FLUSH. The Loonie is Swimming in the Bowl and the Economy is in the T

[Progressive Tory]

"Canada’s currency may extend its biggest annual decline on record, as tumbling crude prices hobble foreign investment in the country’s oil patch, according to the world’s biggest strategists and economists."

http://www.calgaryherald.com/business/fp/L...6162/story.html

Any thoughts?

[Argus]

"Canada’s currency may extend its biggest annual decline on record, as tumbling crude prices hobble foreign investment in the country’s oil patch, according to the world’s biggest strategists and economists."

http://www.calgaryherald.com/business/fp/L...6162/story.html

Any thoughts?

It's very good news for our manufacturing sector, not to mention tourism.

[Jerry J. Fortin]

It was a year ago when our dollar went through the roof, so now its in the basement. It went up and it came down, its still only worth a dollar here. The entire monetary issue is starting to get some people waking up. Wait till the Chinese quit buying US T Bills and see what happens with the US dollar. When that tanks enough the EURO will be the benchmark, and then things will get very interesting.

[Moonbox]

I really don't see this as a very big deal. Our dollar went to 1.10 US last january and now it's going back to its non oil inflated price. Good for manufacturers, yes. Permanent? No. It will go back to around par when the economy and oil demand start picking up again.

[ToadBrother]

"Canada’s currency may extend its biggest annual decline on record, as tumbling crude prices hobble foreign investment in the country’s oil patch, according to the world’s biggest strategists and economists."

http://www.calgaryherald.com/business/fp/L...6162/story.html

Any thoughts?

Out here in BC the Forest Industry is praying that cheap Canadian wood can overcome the lack of demand and keep their heads above water.

[Progressive Tory]

We need to regain confidence in Canada. Regardless of our own opinion of the Parliamentary crisis when you read comments from places like New Zealand, Great Britain and even the US; most can't believe that Harper is still in power. McCain pulled the 'socialist' card and Obama turned it into a plus. With a grave face he announced that when he was in kindergarten he shared a peanut butter sandwich with a friend so must be a 'socialist'. We've become a joke.

Harper's inaction on the economy is the message across the US. In Europe they are amazed that we don't understand Parliamentary law. They say with a non-confidence vote on the table that must be followed through before any attempt to stall Parliament.

I do agree that a weaker Canadian dollar should help trade but with a global recession I doubt it will matter much. We need a change in government to convince the rest of the world that we are taking the economic and environmental crises seriously.

[DrGreenthumb]

We need to regain confidence in Canada. Regardless of our own opinion of the Parliamentary crisis when you read comments from places like New Zealand, Great Britain and even the US; most can't believe that Harper is still in power. McCain pulled the 'socialist' card and Obama turned it into a plus. With a grave face he announced that when he was in kindergarten he shared a peanut butter sandwich with a friend so must be a 'socialist'. We've become a joke.

Harper's inaction on the economy is the message across the US. In Europe they are amazed that we don't understand Parliamentary law. They say with a non-confidence vote on the table that must be followed through before any attempt to stall Parliament.

I do agree that a weaker Canadian dollar should help trade but with a global recession I doubt it will matter much. We need a change in government to convince the rest of the world that we are taking the economic and environmental crises seriously.

I agree and an NDP/Liberal coalition is EXACTLY what I'd like to see.

[madmax]

It's very good news for our manufacturing sector

Technically it is good for our manufacturing sector if our governments hadn't sat on the hands with their fingers up their butts.

Companies that have picked up an left are not coming back. What has closed and declared bankruptcy is not coming back.

I know many companies would be just as profitable today as they were a few years back, when foreign ownership was orchestrating their relocation.

Today, with the low looney, low material costs, and low energy costs, these should be excellent factors for a resurgent manufacturing sector, for any manufacturer that still has customers....that can pay.

Even Industry not affected greatly by the previous high dollar, energy costs and raw material costs, recently found themselves in trouble as their US purchasers couldn't pay because of the financial collapse of the banking sector in the US.

Fact is, this government and the previous government, along with the Ontario Provincial Government have no Industrial Policy or Plan.

Any such propoganda is mere posturing and 100% BS.

, not to mention tourism.

