[peeb]

Corporate welfare! Yipee!

[glideslope]

Originally Posted by Dakarʒ 

Why do we want tourism too expensive?

In order to coincide with the US entering a new period of isolationism. Spending vacation dollars at home with facilitate the process.

[peeb]

A bit of isolationism would be no bad thing in foreign policy terms, but I don't see any evidence that that is the direction the US is moving in.

[Sky Captain]

Originally Posted by tie 

Okay, we have Kevin in another thread arguing that Taiwan is part of China, and we have Sky Captain here arguing that it is a good thing that Americans can't afford to vacation abroad. What's up with you guys?

It neither a good thing or a bad thing.
It's the effects of the strength of the dollar.

I agree an bit of isolationism would be great.
Like pull all financial aid to other countries. All of it.
And remove our membership in the UN.

[tie]

Sky Captain, does that include withdrawing from Iraq? Completely? We're there after all for humanitarian reasons.

[Sky Captain]

Hell, not just I-rak, but Europe and Asia.
Those quagmires are un-winable also.

[peeb]

Originally Posted by Sky Captain 

I agree an bit of isolationism would be great.
Like pull all financial aid to other countries. All of it.

So how will you prop up right wing dictators that the CIA installs in foreign countries when people elect the wrong people?

[turtle777]

Originally Posted by tie 

Okay, we have Kevin in another thread arguing that Taiwan is part of China, and we have Sky Captain here arguing that it is a good thing that Americans can't afford to vacation abroad. What's up with you guys?

Nothing, you just don't seem to get it.

A low dollar isn't all that bad, EXCEPT for foreign travel and if your business buys a lot of services / goods from overseas in foreign currency.

The positive effects (strong exports) outweigh the negative effects (expensive overseas vacation).

-t

[peeb]

A low dollar is not bad per-se, except when it is low because the economy is a nose dive.

[Sky Captain]

Originally Posted by peeb 

So how will you prop up right wing dictators that the CIA installs in foreign countries when people elect the wrong people?

Who are the wrong people?

[peeb]

Originally Posted by Sky Captain 

Who are the wrong people?

One presumes they are the ones that the CIA deposed. I was using the word in a sarcastic sense.

[Sky Captain]

Originally Posted by peeb 

A low dollar is not bad per-se, except when it is low because the economy is a nose dive.

So your professional assessment is that the US economy is in a nosedive?

[peeb]

My opinion is that the US economy has some very serious structural problems that are causing large scale pain to ordinary people and causing foreign investors to be much more cautious in putting their money in the US.

[tie]

I don't think the US economy is in a nosedive, but the dollar is going to keep dropping long-term, and short-term when interest rates fall. Generally, I think a lower dollar is a good thing in that it will help fix these structural problems. A slowly dropping dollar will fix them slowly, which is always preferable.

But selfishly, I don't want a low dollar because I travel a lot and buy imported goods. But I've diversified my stocks a bit so I no longer feel so bad about it.

[aristotles]

The Canadian dollar is now worth over 97 cents USD. I think we will see par or above par soon unless the Canadian government forces the Bank of Canada to raise interest rates.

A cheaper US dollar is good news for Canadians travelling to the US or for Canadians involved in importing products from the US but it is bad news for the tourism industry here and for exporters to the US.

I'm thinking about travelling to the US to pick up an iPhone.

[Eug]

Originally Posted by Eug 

Sept. 12, 2007

CAD: $0.965
GBP: $2.029
Euro: $1.390
Yen: $0.00876
Yuan: $0.133

The US$ has stayed stable or slightly lower vs. most of these, but has risen against the Pound.

P.S. I was in the US last week, and it sure was nice having a C$ near par to the US$. Made for some good shopping and eats...

I was in the US a couple of weeks ago, and it was great for me shopping obviously. Cheap by Canadian standards. I had some US money left over, so I was at the bank today changing it back to CAD$:



Ouch. I had to pick the day the CAD$ topped 98¢ US. After the bank's commission, it is essentially at par. I got 1¢ extra! This represents a real rise in the CAD$ though. The US$ hasn't really dropped much (if any) vs. other currencies.

CAD: $0.983
GBP: $2.015
Euro: $1.397
Yen: $0.00865
Yuan: $0.133

[peeb]

Originally Posted by tie 

Generally, I think a lower dollar is a good thing in that it will help fix these structural problems. A slowly dropping dollar will fix them slowly, which is always preferable.

