Sharky:

1. The CDN $ is as of today .9705 US$. As the CDN $ continues to strengthen, it will advance to 1.00 and beyond. How long it will take and the degree of the move, I do not know.

2. One result of this will be that oil, gold, silver, and virtually all prices for raw materials will increase in US$ terms. If the Euro also weakens, all prices in Euros for oil and natural resources will also increase.

3. All we in Europe and the US can do is to be invested in hard assets such as gold, silver, oil and commodities in general as well as currencies likely to benefit from a weaker $ and Euro. Such as; Australian $, New Zealand $, Norwegian Kroner, Canadian $, Suisse Franc, Brazilian Real and perhaps the Chinese Yuan and Indian currency.

4. Social benefits in the US and Euro Land will not keep up with inflation. This is one of the ways that the governments dilute their indebtedness. Funds not invested in such assets will devalue in real terms though perhaps not as much.

5. For those not invested in such assets, they will take a massive hit in true wealth.

6. The only asset to do well in both inflation and deflation is traditionally gold and gold stocks. That is why gold and gold stocks have gone up so much for now ten years in a row. We likely will see periods of in inflation and periods of deflation as was true of the 1929 through 1940 period in the US.

7. All might find it useful to research the Kondratiev Cycle with particular attention to the winter portion of the cycle. Kondratiev was A Russian Ph.D economist who following years of research discovered what came to be known as the Kondratiev Cycle Theory. He fell victim to one of Stalins political purges in the mid 1930's and died in the Gulags.

Brian