High Canadian dollar - Good or Bad

[JLM]

Historically a high Canadian dollar has had the downside that our exports aren't as attractive, but on the news the other day a financial expert said that this is no longer necessarily the case. Now that our dollar is high we are in a position where we can import stuff cheaper and take advantage of foreign inventions in the way of equipment and machinery that make our manufacturing more efficient and off setting the costs of the high dollar. So with that in mind is our high dollar a good thing or a bad thing?

 

[Nuggler]

No one here knows, JLM.

Very few care.

If you are a manufacturer.............i.e. the only one actually left in Canada who is manufacturing stuff, and are looking to buy machinery from the U.S, it's a great thing. If you save 5%, your profit is up 5% (excepting taxes). After taxes and Harpo takes his cut, yer screwed just like the restuvus.

If you are a "tourist operator", you are probably going to whine like a ****, as Americans will not come unless they can forsee a huge difference in price, cost, booze, whatever. cheap fukkers. Hell, they bring their own booze regardless. Most of it wouldn't even start a fire.

Me, now, yep, going shopping in Butthole Utah, soon as my passport comes through.

Gonna really enjoy all that parity...................:roll:

It's a mug's game, JLM. Stick your head back up your ass and enjoy the scenery in Canada.

hee hee hee.

:canada:

 

[taxslave]

If your diddling in the stock market or making money in some other non productive manner or a pensioner looking to winter in a warmer clime it is good. If you are involved in forestry or probably any other manufacturing industry it is very bad.

 

[YukonJack]

"No one here knows, JLM."

SOMEBODY knows!

And his all-knowing highness/majesty will make his appearence any time, now.

 

[TenPenny]

High dollar as compared to what?

If you're referring to 'high' as compared to the US dollar, then it's a good thing if your expenses are in US dollars and revenues in Canadian. If your expenses are in Canadian funds, and revenues in US funds, not so good.

There's good and bad to anything, and it depends on what role you play.

 

[JLM]

"No one here knows, JLM."

SOMEBODY knows!

And his all-knowing highness/majesty will make his appearence any time, now.

Be nice Y.J. It's Sunday and besides not everyone can be as mentally endowed as you (and me). :lol::lol::lol::lol::lol::lol:

 

[Machjo]

Historically a high Canadian dollar has had the downside that our exports aren't as attractive, but on the news the other day a financial expert said that this is no longer necessarily the case. Now that our dollar is high we are in a position where we can import stuff cheaper and take advantage of foreign inventions in the way of equipment and machinery that make our manufacturing more efficient and off setting the costs of the high dollar. So with that in mind is our high dollar a good thing or a bad thing?

I see a high Canadian dollar as being neither good nor bad. It has both pros and cons. On that front, I'd say the government ought to just let the currency float.

What concerns me more though is inflation, government debt and high interest rates domestically. As long as inflation, the bank rate and government debt are kept under control within our borders, I say let the currency float internationally.

 

[JLM]

I see a high Canadian dollar as being neither good nor bad. It has both pros and cons. On that front, I'd say the government ought to just let the currency float.

What concerns me more though is inflation, government debt and high interest rates domestically. As long as inflation, the bank rate and government debt are kept under control within our borders, I say let the currency float internationally.

I tend to agree (and I'm the worst person in the world when it comes to how money works) However I do wonder if low interest rates are all that good, I wouldn't think they'd attract much foreign investment here and I doubt if it's conducive to keeping domestic investment here.

 

[Machjo]

If inflation is low, then we could get away with a lower interest rate since invstors would know that their money is secure. The US will need a higher interest rate eventually so as to counteract their watered-down currency.

I should point out though that as long as inflationary pressures remain, we need to keep our interest rates high. However, I'd be in favour of the government taking some money out of the economy to remove these pressures so as to remove the need to raise interest rates.

 

[Bar Sinister]

Depends on whether you are an importer (good) or exporter (bad) or travelling outside Canada (good) and so on.

 

[spaminator]

i hope that our dollar will be worth more than the us.:lol:

 

[AnnaG]

Depends on whether you are an importer (good) or exporter (bad) or travelling outside Canada (good) and so on.

Exactly. Personally, I think Canada relies too heavily on trade with the USA ... all eggs being in one basket sort of thing.

 

[JLM]

Exactly. Personally, I think Canada relies too heavily on trade with the USA ... all eggs being in one basket sort of thing.

"Eggs zackery"......................:lol::lol::lol::lol::lol:

 

[Machjo]

I'm not one to praise Harper very often, but I have to say that I do appreciate his efforts to try to promote freer trade between Canada and the EU, and between Canada and South America. And lately with Asia.