Cartman Posted November 9, 2004 Report Share Posted November 9, 2004 Which is why I find it so funny that Jack Layton Jr here is jumping up and down with excitement at the dollar's rise. Ha! I wonder if Maple finds that an insult or a compliment? Shoulda called him a Tommy Douglas Jr. I agree that the $ has increased too fast, but I was getting worried about it being too low. It will return to equilibrium. There are a lot of seniors (and others) who rely upon investment income. IMO, you can only rely upon an articially low dollar to prop up weak businesses for so long. The serious concerns I hear are that there could be a large greenback sell off which will hurt everyone. Quote Link to comment Share on other sites More sharing options...
maplesyrup Posted November 9, 2004 Author Report Share Posted November 9, 2004 Flight to quality II Paul Wells must either be a good researcher, or has a good researcher, as his comments are rarely knee-jerk reactions, but based more on factual information. I agree that the biggest concern about these currency gyrations are the possibility of a US dolla crash. Quote Link to comment Share on other sites More sharing options...
maplesyrup Posted November 9, 2004 Author Report Share Posted November 9, 2004 I have an investment proposal for all right-of-centre investors. Go out and buy US dolla: Fleeing the U.S. Dollar Quote Link to comment Share on other sites More sharing options...
Guest eureka Posted November 10, 2004 Report Share Posted November 10, 2004 It might not be bad idea for anyone. The dollar may be oversold now. Quote Link to comment Share on other sites More sharing options...
Big Blue Machine Posted November 10, 2004 Report Share Posted November 10, 2004 Because Bush is still in power, our dollar will go even higher. Quote Link to comment Share on other sites More sharing options...
maplesyrup Posted November 10, 2004 Author Report Share Posted November 10, 2004 Dollar heads for dramatic decline The one small consolation for John Kerry and the Democrats is that it will not be their job to clear up the economic mess left by George Bush and Dick Cheney - the very same Dick Cheney who told an incredulous Paul O'Neill, the former US Treasury Secretary, that Reagan "proved deficits don't matter".It is tempting to say that the Bush administration will have to clear up its own economic mess - tempting, but dangerous. Because from everything they have boasted about, both before and after their election victory, the president and his pals want to deepen the mess. They will go ahead with making tax cuts for the rich "permanent". Their plan to impose US-style democracy on the rest of the world will involve a continuing high level of defence spending. And "privatising" part of the social security system will worsen the budget, according to all calculations, before it gets better. Meanwhile, if there is one thing that most serious analysts agree on, it is that the vast and ever-expanding balance of payments deficit - requiring short term inflows of nearly $2bn (£1bn) a day from the rest of the world to sustain it - portends a dramatic decline in the dollar. If I were an investor and wanted to find a safe place for my investments, I would now, because of the rapidly expanding US deficit under the Bush/GOP, have to seriously re-consider whether it is now still safe to invest in US dolla investments. Quote Link to comment Share on other sites More sharing options...
playfullfellow Posted November 10, 2004 Report Share Posted November 10, 2004 If I were an investor and wanted to find a safe place for my investments, I would now, because of the rapidly expanding US deficit under the Bush/GOP, have to seriously re-consider whether it is now still safe to invest in US dolla investments. It's not always about getting an instant return on an investment. We know the US economy will rebound one day. As our buck increases in value, why not buy the low US buck, sit on it for a while and then sell it when it increases? Buy low, sell high. We as a country also have to be careful in hoping the US buck will drop more and ours increases more. We are not in any sort of trade position to be able to afford that. If the US stops buying our products because they cost too much, then we are in deep doo doo. Then all those nice cooshy social programs will take a hit. Health care will take a beating and people will lose their jobs and homes. Not a pretty picture. Quote Link to comment Share on other sites More sharing options...
maplesyrup Posted November 10, 2004 Author Report Share Posted November 10, 2004 Canadian Dollar Holds Above 83 U.S. Cents for 4th Straight Day If this is such a disaster for the Canadian dolla to rise like this, why doesn't the Bank of Canada lower interest rates? Obviously they are not that concerned. Quote Link to comment Share on other sites More sharing options...
August1991 Posted November 10, 2004 Report Share Posted November 10, 2004 Stung by the soaring Canadian dollar and rising commodity prices, Bombardier Recreational Products Inc. (BRP) is restructuring operations and slashing 800 jobs, more than 10 per cent of its work force. G & M If this is such a disaster for the Canadian dolla to rise like this, why doesn't the Bank of Canada lower interest rates? Obviously they are not that concerned.The Bank of Canada, care about people? When was the last time the Bank of Canada had an NDP governor?---- Market prices (and exchange rates) are all about helping some people and hurting other people. On balance, more people are better off than worse off. That is true whether the Canadian dollar rises or falls - as long as the market decides the rate. Quote Link to comment Share on other sites More sharing options...
