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The Canadian dollar touched $1.0302 yesterday, the highest since October 1976.

dahunan

dahunan

Lifer
What does all this really mean? Our Dollars are now worth less and less all the time-- what is the big picture meaning of this?


http://www.bloomberg.com/apps/...UjK_8mjS8&refer=canada.

Canada's Dollar Falls for Second Day on Global Growth Concerns

By Haris Anwar

Oct. 16 (Bloomberg) -- The Canadian dollar fell for a second day as traders sold currencies linked with commodity exports after central bankers warned about future growth prospects.

The Bank of Canada cut its growth forecast for next year and kept the target interest rate unchanged at 4.5 percent. U.S. Federal Reserve Chairman Ben Bernanke said yesterday that the housing slump may drag on through next year.

``There is a global shift to risk aversion today,'' said Shaun Osborne, chief foreign exchange strategist at TD Securities in Toronto. ``There is uncertainty in regards to global growth and financial conditions. That's hurting all high- yielding currencies.''

The currency fell 0.3 percent to $1.0210 at 4:11 p.m. in Toronto. Canada's dollar reached parity with the U.S. dollar on Sept. 20 for the first time since 1976. One U.S. dollar buys 97.95 Canadian cents. The Canadian dollar touched $1.0302 yesterday, the highest since October 1976.

Today's decision to keep the keep borrowing costs unchanged matched the forecast of all 25 economists Bloomberg surveyed.

The central bank cut its 2008 economic growth forecast to 2.3 percent from 2.6 percent, citing the drag on exports from a U.S. housing slowdown and an appreciating currency. The U.S. is Canada's largest trading partner.
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I'm not aware of any country devaluing it's currency as a successfull economic strategy.
In related news, oil hit a record $87.61 today. Nice, mission accomplished.
 
Originally posted by: marincounty
I'm not aware of any country devaluing it's currency as a successfull economic strategy.
In related news, oil hit a record $87.61 today. Nice, mission accomplished.
Click to expand...

Germany after WWI. Worked a treat!
 
Originally posted by: Skoorb
Originally posted by: marincounty
I'm not aware of any country devaluing it's currency as a successfull economic strategy.
In related news, oil hit a record $87.61 today. Nice, mission accomplished.
Click to expand...

Germany after WWI. Worked a treat!
Click to expand...

Soon i'm going to need a wheelbarrow to carry my money to store.
 
Originally posted by: dahunan
What does all this really mean? Our Dollars are now worth less and less all the time-- what is the big picture meaning of this?
Click to expand...

Canadians import more American goods, Americans import less Canadian goods?
 
One thing I suspect is that inflation may be coming. When the US rund up huge debt, inflation makes it a lot cheaper to pay off - but it also hurts the ability of the country to borrow. I've been meaning for years to get into more foreign investments, and should still do so. Gotta figure out which ones...
 
Originally posted by: Craig234
One thing I suspect is that inflation may be coming. When the US rund up huge debt, inflation makes it a lot cheaper to pay off - but it also hurts the ability of the country to borrow. I've been meaning for years to get into more foreign investments, and should still do so. Gotta figure out which ones...
Click to expand...

Right now pretty much a LOT of foreign funds are doing 15-20%. Their rise is not as much what they are doing but based on how much the dollar is falling.
 
The next scheduled fed rate "adjustment", where Helicopter Ben will lower it again due to the housing crisis, is Halloween. The dollar will then proceed to drop to CAD 0.5$ Trick or Treat!
 
Originally posted by: Marlin1975
Originally posted by: Craig234
One thing I suspect is that inflation may be coming. When the US rund up huge debt, inflation makes it a lot cheaper to pay off - but it also hurts the ability of the country to borrow. I've been meaning for years to get into more foreign investments, and should still do so. Gotta figure out which ones...
Click to expand...

Right now pretty much a LOT of foreign funds are doing 15-20%. Their rise is not as much what they are doing but based on how much the dollar is falling.
Click to expand...
Yeah, if you bought foreign a few years back your money would have gone far because you could sell now for a lot of greenbacks.

Still, I have simply picked with my 401k some foreign mutual fund and moved about half of my money into it. I kind of feel that having it all domestic right now is not as bad but similar in train of thought to having one's retirement locked up in a single stock or two (hello, Enron!).
 
