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Canadian dollar = USD$0.85

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E

explodet

Member
http://www.cbc.ca/story/business/national/2004/11/26/loonie-high041126.html

loonie.jpg


TORONTO — The Canadian dollar closed above 85 cents US for the first time since early 1992, as the U.S. dollar continued to weaken amid concerns about the U.S. trade and fiscal deficits.

The loonie closed up 0.12 of a cent to 85.04 cents US.
The last time the Canadian dollar bought this much south of the border, Bill Clinton was preparing his run at the White House and Whitney Houston was belting out her mega-hit, "I Will Always Love You" on the world's airwaves.
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S

Saturnman

Banned
As it is already mentionned in the article, people in the US government don't seem to share the same concerns regarding deficits. How long can they let this go on?
 
R

Ripclawe

Banned
http://news.xinhuanet.com/english/2004-11/27/content_2266538.htm


Canadian Industry Minister David Emerson told the Commons Industry committee that the rapid surge in the currency is putting competitive pressures on Canadian industry.

However, Emerson said the Bank of Canada cannot be blamed for the Canadian dollar's increase. "The Canadian dollar today is as much driven by what is happening to the US dollar as anything elseand I do not think David Dodge can manage the US dollar," he noted.

Clement Gignac, chief economist at National Bank of Canada, warned in a commentary Thursday that the clouds over Canada's factory sector are darkening as operating earnings in the factory sector fell 2 percent in the third quarter, the first decline in ayear.

He predicted that the hit to revenues by the Canadian dollar appreciation will be much more severe in the final three months ofthe year.

According to the Canadian Imperial Bank of Commerce, the surge in the prices of natural resource related commodities has made Canada's export numbers look strong, but non-resource manufacturers are getting hammered by the strong Canadian dollar.

The bank said that the value of the Canadian dollar could remain at high levels for several years.

That could inflict more damage on the non-resource manufacturing sector than did the run-up in the value of the dollar in the early 1990s, which was driven by relatively high interest rates and was reversed once rates came down, it said.
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http://www.guardian.co.uk/business/story/0,3604,1360555,00.html

Weak dollar harms world economy, says Bank chief

Mark Tran
Friday November 26, 2004

The weak dollar is one of the key uncertainties for the world economy and further declines are possible, the Bank of England's chief economist said today.

Top US monetary officials have insisted that the country has not abandoned a strong dollar policy. But they have also reiterated their belief that the dollar's level should be determined by market forces. Traders have taken those remarks to mean the US will take no action to back up its words.

While a weak dollar can be expected to boost US exports, it bodes ill for the eurozone. A strong euro poses problems for a fragile export-driven recovery in the eurozone, especially Germany. Jean-Claude Trichet, the president of the European Central Bank has described the rise of the euro against the dollar as "brutal".
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latest tinfoil conspiracy is America is on purpose! hurting the eurozone....
 
M

maharg

idspispopd
Fatghost28 said:
That's a very simplistic view of our economy.
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It's not actually a view at all.

However, I am aware of the importance of exchanges between economies. But the fact is, our nearly complete dependency on the US economy is the problem we face here, not the exchange rate. The exchange rate causing a depression in the economy is only a symptom of our dependence.

If we want to not have this happen, we need to deal with the root cause, not the symptoms.
 
M

Mike Works

Member
Fifty said:
This is bad news for the film industry. :(
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You're fucking telling me. Last month I worked 19 days. This month I think I've worked 3. If it weren't for my other job, I'd be in big fucking trouble.
 
W

White Man

Member
GAF POLL:

In 2007, if I get an NEA grant, should I use it to move to Canada?

EDIT:Of course, by 2007, a 20k NEA grant won't by me a pack of chewin' tabaccy in Canada.
 
M

maharg

idspispopd
wheat, formerly beef, finished goods (lots o' factories in ontario and quebec), movies/tv shows, water, oil, fish, timber, etc.

You know, the sort of stuff all countries export. Anything on which they have a competitive advantage.
 
F

Fresh Prince

Banned
Guess the farmers are pretty pissed.
Not that the Global Markets are fair or anything with subsidies and the such.

