Canada Finances

[maplesyrup]

The Canadian dollar. on the first real tading day of the new year, 2004, is trading above 78 cents as it continues to rocket ahead of all expectations.

During the past year, 2003, the Canadian dollar has gained 22%.

Someone is bullish on Canada.!

[KrustyKidd]

I love it! I remember a year and a half ago I used to lose two hundred bucks a week. I'm smiling now and the way the US economy is going my business is better than ever. I know the Liberals didn't have me in mind when they screwed up but I love it.

Got rain on the horizon though:

The C$ will fall - I predict to 66 cents within one year. Unlike the overpaid economists that populate our major banks I see no reason for an 80 cent dollar

CRAIG'S PEDICTION

Hope he's wrong.

[udawg]

My guess, not that it means much (not an economist, you know), is that the dollar will continue to rise fairly steadily to about 85 cents US by middle/end of this year, but then fall back and stabilize around the 80-cent mark. Which is a heck of a lot better than 65 cents.

[maplesyrup]

Government (Stats Can) Employment numbers up and as a result drives the Canadian dollar higher again: Is there any stopping it?

Presently trading at $US 78.36

[Craig Read]

Obviously you did not read my posts on this.

Within a year it will be in the mid 60s.

I have posted many reasons for this. The C$ is appreciating due to interest rate differentials with the US and US over money supply - 3x GDP growth. They are debasing their currency on purpose.

Rah rah rah.

[maplesyrup]

U.S. dollar put on yellow alert

Orderly decline, or disorderly crash?

Jaqueline Thorpe

Financial Post

http://www.canada.com/national/nationalpos...9d-2522f37c024d

'The first full working week of 2004 is barely behind us and the U.S. dollar has found itself on yellow alert -- at significant risk of further attack.

While the greenback has dropped more than 30% against the euro over the past two years, its 2% skid in the first week of the year has many openly wondering: When does an orderly decline become a disorderly crash?

"The risk of a U.S. dollar collapse -- or at least a further substantial decline -- seems to be more and more likely," George Magnus, chief currency strategist at UBS in London, said in a report last week.

Just a few weeks after putting out his projections for 2004 -- and he was already known as a U.S. dollar bear -- Mr. Magnus cut his year-end forecast for the greenback to US$1.40 per euro from US$1.32.'

Are we seeing signs of trouble ahead for President Bush?

Job creation figures disappointment,

An effective slap from fromer Treasury Secretary O'Neill on Iraq/WMD.

The Democraric race finally showing signs of excitement.

It looks ilike things might be starting to unravel for him.

Edited January 13, 2004 by maplesyrup

[Craig Read]

Farcical that. The C$ will fall in the medium term starting this year. The US $ will rebound - the US is printing money on purpose to devalue their currency - they will stop this starting March 04. Interest rates will rise, together with strong economic growth, corporate profit growth and an expanding net income base, the U$ will rise from this bottom by some 20 % over the next 2 years. The C$ is only strong due to a 2 % delta in interest rates which has a punishing and limiting effect in Canada for investments, loans, and capital creation.

The C$ is a minor insignificant commodity based currency whose economy is tied to the US and who's tax rates are far above those in the US. There is little reason to own C$'s unless you are arbitraging on rates and making currency trading profits.

As for the Democrats - the party of the mindless - Vermont ie. Dean's former haunt - is one of the highest tax states in the US, with budget problems. Dean instituted a state wide property tax to fund more education - the result ? Some areas of Vermont like Killington are threatening to secede.

Nice job Howie.