Canadian dollar drops to 8-month low

[normanchateau]

Here's the story on the declining Canadian dollar:

http://www.canada.com/vancouversun/news/st...dda2bfa&k=60839

No, Harper's not to blame but maybe it's time he gave some thought to stimulating the economy rather than squandering time and money on same sex marriage, Quebec nationalism and Afghanistan.

The Liberals squandered a fortune on Afghanistan:

"The Polaris Institute said Canada had already spent $4.1 billion on Afghanistan operations since the Sept. 11, 2001, terror attacks.

Polaris analyst Steven Staples told an Ottawa news conference that Afghanistan accounts for 68 per cent of the $6.1 billion spent on international missions between the fall of 2001 and March 2006.

Staples said operations in the war-torn country were "consuming all available resources" and preventing vital resources being diverted elsewhere, such as in Darfur."

How much more Canadian tax dollars does Harper want to spend on propping up the corrupt Islamic Republic of Afghanistan? He's already said that he wants to extend the costly mission beyond 2009.

[Charles Anthony]

maybe it's time he gave some thought to stimulating the economy

At whose expense??

Please provide some direction. Do you want to discuss:

1) the dreams of stimulating the economy

2) same sex marriage

3) Quebec nationalism

4) Afghanistan

5) international missions between the fall of 2001 and March 2006

6) Darfur

anything else not covered in other threads??

[Drea]

This is good news!

A low dollar is vital to our resource based economy. I'd like it to be never over the 75 cent mark.

[White Doors]

This is good news!

A low dollar is vital to our resource based economy. I'd like it to be never over the 75 cent mark.

wrong. it's vital to our manufacturing economy, not our resource based economy.

[M.Dancer]

I sometimes get paid in USD and euros......I don't mind a CDN $ at .75 or .85....seems to me that the cost of a pint is the same either way......

[uOttawaMan]

This is good news!

A low dollar is vital to our resource based economy. I'd like it to be never over the 75 cent mark.

wrong. it's vital to our manufacturing economy, not our resource based economy.

True. I bet with every cent it falls the manufacturing companies breathe a sigh of relief.

[White Doors]

This is good news!

A low dollar is vital to our resource based economy. I'd like it to be never over the 75 cent mark.

wrong. it's vital to our manufacturing economy, not our resource based economy.

True. I bet with every cent it falls the manufacturing companies breathe a sigh of relief.

i think we shoudl encourage a higher dollar and give affected companies tax incentives to become mroe efficient. Relying on a lower dollar makes them complacent.

[Charles Anthony]

i think we shoudl encourage a higher dollar

How would you do that, pray tell? and at whose expense?

"Here dollar-dollar-dollar! Here dollar-dollar-dollar!"

[Saturn]

This is good news!

A low dollar is vital to our resource based economy. I'd like it to be never over the 75 cent mark.

With high oil prices and Alberta pumping oil like crazy, our so called "oil dollar" will stay high and our other export industries will suffer.

[mikedavid00]

This is good news!

A low dollar is vital to our resource based economy. I'd like it to be never over the 75 cent mark.

That is proven false.

(more idealism)

[mikedavid00]

This is good news!

A low dollar is vital to our resource based economy. I'd like it to be never over the 75 cent mark.

wrong. it's vital to our manufacturing economy, not our resource based economy.

What manufacturing sector?

[Riverwind]

wrong. it's vital to our manufacturing economy, not our resource based economy.

A 40% rise in the dollar over 2 years affected every business that exports goods or services. This includes manufacturing but it also includes tourism and software development. The only reason resource companies were not screwed was because resource prices rose as well. However, you will see a lot of carnage in the BC forest sector in the next couple years as the price of wood drops faster than the dollar.

Anyone who thinks a rapid rise in the exchange rate is a good thing should give their head a shake.

[geoffrey]

i think we shoudl encourage a higher dollar

How would you do that, pray tell? and at whose expense?