The low dollar won't 'fix' much in itself, it simply reflects lack of confidence by foreign investors.

[Judge_Fire]

Originally Posted by peeb 

The low dollar won't 'fix' much in itself, it simply reflects lack of confidence by foreign investors.

However, US shares and real estate priced in dollars now appeal to foreign investors more. The low dollar could encourage growing foreign ownership of these, instead of treasury instruments.

[tie]

I think inflation will rise and a weakening dollar weakens the US's attraction to foreign investors.

Originally Posted by peeb

The low dollar won't 'fix' much in itself, it simply reflects lack of confidence by foreign investors.

Well, it will increase our exports, fixing our trade imbalance.

[peeb]

Originally Posted by tie 

Well, it will increase our exports, fixing our trade imbalance.

Unless it falls a LOT more the US is not going to be competitive with China and other developing world economies. Trashing the economic core to weaken the dollar to make exports more competitive is not a good strategy. More attractive exports is an incidental benefit that does not cancel out the overall negative effects.

[Eug]

Originally Posted by Judge_Fire 

However, US shares and real estate priced in dollars now appeal to foreign investors more. The low dollar could encourage growing foreign ownership of these, instead of treasury instruments.

Except that the US real estate market isn't very good at the moment. Many markets are flat or are even decreasing. That makes US real estate in some areas a poor short- to mid-term investment.

[peeb]

Originally Posted by Eug 

Except that the US real estate market isn't very good at the moment. Many markets are flat or are even decreasing. That makes US real estate in some areas a poor short- to mid-term investment.

Only in the Fly-Over States - real estate in nice cities is still doing fine.

[Eug]

Originally Posted by peeb 

Only in the Fly-Over States - real estate in nice cities is still doing fine.

Real estate price increases all over the US have slowed. It's just that some states have slowed less than others (and others have gone into negative territory).

The weak dollar would help foreign real estate investment I suppose, but that is mitigated by the less than stellar investment performance and the damage of the sub-prime market on the economy in general.

However, the fed has tried to address this, with a 50 basis point drop in the overnight interest rate (which surprised me).

P.S. The CAD$ closed at 98.64¢ US today, and that's where it is at now too, according to XE.com.

[tie]

Originally Posted by peeb 

Unless it falls a LOT more the US is not going to be competitive with China and other developing world economies. Trashing the economic core to weaken the dollar to make exports more competitive is not a good strategy. More attractive exports is an incidental benefit that does not cancel out the overall negative effects.

I can't agree. The US already more than competes with China and other developing world economies. A lower dollar just helps us more. Well, it hurts companies who have moved manufacturing offshore (e.g., Apple), but helps companies still manufacturing here. It also helps US companies selling products overseas and bringing back dollars (e.g., Apple).

[Eug]

Holy crap.

The Canadian Dollar hits 99.99¢ US.

The Canadian dollar traded as high as 99.99 cents (U.S.), a hairbreadth's away from parity.

The currency has seen bids at parity already this morning, but no trades yet, currency traders said.

And then:

Loonie hits parity with the U.S. dollar

The Canadian dollar hit parity with the U.S. dollar at 9:23 a.m. on Thursday

Meanwhile...

The dollar fell its lowest-ever level against the euro on Thursday as the european currency traded above $1.40 for the first time since it was introduced in 1999. The U.S. currency also moved closer to parity with the Canadian dollar.

Breaking the $1.40 barrier for the euro has long been seen as a key turning point in solidifying the euro's position in global currency markets, providing more impetus for it to be the reserve currency of choice -- a position long held by the now-weakening dollar, which has been battered by a recent half-percent cut in U.S. interest rates.

The 13-nation euro bought as much as $1.4064 in morning trading

Originally Posted by Eug on Sept. 18

CAD: $0.983
GBP: $2.015
Euro: $1.397
Yen: $0.00865
Yuan: $0.133

Currently:

CAD: $0.999
GBP: $2.012
Euro: $1.407
Yen: $0.00869
Yuan: $0.133

[PB2K]

it reminds me of a party balloon that goes FLLBBRBLRBLRffffffft

[peeb]

Originally Posted by tie 

I can't agree. The US already more than competes with China and other developing world economies. A lower dollar just helps us more. Well, it hurts companies who have moved manufacturing offshore (e.g., Apple), but helps companies still manufacturing here. It also helps US companies selling products overseas and bringing back dollars (e.g., Apple).

OK, I'll take that one. In which areas without government subsidy or protection is the US competitive with China?

