No, it doesn't. I'll stop being subtle to make this more clear. When I spoke of the issue being up to "Canada's discretion" what I mean is that Canada, in our hypothetical scenario, obviously cannot let their currency appreciate endlessly. They would take actions to prevent that, because it's obviously self defeating otherwise. This is precisely what has happened in the US. The artificial power the petrodollar granted our currency gave us not only the power but the necessity to start doing things like endlessly printing money, sending much of it abroad, spending trillions of dollars on pointless wars, and more.

Until recent times, keeping inflation up was difficult in spite of all of this - which is why we've had 0 interest rates desperately trying to devalue the currency. The big inflection point was 1971. That was the end of the USD being 'hard backed' (fixed exchange rate) by gold. The 'soft backing' (unfixed exchange rate) of oil would begin in 1974, organized by no less than Kissinger. You can see many of the measures we took here [1]. A critical table [2] that site is missing is the trade deficit.

Ultimately the test for all of this will come imminently. BRICS has been developing a new backed (presumably 'hard backed') currency, set to be announced as early as August of this year. And IMO, BRICS as a whole is making their move at this exact moment precisely because the USD is in a situation where this will have maximum impact. Something to keep your eyes on if you're at all genuinely interested in these things!

[1] - https://wtfhappenedin1971.com/

[2] - https://www.macrotrends.net/countries/USA/united-states/trad...