Official - Canadian Dollar is now worth more than the American Dollar

[jackace]

Problem is china is communist. Once all these large corporations move all their manufacturing to china they could by law take control of the factory, heavily "tax" (for lack of a better word), and/or just about anything else they choose to do for the "good of the country".

 

[HombrePequeno]

Originally posted by: GrGr

Originally posted by: HombrePequeno
Well seeing as how gas prices are so high and Canada has tons of oil, it's no wonder their currency is strengthening.

ALL major currencies, apart from the Yen, are strengthening against the dollar.

I figured the Canadian dollar has strengthened more than the other major currencies. It has but only very slightly.

So while I'm not wrong (high oil prices have probably led to a slight upward pressure of the Canadian dollar) I'm not as right as I thought.

 

[GrGr]

Originally posted by: Skoorb

Originally posted by: GrGr

Originally posted by: Skoorb

I'll never forget an interview I saw with a Chinese businessman/manager who basically said he couldn't believe how stupid the west was for sending all their factories to China.

I'll can't believe how little he understands about western business. It's not state run. Businesses are not going to deliberately lose potential profit by keeping something domestic when they can send it overseas.

The Chinese understand this perfectly.

The Chinese in general do; that guy clearly does not.

He does. Once China has the factories they have the knowhow. More than that. They have influence over the economies of the nations needing the products made in China. China is strengthening the Yuan now, to cool the economy, and as it does so the prices of it's exports will go up. This is bad news for consumers overseas (like working Americans) who are relying on cheap products made in China to make ends meet. US businesses are now being forced to lower the profitmargin of their products made in China to keep them affordable to US consumers. China is making a lot of basic stuff. When basic stuff is no longer cheap what then? Everything becomes more expensive.

China has long range plans. They want to move up from low value addes exports to competing at the high value added exports like cars, airplanes (they are already making parts for Boeing and Airbus) etc.

 

[HombrePequeno]

Originally posted by: GrGr

Originally posted by: Skoorb

Originally posted by: GrGr

Originally posted by: Skoorb

I'll never forget an interview I saw with a Chinese businessman/manager who basically said he couldn't believe how stupid the west was for sending all their factories to China.

I'll can't believe how little he understands about western business. It's not state run. Businesses are not going to deliberately lose potential profit by keeping something domestic when they can send it overseas.

The Chinese understand this perfectly.

The Chinese in general do; that guy clearly does not.

He does. Once China has the factories they have the knowhow. More than that. They have influence over the economies of the nations needing the products made in China. China is strengthening the Yuan now, to cool the economy, and as it does so the prices of it's exports will go up. This is bad news for consumers overseas (like working Americans) who are relying on cheap products made in China to make ends meet. US businesses are now being forced to lower the profitmargin of their products made in China to keep them affordable to US consumers. China is making a lot of basic stuff. When basic stuff is no longer cheap what then? Everything becomes more expensive.

China has long range plans. They want to move up from low value addes exports to competing at the high value added exports like cars, airplanes (they are already making parts for Boeing and Airbus) etc.

What country doesn't want that? We've seen similar things happen in Japan, S. Korea, Taiwan, etc. Generally that's how economies grow: they make sh!tty stuff then eventually refine their processes until they can compete decently with developed nations. Once the nation reaches developed status doesn't mean we stop trading with them. Quite the contrary really, most trade done in developed countries is with other developed countries.