Bow before the mighty US dollar.

[ZenOps]

Loonie falls under 90 cents. On your knees!

http://www.theglobeandmail.com/report-on-business/top-business-stories/canadian-dollar-sinks-below-90-as-bank-of-canada-declares-open-season-on-loonie/article16462548/

[BigMass]

you can thank the USA's largest export. Inflation. They fuck over their own dollar but countries like China and Canada eat the inflation while selling our shit to them at low prices to support their debt driven consumerism. Also thank your politicians for bowing down to their American Gods

[vtec4life]

Honest question - What do you think is the most realistic outcome of the US financial situation? What's going to happen when the banks start taking peoples money when the stock market crashes?

I know its happened before and they say history repeats itself but really the stock market has only existed for roughly 100 years. will it just keep going up in the long run? I don't see how the US can keep power with its ridiculous debt.

[bspot]

A low dollar is good for Calgary.

Foreign companies operating here just saw their operating expenses go down.

Companies exporting oil & gas are now making more.

[Hallowed_point]

This is getting ridiculous :barf:

BUT..it's great for me keeping with the no using credit
to buy USA go fast parts.

[benyl]

I think that the biggest problem in the US is that you can't really have growth without productivity. They send all the jobs offshore, so people don't have jobs, can't make money and spend money to make the economy grow.

[Hallowed_point]

Originally posted by benyl
I think that the biggest problem in the US is that you can't really have growth without productivity. They send all the jobs offshore, so people don't have jobs, can't make money and spend money to make the economy grow.

QFT

[benyl]

Next headline: "Canadian Car prices on the rise due to soft Loonie."

[Tik-Tok]

Originally posted by bspot
A low dollar is good for Calgary.


It's good for Onterrible's manufacturing as well. Maybe if they're busy working, they'll bitch less about the "dreaded" oil-sands. :rofl:

[BigMass]

If your idea of a strong economy is enriching oil and gas executives with offshore accounts then sure, the low Canadian dollar is a great thing. But a lower dollar means increased input costs and a burden that is shared among every citizen of Canada. Increased prices and a lower standard of living. The people that benefit most from a low loonie is bloated American consumers that can spend more at the expense of Canadians who can now spend less. If you're happy with that trade off and being a slave to American debt then I suppose the bank of Canada bowing down to their masters is a great thing. It's time for countries like Canada and China to kick the US to the curb and start working towards a world where the US isn't the economic powerhouse it once. The US needs to start shouldering it's own burden of debt and overconsumption and stop dumping their shit on citizens of exporting nations.

[bspot]

We're a resource economy. There are few inputs to that besides labor. If importing goods becomes cost prohibitive, manufacturing will experience a resurgence here.

Our standard of living didn't increase with a stronger dollar, it was outpaced by housing cost increases.

If this causes housing to finally stabalize, I don't see it as a bad thing.

[supe]

Can someone explain to me in laymans terms why currency fluctuates?

[01RedDX]

.

[BigMass]

Originally posted by bspot

Our standard of living didn't increase with a stronger dollar, it was outpaced by housing cost increases.

If this causes housing to finally stabalize, I don't see it as a bad thing.

if you're a saver with cash and no debt then it DID increase your standard of living. I'd much rather have lower prices and high interest rates. Why savers should be punished at the expense of debtors is a social injustice. Energy and food is a necessity. The only thing we're subsidizing is a lower price for Americans. If prices go up you're not going to stop eating or heating your home. You're just going to pay more for it. But now, Americans can continue to enjoy low food costs and low energy prices at the expense of Canadians having to pay more for everything else in their day to day lives. Nothing like going to a fast food restaurant and dumping $20 on something that cost $10 just a few years ago while American continue to get fat on cheap shit even though they're in debt up to their eyeballs.

[BigMass]

Originally posted by 01RedDX


A return to the gold standard is inevitable. The fake money game can only go on for so long, the bigger problem is how long it will take. The longer they wait, the worse it will crash.

we'll never go back to a gold standard but gold will remain a hard asset. We'll just keep recycling one failed currency for another. There hasn't been one fiat currency that hasn't gone to zero. It's just a matter of time. The US dollar has already lost what %95 of it's value over the past 100 years? It's only got another %5 to go ;)

[Disoblige]

Do you guys think this is a good time to exchange foreign currency back to CAD if you have a ton of Euros and Pounds laying around? Last time I exchanged it was sometime in October.

[01RedDX]

.

[flipstah]

Originally posted by supe
Can someone explain to me in laymans terms why currency fluctuates?

