well if most of you have not noticed or heard our Loonie is making it's way up against the US dollar, and it's at the highest its been since September 1977.
it's just over $0.93 and there is talk of it going past the US dollar sometime late next year.
linky :
leaping loonies!
Geesh you can't get STIs either?
I remember like 10-12 years ago or so... 50% exchange at the casino! Used to cross over, change my money, drive to Toronto, and live like a king for a day.
torradan,May 30 2007, 06:44 PM Wrote:Geesh you can't get STIs either?
I remember like 10-12 years ago or so... 50% exchange at the casino! Used to cross over, change my money, drive to Toronto, and live like a king for a day.
[right][snapback]239971[/snapback][/right]
no we can get them
they are jsut s***load cheaper in the states
From an economic point of view i'm sure if this is good for canada. But from a car guys point of view, i love the dollar being as high as it is. Makes bringing parts up from the states so much cheaper.
habmann,May 30 2007, 08:16 PM Wrote:From an economic point of view i'm sure if this is good for canada. But from a car guys point of view, i love the dollar being as high as it is. Makes bringing parts up from the states so much cheaper.
[right][snapback]239974[/snapback][/right]
Reality is it's not that the Canadian dollar is high, it's that the USD has fallen against other world currencies based on their debtload, both because of their war in Iraq and because of the level of imported goods they get from esp. China . As their dollar drops it could put pressure on US inflation (because it costs more to import goods) and normal the solution to that is to raise interest rates. If the US interest rates start to rise, the Bank of Canada will need to raise theirs to keep Canadian investment attractive -- the downside is that everything from mortgages to cars to credit etc. will cost more. This will absolutely kill the 0% down homebuyers and those that are already housepoor/overextended, and could kill a lot of economic growth here. If the US drives itself into a depression, you can bet that Canada will be 2 steps behind them.
It's also not really good for Canadian manufacturing; the US is our biggest trading partner, when our products cost more to the US consumer they go elsewhere for their goods. A good example is the Automobile industry. The exchange rate (in conjunction with government-run healthcare) gives Canada a competitive advantage second only to Mexico. This could tip a lot of investment the other way.
It also hurt some business in Canada that deals with the NYSE. Personally I recently sold stock that made 10% on paper but because the CAD rose against the USD the real yield was only .3% (yes...that's POINT 3 %).
OFC, if you buy US stock not and the CAD does go back down, then you stand to make some. Unfortunately, it looks that the dollar isn't going to go anywhere fast.
So enjoy the cheap parts and vacations now, tough times and higher prices on nearly everything else could be coming.... :huh:
I know nothing about Politics except what we hear or see thru the Medias but I'm sure some Countries would love to see them go down.. :ph34r:
OAC_Sparky, you sound like my grandpa. He's been telling me a depression is on the way since I was born.
Aka,May 30 2007, 09:48 PM Wrote:OAC_Sparky, you sound like my grandpa. He's been telling me a depression is on the way since I was born.
[right][snapback]239979[/snapback][/right]
You should listen to your grandpa. His track record for making it through life is longer than yours so far. ;)
OAC_Sparky,May 30 2007, 09:53 PM Wrote:Aka,May 30 2007, 09:48 PM Wrote:OAC_Sparky, you sound like my grandpa. He's been telling me a depression is on the way since I was born.
[right][snapback]239979[/snapback][/right]
You should listen to your grandpa. His track record for making it through life is longer than yours so far. ;)
[right][snapback]239981[/snapback][/right]
haha.. good one.
but it's true... it's a big worry for someone like me where a lot of the work I do is because our dollar is so attractive..
just another thing to worry about...
I'm not trying to be a "the sky is falling" doomsday guy, I'm only pointing out historical trends. In the early '70s we were in a recession, a lot of our parents (yes, even I was too young) had to deal with it.
http://en.wikipedia.org/wiki/List_of_recessions
Look at the comparisons:
(note: this is off the top of my head. don't b!tch if I'm off by a year or so. I was like 6 in 1972)
1977: Canadian dollar high against the USD.
2007: Canadian dollar high against the USD.
1973: Yom Kippur War (US-backed Israel vs Egypt/Syrian led Arab coalition).
