Canadian Dollar

[twentynine]

Back when tboy was fighting the Great War.

Buy War Bonds! This income tax thing is just a temporary thing to support our boys in the trenches.

 

[tboy]

When was this??

60's.......

 

[oldjones]

When was this??

… and seventies.

 

[FOOTSNIFFER]

… and seventies.

on the other hand, this is a good time for ont. companies to be buying new technologies from abroad. According to a recent TD bank report, though, they're not doing it yet. The high D. will strengthen the manufacturers that are able to survive it. Either way, manufacturing employment here's got to drop...in the US it dropped to only 8% of its GDP when the US$ was strong 6 years ago.

Switzerland's had one the persistently strongest currencies in the world, and yet it hosts some of the largest most successful multinationals anywhere (nestle, UBS, Linde, etc.....). So it can be made to work for us too.

 

[danmand]

… and seventies.

I visited Toronto in the spring of '75, and the $canadian was worth more than the $US, by a few cents.

 

[sammyfluffy]

"I love all the doom and gloomers out there. I think many forget that for many years, the Canadian Dollar was worth more than the US and we did fine."

But we didn't have NAFTA then. I know that manufacturers in my industry were well insulated back then....very little of my industry's product was imported...most was made in Canada, which now, of course, is a rarity. But as a retailer, business is fine...the product just comes from China/Brazil/etc. now.

But yeah, we'll survive....what's the alternative?

 

[sammyfluffy]

Just wanted to mention....as the cost of fuel increases, so does the cost of shipping products from abroad. I'm sure the cost of shipping a container from
China has doubled in the past few years.

 

[Meister]

Which direction is the Canadian Dollar headed you asked? Well that depends on what the US (the Feds) will do to curtail the rising sign of Hyperinflation in the US. In General, the US economy is driven mostly by consumption and not comptetive production; i.e 2/3 of the GDP is generated via a direct consumption facilitated by a rising, unsustainable, debt driven standard of living. How you say? Well, up to now the US can buy anything it wants from anyone with the US dollar by simply printing it through their wild and abundant corporate/consumer credit system.

In theory the US can consume and consume for ever provided that foreigner suppliers are content with the fact the paper money they are getting paid with is good enough to be reinvested here in the US as well as some places else. But that is changing quickly as the dollar loses its respect do to the fact that their is to much of it out there... So what is next, well the Feds have two terrible choices...

First, they can tighten the money supply which will have an immediated and direct impact on the US economy vis a vie less consumption reducing corporate profits, stock market contraction and the over all wealth of the nation itself, followed by a global recession as the bulk of foriegn GDP growth is fueled solely via the US consumer.

The other choice is to inflat an inflat until foreign suppliers refuse to take the dollar or there is little or no assets left to buy & sell here in US. At which point the dollar becomes worthless and so is the global reserve that every country holds ( about 80% of the USD is out side of the country)...

As you can see both choices have serious consequences and will lead to the contraction of the canadian economy. The Canadian dollar will continue to move upwards against the dollar ( as is the case for every major currecny) upto the point where it becomes par. After that what happens is the most intriguing one as the USD ceases to be the reserve currency of the world and what you will have is another currency ( EURO?) emerging as the de-facto choice of reserve. And the cycle of universal fiat currency will play itself out all over again.

So to summerize, the Canadian Dollar will rise up and up until one of the two thing happen, either the US dollar collapses or the US dollar collapses. Either way the canadian central bank will be forced to reduced the interest rate to incourage domestic consumption to off set the balance of fast disappearing US market.

Very good analysis. My take on what is going to happen is that the US will continue to raise rates while pressuring the Asians to let their currencies float. If this is done gradually it may avoid a meltdown.

 

[bigaudio]

Countdown to par

Loonie blows past 93

 

[Mr. Lucky]

Does this mean escort agancies will be cheaper?
and we can get longer services?

 

[bigaudio]

Countdown to par

94.31

 

[Meister]

``The rising Canadian dollar is a reflection of the underlying strength of the Canadian economy,'' Harper, 48, said in an interview with Bloomberg late yesterday. He said interfering with the currency's appreciation to save manufacturing jobs would be a ``huge mistake.''
Canada sells 80 percent of its exports to the U.S.

Well, there you have it. I guess we'll see more plant closures. Maybe we should all move to Alberta and start digging in those marvellous oil sands.

 

[bigaudio]

Well, there you have it. I guess we'll see more plant closures. Maybe we should all move to Alberta and start digging in those marvellous oil sands.

Bullshit, would you like a factory job Meister. The manufacturing sector represents only 14% of the economy, unemployment elsewhere is low. The manufacturing lobby has done a good job over the years of making us think we can't survive without subsidizing them.