Because people. It can be caused by a shitload of reasons like how the economy is doing at that time, are people killing each other at that area, are people leaving the country because there's no confidence in the government, etc...

[benyl]

Originally posted by supe
Can someone explain to me in laymans terms why currency fluctuates?

There really is no simple answer, but I can outline some of the factors below.

Supply and demand.

This can be controlled by a number of factors including interest rates. If interest rates are low, interest in the canadian dollar is low.

Commodities can also have an effect. When Canadian oil is in demand, the purchasers need to buy canadian currency to pay for said oil. That increases demand for CDN and raises the price.

[89coupe]

Originally posted by bspot
A low dollar is good for Calgary.

Foreign companies operating here just saw their operating expenses go down.

Companies exporting oil & gas are now making more.

Yep

[BigMass]

Originally posted by 01RedDX


According to Peter Schiff, it's not only possible, but it is all but guaranteed:
http://www.telegraph.co.uk/finance/personalfinance/investing/gold/9511886/US-will-return-to-gold-standard-says-Euro-Pacific-Capital-chief-Peter-Schiff.html

Peter Schiff is great at identifying problems but terrible at predicting how governments will act. He actually thought the Chinese government cares about it's people and would de-peg from the US dollar and boost the wealth and standard of living of it's citizens so they can pick up the slack of consumption from what is lost due to the decreased wealth /demand from US consumers. He's a bit too ignorant/blind at the greed and sociopath of world leaders and their willingness to do whatever it takes to maintain their own wealth and power at the expense of anyone and everything around them. People are salves/chattel and will die by the millions so some elite can have his luxurious lifestyle. Once he wakes up to the evil of rulers he'll start making better / more reality based predictions.

[BigMass]

Originally posted by 89coupe


Yep

nope. A low dollar does nothing but make the rich richer and the poor poorer. It strengthens corporations and destroys the spending power of those that need it the most. Stop believing the bullshit that big business and corporate controlled government feeds you.

[FraserB]

Looks like I picked the right time to sell some of my US shares.

[01RedDX]

.

[icky2unk]

Originally posted by BigMass


nope. A low dollar does nothing but make the rich richer and the poor poorer. It strengthens corporations and destroys the spending power of those that need it the most. Stop believing the bullshit that big business and corporate controlled government feeds you.

Oh is Occupy Calgary back?

[BigMass]

Originally posted by 01RedDX


That's a good point that he's purely a technocrat and tends not to factor greed into his predictions. Joe Rogan basically made the same point to him (albeit in more layman's terms) on his last podcast with him.

neat, I should listen to it. Thanks :)

[89coupe]

Originally posted by BigMass


nope. A low dollar does nothing but make the rich richer and the poor poorer. It strengthens corporations and destroys the spending power of those that need it the most. Stop believing the bullshit that big business and corporate controlled government feeds you.

Both companies I'm heavily invested in share prices are at all time highs, my gains are through the roof.

These are publicly traded companies. Equal opportunity!

[SkiBum5.0]

Originally posted by BigMass


nope. A low dollar does nothing but make the rich richer and the poor poorer. It strengthens corporations and destroys the spending power of those that need it the most. Stop believing the bullshit that big business and corporate controlled government feeds you.

But he should listen to a poster on a forum with a Care Bear as his avatar?
We are an export nation - energy, automotive, manufacturing etc. The lower dollar strengthens those industries --> they hire more Canadian people (those who need it the most?) --> our economy strengthens and hopefully a balance is achieved.
One would hope that would mean interest rates go up, and your savers get their benefit.

[Xtrema]

Originally posted by supe
Can someone explain to me in laymans terms why currency fluctuates?

Internal - stability and economy outlook of a country.
External - How are you doing in comparison to the world reserve default $USD.


US has been printing money which devalue USD and raise the value of other currency.

It's done to the point that other countries are now too expensive to operate and money flood back to US. Now US is doing better but you are doing worse, your own currency drops again.

[Arash Boodagh]

We should ask why the British devalued the Canadian currency. The Bank of Canada is a private corporation with its sole share holder as the British monarchy.
People are as clueless as the 911 thread on this stuff.

If Canada was a sovereign country, with our resources we'd be one of the richest nations on earth.

[FraserB]

Originally posted by Arash Boodagh
If Canada was a sovereign country, with our resources we'd be one of the richest nations on earth.

You do realize that we have to sell our crude to the US at a lower price right? And it has nothing to do with the British government.