Originally posted by: dahunan
What does all this really mean? Our Dollars are now worth less and less all the time-- what is the big picture meaning of this?
Click to expand...
[/quote]

It means that if you are getting paid in USD and if your pay is not adjusted accordingly, you are getting a pay cut. Your nice vacation out of the country is gonna cost more, your nice imported car will cost more, gas is gonna cost more, and lots of stuff you buy with foreign component, and that's a lot of stuff, will cost more. if your investment for retirement is all in USD, your retirement will not be looking good if USD continue to decline significantly.
 
Originally posted by: dahunan
What does all this really mean? Our Dollars are now worth less and less all the time-- what is the big picture meaning of this?
Click to expand...

Don't worry. After we start bombing Iran, things will improve on the $ front.


 
Originally posted by: techs
Originally posted by: Skoorb
Originally posted by: marincounty
I'm not aware of any country devaluing it's currency as a successfull economic strategy.
In related news, oil hit a record $87.61 today. Nice, mission accomplished.
Click to expand...

Germany after WWI. Worked a treat!
Click to expand...

Soon i'm going to need a wheelbarrow to carry my money to store.
Click to expand...

Buy a Wheelbarrow before you need a wheelbarrow full of Cash to buy one!
 
Originally posted by: silverpig
Originally posted by: techs
Originally posted by: jman19
Doesn't mean much of anything.
Click to expand...

Yeah, I am more concerned with the Euro hitting 1.42 to the dollar.
And why has the yuan changed so little?
Click to expand...

China pegs the yuan to the USD from what I know.
Click to expand...

The Yuan is pegged to a basket of currency but is also allowed to float in a managed band.
 
Originally posted by: jandrews
Nothing really, I mean what happened in 1976? I imagine things will adjust again.
Click to expand...

What happend following that? double digit inflation? Economic malaise? Back then it was better for us since we actually had a much larger manufacturing base.

As a poster mentioned above, there is not one situation in history where piling on massive amounts of debt, printing money, inflating your way out of debt, and overall manipulating the economy through monetary policy has resulted in any good long-term results.
 
Originally posted by: sandorski
Originally posted by: techs
Originally posted by: Skoorb
Originally posted by: marincounty
I'm not aware of any country devaluing it's currency as a successfull economic strategy.
In related news, oil hit a record $87.61 today. Nice, mission accomplished.
Click to expand...

Germany after WWI. Worked a treat!
Click to expand...

Soon i'm going to need a wheelbarrow to carry my money to store.
Click to expand...

Buy a Wheelbarrow before you need a wheelbarrow full of Cash to buy one!
Click to expand...
Nice, that would be the worst cash 22 ever.

As a poster mentioned above, there is not one situation in history where piling on massive amounts of debt, printing money, inflating your way out of debt, and overall manipulating the economy through monetary policy has resulted in any good long-term results.
Click to expand...

How pessimistic! If we can get to the point where I make enough money in a week to pay off my mortgage, I still get to keep my house. I'm early enough in life that my retirement is worth way less anyway so heck with it if the dollar becomes like toilet paper. I'll just beg my parents to send me some high-value Canadian money and good to go!
 
Originally posted by: Skoorb
Originally posted by: sandorski
Originally posted by: techs
Originally posted by: Skoorb
Originally posted by: marincounty
I'm not aware of any country devaluing it's currency as a successfull economic strategy.
In related news, oil hit a record $87.61 today. Nice, mission accomplished.
Click to expand...

Germany after WWI. Worked a treat!
Click to expand...

Soon i'm going to need a wheelbarrow to carry my money to store.
Click to expand...

Buy a Wheelbarrow before you need a wheelbarrow full of Cash to buy one!
Click to expand...
Nice, that would be the worst cash 22 ever.

As a poster mentioned above, there is not one situation in history where piling on massive amounts of debt, printing money, inflating your way out of debt, and overall manipulating the economy through monetary policy has resulted in any good long-term results.
Click to expand...

How pessimistic! If we can get to the point where I make enough money in a week to pay off my mortgage, I still get to keep my house. I'm early enough in life that my retirement is worth way less anyway so heck with it if the dollar becomes like toilet paper. I'll just beg my parents to send me some high-value Canadian money and good to go!
Click to expand...


Lol, that's not the way it works.
 
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