"Here dollar-dollar-dollar! Here dollar-dollar-dollar!"

You can raise the price of the dollar relative to other currents by removing currency from circulation. The effect on the economy though would be messy, especially if your trying to move the dollar at a signficant amount.

Canada does need to take steps to prevent Dutch disease with Alberta's resources pretty much pulling the train along.

Norway has a huge fund invested in foreign currency to prevent this.

Increasing private savings (investment) rates will also protect us from considerable downturn... a motive to reduce income taxes perhaps.

It's more about keeping foreign dollars from entering Canada than regulating the supply of the Canadian currency.

This is good news!

A low dollar is vital to our resource based economy. I'd like it to be never over the 75 cent mark.

That is proven false.

(more idealism)

Why? The higher the dollar goes, the more Ontario suffers. We've seen a couple months of net job losses and stagnant growth in Ontario.

[Charles Anthony]

Canada does need to take steps to prevent Dutch disease with Alberta's resources pretty much pulling the train along.

Be specific: exactly what monetary policy do you want to see?

Do you want a targeted exchange rate?

It's more about keeping foreign dollars from entering Canada than regulating the supply of the Canadian currency.

Wait: what is your goal?

Why would you want to keep foreign dollars from entering Canada?

Some people in Canada can do well enough with foreign currency as they could with domestic currency.

Why are you making a difference on a national scale? Are you favoring some sectors over others??

[Drea]

i think we shoudl encourage a higher dollar

How would you do that, pray tell? and at whose expense?

"Here dollar-dollar-dollar! Here dollar-dollar-dollar!"

Excellent!

Why would we want to DIScourage our buyers by ENcouraging a high dollar?

As Riverwind said, when our dollar is low more people buy more of our stuff. This is a good thing.

[mikedavid00]

Why? The higher the dollar goes, the more Ontario suffers. We've seen a couple months of net job losses and stagnant growth in Ontario.

We've seen net full time job losses for years now since 2002 with few exceptions. It's not all because of the dollar value.

Having a high dollar value is something that we should strive for. Yes certain sectors will suffer, but as a whole I can't understand how anyone would suggest that we should financially play second fiddle the US.

The higher our dollar, the better the lives for each Canadian.

The lower our dollar, the more we become like Mexico and the worse our lives become.

It's just factual. Of course, you'll have all the intillectualls coming out and claiming bizarre formulas of why our country should be weak and poor. Self hating attitude I guess.

[mikedavid00]

We've seen a couple months of net job losses and stagnant growth in Ontario.

Well I have the answer to that. Let's let 200,000 people settle into Toronto and find work.

That really helps the situation. Instead of 10 people going for 1 job, lets have 80 people go for 1 job (true story).

[Wilber]

i think we shoudl encourage a higher dollar

How would you do that, pray tell? and at whose expense?

"Here dollar-dollar-dollar! Here dollar-dollar-dollar!"

Excellent!

Why would we want to DIScourage our buyers by ENcouraging a high dollar?

As Riverwind said, when our dollar is low more people buy more of our stuff. This is a good thing.

What's the point of selling your stuff if you sell it for nothing?

[Saturn]

i think we shoudl encourage a higher dollar

How would you do that, pray tell? and at whose expense?

"Here dollar-dollar-dollar! Here dollar-dollar-dollar!"

Excellent!

Why would we want to DIScourage our buyers by ENcouraging a high dollar?

As Riverwind said, when our dollar is low more people buy more of our stuff. This is a good thing.

What's the point of selling your stuff if you sell it for nothing?

It's better to be able to sell your stuff for 20% less than not being able to sell it at all and being able to buy more Chinese made junk with your welfare cheque, no?

[Saturn]

We've seen a couple months of net job losses and stagnant growth in Ontario.

Well I have the answer to that. Let's let 200,000 people settle into Toronto and find work.

That really helps the situation. Instead of 10 people going for 1 job, lets have 80 people go for 1 job (true story).

