[kootenay]

At some point it has to be recognized that the real value of the US dollar has been diluted by an increase in Money supply and an increase in debt levels. Those foreign entities that hold US currency will seriously come to the US shopping for hard assets or converting them. Up here in the GNW I wish we would see a small bump in interest rates in March but I dont think that will happen. The market in select areas is way to hot and needs a cold bath of water. Government is looking at setting up more stringent rules for loan approval to slow the pace of sales and it will help but not enough. We unfortunately will not see rates rise until this fall

As an aside FYI

CPP Fund posts 1.8 per cent return

Boyd Erman
11:55 EST Thursday, Feb 11, 2010



The Canada Pension Plan Fund posted a 1.8-per-cent return in the final three months of 2009, thanks mostly to rising stocks. That boosted the fund's total assets to $123.9-billion.

The CPP Investment Board generated $2.2-billion in investment income in the quarter, the board said in a release, which was largely offset by $2.1-billion in cash outflow to pay benefits. The fund said there's a seasonal factor where it pays out more cash in the last part of the calendar year.

The quarterly performance brings the fund's rate of return for the first nine months of its fiscal year to 14 per cent, which translates to $15.2-billion in investment income.

“By staying the course with our long-term strategy and strategic asset weightings, including public equities, the fund has benefited from the rebound in equity markets around the world,” David Denison, CPPIB's chief executive officer, said in a statement.