Falling loonie tied to underperforming economy


mentalfloss
No Party Affiliation
#1
Falling loonie tied to underperforming economy

The Conference Board of Canada is calling the decline in the Canadian dollar the economic story of the year so far, predicting further declines as the Canadian economy underperforms.

The loonie began the day stronger on Thursday, rising to 91.48 US in early trading, up from its close of 91.37 US yesterday. It closed up 0.16 of a cent to 91.53 cents US.

The Canadian currency fell 6.6 per cent in 2013, after trading at par with the greenback in February, and is down more than three per cent since the beginning of the year.

The Conference Board, an economic and policy think tank, said the falling dollar is a sign of lack of confidence in Canadian growth prospects.

“Arguably more important than the value of the loonie is the signal it sends about the Canadian economy. Markets are betting that the Canadian economy will continue to underperform,” chief economist Glen Hodgson said in a report released today.

“This assessment is consistent with our own forecast, which calls for U.S. gross domestic product to grow by 3.1 per cent in 2014, much better than Canadian growth of 2.3 per cent,” he continued.

Hodgson is not the only economist predicting Canada’s GDP growth will underperform the U.S. Towers Watson’s annual survey of Canada’s top economists and analysts found most believe Canada will lag the U.S. in both economic activity and job creation over the next few years.

Falling loonie tied to underperforming economy
 
petros
+4
#2  Top Rated Post
The falling loonie is tied to Harper gobbling up US dollars to lower the loonie to stimulate exports.
 
Kreskin
#3
Did we expect the Canadian economy to outperform the US permanently? The Canadian dollar has always been impact by economic cycles.
 
mentalfloss
No Party Affiliation
#4
They say this is supposed to benefit exports but that hasn't happened yet.
 
CDNBear
+3
#5
Quote: Originally Posted by mentalflossView Post

They say this is supposed to benefit exports but that hasn't happened yet.

lol, I'm not sure what's funnier, the fact that you don't know it actually does, or the fact that you think it happens over night.

I guess the simplest things aren't obvious to you eh, lolz.
 
damngrumpy
No Party Affiliation
#6
The falling dollar does help exports that is true the apple industry is going to see a boost
next year. No it does not happen immediately but it does happen. Ever since the dollar
shot up the fruit industry has had a much harder time. International trade is done in US
dollars so no matter where you are shipping outside of Canada it has an impact
 
L Gilbert
No Party Affiliation
+4
#7
The economy goes up, the economy goes down. Either way it still causes more grief than good. If humanity isn't obliterated eventually, perhaps it can eventually dump the idiotic idea of economies and try something sensible. Not gonna hold my breath, though.
 
captain morgan
Bloc Québécois
+2
#8
Quote: Originally Posted by L GilbertView Post

If humanity isn't obliterated eventually, perhaps it can eventually dump the idiotic idea of economies and try something sensible. Not gonna hold my breath, though.

I got a kick out of the observation relative to 'sensibilities' and humanity... The first thing that came to mind was the stereotypical speeches at beauty pageants where the contestants speak of working towards world peace.
 
Nuggler
+3
#9
Quote: Originally Posted by captain morganView Post

I got a kick out of the observation relative to 'sensibilities' and humanity... The first thing that came to mind was the stereotypical speeches at beauty pageants where the contestants speak of working towards world peace.



Pretty sure they said "working towards a piece"
 
L Gilbert
No Party Affiliation
#10
Quote: Originally Posted by captain morganView Post

I got a kick out of the observation relative to 'sensibilities' and humanity... The first thing that came to mind was the stereotypical speeches at beauty pageants where the contestants speak of working towards world peace.

lol.
 
Simple Man
Free Thinker
+1
#11
Quote: Originally Posted by L GilbertView Post

The economy goes up, the economy goes down. Either way it still causes more grief than good. If humanity isn't obliterated eventually, perhaps it can eventually dump the idiotic idea of economies and try something sensible. Not gonna hold my breath, though.

I was admonished earlier today that I should learn something about economics before I shot my mouth off anymore.

It occurred to me a short time later that when you consider all the great minds out there that have spent half their lives and more learning the ins and outs regarding economics only to have the economy tank repeatedly, what would be the point of going to too much trouble trying to understand it on much more than a superficial level.

The facts pretty much speak for themselves it seems. Economy is up....whoops..it's down. Hey! It's up!! Whoops it's down...

Seems to me everything is cyclic in every way. Except for government and corporate rhetoric that has us collectively striving for unlimited economic growth via finite resources and means.

I find it amazing that so many defend the status quo that sees huge profits made on average Joe's back. I feel the economy is right on track being laid by greed and collusion.
 
L Gilbert
No Party Affiliation
#12
Quote: Originally Posted by Simple ManView Post

I was admonished earlier today that I should learn something about economics before I shot my mouth off anymore.

It occurred to me a short time later that when you consider all the great minds out there that have spent half their lives and more learning the ins and outs regarding economics only to have the economy tank repeatedly, what would be the point of going to too much trouble trying to understand it on much more than a superficial level.

The facts pretty much speak for themselves it seems. Economy is up....whoops..it's down. Hey! It's up!! Whoops it's down...

