First of all, CAD is a Petro currency. Its strength is largely correlated with the price of oil. Oil has shot up from 36 to over 65, hence the recent run-up of CAD agains the greenbacks.
For China, what happens if they don't lend to the US? Then it will be a great depression for themselves.
For US, the possibility of default is certainly possible. However, I wouldn't bet anything on it to happen within the next 10 years. |