Ok, I found out how to put people on the ignore list

[mikedavid00]

We've seen a couple months of net job losses and stagnant growth in Ontario.

Well I have the answer to that. Let's let 200,000 people settle into Toronto and find work.

That really helps the situation. Instead of 10 people going for 1 job, lets have 80 people go for 1 job (true story).

Ok, I found out how to put people on the ignore list

Yes. The all offensive ubelievable discussion of immigration.

Oh my yes. We will defend them, and pamper them, and our services will deminish as we slowely bankrupt ourselves and our personal income. As we slowely lose G8 status.

Our own citizens dying on waiting lists for organ trasplants and waiting for surgeries..

But that doesn't matter. Who cares about that. Just don't you dare discuss immigration!!

So I'll do the online version of being an ostrich and putting my head in the sand. I'll hit the ignore button.

And this, is what's wrong with dictator style social engineering. People will buy into what their leaders tell them. And this is the result.

[White Doors]

wrong. it's vital to our manufacturing economy, not our resource based economy.

A 40% rise in the dollar over 2 years affected every business that exports goods or services. This includes manufacturing but it also includes tourism and software development. The only reason resource companies were not screwed was because resource prices rose as well. However, you will see a lot of carnage in the BC forest sector in the next couple years as the price of wood drops faster than the dollar.

Anyone who thinks a rapid rise in the exchange rate is a good thing should give their head a shake.

Well call me a fool but I would like our natural reource RAW exports to be expensive but our 'value added'- exports be competitive. Any economist worth his salt will tell you the same for long term economic health.

[geoffrey]

wrong. it's vital to our manufacturing economy, not our resource based economy.

A 40% rise in the dollar over 2 years affected every business that exports goods or services. This includes manufacturing but it also includes tourism and software development. The only reason resource companies were not screwed was because resource prices rose as well. However, you will see a lot of carnage in the BC forest sector in the next couple years as the price of wood drops faster than the dollar.

Anyone who thinks a rapid rise in the exchange rate is a good thing should give their head a shake.

Well call me a fool but I would like our natural reource RAW exports to be expensive but our 'value added'- exports be competitive. Any economist worth his salt will tell you the same for long term economic health.

Your looking at it the wrong way. Capital allowances similar to the oilsands development need to be extended to heavy oil refiners in Canada.

[White Doors]

i think we shoudl encourage a higher dollar

How would you do that, pray tell? and at whose expense?

"Here dollar-dollar-dollar! Here dollar-dollar-dollar!"

Excellent!

Why would we want to DIScourage our buyers by ENcouraging a high dollar?

As Riverwind said, when our dollar is low more people buy more of our stuff. This is a good thing.

Unless you want to see a foreign company buy CTV.. How about GLOBAL? National Post? G&M? Toronto Star? As a liberal ultra-nationalist, do you have ANY idea what you are advocating here? I agree with equal markets and low trade barriers but do you? I doubt it.

[White Doors]

wrong. it's vital to our manufacturing economy, not our resource based economy.

A 40% rise in the dollar over 2 years affected every business that exports goods or services. This includes manufacturing but it also includes tourism and software development. The only reason resource companies were not screwed was because resource prices rose as well. However, you will see a lot of carnage in the BC forest sector in the next couple years as the price of wood drops faster than the dollar.

Anyone who thinks a rapid rise in the exchange rate is a good thing should give their head a shake.

Well call me a fool but I would like our natural reource RAW exports to be expensive but our 'value added'- exports be competitive. Any economist worth his salt will tell you the same for long term economic health.

Your looking at it the wrong way. Capital allowances similar to the oilsands development need to be extended to heavy oil refiners in Canada.

Agreed 100%. Not sure how I am 'looking about it the wrong way' though.

add the value here, I'm sick of sending raw materials to other countries. If they want to buy it, let them buy the finished product as much as we possibly can.