"......Ever hear of competitive currency devaluation? It is all about the race to the bottom to stay competitive with the US Dollar."

This is what I fear. I think the US will try to artificially (through various monetary policies) devalue their dollar in an attempt to "inflate" their way out of real debt, hence as you say "race to the bottom".

And the Canadian dollar can still go lower. It's not only about interest rates; it also includes the amount of cash floating and the current account surplus/deficit. But gold should be a good hedge. I don't know if the Canadian government has the political cajones to let the Candian dollar rise for a lengthy period of time, so investments in companies like Shoreham should go a long way to hedge against the possibilty of inflation/devaluation.

Trainboy