The 7x cent dollar the good the bad and the oogly


gnuman
#1
Well its true that the Canadian Dollar is sky-rocketing and almost hit 71c yesterday on the market but why is this not good?

For one reason it hurts company's exports. Companies like the Potash Corp that does most of its exports to the US loses its edge when the dollar is high because it can't offer competing prices, and probably deal more with the greenback than CDN currency.

For companies that do services and exports to the US would suffer from the dollar going up fast like it is right now. I mean the dollar is gaining .5 cents a day! This is quite bad for those companies that will probably lose money because of the high fluctuation, and business booms on a lower cdn dollar.

The Good? Well those companies that import from the US and around the world now pay less now becuase of the dollar going up.That means potentially cheaper items for consumers? Canadians won't pay such a premium when purchasing US stock and other items from the US where their prices seem better now like computer parts etc..

The oogly well picture you're bought stocks at a 62c dollar and made money only to find out the dollar is at 71c US. You have to think of it is how much did you really gain from selling the stock at a gain? Well from the dollar going up 9cents or 14.5% you have to figure out that if you made 20% on a stock and your dollar went up 14.5% you're only making in the end 5.5% (which is more than current interest rates).

The 20% figure looked great but it was overshadowed by the 14.5% loss on converting the money back to US or Cdn.

I guess we'll have to see how the dollar going up will affect the economy since there might be an interest rate hike soon (looking at the inflation numbers) and this could very well boost our dollar past the 75c mark for the first time in ages since people around the world will take advantage of our high interest rates.
 
Andem
#2
I think it's generally a good thing for Canadians. Again, I don't have much sympathy for true capitalist corporations which benefit from a low dollar.

I care for the Canadian citizen who's dollar will bring him further in both our country and around the world. Infact, I've already noticed price drops on certain imported products in the grocery store, that's a good thing for me atleast. My loonie will get me more value when I cross the border (even though I do that rarely) and above all, it gives Canadians a little boost of patriotism (imho) because we have something that's doing really well right now.
 
czardogs
#3
its a double edged sword that can either impale us or set us free.

First it makes buying american products cheaper so it lowers consumer costs and inflation.

Second it makes the march towards being a colony of the US take that much longer as its not as attractive to buy us out.

Third, american costs rise for Canadian goods and that can hurt our exporters.

but what it does do for our manufactures and other exporters is force them to become more effecient and better at what they do.
Most of the equipement it takes to upgrade factories etc comes from the US so buying it now to stay ahead makes perfect sense as its cheaper to buy and install.

If you like to travel to the states then this is also very good news. Such industries like the airlines that have many routes from Canadian cities into america will be happy, but not the other way around.

So, its both good and bad. Its timing and who you ask.
 
Andem
#4
Definately a double edged sword! Personally, I don't think the artificially depreciated dollar was a good idea way back when [the canadian currency was head to head with the american currency], seeing as it's been on a down slide ever since! Who had the right to do that? A stupid politician(s)!

I read that our dollar's slide can also be linked to the new Canadian healthcare system in the late 70's
 
gnuman
#5
There was a lot of things that probably caused it but heck I'd rather have a lower dollar and free healthcare anyday of the week!

The Cdn dollar at one time was worth $1.10US but look at it this way the US economy was paying crap all for investments at the time. Canada had high interest rates >15% and the US was paying nothing. Although if times were different and people knew what was going to happen to the currency I'm pretty sure people back then would've bought US currency and held onto it and made a great percentage now.

The only reason why the Canadian dollar is skyrocketing is because of the interest rates, that's the major reason and the economy is better than the US. Foreign investors are buying the loonie and investing in Canada which helps us also.
 
military intelligence
#6
Canada Kicks ***!
 
Vincent_2002
#7
i really like it when my dollar is worth something around the world because i like to travel around it
 
jarusoba
#8
Our healthcare is one of the worst in the world. If I got cancer, I'd have to wait in line for treatment, or spend a hell of a lot to go to the States to get treatment RIGHT AWAY. I believe we should have the freedom of choice. If there was a 2 tier healthcare system, the govt would have more $$ to improve the free healthcare while those who can afford it can go for private care, freeing up the resources. I am not wealthy but I would rather pay to get a better care (ie less waiting time). I know a lot of MDs left Canada because of the poor pay under state-run socialistic communistic medicare. Those who prefer free healthcare are ignorant. Imagine if the government provided each of us with a free car. What would that car be like? Of course it would be a crappy car, not a BMW or Porsche.
Back to the Canadian Dollar. It's about time to gain some value since it lost its value so much. The higher it goes the better. The bank of Canada will finally stop hiking interest rates and it will benefit all Canadians except those exporters, which I don't really care because they'd make more due to the higher dollar anyways.
 
Reverend Blair
#9
Funny, when my stepmother had cancer she was treated right away. Same thing when my father had cancer. Both of them received excellent treatment in a timely manner.
 
jarusoba
#10
They were just lucky. 2 of my uncles got kidney cancer 2 years ago, discovered at the same stage. (Stage 2) One flew to Hong Kong and had treatment there. He was treated right away. After 1 year and $200000 Hong Kong Dollars, he completely recovered. The other unlucky guy decided to stay in Canada and had treatment here. He went through surgery 6 months later. Sunnybrook had a quota for his kind of therapy, and he was dumped to Stouffville hospital. He is still undergoing chemotherapy. He is regretting not to mortgage his house and seek treatment elsewhere.

Just look at the hospitals in Canada. They are worse than those private hospitals in a third world country (eg Bolivia where my wife had to go to a hospital in La Paz while traveling.) Canadian hospitals are ugly, dirty, poorly equipped compared to some private hospitals elsewhere.

There are 4 ways to spend money:
1. Spending one's own money on oneself.
2. Spending one's own money on others.
3. Spending other's money on oneself.
4. Spending other's money on others.

The 1st way is always the most efficient. The 4th way is the least efficient. Our government is spending the healthcare money in the 4th way.
 
peapod
#11
And yet to hear most canadians tell it, the best in the world. Hope they never get sick. Believe me I know exactly what you are talking about.
 
jarusoba
#12
Unless you're a prominent politician. I'm sure if Paul Martin got sick, he would be treated first class, immediately.

Now this is inequality. It is even more unfair than the if-you-got-money-you-got-better-treatment idea. At least if I got money (whether I was born with it or I work my butt off and mortgage my house), I deserve better and speedier treatment!!!
 

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