Easy Cash Loans

America have always been able to boast that their dollar was stronger than their cousins in Canada. Canada has never been able to keep up with the rapid growth of the American economy and whilst they certainly aren’t doing badly, they have always been overshadowed by their next door neighbours. However, as people going on Canada holidays may have noticed recently, with the recession in full flow, Canadian money in closing the gap and their economy looks to be more stable than in the States.

This occurrence can mainly be attributed to two factors. To start with, America’s spending habits have long been a little less modest that Canada’s. Without getting into the strict economics of the situation, Americans have borrowed more money from banks than Canadians. This initially helped the economy grow somewhat, but has meant that as banks themselves struggle for credit, lots of people are finding themselves in trouble and unable to meet the payback demands from banks. This has caused quite a large drop in the power of the dollar.

Secondly, a large amount of the American GNP is from industry and oil. In fact these two areas alone contribute to around a third of all national product, which is a bit of a blow when you consider they have been hit hardest in the recent recession. There is simply less demand for industry products at the moment and as the oil markets become more and more competitive, they are being flooded by cheap oil from the Far East, who have resources too large for America to match.

This is good news of course for Canadians who are planning to go on American holidays, as they their money will go further than it has done for a long while. However, if you are an American thinking about visiting Canada, it’s probably best to stick to Alaska holidays for now.

Technorati Tags: America, Canada, dollar, economy, finance