Canada's Economic Position Relative to the United Kingdom as Illustrated by the Monthly Average Noon Spot Rate

Source: Statistics Canada, CANSIM using CHASS, v37430 Canada; United Kingdom pound sterling, noon spot rate, average

This chart demonstrates the reaction of global investors to the 'graceful' decline of the UK after the second world war, as its colonies were gaining independence. This effect was magnified by Canada's booming post war economy, not having suffered the massive decrease in the capital stock brought on from Nazi Luftwaffe bombs.

The current fiscal position of the UK is no significantly better off than their 'European Union' sisters affectionally known as the "PIIGS" (Portugal, Ireland, Italy, Greece, and Spain). The massive welfare economy of Britain, and its appearance from abroad of a disintegrating society, illustrated by muslim street protests professing its ascendance into an Islamic country are certainly not an image that will excite international investors looking to dump their money.

It appears that Canada's economic and fiscal mess is not as bad as our cousins across the Atlantic.