[shabbasuraj]

Loonie is now @ PAR with the US dollar.

AWESOME.

[analogue SPRINKLES]

Originally Posted by shabbasuraj 

Loonie is now @ PAR with the US dollar.

AWESOME.

I know, love it.

Thanks to all you douche-bags who voted for Bush BOTH times! Honestly.

[Eug]

Originally Posted by Eug on Sept. 20

CAD: $0.999
GBP: $2.012
Euro: $1.407
Yen: $0.00869
Yuan: $0.133

So, for the past several days, the CAD$ has been hovering in and around 99.8¢ to 100.1¢ US.

Some analysts are predicting that the US$ is going to continue dropping, to as low as 95¢ CAD. However, others are saying the CAD$ is overbought and that it will drop to maybe 95¢ US.

CAD: $0.998
GBP: $2.022
Euro: $1.409
Yen: $0.00871
Yuan: $0.133

P.S. Even after the latest 0.5% fed cut, interest rates in the US are still slightly higher than in Canada. (Historically, Canadian rates were higher than the US.) I know of at least one person living part of the time in the US who is going to convert her Canadian money from CAD$ to US$, to get a slightly higher interest rate for her investment in the US. Personally I think that's a bad idea because:

1) There are costs related to converting money to another currency, and back again. This would wipe out any benefit from the slightly higher interest rate.
2) There's no guarantee the US$ won't drop even more, which means any potential interest gains are wiped out. OTOH, if the US$ rises, she'd make money. Still, it's risky.
3) The money isn't as liquid if kept in another country. Bringing the money back to Canada quickly would be a major PITA.
4) Taxes can become more cumbersome.

[Eug]

Porsche dropping Canadian 2008 prices 10%

Porsche, facing an uprising among its well-heeled and well-informed clientele, said Tuesday it is lowering Canadian prices on 2008 models by an average of about eight per cent.

“We cannot ignore our customers and dealers in Canada who can look to the U.S. and recognize a substantial price difference,” stated Peter Schwarzenbauer, president of Porsche Cars North America Inc.

It looks like they're keeping US prices the same.

[Eug]

Stephen Colbert's take on CAD$/US$ parity

"Our first president, George Washington, is no better than Canada's first president, this duck"

P.S. It's about time the US gets a $1 coin in wide circulation.

Originally Posted by Eug on Sept. 24 

CAD: $0.998
GBP: $2.022
Euro: $1.409
Yen: $0.00871
Yuan: $0.133

CAD: $1.004
GBP: $2.035
Euro: $1.414
Yen: $0.00868
Yuan: $0.133

[theDreamer]

P.S. It's about time the US gets a $1 coin in wide circulation.

Why?
I hate coins and prefer bills for many reasons, though I mostly use a credit card or debit card in my life, but coins have always caused slow downs and more problems with errors.

[Eug]

Originally Posted by theDreamer 

Why?
I hate coins and prefer bills for many reasons, though I mostly use a credit card or debit card in my life, but coins have always caused slow downs and more problems with errors.

I hate going to the US and getting a zillion $1 bills back as change. Your wallet becomes huge without actually having much money in it.

Plus, they're a pain for vending machines. Often they don't work and you either have to use a 10 or something, or use a bazillion quarters.

In terms of costs for the government, bills don't actually last very long. Coins last a very, very, very long time.

P.S. I'd like to see both Canada and the US get rid of the penny.

[peeb]

I'd like to see them bring in a three dollar bill.

[Monique]

Somehow the U.S. will survive even with a low dollar. Every citizen in the world have survived for decades with a low currency.

[theDreamer]

Originally Posted by Eug 

I hate going to the US and getting a zillion $1 bills back as change. Your wallet becomes huge without actually having much money in it.

Plus, they're a pain for vending machines. Often they don't work and you either have to use a 10 or something, or use a bazillion quarters.

In terms of costs for the government, bills don't actually last very long. Coins last a very, very, very long time.

P.S. I'd like to see both Canada and the US get rid of the penny.

Well, if you are getting that many ones why not ask for a 10,000 dollar bill?
Really though if someone ever tries to hand me more than four ones I always ask for a five or how ever many it is. If they say they have no, well then that is fine and I move along. I hate coins because when I was in the UK for two months I always had a huge weight in my pocket because I always had so many coins because my change would be one pound and X (what is the amount lower than a pound called again? sorry I forget). A bill weights less and if you start getting to many just ask for a larger bill.