Anyway AU$1 = US$0.79
It's amazing that stone and mortar stores still don't pass savings to the average consumer and American companies think they can still over price their goods. Thank God for the Internet.
 
F

Fatghost

Gas Guzzler
maharg said:
It's not actually a view at all.

However, I am aware of the importance of exchanges between economies. But the fact is, our nearly complete dependency on the US economy is the problem we face here, not the exchange rate. The exchange rate causing a depression in the economy is only a symptom of our dependence.

If we want to not have this happen, we need to deal with the root cause, not the symptoms.
Click to expand...


How would you prevent this? Go protectionist? The "problem" is more than just the US. It's also currencies that are pegged to the US dollar, such as the HK dollar and the RMB. It's currencies that tend to move in step with the US dollar. It's the fact that Canada's entire industry is based mostly on our abundance of natural resources and it's limited by the fact our domestic population and economy is not very large.
 
M

maharg

idspispopd
Fatghost28 said:
How would you prevent this? Go protectionist? The "problem" is more than just the US. It's also currencies that are pegged to the US dollar, such as the HK dollar and the RMB. It's currencies that tend to move in step with the US dollar. It's the fact that Canada's entire industry is based mostly on our abundance of natural resources and it's limited by the fact our domestic population and economy is not very large.
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I understand all that, but you're missing my point. I would personally prefer that Canada become more self-reliant. That's beside the point, however. At the moment, there's a lot of bitching about the dollar rising killing off exports when it's still just a symptom of our dependence. It's the *dependence* that causes our economy to go to the shitter when the currency fluctuates. I'm pointing out the lameness of using the currency as a scapegoat.

As one of rip's articles points out, there's really not a lot we can do about the currency situation at this point. We like to pretend the Bank of Canada has real control over the value of our currency, but at this point it's obvious that they don't or it would still be low. If we could do something about our currency's value at this point, we would have. And so would the rest of the world.

We're still in bed with the elephant, and we still feel its every move.
 
F

Fatghost

Gas Guzzler
maharg said:
I understand all that, but you're missing my point. I would personally prefer that Canada become more self-reliant. That's beside the point, however. At the moment, there's a lot of bitching about the dollar rising killing off exports when it's still just a symptom of our dependence. It's the *dependence* that causes our economy to go to the shitter when the currency fluctuates. I'm pointing out the lameness of using the currency as a scapegoat.

As one of rip's articles points out, there's really not a lot we can do about the currency situation at this point. We like to pretend the Bank of Canada has real control over the value of our currency, but at this point it's obvious that they don't or it would still be low. If we could do something about our currency's value at this point, we would have. And so would the rest of the world.

We're still in bed with the elephant, and we still feel its every move.
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But that "dependence" is having an open market and globalized economy. Being "self reliant" is a bad idea.

The Great Leap Forward was China's attempt at "Self reliance" and it didn't work out well ;)

What's going to happen in the short term to Canada's economy is this: the higher dollar will erode Canadian productivity in the short term, but will ultimately lead to more competitive Canadian operations doing better, and less competitive outfits being forced to adapt or die off.

Canada could protect itself from this currency flucuation by pegging our dollar (if we could build the currency reserves to hold that position for long enough, which would be doubtful). But pegging our dollar would tend to suppress our economy and frankly wouldn't help our economy in the long term.
 
M

maharg

idspispopd
Fatghost28 said:
What's going to happen in the short term to Canada's economy is this: the higher dollar will erode Canadian productivity in the short term, but will ultimately lead to more competitive Canadian operations doing better, and less competitive outfits being forced to adapt or die off.
Click to expand...

I agree, and that's pretty much what I'm saying *should* happen. That our export businesses did so well for so long is more like a glitch in the system than anything else, taking advantage of a technicality, and that can only go on so long. This is why I find all the doom and gloom about the dollar going down hurting our export business annoying. We had a boom for a while, but it wasn't sustainable and it never was going to be. The dollar moving to parity means things are going from stupidly out of wack to normal, while a lot of people are treating the current/previous situation as if it should be expected to be normal.

