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?
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