Canadian Dollar keeps going up
- Thread starter Cobster
- Start date
The canadian doller is going up as a result of a weak american dollar... so it's not because we're doing good economically, it's cause the american's are stinking it up.
I'd be happier if our dollar went up because of a strong canadian economy as opposed to a weak american one. If our dollar can rise so quickly it can fall just as quickly when the americans get their stuff together. Buy american bonds now I guess...
I'd be happier if our dollar went up because of a strong canadian economy as opposed to a weak american one. If our dollar can rise so quickly it can fall just as quickly when the americans get their stuff together. Buy american bonds now I guess...
I know it must be a big conspiracy theory, but here it is:21pro said:
General Motors' Oshawa, Ontario, No. 1 plant passed Nissan's Altima line in Smyrna, Tennessee, as the most efficient assembly plant in North America, using 15.85 labor hours per vehicle. The Oshawa No. 1 plant produces the Chevrolet Impala and Monte Carlo cars.
http://www.dallasnews.com/sharedcon...ats/stories/060305dnbusgmplant.10cef9b72.html
http://www.theglobeandmail.com/servlet/ArticleNews/TPStory/LAC/20051122/RGMOSHAWA22/TPBusiness
http://www.edmunds.com/insideline/do/News/articleId=105896
not so,can you say "autopac",an agreement that was signed in the 50's,without it the big 3 would exit Canada faster then this is flamed.The US was against us opening foreign auto plants on our soil,back before Honda aliston and Volkswagon.They have tried to re-negotiate the autopac but up till now we have defended it.Who knows what lies in the future.hyperbole said:The reason they keep plants in Canada isn't merely due to the dollar but because the plants we have operate more efficiently and with less hassle than in the USA. Add the fact that the govt is paying the health care, as well as giving generous tax breaks and you can see that it is still profitable to have the plants in Canada, even as we reach parity. The huge change will be for US plants to close and move south as the US dollar collapses, but the issue of our dollar approaching parity will just ensure that no new plants will be built here (except by foreign automakers, which is where the action is these days anyhow).
hyperbole
Adjusting to a high loonie's hard, but it'll make us better off
Most of the people here are saying that a lower dollar would allow us to shift the same volume of stuff to foreigners and keep people employed in canada. The 'reductio ad absurdem' retort to that position is: then why don't we just periodically devalue our currency and guarantee our competitiveness of our exports in other markets??
The simple answer is just that the only reason for production is comsumption. Even savings are nothing other than deferred consumption. With a low dollar, we literally give away our production to be consumed by foreigners and, in return, deny ourselves of our own production ('cause it's going overseas) and the opportunity to consume the production of other countries (because we're not getting paid much and so can't afford to buy much). So, with a higher loony, the bottom line is we canadians get to consume more.
Re: the auto industry here, remember that it buys alot of its components in the US, so the impact of the higher loony is less than you would imagine.
But I think the kicker is that it forces our companies to devise ways of reducing costs by adopting new technologies, new procedures, and forces the change that many organizations put on the backburner because they can.
This turmoil is really unpleasant but necessary to make the country more productive and resilient.
A higher dollar represents success so let's celebrate it.
Most of the people here are saying that a lower dollar would allow us to shift the same volume of stuff to foreigners and keep people employed in canada. The 'reductio ad absurdem' retort to that position is: then why don't we just periodically devalue our currency and guarantee our competitiveness of our exports in other markets??
The simple answer is just that the only reason for production is comsumption. Even savings are nothing other than deferred consumption. With a low dollar, we literally give away our production to be consumed by foreigners and, in return, deny ourselves of our own production ('cause it's going overseas) and the opportunity to consume the production of other countries (because we're not getting paid much and so can't afford to buy much). So, with a higher loony, the bottom line is we canadians get to consume more.
Re: the auto industry here, remember that it buys alot of its components in the US, so the impact of the higher loony is less than you would imagine.
But I think the kicker is that it forces our companies to devise ways of reducing costs by adopting new technologies, new procedures, and forces the change that many organizations put on the backburner because they can.
This turmoil is really unpleasant but necessary to make the country more productive and resilient.
A higher dollar represents success so let's celebrate it.
... and Newfoundland... and Nova Scotiaboffo said:
Just wait until the moratorium on exploration off the BC coast is lifted.
"According to the British Columbia government, there may be 9.8 billion barrels of oil in the Queen Charlotte Basin, as well as a little less than 25 trillion cubic feet of gas."... this is just one area
"There are an estimated 1.7 trillion barrels of oil in Alberta oil sands deposits, which is 1/3 of the world's known oil reserves. Of this approximately 7-8% can be accessed by surface mining. Oil sands mines provided approximately 20% of Canada's oil needs in 1993."
I guess this is why the americans and chinese are investing heavily in Alberta
Lucky for us, Klein willing to sell, else we wouldn't have been invaded by now. We, axile of evil.Papi Chulo said:
LOL! You're right. ALLLOOOOOOOOOOHAAAAAAAAA!!!goodtime said:On the plus side, time to go cross-border shopping.
The problem with the high dollar is that our economy has been geared to thriving with a low dollar. Anyone who exports or works in the film industry knows that. Now film production is as low as it was during sars. All of the services related to film production are suffering. Vehicle rentals are at record lows, the 2 major unions are crying. The DGC is saying nothing as usual. People who invested millions in supply and support looking forward to a good production summer are going under. This means when the USD goes back up we won't have the infastructure to support the production load when it comes back, if it comes back. Im just praying that the canadian dollar dips below .90c US soon. If you're not working, you cant do that crossborder shopping at any exchange rate.
It will look good on Oshawa when I see that plant close!!
..sorry but I hate oshawa
I guess we have a major recession coming, in Ontario
..sorry but I hate oshawa
I guess we have a major recession coming, in Ontario
....I'm actually surprised that we're not already in a recession here. The strength of the Real Estate market here is just amazing, too. What concerns me most is that, with a high dollar, the volume of capital goods should be rising but instead are falling. So mass unemployment in manu., here we come. But then again, I've never had any faith in canadian managers' business acumen....I've just met too many close-minded ignoramuses here in high postioins or authority to have retained that. We here in canada can only sell based on price (tim horton's) not quality (Starbucks) so we can only make it when our bucks selling at .70 US
