Has Canada hit peak dollar?
Today, Atlanta’s professional hockey franchise, the Atlanta Thrashers have been sold to True North Sports & Entertainment and in a press conference, it’s been announced that the team will relocate to Winnipeg for the next season which will begin in September.
Fans across Canada rejoice at the news that the country is getting another NHL franchise. People in Winnipeg in particular are very happy to get pro hockey for the first time since 1996 when their franchise, the Winnipeg Jets, moved to Arizona to become the Phoenix Coyotes.
This marks the second time that Atlanta has lost their hockey franchise to a city in Western Canada. The first time was in 1980 when the Atlanta Flames moved and became the Calgary Flames.
Since the Canadian dollar (called the “Loonie” by the locals) is tightly tied to commodities, particularly oil, it’s an interesting parallel to see that an NHL franchise moved to Canada at times when oil as well as the Loonie is hitting new highs.
So has Canada hit peak dollar? Joe Weisenthal in his article seems to believe that peak commodity may have been hit. Or maybe “this time it’s different”.
An argument could be made that “this time, it’s different” since in 2011 the U.S.A. is in two wars and one so called “kinetic action” which is perpetuating a massive debt hole. That wasn’t the case in 1980. Canada has also become the largest exporter of crude oil to America which is only helping to prop the Loonie.
Anyways, today, Winnipegger are celebrating the return of the NHL in their beautiful (albeit mosquito ridden) city. Anyone has tickets?