If the Canadian Economy is doing so well why is the Dollar doing so po

[Wilber]

Ya want narrow winding streets, go to St. Johns.

[Saipan]

The Euro lost some value, a little ripple if you will, and has appreciated in value since. There's been another ripple with Ireland but it won't be nearly as bad as everyone thinks. The EU will never allow it to come to waht people are predicting.

Pop your corn and watch. The best is yet to come

Everyone was predicting doom but I was telling my friends if I had cash on hand I'd be buying Greek bonds.

It's why you don't have cash.

[August1991]

The higher the value of your currency, the harder it is to be competitive in world markets.

But Wilber, we can't all devalue.

This current slump saddens me deeply. While I am in principle a right-wing, limited State, rational economist/lawyer, I agree now with spend-thrift Krugman and Obama.

IMV, among politicians, Harper has done the right thing - but he'll get no credit for it.

Edited November 26, 2010 by August1991

[Wilber]

But Wilber, we can't all devalue.

This current slump saddens me deeply. While I am in principle a right-wing, limited State, rational economist/lawyer, I agree now with spend-thrift Krugman and Obama.

IMV, among politicians, Harper has done the right thing - but he'll get no credit for it.

No we can't all devalue. I'm not saying a higher dollar will stop our economy from doing better, just maintaining that it will make it more difficult for many and impossible for some sectors.

Edited November 26, 2010 by Wilber

[Saipan]

No we can't all devalue. I'm not saying a higher dollar will stop our economy from doing better, just maintaining that it will make it more difficult for many and impossible for some sectors.

The large Canadian textile, for example, was completely killed be imports, not currency. Not even our 62 cent dollar (under Chretien) saved it. We should concentrate on those industries we can compete in. For example export of lumber could be improved a lot (creating jobs) by further processing of the wood. Mere ingots of copper turned into power transformers and cable wires etc.

[Wilber]

The large Canadian textile, for example, was completely killed be imports, not currency. Not even our 62 cent dollar (under Chretien) saved it. We should concentrate on those industries we can compete in. For example export of lumber could be improved a lot (creating jobs) by further processing of the wood. Mere ingots of copper turned into power transformers and cable wires etc.

It's true that there are some things we can't compete in regardless of our currency but in general the higher the value of a currency, the more difficult it is to compete. Just ask the Japanese. The strong Yen is a definite factor in their producing vehicles in North America. In many cases it is more cost effective to send our resources overseas, make them into products and ship them back to us than it is to produce them here.