Very good point. Also a good reason to not believe any of the US government statistics on inflation and instead use shadowstats.com which figures inflation the way the US government USED to figure it. And it says we are and have been in a significant inflation all along. Which agrees with your argument that the Canadian dollar should be much LOWER if in fact there had been little inflation in the US as our government has claimed. Also explains why gold has been rising in US dollar terms for the last ten years. Actually that is a misstatement. Gold has remained relatively stable, it is the US dollar that has depreciated. Our government has been lying to us, surprise surprise.

Think about it, are we really that much better off with $5 corn than we were with $2.50 corn back then? Inflation has caused our costs to rise along with the price of grain so in reality in the higher prices we have really gained nothing. We are led to believe inflation is our friend but in reality it is only a hidden tax on the middle class and poor. It is a way of paying for a government that spends beyond its means.

John