I find this time for forex to be tough. A lot of people are running to forex to avoid the horrible stock market, but I feel a bit scared with the moves of the US dollar.

Ever since all this financial mess happened, the US dollar has just skyrocketed. It’s an amazing run and I happy for the results of the run – my problem is that it shouldn’t be happening. It’s just simple economics.

The dynamic between the USD/CAD dollar is amazing. It’s such a fast rise in the US dollar compared to the Canadian dollar. It strikes me as odd for a few reasons.

1. The massive injection of US dollars into the economy

The printing presses can’t keep up with the amount of money that is actually needed in the US economy. It’s insane. But thoughts of people running around with wheelbarrows full of money comes to find.

2. Canadian banking system is the best in the world

The Canadian banking system is sound and there has been liquidity added, but nothing compared to what is needed in the US. The Canadian banking system was able to avoid all this stuff because it required people to make down payments and if they couldn’t make a high enough down payment, they had to buy mortgage insurance.

This is where the problem lies for me. The US dollar is rising compared to the Canadian dollar, yet the US treasury & Federal Reserve are throwing money into the economy and the Canadian banking system was sound.

It seems quite illogical to me.