We are all familiar with the "Buy American" clause that is part of the $787 billion stimulus package and is designed to help U.S. companies battle foreign competition. But is it really doing what it's supposed to? This Wall Street Journal article takes a look at an American company that is losing a good deal of its business to foreign competition -- thanks to the Buy American provisions.

Apparently, there is growing resentment toward America for the Buy American provisions that has lead to a Buy Canadian campaign. In fact, one town in Canada (Halton Hills) is cited as one of roughly a dozen Canadian communities that are trying to freeze out American companies. The town's mayor stated, "We won't be taking any products from any country that is discriminating against us."

There is a bit of glee circulating on the frozen tundra amid news that the Canadian dollar has hit the equivalence of 92.34 American cents, its highest point in 30 years. TD Securities Inc. chief currency strategist Shaun Osborne states that it is possible that the Canadian dollar could reach a value of .96 cents by June. Analysts agree that if commodity prices continue to rise, there stands a good chance that the two currencies would equalize. I say if that point is reached the two currencies should be immediately put into lockstep and our fluctuating currency exchange on our northern border should end forever. Could it be done? Yes, it could. Will it ever happen? Probably it won't.

Personally, I think the benefits would far outweigh the temporary disadvantages. Granted, I expect there would be quite a tussle in the commodities exchange for a time but that's a self adjusting system anyway. NAFTA paved the way for the "free flow" of goods and materials across our borders. Currency equalization would take the teeth out of much of the damage that tilted document has inflicted upon the American economy. I suspect that Canadian manufacturers might get just a little testy about the idea, but I believe that in the long run it would level the playing field for them as well as us. I also think it would give North America a lot more leverage in the world markets.

Economic idealists and world view visionaries already have a name for a singular North American currency. Do a web search for the word "Amero" and you'll spend the rest of your week reading about it. You'll receive every point of view you could ever imagine. Some say it would be the next step to the "One World Government," some say it would be a protectionist move. I say it's the most logical step toward stabilizing two very powerful yet unsteady economies. I see it as a grand statement to the rest of the world that there's still a force to be reckoned with over here pinned between the Atlantic and Pacific oceans.

Then, if we could just annex Mexico...

Canadian Pacific Railway Ltd. (NYSE: CP) maintenance workers have walked off the job in pursuit of a 13% wage increase over the next three years. This is the second strike this year against one of Canada's national railways and it affects approximately 3,000 rail workers. The previous strike in February involved engineers and yard workers. That dispute is currently in the hands of mediators.

Teamsters union leader William Brehl, indicated that for most of the workers involved in the current walkout, wages are the central issue. Union members are demanding a three year, 13% total wage increase, but the company has refused to agree to an increase of more than 10%. The deadlock indicates little promise for early resolution. The company has stated that the vacated work positions shall be immediately staffed with cross trained management personnel and it anticipates little effect to business operations.

At least one Canadian economist has indicated that this knot in Canadian logistics has the potential to push some would be Canadian rail traffic southward into the U.S. Jayson Myers, chief economist with the Canadian Manufacturers & Exporters, told CBC News, "We can't afford to see continuing series of strikes in our transportation sector, and then pretend that we have an efficiently working logistics system here in Canada."

Perhaps Warren Buffett is on to something.

MOST NOTEWORTHY: American Home Mortgage Investment Corp (AHM), MasterCard Inc (MA) and the selective railroad companies were today's more notable initiations:

• JMP Securities started American Home Mortgage (NYSE: AHM) with a Market Perform frating citing the challenging mortgage market.

• UBS started MasterCard (NYSE: MA) with a Buy and doesn't believe margin upside is fully reflected in the stock's valuation.

• Morgan Stanley initiated five railroad companies: Union Pacific Corp (NYSE: UNP) and Norfolk Southern Corp (NYSE: NSC) with Overweight ratings and Burlington Northern Santa Fe Corp (NYSE: BNI), Canadian Natural Resource Ltd (NYSE: CNQ) and CSX Corp (NYSE: CSX) with Equal Weight ratings.

OTHER INITIATIONS:

• Ceradyne, Inc (NASDAQ: CRDN) was initiated with a Neutral rating at First Albany.

• United Therapeutics Corp (NASDAQ: UTHR) was started with a Buy rating and $81 target at Citigroup.

• Goldman Sachs initiated shares of Aruba Networks, Inc (NASDAQ: ARUN) with a Neutral rating and $16.50 target.

• Saks Inc (NYSE: SKS) was started at Bear Stearns with a Peer Perform rating.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

A brief look at railroad freight traffic numbers offers some tell-tale signs as to where our economy is heading. I like to review railroad loading statistics because they can give you a crystal-ball edge in guessing where the big money is leaning in the volatile economic food chain. Basically, right now the numbers are firm year over year, but the freight demographics are what I find interesting.

According to the Association of American Railroads: Total rail freight volume is up 8.9% as compared to 2006, but while container volume is up about 14%, trailer volume is down 6.2%. That indicates that for the year so far, the railroads are probably moving more imported product than domestic product.

While total carload freight (not including inter-modal) was down nearly 1% this week as compared to the same week last year, total ton-miles increased 0.3%, indicating that less freight is moving but it is traveling more miles. That is clearly due to the decreasing inventories of manufactured product, which should bode well for manufacturers in the second and third quarters. That's assuming that consumer spending maintains current levels.

Nonmetallic mineral shipments have increased nearly 20% by volume over last year. This shows strength in base chemicals, base raw materials, glass, concrete, asphalt, industrial construction, and infrastructural improvements. Metallic ore shipments are down over 50%; I believe that shows weakness most especially in steel, tin, aluminum, and copper. Lumber and wood product shipments declined nearly 25% -- no reprieve for the home building market there! Petroleum product shipments are up 9.2% year over year, and coal shipments have increased 3.1%. Here's a tip, it looks like road building and resurfacing will be a big gainer this summer!