[gretz]

Originally posted by Arash Boodagh
We should ask why the British devalued the Canadian currency. The Bank of Canada is a private corporation with its sole share holder as the British monarchy.
People are as clueless as the 911 thread on this stuff.

If Canada was a sovereign country, with our resources we'd be one of the richest nations on earth.

Annnnnd, the thread went full retard...

Arash, you talking about money, wealth, and truthfulness, is like a woman explaining what it's like to have a penis

[Arash Boodagh]

I present facts.

Originally posted by FraserB You do realize that we have to sell our crude to the US at a lower price right? And it has nothing to do with the British government. Its has everything to do with the shadow rulers that run this puppet regime... and do we have to sell our oil to the U.S.? They'll probably invade if we dont is that where you're getting at?

[ercchry]

Originally posted by Arash Boodagh
I present facts.
Its has everything to do with the shadow rulers that run this puppet regime... and do we have to sell our oil to the U.S.? They'll probably invade if we dont is that where your getting at?

:rofl:

PS: only credible sources are facts, youtube conspiracy videos dont count

[Supa Dexta]

I'm curious who gains with a lower dollar.. An actual person.. Not a market.

You'd have to pay +15-20% more now for any amount spent in the US.. shopping, vacations.. etc. So on avg we are worse off in our spending with a lower dollar. Because I don't believe for a scond Im earning 15% more anywhere else in my life when the dollar drops. :dunno:

I'm in oil, but even at a high dollar I go to work every day, It's not like I'm making 15% less in those times, or working 15% less days per year. So I only gain in my spending when it's high and gain nothing noticeable when it tanks.

[davidI]

It pisses me that Canada is trying to debase its currency to compete with manufacturing exports when we're completely lacking in productivity.

In my opinion, the government should be encouraging companies to upgrade their equipment and manufacturing processes with a high dollar to better compete globally.

Meanwhile, consumers will have more purchasing power for overseas goods increasing actual quality of life (which is the whole point of government, isn't it?)

[HiTempguy1]

Originally posted by Supa Dexta
I'm curious who gains with a lower dollar.. An actual person.. Not a market.

You'd have to pay +15-20% more now for any amount spent in the US.. shopping, vacations.. etc. So on avg we are worse off in our spending with a lower dollar. Because I don't believe for a scond Im earning 15% more anywhere else in my life when the dollar drops. :dunno:

I'm in oil, but even at a high dollar I go to work every day, It's not like I'm making 15% less in those times, or working 15% less days per year. So I only gain in my spending when it's high and gain nothing noticeable when it tanks.

Exactly. A high dollar does nothing but punish the typical joe schmoe. Sure, for the highest earning (top 10% in the country) individuals it does great things for, but not for us schmucks. Especially now with the economy being such a global thing, so much of the products we buy are IMPORTED, which is negatively affected by a low dollar. So prices go UP for the average joe.

It's a great time for people to invest in Canada though. You basically get a 10% discount if you operate in USD. Hell of a deal if you are buying real estate!

[BigMass]

for the people that think low currency values and currency wars are a good thing;

A country that attracts investment from abroad (through stable and fair governance, low taxes, a growing economy, and a productive labor force) and produces goods that are in demand on the global stage will generally see a rising currency. In essence, this is the reward for a job well done. Strong currencies then help nations stay strong by conferring greater purchasing power to its citizens and businesses, which keeps input costs low, thereby enhancing international competitiveness. Strong currencies also encourage savings, keep real interest rates low, lower capital costs, and allow for greater productivity and higher real wages.

It is often argued that a weak currency confers advantages in foreign trade. But the edge only results from putting exports on sale. Any merchant will tell you that it's easy to sell more if you cut prices, but most would prefer charging full retail. However, exports are not an end in themselves, they are a means to pay for imports. The goal of an economy is not to work, but to consume. If citizens in one nation buy goods produced in another, they must pay with exports. When a nation's currency appreciates imports cost less and fewer exports are needed to pay. This means goods and services at home will be cheaper and more plentiful, and citizens won't need to work as hard to buy them. This is the definition of rising living standards.

Never in the course of history has a country's economy failed because its currency was too strong. It's a pathology that simply does not exist. On the other hand, the list of those ruined by weak currencies is extensive. The view that a weak currency is desirable is so absurd that it could only have been devised to serve the political agenda of those engineering the descent. And while I don't blame policy makers from spinning self-serving fairy tales (that is their nature), I find extreme fault with those hypnotized members of the media and the financial establishment who have checked their reason at the door.