Again the economic climate is right.... and the potential for people to be able to take immediate action on a Lower Looney, is far greater then the possibility of Manufacturers gambling longterm on a Low Canadian Dollar.

We are positioned to be Post Industrial and the CPC were helpful in managing the decimation of the manufacturing sector.

More to come.... and the dollar isn't going to be enough to turn the ship around.

Edited December 30, 2008 by madmax

[Alta4ever]

We need to regain confidence in Canada. Regardless of our own opinion of the Parliamentary crisis when you read comments from places like New Zealand, Great Britain and even the US; most can't believe that Harper is still in power. McCain pulled the 'socialist' card and Obama turned it into a plus. With a grave face he announced that when he was in kindergarten he shared a peanut butter sandwich with a friend so must be a 'socialist'. We've become a joke.

Harper's inaction on the economy is the message across the US. In Europe they are amazed that we don't understand Parliamentary law. They say with a non-confidence vote on the table that must be followed through before any attempt to stall Parliament.

I do agree that a weaker Canadian dollar should help trade but with a global recession I doubt it will matter much. We need a change in government to convince the rest of the world that we are taking the economic and environmental crises seriously.

Really change to what? The coalition do you remember the tumble that stocks took on that? This mess is not harpers fault it is a global recession, installing a new government is not going to to make a lick of difference to the rest of the world.

[Progressive Tory]

I agree and an NDP/Liberal coalition is EXACTLY what I'd like to see.

Abso-Friggin'-Lutely! That's a word isn't it? I have my 'Coalition Yes' signs, in both languages, displayed in my front window. This is the government that best represents the majority of Canadians and the results of the last election.

[ToadBrother]

Abso-Friggin'-Lutely! That's a word isn't it? I have my 'Coalition Yes' signs, in both languages, displayed in my front window. This is the government that best represents the majority of Canadians and the results of the last election.

And would do basically the same thing the Tories will do, throw money around like crazy and hope beyond all reason that things will stay afloat until this whole uber-recession ends in three years.

I don't have much confidence in government, regardless of whose at the helm, being able to navigate these waters without the average Canadian ending up getting the shaft out of it.

[Alta4ever]

Abso-Friggin'-Lutely! That's a word isn't it? I have my 'Coalition Yes' signs, in both languages, displayed in my front window. This is the government that best represents the majority of Canadians and the results of the last election.

Really why did the public opinion polls say otherwise? The coalition only represented blind ambition.

[Progressive Tory]

And would do basically the same thing the Tories will do, throw money around like crazy and hope beyond all reason that things will stay afloat until this whole uber-recession ends in three years.

I don't have much confidence in government, regardless of whose at the helm, being able to navigate these waters without the average Canadian ending up getting the shaft out of it.

There are going to be tough times ahead, no matter what. However, you have to admit that lowering the GST without reducing spending was not prudent and spending through a 13 billion dollar deficit was irresponsible.

In some ways it would be better for the CP to stay in power because ultimately the governing body will pay the price when Canadians lose their jobs, homes, etc. On the other hand, I think we've had enough and to believe that they can help us weather the storm...yikes.

[Alta4ever]

There are going to be tough times ahead, no matter what. However, you have to admit that lowering the GST without reducing spending was not prudent and spending through a 13 billion dollar deficit was irresponsible.

In some ways it would be better for the CP to stay in power because ultimately the governing body will pay the price when Canadians lose their jobs, homes, etc. On the other hand, I think we've had enough and to believe that they can help us weather the storm...yikes.

Irrisponsible really? We were being over taxed. The military was in desperate need of upgrades? How about the infrastructure spending, and the increase to medical transfer payments not needed?

You name is a lie you are not a PT your are just a progressive. (nothing but a statist)

[Progressive Tory]

Irrisponsible really? We were being over taxed. The military was in desperate need of upgrades? How about the infrastructure spending, and the increase to medical transfer payments not needed?

You name is a lie you are not a PT your are just a progressive. (nothing but a statist)

We're still overtaxed? I posted a link to the article that Canadians paid more income tax last year (by percentage). My point is not how much tax but the fact that you can't reduce taxes without reducing spending because eventually you will land in the hole. That's basic math. You can't spend more than you earn.

Cuts to the GST meant nothing and personal income taxes are up. Gee, I wanna' get me some more o' that.

