How is the collapse of the US dollar and their current economic implosion likely to affect Canada?

Answer 1

It is good for Canadian consumer (Canada is the US's largest export market).

But the US is also Canada's largest export market, so industries relying heavily on exports to the US face potentially decreasing demand ( read lay-offs).

Answer 2

Your question presumes much, most of which is incorrect: The dollar, though certainly weak, has NOT "collapsed", and the word "implosion" is not in the economic lexicon.

Regardless, the world's economy relies on a solid industrial state from which goods and services may be exchanged. Prior to WWII, Germany was seen as that power, with the post-industrial age USA catching up quickly. After WWII, with the near total destruction of the German industrial plants, the United States became that power. Today, the US has largely become a service industry, selling its raw materials and waste overseas (i.e., China, India, and Japan, primarily) in return for consumer goods being made from those nations, of which the largest consumer is the USA (arguably, China is catching up in the consumer arena). Keeping in mind that most of those other nations' raw materials comes primarily from the USA, should the US economy collapse, those other nations might still be able to buy raw materials from the USA, but few people in the USA would be able to buy the consumable goods, and, thus, the other nations' economies would fail, as well (i.e., the same thing happened in the Great Depression of the 1930's: no buyers means no sellers!).

Respectfully, Canada is not considered a major player in the economic world, as it has comparatively few raw materials to sell to anyone, so it is primarily a consumer country. Thus, like it or not, its economic fate hinges on the US economy. A collapse in the US economy would hurt Canada, because Canada would be forced to buy its goods from other nations, rather than from its neighbor, the USA (regardless of the actual source of those goods), which would increase prices to the Canadian consumer.

So, I'm not sure what you were getting at with your vitriolic rhetoric, but, the above should satisfy your question as a whole.

Answer 3

Economic implosion? The U.S. economy is actually booming, nearly 4% GDP growth for two quarters in a row -- the US economy is certainly growing faster than Canada's.

As for the weakening of the US currency, Canadians can come South across the border and buy stuff cheap. Enjoy. It won't last long.

Answer 4

it most likely wont. the canadian dollar should stay the same, since they are a different country from the US