A currency war is different from any other kind of conventional war in that the object is to kill oneself. The nation that succeeds in inflicting the most damage on its own citizens wins the war. The only real way to win is not to play.


http://www.europac.ca/commentaries/biggest_loser_wins

[Supa Dexta]

And how is the US possibly getting any stronger piling up Debt and printing money at will.

[speedog]

Big deal, the CAD has been below the USD for more than 90% of my adult life and for half that time below 80 cents with dips as low as 62 cents.

[Toma]

Just wait till oil hits the 60s. Lol

I moved half my assets to the US over the last few years. Harper has ensured a harsh landing for us.

Can you imagine Alberta running a deficit during this 'boom'? Lmao.

Only matter of time now.

[trieu]

I've gotta pay my tuition in US dollars pretty soon here, should I wait it out or do you guys think I should exchange money now because its gonna keep dipping?

[Toma]

Originally posted by trieu
I've gotta pay my tuition in US dollars pretty soon here, should I wait it out or do you guys think I should exchange money now because its gonna keep dipping?

Nobody has a crystal ball. This has moved faster and further than I would a thought.

Hopefully its bottomed at this level at least allow people to acclimate. Don't forget though.... exchange has been as bad as 1.60 in the last 10 years.

[lint]

Originally posted by speedog
Big deal, the CAD has been below the USD for more than 90% of my adult life and for half that time below 80 cents with dips as low as 62 cents.

we get it. you're old. really fucking old. can you please stop using every second post to remind everyone on beyond how old you are? we get it.

[ExtraSlow]

Yeah, did he just pass a big milestone or something?

[cycosis]

It sucks when you're an importer/retailer though and you pay most of your bills in US dollars. FML right now.

[01RedDX]

.

[davidI]

Originally posted by 01RedDX

Do you really think that is a wise decision given the imminent catastrophic failure of the US economy?

Sadly the world is still tied to the US$ and if markets crumble, Gold, US$, and probably bitcoin will be the first to strengthen as people flee their other investments.

Unless something like bitcoin replaces the US$ as a global currency, it's probably not a bad place to be.

I have been wanting to move my funds into US$ for the last years (I get paid in US$ for f*cks sakes) but banks don't want to deal with me since I'm in a "high risk" country and banking in Canada puts me at a tax risk with the government. Damned if I do, damned if I don't!

[Toma]

Originally posted by 01RedDX


Do you really think that is a wise decision given the imminent catastrophic failure of the US economy?

Canada's situation is scarier. When energy demand is near all time highs, and Alberta is running a deficit.... So they are cutting education, health and other services etc and still can't make ends.meet? Lol then of course Canada's credit bubble. They intended to raise interest rates in the fall, but bailed and admitted the economy was too fragile.....Middle class Canadians currently have more debt and lower savings rates than the US middle did when it went crash crash.

Bad sign.

But the US recovery is trucking right along. Jobs up, including 2 million added to health care alone, stimulus money being tapered back, dropping in unemployment, corporate profit up along with stock markets, their own energy production boom (and resulting increased royalty revenue), real estate is WAY up, and the dollar is steam rolling ahead.....despite the Republicans fighting the progress at every single step. It's actually amazing.

In the foreseeable future, the US is a safer bet.

Its interesting to note, that despite rhetoric, conservative governments cut taxes to the rich and corporations, print money, and in the US.... The last 3 republican presidents on average EACH doubled the US debt in their terms. Reagan tripled debt during a boom. Bush Jr. Doubled US debt during a boom.

And if the US economy is doing well... Look for a US dollar in the 1.25 or more range.

[bob9979]

Don't worry too much...Canada will be safe for a while.
If you are Forex trader you will make a lot of money this year.
Some Countries' currency will take a nose dive and may suffer inflation, the list will be: Brazil-->Turkey-->South Africa-->India-->Russia-->Venezuela-->Argentine-->Swiss-->Euro-->Britain-->Australia-->Canada

and this is happening.

bow to the mighty US dollar.

[ZenOps]

California drought and next big earthquake will bankrupt the US soon.

Will the dollar die? Probably not. 60% of US dollars are not in the US afterall. A US Federal reserve note has little to do with the US and more to do with the Federal reserve.

I don't even correlate the US to the US dollar anymore except for welfare benefits (the $133 worth of free food for 47 million US citizens each month, and the $60,000 hawaiian welfare recipients)

If the US dollar gets too strong, that will be the sign to me that the US dollar is disfunctional and probably worth dumping.