I respect your concern for the military but there's no proof that they are better off. Mackay is now buying their knives in China and the handles are falling off. We bought 40 some odd mothballed tanks from the Dutch that haven't been used since WWII. Helicopters not delivered. Spending is one thing but I'd like to know if we are getting bang for the buck.

[Alta4ever]

We're still overtaxed? I posted a link to the article that Canadians paid more income tax last year (by percentage). My point is not how much tax but the fact that you can't reduce taxes without reducing spending because eventually you will land in the hole. That's basic math. You can't spend more than you earn.

Cuts to the GST meant nothing and personal income taxes are up. Gee, I wanna' get me some more o' that.

I respect your concern for the military but there's no proof that they are better off. Mackay is now buying their knives in China and the handles are falling off. We bought 40 some odd mothballed tanks from the Dutch that haven't been used since WWII. Helicopters not delivered. Spending is one thing but I'd like to know if we are getting bang for the buck.

Your artical didn't break down Federal, provincial and municiple taxes.

Can't spend more than you earn tell that to the NDP and liberals and their spending demands in the federal budgets. Maybe the parties should be asked to get off the public dole? Or don't you remeber what happened a little over a month ago with the hissy fit when it was perposed that the canadian political parties do without some of thepublic funding.

As for you knoweleg of the tanks you may not know this but the leopard tank is thought to be one of the best in the world next to the British Challenger and the American M1A2. Those 40 moth balled tanks are more advanced then the ones we currently had. The Leopard was developed during the Cold war and is the main battle tank for most Europian Nations, it is a very good tank. IF you want to know if you are getting bang for your buck don't ask a bueacrat ask an enlisted person, what they think of the updating the military has received and you will get raving reviews.

[Wilber]

Just about everything else has suffered its largest or near largest annual decline and most of it was in the last three months of the year, commodities, markets, housing, you name it. One US dollar now costs 1.22 CAD. In January 2002 it cost 1.60 CAD. We are nowhere near a historic low vs the USD.

[Wilber]

We bought 40 some odd mothballed tanks from the Dutch that haven't been used since WWII. Helicopters not delivered.

Where did you get this nonsense? The Leopard 2A6M is the main battle tank of the German, Swedish and Swiss armies among many others. The ones we got are being modified specifically for the Afghanistan mission. Who set the spec and ordered those helicopters?

[madmax]

Abso-Friggin'-Lutely! That's a word isn't it? I have my 'Coalition Yes' signs, in both languages, displayed in my front window. This is the government that best represents the majority of Canadians and the results of the last election.

No, it doesn't. That is political spin.

[madmax]

I don't have much confidence in government, regardless of whose at the helm, being able to navigate these waters without the average Canadian ending up getting the shaft out of it.

That is my current gut feeling too.

[Jerry J. Fortin]

I will take the side of a citizen against their own government, all of these partisan groups have gone down hill. They like to spend money, they like to cut services. They like patronage appointments and love bureaucracies, they love taxes and love to play games.

They sent our soldiers into harms way, lacking equipment and support. They hand out money to corporate interests and refuse to help the citizens.

The time will come when many citizens see what I see, then things will change.

[madmax]

Can't spend more than you earn tell that to the NDP and liberals and their spending demands in the federal budgets.

The CPC are in government and have spent far more then earned, thus eliminating surpluses and running deficits. The CPC are the last to talk. The LPC have a long record of Fiscal responsibility. That fiscal responsibility came with a price. As for the NDP, their fiscal track record is still superior to Conservative and Liberal Governments. People may believe the myths, and all parties have a proven fiscal Turkey. But when the beans are counted the NDP leads the way in fiscal management of government finances.

Maybe the parties should be asked to get off the public dole? Or don't you remeber what happened a little over a month ago with the hissy fit when it was perposed that the canadian political parties do without some of thepublic funding.

It's all about talking, consulting and counting. Once the CPC backed down on their initiatives, they had NOTHING. The Harper Government had no courage to face the opposition parties with their fiscal presentation. They choose to quit. Just like the Harper Government choose to dissolve a functioning parliment in order to have an unnecessary election.

Remember that costly unnecessary election that undermine the Legislation passed. It proved the legislation is toothless. A government not forced to have an election, held one anyways. Then a government being faced with losing power, after an election quits a 2nd time.