2007: Middle East War in Iraq.
1973: All-time oil price spike (Energy crisis because US backed Israel above.)
2007: All-time high oil price spike. (In part due to Middle East instability)
1973: US government swimming in debt due to the Vietnam War and the YK war.
2007: US government swimming in debt due to spending on the Iraq War(s)
1973: Huge rise in inflation, fueled by (1) foreign debt (2) rising oil prices (3) relative drop in US currency vs world market.
2007: Upward pressure on US inflation due to (1) foreign debt (2) rising oil prices (3) relative drop in US currency vs world market.
1973 and 1977: Very steep rise in interest rates 2-3x what the current rates were.
2008:......?
![[Image: Federal_Funds_Rate_%28effective%29.png]](http://upload.wikimedia.org/wikipedia/commons/e/e2/Federal_Funds_Rate_%28effective%29.png)
Hey, I'm not saying don't live your life, I'm saying "Be Prepared". Sooner or later, Aka's grandpa will be right. :blink:
well they just said they are going to increase the interest rate to 5% by July and 2 more times after that. So Sparky, you might be on the right track
Apparently the borders are seeing a HUGE spinke in Canadian shoppers....nothing like the early 90's but getting there.
What does the U.S. have in outlet malls we don't? :blink:
ANTHONYD,May 31 2007, 07:53 AM Wrote:Apparently the borders are seeing a HUGE spinke in Canadian shoppers....nothing like the early 90's but getting there.
What does the U.S. have in outlet malls we don't? :blink:
[right][snapback]240005[/snapback][/right]
You can buy more with the Canadian dollar exchange.
In 2002 a $100 US item would cost $160 in Canadian funds.
Today the same $100 US item would only cost $108 in Canadian funds.
Good for Canadian shoppers of $US goods. Unfortunately very bad news for Canadian manufacturers who sell to the US in US funds. They are receiving less Canadian dollars for what they sell there.
Good times for me buying car parts from the US :)
Bad times for the manufacturing company I work for who sells 55% of our total production to customers in the US :(
ANTHONYD,May 31 2007, 07:53 AM Wrote:Apparently the borders are seeing a HUGE spinke in Canadian shoppers....nothing like the early 90's but getting there.
What does the U.S. have in outlet malls we don't? :blink:
[right][snapback]240005[/snapback][/right]
You'd be surprised Anthony, heck, I even remember the last trip to Buffalo and going into a grocery store (Tops IIRC) and they had stuff I hadn't seen in Canada for
years because our market is too small to sustain the sheer number of products. Heck, they had ethnic food sections in that grocery store I would kill for to get up here <_<
NVM, the different models of consumer electronics that never make it up here, for the same reason :(
NefCanuck
well whatever the cause or complaints, i'm heading down to California for a vacation tomorrow, and im glad that my dollar has some new purchasing power.
I can remember when the Canadian Dollar was worth more than the US dollar. Products from the States were really cheap, but then again, everyrthing seemed cheap. chocolate Bars were 25 cents, beer was $1.00
NefCanuck,May 31 2007, 11:55 AM Wrote:ANTHONYD,May 31 2007, 07:53 AM Wrote:Apparently the borders are seeing a HUGE spinke in Canadian shoppers....nothing like the early 90's but getting there.
What does the U.S. have in outlet malls we don't? :blink:
[right][snapback]240005[/snapback][/right]
You'd be surprised Anthony, heck, I even remember the last trip to Buffalo and going into a grocery store (Tops IIRC) and they had stuff I hadn't seen in Canada for years because our market is too small to sustain the sheer number of products. Heck, they had ethnic food sections in that grocery store I would kill for to get up here <_<
NVM, the different models of consumer electronics that never make it up here, for the same reason :(
NefCanuck
[right][snapback]240011[/snapback][/right]
This is why I always have a shopping list to work on a couple of days before I head up there.
Usually consisting of: Bath & Body Works girl crap, Combos, some iced tea stuff her dad likes, Lindt chocolates (its always on sale at the outlet mall).. umm.. and some misc other stuff.
Then again, turn it around and I have to bring 2-3 bags of ketchup potato chips to someone at work.