Cartman Posted November 10, 2004 Report Share Posted November 10, 2004 Does anyone have an idea of where they think the dollar should settle? MS is happy with the increase and August claims that it is fine as long as the market decides. I kind of like it right where it is at around .85. Our products are still relatively inexpensive and we will soon return to having some purchasing power. Right now there is some profit taking but that will be eroded by competition. Quote Link to comment Share on other sites More sharing options...
RB Posted November 10, 2004 Report Share Posted November 10, 2004 the dollar is gaining too much momentum - it needs to fall to encourage growth Quote Link to comment Share on other sites More sharing options...
maplesyrup Posted November 10, 2004 Author Report Share Posted November 10, 2004 the dollar is gaining too much momentum - it needs to fall to encourage growth Business is up at Whistler in spite of rise in Canadian dollar. Some businesses will benefit and some won't. Overall this rise is good for most ordinary Canadians, and that is what matters - not the impact on the rich, nor the special interest groups. Let's celebrate! Quote Link to comment Share on other sites More sharing options...
RB Posted November 10, 2004 Report Share Posted November 10, 2004 you meant the government is spending our lots of monies in Whistler, the deadline is 2010 for the spending spree so this is great news the high dollar does not do well for the discrepencies in trade - US is the biggest one, a high dollar discourages inventment and trading Quote Link to comment Share on other sites More sharing options...
maplesyrup Posted November 11, 2004 Author Report Share Posted November 11, 2004 NO MORE 'NORTHERN PESO' Remember this, for example: the value of Canada's dollar is a real-time, worldwide report card on the country's fiscal management and economic prospects. If global investors think you're spending yourself into oblivion, they dump your dollar. If they think you're in line for healthy economic growth, they buy your currency. Thanks to a decade of fiscal prudence, balanced budgets and debt reduction, Canada gets high marks from international lenders. By adopting the U.S. dollar we would throw all that away, removing a critical check on Ottawa's spending and eliminating a major incentive to balance the budget. There's a long list of countries that have gotten into trouble this way, and the consequences are devastating.The developments of the past few years have only confirmed that conclusion. Canada is still heavily reliant on basic commodities: metals, minerals, lumber and oil. Thanks to the voracious demand of developing nations, especially China, those resources are red hot. The U.S. buys a lot more than it sells, but Canada is just the opposite, and so this country stands to cash in big on China's economic emergence. That's why renowned investor Jim Rogers, who co-founded the Quantum Fund with George Soros, is hugely bullish on the Canadian dollar, and thinks it could go to US$1.06 or higher over the next few years. Canada's fiscal report card has just received better marks than it has had in a long time. Quote Link to comment Share on other sites More sharing options...
maplesyrup Posted November 14, 2004 Author Report Share Posted November 14, 2004 Top Stories - Los Angeles Times Amid worries about bulging U.S. budget and trade deficits, the greenback dropped last week to a record low against the 5-year-old euro, a 12-year low against the Canadian dollar and a nine-year low against an index of major currencies. Many analysts don't see anything that will stop the decline. A cheaper dollar reduces the value of American securities, making them less attractive to foreign investors. That could eventually precipitate what Robbins called "the doomsday scenario" — Japan and China not only refusing to buy U.S. bonds, but selling some of their $1.3 trillion in reserves. The only way Uncle Sam could then find new customers for its IOUs would be by raising interest rates. And although higher rates are good for savers, they would be disastrous for a country weaned on cheap credit. "Sometime soon, the falling dollar is going to show up in rising inflation, rising interest rates and a falling standard of living," said Harry Chernoff, an economist with Pathfinder Capital Advisors. "The housing and mortgage markets, which benefited the most from declining interest rates over the past few years, are likely to feel the most pain." Maybe it is about time to get out of the US housing market, eh! Quote Link to comment Share on other sites More sharing options...
playfullfellow Posted November 14, 2004 Report Share Posted November 14, 2004 Maybe it is about time to get out of the US housing market, eh! This might also be a good time for the lumber industry to start advertising the benefits of allowing cheaper Canuck lumber into the US to lower the price of building a house. Though the higher dollar may offset some of these benefits, there will still be a pay off for both sides for a while. Sure, it may seem like we a kicking someone when they are down but this is business, not a feel goos session. Does anyone out there have any links to show the current cost of building a house in the US. I would be interested to do some further research into this matter. Quote Link to comment Share on other sites More sharing options...