I hope it leads to an attitude change is the thing. Canadians have been too willing to rest on the low dollar to make money for far too long. Like, right now, there's no NHL. You have Molson and Adidas putting out these retarded "PLEASE BRING BACK HOCKEY" commercials. Why aren't we pushing out a CHL right now? Seriously, why the fuck not? If it's so culturally important to us as canadians to have a hockey league, why aren't we taking it into our own hands to make sure we have one? And Molson, one of the bigger Canadian companies (big enough to swallow an American beer company up) wastes their money saying "pweeeease." If there was ever an opportunity to get a CHL going, even if it was a money pit like the CFL, it's now. I consider this a prime symptom of 'the problem with Canada' and it really bugs me.

Canadians need to become competitive. That is, essentially, what I mean when I say self-reliant. I don't mean we should become isolationist, I mean we should stop relying on foreign markets to make our lives easier. Foreign trade is obviously very important, but we can't expect the low dollar to make it easy for us forever.
 
F

Fatghost

Gas Guzzler
maharg said:
I agree, and that's pretty much what I'm saying *should* happen. That our export businesses did so well for so long is more like a glitch in the system than anything else, taking advantage of a technicality, and that can only go on so long. This is why I find all the doom and gloom about the dollar going down hurting our export business annoying. We had a boom for a while, but it wasn't sustainable and it never was going to be. The dollar moving to parity means things are going from stupidly out of wack to normal, while a lot of people are treating the current/previous situation as if it should be expected to be normal.

I hope it leads to an attitude change is the thing. Canadians have been too willing to rest on the low dollar to make money for far too long. Like, right now, there's no NHL. You have Molson and Adidas putting out these retarded "PLEASE BRING BACK HOCKEY" commercials. Why aren't we pushing out a CHL right now? Seriously, why the fuck not? If it's so culturally important to us as canadians to have a hockey league, why aren't we taking it into our own hands to make sure we have one? And Molson, one of the bigger Canadian companies (big enough to swallow an American beer company up) wastes their money saying "pweeeease." If there was ever an opportunity to get a CHL going, even if it was a money pit like the CFL, it's now. I consider this a prime symptom of 'the problem with Canada' and it really bugs me.

Canadians need to become competitive. That is, essentially, what I mean when I say self-reliant. I don't mean we should become isolationist, I mean we should stop relying on foreign markets to make our lives easier. Foreign trade is obviously very important, but we can't expect the low dollar to make it easy for us forever.
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I agree with everything you've said.

But since I have a bunch of money in the market right now, I'm still hoping that a short term band aid will still appear :D
 
O

Ollie Pooch

In a perfect world, we'd all be homersexual
YOINK

last time i was in the states it was 50c to an aussie dollar - now its about 80, perfectly timed to coincide with a trip to NY in a week :p

GOLD
thanks george!
 
K

Kiriku

SWEDISH PERFECTION
Yeah, even the Swedish Krona is the strongest it has ever been in at least EIGHT years against the American dollar. And the dollar just keeps dropping...

About 3 years ago you had to pay around 10 SEK for an American dollar...now it's down to 6.76.
 
D

Drexon

Banned
Kiriku said:
Yeah, even the Swedish Krona is the strongest it has ever been in at least EIGHT years against the American dollar. And the dollar just keeps dropping...

About 3 years ago you had to pay around 10 SEK for an American dollar...now it's down to 6.76.
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You stole my thunder! :( Yeah, the dollar's pretty god damn weak now, but what hasn't been covered is why. Bush? I hope so. :) (Btw. it's down to 6.65 now, go import stuff!;)
 
W

Warm Machine

Member
maharg said:
wheat, formerly beef, finished goods (lots o' factories in ontario and quebec), movies/tv shows, water, oil, fish, timber, etc.

You know, the sort of stuff all countries export. Anything on which they have a competitive advantage.
Click to expand...

Electricity is another big one. All the good raging rivers and dams, in quantitiy, are in Canada :) We feed most of the northern states with power.

What is the US interest rate at right now? Last I heard it was 1%. It is useless in invest in a country with an interest rate that low.
 
O

Orin GA

I wish I could hat you to death
Enjoy it for now. But in a few years the canadian dollar will be back to its original value.

.237827827 USD
 
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