Posted on 11/04/2007 1:15:45 PM PST by shrinkermd
The rocket-propelled Canadian dollar flew past $1.07 (U.S.) Friday, fuelled by strong economic data that have many forecasters wondering whether the economy is decoupling from its troubled southern neighbour.
Canada churned out five times more jobs than expected last month, a stellar showing that sparked a number of forecasts that the loonie is on its way to $1.10, as the greenback continues to dive.
While that's good news for Canadians who are planning to travel to the United States this holiday season, it will likely mean more pain for manufacturers, exporters and the tourist industry on this side of the border.
A speedy rise in the currency's value is concerning because of its effect on business, which has trouble planning in a volatile environment, Finance Minister Jim Flaherty said Friday. There is mounting pressure on the Bank of Canada to reduce interest rates in order to cool the situation, but he suggested that's not the solution.
(Excerpt) Read more at reportonbusiness.com ...
funny they could write a whole article about the climbing looney and not mention that 85% of canada’s exports go to the US.
Canada exports? I thought China does it all.
The $CA has been moving steadily higher against the $US for a month. Really much longer but there was a time when the stores wouldn’t take Canadian small change here because it was worth only 70% of US small change. Good thing American investments are global now.
The dollar is going the way of the Mexican peso. Pretty soon tourists from Europe and Canada will be saying, “How much is that in REAL money?”
America has been the consumer of last resort for at least 50 years with outsiders able to always sell their services and products for currency much more valuable than their own. This is no longer the case. American imports should decrease some (except for petroleum and other energy) but the big change will come in exports.
And how much of the rise in crude is due to simple devaluation of the U.S. dollar and not due to other economic and/or market factors?
...exports and tourism. The hotels here in NYC are cleaning up — charging $900 or $1,000 a night for what used to go for $400 or $500. The other day I saw a pair of German tourists buy 10 iPods at a chain electronics store, marveling and laughing at how cheap they were.
However, I don’t see what exports — other than aggie products — will benefit on a large scale.
Who are you and what have you done with the real Toddster?
Are you the cheap, Chinese version of the Toddster?
There may be a few here. What do you think?
I think we’re selling more jewelry and diamonds — essentially artisan type products — than many manufactured goods.
Planes my friend, planes... Airbust planes are now 45% more expensive than the Boeing aircraft. And with Boeing’s offerings being typically more fuel efficient per passenger mile than the equivalent Airbust option, that swings it even more in our favor.
Airbust is getting billions in subsidies just to try to stay competitive; Boeing is selling out at a record pace. That continues for a few years, and Airbust is going to go away. It’s already putting huge economic pressures on Germany and France, and only getting worse.
I agree.
However, I tend to think in an older version of American manufacturing. You know, the thousands of factories all over the country turning out TVs, wrist watches, dining room tables etc. It is difficult to get my mind around the fact that no longer exists to any great degree.
That chart is a decade old.
It isn’t a decade old, but why is it measured in 1997 dollars?
Did they suggest what role conservative principles might be playing in Canada's recovery?
Once the US gets the housing situation under control, the greenback will come roaring back. But in the meantime, the weak dollar is doing great things for bottom lines of many US corporations. The cheap dollar means the DOW will continue to rise.
It’s always enjoyable to see the ignorant, bigotry, stupidity and resultant glee of so many Canadians as expressed in the comments section of this piece on the Globe site. It’s truly amazing how angry and clueless they are about apparently _anything_ going on with the U.S.
We Americans didn’t steal the name Thaler from the Germans, we adapted it. Why do these mini economies like Canada, Hong Kong, New Zealand , etc ,etc, get to call their cowerie shells DOLLARS?
Yep. That stuff is all made in factories in China. Typically owned in part or wholly by US or Taiwanese corporations. We’ve just shifted locations of the factories, and use cheaper labor, that’s all...
Yes, I travel to China a lot (live there 18 weeks of the year), and work with these factories nearly every day. On the whole, I’d say our economy is better BECAUSE of the move to production overseas. Yes, we have lost some blue collar jobs, but we’ve gained a tremendous amount of white collar jobs, and improved our standard of living without requiring massive increases income (consider that a 27” color TV is 1/4 the price of a 19” color TV from 15 years ago).
I would still prefer to not see the decline of blue collar America. Obviously, world economic forces do not take my preferences into account.
There won’t be any big “economic disconnect.” Canadians will simply get more money for their products—especially those products that will cost far more to freight from overseas countries. All-in-all, the rising currency will make Canada richer.
Actually, even the Mexican peso is worth more than the American dollar.
My mistake—the dollar is still worth a little more than the peso.
9.4 cents is still less than a dollar.
The Dow should be absolutely scorching higher, scratching my head a bit why it’s not? Financial stocks aren’t helping the cause for sure. But hey, their billions of dollars of losses, are in discounted dollars at least!
How funny!!!!!!!!!
Chrysler is at Windsor, Ontario. Just laid off 12,000 employees or about to. Neither here nor there, but I just bought a 2007 Caravan locally in Canada. I dealt the same dealer for 29 years. T'was a demonstrator though- lovely deal and all.
The chortling about getting the same for thousands less by using America, is all very well, but the bottom line is jobs.
I am tired myself of all the silly talk. My newspaper of choice is the National Post, not the Grope and Flail. LOL
Whoa there, says I, there appears to be some trepidation on the part of a number of Canadian viewpoints. I dare say a few tub thumpers will talk about a Canadian "Celtic Tiger".
I live in a border city. Our tourist trade took a bit of a whacking this summer. Our big attraction, the Train ride up to the Agawa Canyon relies on American tourists.
One needs to have a job, before one can tootle off to - oh yeah-Walmart, the one over the river and not our local one.
Ever work in a factory? 10 minutes seems like a day and the bell is all you wait for. Another day gone down the drain.
I have. And at the time I was happy to have the job.
I get your drift. I worked on a T/V production line in Toronto many, many moons ago. One and a quarter minutes each operation. The chassis would all move down at the bell. The women seemed very happy. They would sing and chat, nobody minded. True they were supporting their spouse. Some men were not quite so with it. Still I ate through the winter and paid my board.
The lower American dollar would obviously benefit American manufacturing exports. Boeing has a big contract with India. The downside is that like Canada, the manufacturing industry has to some extent gone to hell in a handbasket.
On the bright side, is the fact that American ingenuity could quickly revitalize old plants. Surely this mass import of goods from the likes of China cannot last forever. When boasts are made about jobs, jobs and more jobs, thus who cares about imports? the true fact is obscured.
How many new jobs pay a living wage?
How many new jobs pay a living wage?
A lot, unfortunately they are all “knowledge-based” jobs that require highly-specialized skill sets.
2005 was over a dacade ago? I guess I need to brush up on my math.
In order to compare year to year figures, you have to correct for inflation. Otherwise, currency value changes distort the comparison and give wrong information.
A huge percentage of those exports is Oil.
The wing (the most complex and important part of the aircraft) for the Dreamliner 787 is built in Japan.
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