A Lunatic
A Lunatic's picture

I heard that Osama Bin Laden is presently hiding in Iceland...............

Fri, 03/02/2012 - 16:42 | 2218063 Zero Govt
Zero Govt's picture

his (US Navy dumped) body drifted on the ocean currents that far?

Fri, 03/02/2012 - 19:33 | 2218541 sun tzu
sun tzu's picture

according to the CIA

Fri, 03/02/2012 - 15:54 | 2217748 moonshadow
moonshadow's picture


Fri, 03/02/2012 - 15:52 | 2217762 AchtungAffen
AchtungAffen's picture

If in a Keynesian world everything is relative, in an Austrian world too? I mean, Austrians and their "nothing has intrinsic value". And what about a Milton Friedman world? Is it any different?

Fri, 03/02/2012 - 18:29 | 2218364 riphowardkatz
riphowardkatz's picture

Intrinsic value to whom? 

Fri, 03/02/2012 - 19:34 | 2218542 sun tzu
sun tzu's picture

who gets to decide intrinsic value?

Fri, 03/02/2012 - 15:54 | 2217768 apberusdisvet
apberusdisvet's picture

Seems like a back door hole for the NWO cabal to regain control of the Icelandic peoples; need to examine the agenda of those pols that recommended this.

Fri, 03/02/2012 - 16:01 | 2217776 Zero Govt
Zero Govt's picture

TD please don't mention "Iceland"

some big wigs (old farts) pop into this site on occasion and you could give them a heart attack (boy are they stressed-out already 'solving' their previous fuk-ups)

Roll on Davos 2013 where these insolvent tossers can shut the world out and be surrounded by equally clueless and deluded types

Fri, 03/02/2012 - 15:56 | 2217779 Coke and Hookers
Coke and Hookers's picture

Not gonna happen. The Icelandic globalist government is trying to get into the EU. Anything else than the euro is out of the question.

Fri, 03/02/2012 - 16:40 | 2218053 Zero Govt
Zero Govt's picture

Yep. I'd say this 'news' is more a big slap in the face (with an Icelandic caught fish) of the EU and its Euro than the US and its Petro/Nitro/Waro/Bankrupto Dollar

Fri, 03/02/2012 - 17:04 | 2218125 Coke and Hookers
Coke and Hookers's picture

This is just an idea from a group of Icelandic businessmen who contacted the Canadian central bank on their own. The Icelandic government is not involved in this matter and never was.

Fri, 03/02/2012 - 15:57 | 2217786 ghostfaceinvestah
ghostfaceinvestah's picture

They might want to wait until the Canadian housing bubble bursts.  They will get a better exchange rate.

Fri, 03/02/2012 - 16:02 | 2217804 Zero Govt
Zero Govt's picture

the Canadian housing bubble bust will be followed by the commodity bubble going 'pop'

wait for that and Iceland could probably pick up half of Canada with a solid currency

Fri, 03/02/2012 - 19:36 | 2218547 sun tzu
sun tzu's picture

You're calling for deflation? The commodities bubble going pop means stronger fiat currencies.

Fri, 03/02/2012 - 16:02 | 2217815 Ecoman11
Ecoman11's picture

Canadian monetary policy is misunderstood and to be considered as a safe currency is a fallacy. The Bank of Canada is engaged in the same operations as the Fed, ECB et al; they issue the same amount of printing relative to the size of their economy to keep the CDN pegged to the USD. Simply said, the BOC won't tolerate a higher dollar and will intervene as the Swiss did months ago.

Not to mention, there is a housing crises ready to implode any minute now, and with the CMHC (Canada's AIG) backing $600 billion in insured mortgages, will be a big enough bailout for S&P to cut Canada's rating.

Fri, 03/02/2012 - 16:29 | 2217989 Matt
Matt's picture

Stealth Amero FTW! With USD as reserves in place of gold, and I'm pretty sure BoC is a primary dealer for the Fed too.

CHMC is more like Freddie and Fannie Mae than AIG, except with EXPLICIT government backing rather than implicit. The federal government is the one backing the mortgages; I think they were looking at doubling down from $600 Billion to $1.2 Trillion or something crazy like that.

Fri, 03/02/2012 - 16:36 | 2218031 andyupnorth
andyupnorth's picture


Fri, 03/02/2012 - 16:43 | 2218067 Lore
Lore's picture

I agree. Canada is essentially an Anglo-American client state. The central bank runs in tandem like a sheepdog. Trade agreements are anti-free market and need to be scrapped. Government is mammoth for the size of its economy. There are screaming regional and cultural imbalances that could divide the nation at some point, and the sheeple are deep in the grip of Agenda 21. 

I guess the country looks less bad in an ugly fiat neighborhood. Canada has practically no bullion reserves, and if Icelanders plan currency transition, they had better start accumulating. Two tons ain't gonna be enough.

Fri, 03/02/2012 - 17:10 | 2218135 mogul rider
mogul rider's picture

Canada has no reserves?


