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With the US dollar being flushed, why isn't it losing ground to the Canadian?

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No Lifer
A couple of months ago (?) a USD bought about .91 CAD. I keep an eye on it always and I've noticed that in the last month, despite the US dollar now worth less than toilet paper (I am in fact turning $1 bills into toilet paper as a hedge against continued depreciation), it's been very steady against the canadian dollar at about 1:1. So, this must mean that the Canadian dollar is also losing ground quickly and brutally against the Euro, Yen, and others...right?
 
Ya, probably due to the close relationship our economies have. If the US slips into Recession and Canada doesn't(which seems likely possible at this time), then the $CDN will likely begin to rise again.
 
Coudl be the Canadian Gov is also trying to devalue their money. If theirs goes up to fast against the dollar then they could lose a good deal on imports, business, and also toursits. That and uncontrolled growth is not a good think in the long run as it means a bubble will burst. Slow and controlled growth is best.
 
Originally posted by: Marlin1975
Coudl be the Canadian Gov is also trying to devalue their money. If theirs goes up to fast against the dollar then they could lose a good deal on imports, business, and also toursits. That and uncontrolled growth is not a good think in the long run as it means a bubble will burst. Slow and controlled growth is best.
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All the manufacturing that moved to Canada would be making a dead sprint back to the US if the Canadian Dollar continued to rise against the USD. The Europeans are already planning expansions of their lines and factories here since the low US dollar is murdering them competitively.
 
Originally posted by: K1052
Originally posted by: Marlin1975
Coudl be the Canadian Gov is also trying to devalue their money. If theirs goes up to fast against the dollar then they could lose a good deal on imports, business, and also toursits. That and uncontrolled growth is not a good think in the long run as it means a bubble will burst. Slow and controlled growth is best.
Click to expand...

All the manufacturing that moved to Canada would be making a dead sprint back to the US if the Canadian Dollar continued to rise against the USD. The Europeans are already planning expansions of their lines and factories here since the low US dollar is murdering them competitively.
Click to expand...

Yup... As a Canadian, I love the increased purchasing power that a at par dollar gives me, however, as an employee working for a Canadian subsidiary of a large U.S. diversified manufacturer, a high dollar is quite worrying.

 
Originally posted by: Skoorb
A couple of months ago (?) a USD bought about .91 CAD. I keep an eye on it always and I've noticed that in the last month, despite the US dollar now worth less than toilet paper (I am in fact turning $1 bills into toilet paper as a hedge against continued depreciation), it's been very steady against the canadian dollar at about 1:1. So, this must mean that the Canadian dollar is also losing ground quickly and brutally against the Euro, Yen, and others...right?
Click to expand...

All fiat currencies are on a steady decline in purchasing power of commodities. Some decline faster then the average rate of the decline others go slower like the Euro.
 
Originally posted by: nullzero
Originally posted by: Skoorb
A couple of months ago (?) a USD bought about .91 CAD. I keep an eye on it always and I've noticed that in the last month, despite the US dollar now worth less than toilet paper (I am in fact turning $1 bills into toilet paper as a hedge against continued depreciation), it's been very steady against the canadian dollar at about 1:1. So, this must mean that the Canadian dollar is also losing ground quickly and brutally against the Euro, Yen, and others...right?
Click to expand...

All fiat currencies are on a steady decline in purchasing power of commodities. Some decline faster then the average rate of the decline others go slower like the Euro.
Click to expand...

Demand>>>>>Gold Standard
 
Originally posted by: Skoorb
A couple of months ago (?) a USD bought about .91 CAD. I keep an eye on it always and I've noticed that in the last month, despite the US dollar now worth less than toilet paper (I am in fact turning $1 bills into toilet paper as a hedge against continued depreciation), it's been very steady against the canadian dollar at about 1:1. So, this must mean that the Canadian dollar is also losing ground quickly and brutally against the Euro, Yen, and others...right?
Click to expand...

BOC has been cutting rates despite a strong economy to keep the dollar down.
 
I've read there's a lot of people in Canada that are coming down, pretty regularly, to shop in border US states like my own.

Frankly, I think we should lower our income and property taxes, build strip malls at the northern ridge of the state and jack up the sales tax.
 
Originally posted by: PingSpike
I've read there's a lot of people in Canada that are coming down, pretty regularly, to shop in border US states like my own.

Frankly, I think we should lower our income and property taxes, build strip malls at the northern ridge of the state and jack up the sales tax.
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hehe. The big thing right now is Canadians buying US Real Estate.
 
Originally posted by: Kntx
Originally posted by: Skoorb
A couple of months ago (?) a USD bought about .91 CAD. I keep an eye on it always and I've noticed that in the last month, despite the US dollar now worth less than toilet paper (I am in fact turning $1 bills into toilet paper as a hedge against continued depreciation), it's been very steady against the canadian dollar at about 1:1. So, this must mean that the Canadian dollar is also losing ground quickly and brutally against the Euro, Yen, and others...right?
Click to expand...

BOC has been cutting rates despite a strong economy to keep the dollar down.
Click to expand...

That's not just to keep the dollar down. As the U.S. economy/dollar falters, the demand for our commodities, manufacturing and service is going down. Not to mention that we have some bank issues as a result of ABCP too.
 
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