Canadian Dollar
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It's Showtime**
Joined: May 2002
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From: Edmonton
Canadian Dollar
I posted this in Off Topic but it got zero response. I would guess this is a sore spot with some of our friends to the south. The U.S. dollar was at 1.10887 Canadian today, and it continues to slide. There were a ton of jokes about the Canadian Peso when our dollar was in the crapper but it isn't so funny anymore. It is not so much that there is confidence in our dollar as there is a deminishing confidence in the U.S. dollar.
This is not necessarily positive as it hurts exports and causes trade imbalances. It should reduce our gas prices though as oil is traded in U.S. dollars yet not so much as a minor change in gas pricing. Foreign auto imports should also come down in cost yet they are not.
This is not necessarily positive as it hurts exports and causes trade imbalances. It should reduce our gas prices though as oil is traded in U.S. dollars yet not so much as a minor change in gas pricing. Foreign auto imports should also come down in cost yet they are not.
I think this quote from Philip Bobbit’s view on market-states, sums up what is going on in the currency markets.
“The market-state is, above all, a mechanism for enhancing opportunity, for creating something—possibilities—commensurate with our imaginations. The rocket technology developed to deliver weapons in the Long War has propelled man into a perspective from space; his communications' technology, also developed for strategic reasons, has sent back an image from that perspective. I am inclined to think that something of the market-state's indifference to fate and sensitivity to risk is related to this reorientation, where the illusion of limitless opportunity meets the reality of choice.
Similarly, the decoding of human genetic material will change the way we look at excellence and achievement. We are inclined to forget that the doctrine of the divine right of kings rested on an admiration amounting to awe for the fatalistic assumption of chance; it was discredited when Enlightenment thinkers shifted the basis for the evaluation of that doctrine from one of the grateful acceptance of divine providence (for who could know better than God who should rule), which is actually confirmed by the apparent randomness of inherited merit, to a more self-confident, humanistically centered basis in the rational assessment of ability….
…Walter Wriston, the former chairman of Citibank, described and defended the process of capital decontrol as follows:
The gold standard [of the nineteenth century], replaced by the gold exchange standard, which was replaced by the Bretton Woods arrangements, has now been replaced by the information standard. Unlike the other standards, the information standard is in place, operating, will never go away and has substantially changed the world. What it means, very simply, is that bad monetary and fiscal policies anywhere in the world are reflected within minutes on the Reuters screens in the trading rooms of the world. Money only goes where it's wanted, and only stays where it's well treated, and once you tie the world together with telecommunications and information, the ball game is over. It's a new world, and the fact is, the information standard is more draconian than any gold standard ... For the first time in history the politicians of the world can't stop it.”
END
I believe that people need to accept that the US is not the only place where excellence exists. The top tier countries now form one.
Bush’s discounted corporate tax, which ended in 2006, helped the dollar at the time. Plus, the Lonnie has the oil sands for the future. It is just readjusting, nothing special.
“The market-state is, above all, a mechanism for enhancing opportunity, for creating something—possibilities—commensurate with our imaginations. The rocket technology developed to deliver weapons in the Long War has propelled man into a perspective from space; his communications' technology, also developed for strategic reasons, has sent back an image from that perspective. I am inclined to think that something of the market-state's indifference to fate and sensitivity to risk is related to this reorientation, where the illusion of limitless opportunity meets the reality of choice.
Similarly, the decoding of human genetic material will change the way we look at excellence and achievement. We are inclined to forget that the doctrine of the divine right of kings rested on an admiration amounting to awe for the fatalistic assumption of chance; it was discredited when Enlightenment thinkers shifted the basis for the evaluation of that doctrine from one of the grateful acceptance of divine providence (for who could know better than God who should rule), which is actually confirmed by the apparent randomness of inherited merit, to a more self-confident, humanistically centered basis in the rational assessment of ability….
…Walter Wriston, the former chairman of Citibank, described and defended the process of capital decontrol as follows:
The gold standard [of the nineteenth century], replaced by the gold exchange standard, which was replaced by the Bretton Woods arrangements, has now been replaced by the information standard. Unlike the other standards, the information standard is in place, operating, will never go away and has substantially changed the world. What it means, very simply, is that bad monetary and fiscal policies anywhere in the world are reflected within minutes on the Reuters screens in the trading rooms of the world. Money only goes where it's wanted, and only stays where it's well treated, and once you tie the world together with telecommunications and information, the ball game is over. It's a new world, and the fact is, the information standard is more draconian than any gold standard ... For the first time in history the politicians of the world can't stop it.”