You fucking Americans are laughable. You wouldn't even know where Canada is if you lived beside us. You do live beside us.

We only have about 80 trillion tons of the crap lying 6 inches under our outdoor pools. Why the hell would we dig it up when the squid and JPM simply steal it. We leave it in the ground till you shitheads panic, rent an escavator, dig up a few hundred pounds, sell it to you at 60000% margin and go drink beer.

WIKI the number of gold mines in Canada ya moron


jesus no wonder the evil empire rules you idiots.

Fri, 03/02/2012 - 17:48 | 2218267 kito
kito's picture

Just remember you are a nation of 30 million with an emasculated citizenry. We are a nation of 300 million devout followers of the 2nd amendment. . We will come for your gold, oil, timber and water reserves if need be. And there isn't a damn thing you can do to stop us.........

Fri, 03/02/2012 - 18:06 | 2218315 Canuckistan Al
Canuckistan Al's picture

Those of us, schooled (not) with revisionist history textbooks, might ask.................... how'd that work out for ya last time?

Fri, 03/02/2012 - 18:54 | 2218431 kito
kito's picture

Things have changed since 1775. We don't need Quebec. We need your lifeblood ....

Fri, 03/02/2012 - 20:31 | 2218685 ZeroPower
ZeroPower's picture

Ya, but nobody really needs Quebec...

Fri, 03/02/2012 - 19:40 | 2218536 jackinrichmond
jackinrichmond's picture

hilarious...  you guys couldn't even beat the afghanis or iraqis..  have you even won a war ?  ever ?   lol

Fri, 03/02/2012 - 19:52 | 2218593 kito
kito's picture

you pose the question as if canadians were a tougher breed than the afghanis or your elite federal warriors still ride horses?

Fri, 03/02/2012 - 20:05 | 2218632 jackinrichmond
jackinrichmond's picture

well, to be fair, the afghanis have been kicking everyone's ass right back to alexander the great.

Fri, 03/02/2012 - 20:47 | 2218706 prole
prole's picture

On its face yes it's true, in "our" current war with Iraqnamistan we are 0 and 3, Like our wars with Canada 0 and 2.

But it is a bit more nuanced than that non? The pretend "war" "we" are fighting is really a contest between the fatcats of the military-industrial-congressional complex versus the wallets of the Sheople, and it's the sheople who are absolute losers, every time. The collateral damage is the dead and maimed of America, Iraq, Afgan etc, not to mention the loss of freedom for all parties.

The only wars where 'we' did win in a conventional sense is where we were on the wrong side as in the Yugo wars of the 1990s, where we valiantly killed the Christian side, GO USA!! Not to mention Euro-Suicide 1 and 2 where just to be in it was wrong.

But any tough talk from our side to Canada is silly considering you already kicked our a$$ twice. I disavow any such talk

Fri, 03/02/2012 - 22:36 | 2218926 jackinrichmond
jackinrichmond's picture

i guess it isn't really a fair question..  it seems like no one 'wins' in a war.  i can't think of a successful conquest in modern history.  even modern day losers end up having their countries rebuilt by the 'victors'..  

Sat, 03/03/2012 - 12:54 | 2219690 GoinFawr
GoinFawr's picture

wait... so you're saying the US will be rebuilt by Canadians Afghanis and Iraqi's? This thread is so confusing.

Sat, 03/03/2012 - 02:06 | 2219255 Desert Irish
Desert Irish's picture

@ jackinrichmond  Did a good job of burning down the White House in 1812 but then again you guys were always late to the party .....1917 (1914)  /  1942 (1939)

Sat, 03/03/2012 - 11:25 | 2219567 Diogenes
Diogenes's picture

The last time the US won a war single handed was 1983 when they licked  Grenada. Before that, they beat Cuba in 1899.

Every other war was a loss, a tie, or mainly fought by other people with the US coming in late.

Fri, 03/02/2012 - 18:20 | 2218342 eddiebe
eddiebe's picture

Hahahaha good one if we want your 80 trillion tons of crap under your swimming pools we'll make you canooks dig it up with your bare hands and bring it to us on your sore backs. Hahahaha, oh and we'll rake your margin and your beer while we're at it.

Fri, 03/02/2012 - 18:55 | 2218435 kito
kito's picture

Tough talking Canucks. Too funny.......

Fri, 03/02/2012 - 20:48 | 2218711 zerotohero
zerotohero's picture

he meant "rape your margin"

Fri, 03/02/2012 - 22:20 | 2218886 memyselfiu
memyselfiu's picture

no body rapes my margarine sir, nobody!

Fri, 03/02/2012 - 19:16 | 2218487 BobPaulson
BobPaulson's picture

Mogul Rider: Not sure why questioning our lack of bullion makes him an idiot. Rough day? Your car factory in Ontario get closed and moved to Louisiana? Until Canada is not run by a nutjob like Harper, all our bragging rights are revoked. Not sure about this but we are one of the few countries in the world with a 0% fractional reserve requirement. Yes 0%. Brian Mulroney brought that one in. At least MacKenzie King blocked the effort to put the Bank of Canada in private hands, but we still have an ex-Squid calling the shots there.