I rarely use vending machines so I can not comment.
Do you really think the US government cares about the life of a bill, plus most are only in a 9-11 month circulation I believe.

I do agree, the penny needs to just go away, along with some other coins.

[Eug]

Originally Posted by theDreamer 

Do you really think the US government cares about the life of a bill, plus most are only in a 9-11 month circulation I believe.

Actually yes. Cost of minting/printing currency factors into the equation. It is one of the reasons why the $1 coin exists in Canada, and why the €1 exists in Europe, without corresponding bills.

It's precisely the short life of these bills that makes them so costly.

[Eug]

OK, because of the low US buck, we Canadians are taking over now.

TD buys Commerce Bancorp for $8.5-billion

Canada's two largest banks announced early Tuesday they are spending almost $11-billion (U.S.) to expand in the United States and the Caribbean, riding on the wings of the soaring Canadian dollar.

With the loonie now at or above par with the greenback for the first time in more than 30 years, No. 2-ranked Toronto-Dominion Bank stole the show by announcing its biggest acquisition to date: a deal to double its U.S. retail banking presence by taking over Commerce Bancorp Inc. for $8.5-billion in cash and stock — a transaction made possible in part by regulatory problems that led to the ouster of the New Jersey bank's founder at the end of July.

The news of TD's planned acquisition overshadowed confirmation from No. 1-ranked Royal Bank of Canada that it is buying Trinidad & Tobago's RBTT Financial Holdings Ltd. for $2.2-billion, in one of the largest recent acquisitions in the Caribbean.

But observers say there is little question that the high-flying loonie will make both deals easier for the acquiring banks to swallow.

[Weyland-Yutani]

Originally Posted by Sky Captain 

Bingo.
And it will bolster tourism from European tourists to the US.
Their money will go further.

The Weyland-Yutani corporation applauds the paranoid and obtuse immigration regulations to the US from Europe.

They are most beneficial for globalization, less tourism, more paranoia and power to individual governments.

The Weyland-Yutani corporation has investments in many governments and approves the measures taken by the USA.

[kmkkid]

And it goes on.... Loonie hit $1.02 US today.

Loonie hits $1.02 US on strong jobs report

Closing at 1.0185

[glideslope]

Originally Posted by Monique 

Somehow the U.S. will survive even with a low dollar. Every citizen in the world have survived for decades with a low currency.

You do realize the only reason we have an economy currently is from Chinese investment of Trillions of dollars in TBills.

The dollar goes to low. They start putting billions in the EU, or Canada the US goes bankrupt. Thanks to George Bush. The worst type of politician. One who approves out of control spending, with constant Tax Cuts.

Very much like the mess we have in NY State. Years of spending growth double the inflation rate while cutting taxes all the time.

So what is wrong? Easy the jobs the tax cuts create are overseas. The middle is being destroyed. We will have the Royalty, and the Peasants down the road.

[Big Mac]

We used to run deficits long before GWB. Surpluses are an aberration. These deficits are even that bad in comparison to historical deficit spending. In any event, why not blame the Dems? They're in control of Congress, and if they really cared about balancing the budget they'd shut down the government.

[Face Ache]

^


"SOMEBODY STOP ME!"

Aussie dollar at 25 year high against the greenback.

Thanks.

[tie]

Originally Posted by Big Mac 

We used to run deficits long before GWB. Surpluses are an aberration. These deficits are even that bad in comparison to historical deficit spending. In any event, why not blame the Dems? They're in control of Congress, and if they really cared about balancing the budget they'd shut down the government.

Exactly. Record deficits are normal under Republican presidents. If the Dems really cared about balancing the budget, they'd nuke Alaska, New Orleans, and every other state that doesn't pay as much in taxes as it receives back from the government. I betcha government tax revenues would skyrocket. I know who I'm blaming.

[Chuckit]

Originally Posted by tie 

Exactly. Record deficits are normal under Republican presidents.

Because the president is in charge of spending, right?

[theDreamer]

Originally Posted by Chuckit 

Because the president is in charge of spending, right?

No, but he fills the position that most influence the spending and those are usually loyal republicans.

[tie]

Originally Posted by Chuckit 

Because the president is in charge of spending, right?

Precisely. The president is in total control of spending.

[angaq0k]

I am saving up to buy California.

My only concern would be about GST.

[Atomic Rooster]

CD$ at almost 1.03 against the US$.
By the way how's the zloty doing?