MPs haven't had to work very hard since October. Great paychecks. He is liking his time off. Fun, travel and accomadation all courtesy of the taxpayer.

While I am in favour of removing party funding, the sooner the better, it is still peanuts and now with those Happy Senators, the CPC can say they created 18 jobs, and more with support staff. Good for them

Unfortuneately Senators and MPs are disconnected from the economy. Their entitlements come first. Mr Harper appointing Senators came first.

not the economy.

Edited December 30, 2008 by madmax

[madmax]

Just about everything else has suffered its largest or near largest annual decline and most of it was in the last three months of the year, commodities, markets, housing, you name it. One US dollar now costs 1.22 CAD. In January 2002 it cost 1.60 CAD. We are nowhere near a historic low vs the USD.

That is correct. Only Manufacturing had been on a steady decline along with forestry long before the recent decline in the other sectors named above.

What I do know is that when the Dollar was at its 2002 rate, anyone manufacturing in Canada was doing extremely well in cross border trade and profit.

What I cannot be so certain of, is should the dollar return to a rate near the 2002 level, if that would be enough to kick start the value added economy. The reason I state this is because the hundreds of thousands of jobs lost in the past two years, came from very technical industries and that technology is unlikely to replant itself in Canada.

To replenish the lost manufacturing sector would be extremely costly with a low dollar.

The damage in the manufacturing sector is extreme, the subject of neglect and lack of understanding from those in government.

I also think that sectors that currently perform better with the dollar at its current rate would face greater hardship should the dollar continue to fall.

I look at it similar to the price of fuel. The prices have dramatically fallen since September. All the BS that raise Gas Prices beyond the extreme have come back to haunt those enveloped by greed. Now the lower prices of fuel should spark increased confidence in other sectors and lower operating costs, and more consumer spending as people have more money available for other forms of consumption.

But I don't see it happening just yet. I see people are holding onto their money for the time being.

[Jack Weber]

There are going to be tough times ahead, no matter what. However, you have to admit that lowering the GST without reducing spending was not prudent and spending through a 13 billion dollar deficit was irresponsible.

In some ways it would be better for the CP to stay in power because ultimately the governing body will pay the price when Canadians lose their jobs, homes, etc. On the other hand, I think we've had enough and to believe that they can help us weather the storm...yikes.

As far as the cutting of a consumption tax without reducing spending goes...Is'nt that the Con way?I mean Goober down south gave away untold millions in tax cuts for those who least needed it,while ramping up spending on a war that needed at least 4 flimsy pretexts to try to sell it.In a much smaller fashion our Economist in a Tank,good ol' Captain Sweatervest,has done the very same reckless thing.I still wonder why this myth that the Conservatives are the ones who can control the public purse still exists?They usually conserve exactly diddly squat.And when they are finally run out of power,we are almost always left with a huge debt and deficit.

I assume this will be the case once Iggy becomes PM.It's the tried and true blue(and always failed) Con way!

To your 2nd point.It's exactly what I want to see.Tacticly,the Libs should let Harper and his merry band of financial buffoons wear this economy.Hopefully,their total incompetence will become so obvious that they will be wiped out just like the Mulroney Cons were almost 2 decades ago.Then they can go back to their prairie towns and wonder why they've become so irrelevent again!

Edited December 30, 2008 by Jack Weber

[M.Dancer]

Governments have almost zero control over the value of their currency. Some analysts are very Bullish right now...

Posted AT 4:52 PM EST on 17/12/08

Buy Canada, Goldman Sachs says

TAVIA GRANT

Globe and Mail Update

Now is a good time to buy Canadian dollars because the country's economic picture is less dire than in other Group of 10 nations, Goldman Sachs said Wednesday. The report by the U.S.-based bank comes after the Canadian currency has tumbled 17 per cent against the U.S. dollar this year and has been little changed over the past month even as other currencies have strengthened. “We think the Canadian dollar ... has potential to play catch up” as the U.S.

http://www.theglobeandmail.com/servlet/Pag...orce_login=true

Some others will not....either way, whether it's Martin Liberal regime and a fast rising dollar or a Harper regime and a declining dollar theinfluences over the rise and fall are not political in nature.