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Canadian $ Parity with $US? -  Published 0920 EDT Wednesday August 23, 2006 Vol 16 Issue 102    Good Morning: Overnight, the Canadian Dollar was about the most exciting theme in an otherwise dull session, with the exception of Gold and Silver creeping higher, in line with our expectations, that these markets are one small step closer to going parabolic sometime soon. And that in of itself may be part of the impetus behind the Canadian Dollar's breakout through $0.90 overnight, putting it within distance of setting new all time highs in the not too distant future. Like the Australian Dollar, the Canadian is a resource based currency and has been one of the best performing currencies over the past few years as Canada's stature as a leading Oil and Gold producer continues to grow. And looking down the road, this can only get better as the Saudi Arabia of this hemisphere, namely Alberta grows ever larger as a major World class Energy producer and the Canadians better than anyone are able to satisfy to some extent America's insatiable demand for Oil.   As we've recounted before, in a way what happened to the Canadian Dollar over the past two decades or so, may be a microcosm of what could befall the US Dollar in the decades ahead. The unfolding resources boom and the growing deficits that the US has accumulated serve to impact the Dollar and the evidence is already in over the past 4 years, wherein the $US has already declined sharply from 123 to a low of near 80 and our view is that any meaningful breakdown from here could drive the $US sharply lower in the years ahead, possibly emulating the Canadian Dollar all the way down to its early New Century lows in the low 60's. And, as readers may recall, we've even made the case for a possible low in the US Dollar all the way down to the 40's. Everybody knows the US has been spending beyond its means for years and sooner or later they will have to pay the piper. Still as we've said before, and as Canadians already know, short term pain can lead to long term gains, that as in Canada's case could defy imagination in the years ahead as Energy demand continues to soar with China and India's billions of consumers aspiring to the American Dream's American consumption levels. It's hard to foresee today, but just look at the history of US consumption growth and then multiply that 3 fold to get in line with China's 9% growth over 28 straight years and now India's expected growth trajectory of similar proportions, Latin America, Eastern Europe and even Africa et all and the looming certainty of a World demand for Oil approaching 100 Million Barrels Per Day, may not be too far off and with World Oil Output capped at 85 Million BPD, Boone Pickens predictions of $100 per barrel for Oil, may be conservative and Canadians will be basking in their new found wealth and rejoicing as the Canadian soars to new all time record highs probably helped on by the prospect of $1,000 Gold and $100 Silver in the longerterm future.   A recent strong recommendation on MODAR Internet Security System ISSX has been acquired by IBM in an all cash deal for $28 a share. Trade Well Frrom the Desk of Savant

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