Poor performing US President = strong Canadian dollar?

Oh, I’m gonna get in some hot water for this one…

So the other day, I heard a comment that the Loonie was the highest it’s been since the early 1970s. About the time Tricky Dicky was in the Oval Office.

That made me wonder a little…

Thanks to the internet, there’s a lot of information that’s now readily available. Like historical data on the Canadian dollar vs. the American dollar. And finding dates of offices for seated US Presidents isn’t exactly something that requires a PhD.

So, using a graph acquired from the Pacific Exchange Rate Service and dates from the White House itself, I’ve come up with this:

[photopress:dollar_president.jpg,thumb,pp_image]

So I ask you, because I’m a little hesitant to read into this too deeply, does having a perceived ill-performing President directly lead to a low US dollar? We all know about Nixon, Ford didn’t really do much, Carter didn’t rock the boat (he is a peaceful person), Reagan brought about “Reaganomics” which then led to controversy, G. H. W. Bush brought about the first Iraq War, Clinton‘s biggest problem was his libido, and I’m curious to see how history writes up Dubya.

Things that make you go “hmm”…

One Reply to “Poor performing US President = strong Canadian dollar?”

  1. So I was just having a chat with my friend Joel, who pointed out that the dollar’s slide/rise (depending on which one you’re looking at) isn’t a result of the Prez. It’s US monetary policy.

    Now, both of us freely admit that this is a little bit on the incomprehensible side (macroeconomics wasn’t my strong subject). I think, though, this is the short version:

    The US has a massive debt ($9,065,972,660,762.03 as of 30 Oct 2007 at 07:05:07 PM GMT). That debt is owned by other countries. The higher the value of the US dollar, the heavier that debt is with other countries. So — apparently — the goal is to devalue the US dollar so other countries aren’t crushed by the unpaid debt. Or at least that seems to be the theory.

    But like I said, I’m no economist.

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