August1991 Posted November 15, 2004 Report Share Posted November 15, 2004 The resulting addition of $800 to $1,300 to the cost of a new home prices some 300,000 families out of the housing market, denying them the dream of home ownership. Cato Paper Leftists who are bad at math dismiss the Cato Institute (as some posters here dismiss the Fraser Institute). You've been warned. Quote Link to comment Share on other sites More sharing options...
maplesyrup Posted November 15, 2004 Author Report Share Posted November 15, 2004 No one dismisses the Fraser Institute. but let's be honest and say who they represent - the weathy in society. So whenever they make their pronoucements people should at least be aware of who they are lobbying for. Similiarly the CCPA represent ordinary Canadians, and we should know that when they make their forecasts. Quote Link to comment Share on other sites More sharing options...
Guest eureka Posted November 15, 2004 Report Share Posted November 15, 2004 Home ownership is a lost dream for Americans in many of the growing areas. In cities like San Francisco and Boston, to name a ouple, homes are already out of the reach of a substantial portion of the population. A modest house would cost as much as an average West Vancouver or Outremont home. Conversely, in some areas, Philadelphia is one, houses are eminently affordable to any who can find work. The inflation that will follow the lower dollar and the higher interest rates to counter it and to prop up the dollar will worsen the problems. Of course, there is always the likelihhod of a collapse in American housing prices (not far away, in my opinion) but the steep recession that will accompany that may not help ownership prospects. Quote Link to comment Share on other sites More sharing options...
caesar Posted November 15, 2004 Report Share Posted November 15, 2004 kimmy......do a poll of Canadians whether they want a higher Canadian dollar or not, and you will get the correct answer. Spare us the opinion of some special interest group that you are stomping for. Kimmy has it right. A higher dollar may SOUND good but is not good for industries that sell to the USA therefore our economy takes a dive and presto no moolah for handouts to your increased low/no income people Special Interest?????? Do you have any concept of reality. Just looking for a free hand out but no thought of reality. Geeesh!!!! Spare us your pie in the sky outlook that does not coincide with reality. Quote Link to comment Share on other sites More sharing options...
maplesyrup Posted November 15, 2004 Author Report Share Posted November 15, 2004 I half to laugh at all the Canadian naysayers. I remember when the Canadian dollar was falling, and all the talk was about what a terrible economy Canada had. Now that our dollar is rising, all those naysayers are silent. Any excuse to attack Canada, eh!. This rise in the value of Canada's currency is a report card on Canada's economy. It is looking great, and Canadian vacationers who like to travel abroad will be delighted, and Canadian consumers will be delighted as well. People need to chill about what is going on. The Canadian dollar was previously oversold, and now it is slowly rebounding. As long as it doesn't rebound too quickly, or too much, we will be just fine, thank you. Yup exporters are going to have a more difficult time. So, time to roll up their sleeves and get to work. Whining about it sure isn't going to solve anyone's problems. Quote Link to comment Share on other sites More sharing options...
kimmy Posted November 15, 2004 Report Share Posted November 15, 2004 Thanks, caesar I saw tonight on CTV that the resorts at Whistler are planning on hiring only 80% of their usual staff, in anticipation of lower tourism thanks to the plummeting US dollar. Not good news for young Canadians who work in the hospitality industry. -kimmy Quote Link to comment Share on other sites More sharing options...
caesar Posted November 15, 2004 Report Share Posted November 15, 2004 It was in the news Friday that the town of Whistler is crawling with young homeless people who went there seeking jobs. Quote Link to comment Share on other sites More sharing options...
caesar Posted November 15, 2004 Report Share Posted November 15, 2004 This rise in the value of Canada's currency is a report card on Canada's economy. It is looking great, and Canadian vacationers who like to travel abroad will be delighted, and Canadian consumers will be delighted as well. And Canadian workers will probably be largely unemployed. It has little to do with the Canadian economy. Our dollar is really not rising; the American dollar is in a freefall due to the quagmore in Iraq and their huge deficit. Our customer (USA) is going broke; no money for buying unless you got some cheap ammo. Quote Link to comment Share on other sites More sharing options...
maplesyrup Posted November 15, 2004 Author Report Share Posted November 15, 2004 As Trudeau said a long time ago, maybe it's time to diversify our trading partners. Of couse he was labeled a communist for those remarks. Quote Link to comment Share on other sites More sharing options...
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