END
I believe that people need to accept that the US is not the only place where excellence exists. The top tier countries now form one.
Bush’s discounted corporate tax, which ended in 2006, helped the dollar at the time. Plus, the Lonnie has the oil sands for the future. It is just readjusting, nothing special.
Originally Posted by telegramsam
This is not necessarily positive as it hurts exports and causes trade imbalances. It should reduce our gas prices though as oil is traded in U.S. dollars yet not so much as a minor change in gas pricing. Foreign auto imports should also come down in cost yet they are not.
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Many of the companies that are most vocal about being hurt by a strong dollar are in businesses that are specifically geared towards taking advantage of a weak dollar. Unfortunately they can't have it both ways.
I don't see it having a big impact on domestic gas prices - our oil sells at the world price, which obviously isn't based on the strength of our domestic currency. The domestic oil companies that do gain short term from the exchange rate have little incentive to pass it along to us.
The most immediate impact I can see is that my wife is hoarding US cash for our next trip south.
She just can't pass up a bargain.
I don't see it having a big impact on domestic gas prices - our oil sells at the world price, which obviously isn't based on the strength of our domestic currency. The domestic oil companies that do gain short term from the exchange rate have little incentive to pass it along to us.
The most immediate impact I can see is that my wife is hoarding US cash for our next trip south.
She just can't pass up a bargain.
Good post Mark. You're right that it hurts on the trade imbalance situation and exporting. As Christian said it also encourages purchases and consumption of goods from abroad. This makes buying a car in the US much more attractive.
Craig, you're right about the vocal Canadian companies that now benefit from this. The flip side is it teaches Canadian business to be smart and be competitive without the aid of a currency advantage. Trouble is the impacts of that are well off in the future.
Craig, you're right about the vocal Canadian companies that now benefit from this. The flip side is it teaches Canadian business to be smart and be competitive without the aid of a currency advantage. Trouble is the impacts of that are well off in the future.
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I found The EU and Canada: a solid economic partnership (p16) and the EU- Canada trade data (p20) relevant to this thread. Enjoy!
http://ec.europa.eu/comm/external_re..._canada_en.pdf
http://ec.europa.eu/comm/external_re..._canada_en.pdf
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It's Showtime**
Joined: May 2002
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From: Edmonton
I thought this is worth revisiting. My post was in May and now the dollar is at .959 today. This is a 15 cent change in our currency in only 6 months. We should consider a pool of how low can it go (US Dollar). I did not expect this much of a drop but it just keeps dropping. Perhaps a new record is in order. Do I hear .93?
Originally Posted by telegramsam
I thought this is worth revisiting. My post was in May and now the dollar is at .959 today. This is a 15 cent change in our currency in only 6 months. We should consider a pool of how low can it go (US Dollar). I did not expect this much of a drop but it just keeps dropping. Perhaps a new record is in order. Do I hear .93?
I think we will see the .93 you're mentioning. I've read and listened to a number of experts who believe the rate may go to .93 to .90 which is about 1.075 to 1.10. I even read one guy who suggested our dollar might be worth 1.15- 1.20 which may sound a little absurd.
The US economy continues to tank and our natural resources help prop our economy and the value of our dollar. This is good news for consumers but for a lot of manufacturers and exporters it is catastrophic.
Sure, go ahead with a pool.
Joined: Jan 2004
Posts: 21,095
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From: Toronto, GTA north
Originally Posted by RBull
I think we will see the .93 you're mentioning. I've read and listened to a number of experts who believe the rate may go to .93 to .90 which is about 1.075 to 1.10. I even read one guy who suggested our dollar might be worth 1.15- 1.20 which may sound a little absurd.
The US economy continues to tank and our natural resources help prop our economy and the value of our dollar. This is good news for consumers but for a lot of manufacturers and exporters it is catastrophic.
Sure, go ahead with a pool.
The US economy continues to tank and our natural resources help prop our economy and the value of our dollar. This is good news for consumers but for a lot of manufacturers and exporters it is catastrophic.
Sure, go ahead with a pool.
Originally Posted by inTgr8r
Can you ship a pool from the US?
Shipping would be a bitch...
I am home for a couple days from a 2 week trip all over Europe and leaving again tomorrow. The other thing I can say is americans travel a lot and we spend a lot less money abroad when our money isn't worth anything so it goes both ways.
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Joined: Feb 2007
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From: Toronto, ON, Canada
I see that xe.com added a a note of explanation to the USD-CAD exchange rate to explicitly state that "the CAD is worth more than the USD." I guess they got a load of emails from incredulous people who needed clarification. 