Fri, 03/02/2012 - 20:08 | 2218637 zerotohero
zerotohero's picture

Me likey

Fri, 03/02/2012 - 22:53 | 2218956 Lore
Lore's picture

Which is more blinding, the egotism or the ignorant leaps to conclusions?

1. I'm not American.

2. I said Canada has PRACTICALLY no reserves, and included a link, which if clicked would have taken you to the list of reported reserves (which has Canada at 3.5t).  That is PRACTICALLY nothing. You could fit more in the back of a VW bug.

3. Look up DEEP RESERVES and think about what that means for future allocation in the context of direct sales by producers.

4. I'm not Jesus. And neither are you. So it's not clear where the ego comes from.

Maybe lay off the beer.

Sat, 03/03/2012 - 00:18 | 2219097 zerotohero
zerotohero's picture

your not Jesus - I'm handing in my membership card.

Sat, 03/03/2012 - 00:46 | 2219132 Lore
Lore's picture

People need to wake up. 

AGENDA 21 endangers property rights and sovereignty.  It's elitist socialism on steroids.

The "Greens" are being played. "Global Warming" was just one vehicle among many on the road to "austerity" and a global plantation.

Sat, 03/03/2012 - 00:29 | 2219108 ZenOps
ZenOps's picture

Canada does not have a "strategic" gold reserve...  We don't need it.

The Toronto Stock Exchange is about 12% gold weighted (suprising to many)  The US stock exchange is Google, Apple, and the rest of the losers.  Canada also does not have a strategic petroleum reserve either.  Again - Why would we need a reserve?  We've got excess capacity up the wazoo.

Malarctic, one gold mine in Canada will be extracting 10.7 million ounces over the next decade (responsible mining technology)  If we rushed it, we could have it out in a maybe three to four years.  If we used irresponsible extraction techniques, it could probably be pulled out in two.  But whats the rush?  Like Warren Buffet says, people just extract gold from the ground to refine it and put in back into the ground for safekeeping as a coin or bar anyhow.

Canada is a net seller of gold, we sell nearly every ounce to either private Canadians or anyone really.  Same with the *one* only producing Nickel mine in North America.

Sat, 03/03/2012 - 12:57 | 2219701 GoinFawr
GoinFawr's picture

That's the spirit Mogul!

Fri, 03/02/2012 - 18:45 | 2218406 Hot Dog
Hot Dog's picture


Fri, 03/02/2012 - 18:02 | 2218302 Canuckistan Al
Canuckistan Al's picture

Shhhhhhh............. I'm trying to sell!

Fri, 03/02/2012 - 19:28 | 2218529 jackinrichmond
jackinrichmond's picture

yeah, it's really 'gonna implode any moment now'..   you've been listening to keiser too long.  i live in vancouver and i can say that there is definitely no slowdown coming.  ..and i'm not selling lol    the comparison between AIG and CMHC is idiotic...  where do you get this info ?

Fri, 03/02/2012 - 22:20 | 2218884 Lore
Lore's picture

Dude. Check the listings around Whistler in the last six months?

Talk to any honest realtor, they'll tell you the market topped about a year ago.

Fri, 03/02/2012 - 22:24 | 2218893 memyselfiu
memyselfiu's picture

Dude, Olympic hangover could be a part of that too, no? Especially Whistler/Blackcomb...

Edit: I don't know any honest realtors, does anyone really?

Fri, 03/02/2012 - 22:30 | 2218915 jackinrichmond
jackinrichmond's picture

do you know how far whistler is from vancouver ?

Fri, 03/02/2012 - 22:59 | 2218962 Lore
Lore's picture

Yeah, I drove it a couple weeks ago. It's about 90 km - an hour's drive on the Sea to Sky Highway. Beautiful drive.

I have family members who work in real estate - saw them over Christmas - they're seeing a big change (unofficially) in Van, Vic and up-Island.

Sat, 03/03/2012 - 13:17 | 2219712 Bansters-in-my-...
Bansters-in-my- feces's picture

Bank of Canada is run by an ex-Goldmanite,Mark Carney.

He was picked ,trained and placed in B of C by the elite powers.

He has a fund called the Exchange Fund Account,that holds gold to help the gold price suppression scheme.

Fuck you Mark.

Fri, 03/02/2012 - 16:02 | 2217817 monopoly
monopoly's picture

Well done post. 

Fri, 03/02/2012 - 16:03 | 2217823 JohnKozac
JohnKozac's picture

Time to invade those Icelandic Infidels!....convert them to D-e-m-o-c-r-a-c-y .....

Sat, 03/03/2012 - 09:15 | 2219466 BidnessMan
BidnessMan's picture

Uuggghhh.... Iceland has the longest continuously running parliament on the planet.  Since 900 something.  They don't need converting.  And they showed the world how "out of control" bankers should be treated.  

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