Seems to me everything is cyclic in every way. Except for government and corporate rhetoric that has us collectively striving for unlimited economic growth via finite resources and means.

I find it amazing that so many defend the status quo that sees huge profits made on average Joe's back. I feel the economy is right on track being laid by greed and collusion.

Pretty much.
 
taxslave
No Party Affiliation
+1
#13
Quote: Originally Posted by Simple ManView Post

I was admonished earlier today that I should learn something about economics before I shot my mouth off anymore.

It occurred to me a short time later that when you consider all the great minds out there that have spent half their lives and more learning the ins and outs regarding economics only to have the economy tank repeatedly, what would be the point of going to too much trouble trying to understand it on much more than a superficial level.

The facts pretty much speak for themselves it seems. Economy is up....whoops..it's down. Hey! It's up!! Whoops it's down...

Seems to me everything is cyclic in every way. Except for government and corporate rhetoric that has us collectively striving for unlimited economic growth via finite resources and means.

I find it amazing that so many defend the status quo that sees huge profits made on average Joe's back. I feel the economy is right on track being laid by greed and collusion.

Amazingly enough you are not far off the mark. Of course the flipside is that without greed and a desire to better oneself we would still be a population of a few million living in caves and hides.
Or worse we could be like N Korea.
 
Simple Man
Free Thinker
#14
Quote: Originally Posted by taxslaveView Post

Amazingly enough you are not far off the mark. Of course the flipside is that without greed and a desire to better oneself we would still be a population of a few million living in caves and hides.
Or worse we could be like N Korea.

lol....

I dunno. Seems that before the industrial revolution set us on our present course we were more about bettering ourselves but in ways that saw us tending to more important things like community, staying warm, staying fed, etc. We were more in tune with the nature of things (ducking as I type).

Greed and the desire to better ourselves is simply objectivism is it not? The focus on the self and the belief in ones innate right to profit?

I dig the ambition that we as a species possess but suspect on some level it has been supplanted by a greed that takes the form of money...period. All we do now is chase it. Anything else we do are mere hobbies or distractions that give us a small break until it's time to go chase it some more.
 
L Gilbert
No Party Affiliation
+1
#15
Quote: Originally Posted by taxslaveView Post

Amazingly enough you are not far off the mark. Of course the flipside is that without greed and a desire to better oneself we would still be a population of a few million living in caves and hides.
Or worse we could be like N Korea.

But a desire to better oneself could exist without greed. And the planet (including humans) would be much better off without the greed part.

Quote: Originally Posted by Simple ManView Post

lol....

I dunno. Seems that before the industrial revolution set us on our present course we were more about bettering ourselves but in ways that saw us tending to more important things like community, staying warm, staying fed, etc. We were more in tune with the nature of things (ducking as I type).

Greed and the desire to better ourselves is simply objectivism is it not? The focus on the self and the belief in ones innate right to profit?

I dig the ambition that we as a species possess but suspect on some level it has been supplanted by a greed that takes the form of money...period. All we do now is chase it. Anything else we do are mere hobbies or distractions that give us a small break until it's time to go chase it some more.

... and causes us to miss a lot of the benefits of life.
 
Simple Man
Free Thinker
#16
Quote: Originally Posted by L GilbertView Post

But a desire to better oneself could exist without greed. And the planet (including humans) would be much better off without the greed part.

... and causes us to miss a lot of the benefits of life.

Agreed.

Seems the real problem stems from a need to hoard things.

Gold, silver, precious stones, money...all subject to hoarding. All responsible for the most reprehensible acts humanity could devise (discounting religion and politics of course).

If it can be hoarded it's gonna cause trouble.
 
NancyDL
#17
Quote: Originally Posted by petrosView Post

The falling loonie is tied to Harper gobbling up US dollars to lower the loonie to stimulate exports.

Exactly!

Quote: Originally Posted by Simple ManView Post

I was admonished earlier today that I should learn something about economics before I shot my mouth off anymore.

It occurred to me a short time later that when you consider all the great minds out there that have spent half their lives and more learning the ins and outs regarding economics only to have the economy tank repeatedly, what would be the point of going to too much trouble trying to understand it on much more than a superficial level.

The facts pretty much speak for themselves it seems. Economy is up....whoops..it's down. Hey! It's up!! Whoops it's down...

Seems to me everything is cyclic in every way. Except for government and corporate rhetoric that has us collectively striving for unlimited economic growth via finite resources and means.

I find it amazing that so many defend the status quo that sees huge profits made on average Joe's back. I feel the economy is right on track being laid by greed and collusion.

Great post! Thanks.
 
Cliffy
Free Thinker
#18
Quote: Originally Posted by Simple ManView Post

Agreed.

Seems the real problem stems from a need to hoard things.

Gold, silver, precious stones, money...all subject to hoarding. All responsible for the most reprehensible acts humanity could devise (discounting religion and politics of course).

If it can be hoarded it's gonna cause trouble.

Men's mighty mine-machines
Digging in the ground
Stealing rare minerals
Where they can be found
Concrete caves with iron doors
Bury it again - Moody Blues
 

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