[gdjfhdf]

I know nothing about economics, but I'm going to go ahead and blame Bush for this anyway. Damn you, Dubya!

[ireleda]

I love the fearmongering ... "Industries will wither away". No, no they won't. Really. I promise.

What will happen is you will lose a bit of your industry, and then the CA$ will drop a bit, until it's profitable again to manufacture north of the border, at which point the CA$ will rise again...

After all, if having a higher currency than the US was a horrible thing, wouldn't England have gone in the tubes decades ago?

[yK2VgoEI]

Originally posted by snoopy369

After all, if having a higher currency than the US was a horrible thing, wouldn't England have gone in the tubes decades ago? Well its big industry has, but for completely different reasons.

[Forex Autopilot]

That makes no sense.

[fenter1]

Parity means nothing, in and of itself. CA$ 0.98:US$1.00 as opposed to CA$1.02:US$1.00 are essentially identical situations. What is relevant to the industry calculation is the cost in US$ of doing business in Canada versus the cost of such in the US. If that comparitive cost hasn't changed much (4% in that example) then who cares?

If the Yen were to be 20:1 USD, that would be a lot more of a concern for Japan than CA$ 1: US$1, for example. Parity in and of itself is meaningless.

[Ccddfergt]

Originally posted by Elok
I know nothing about economics, but I'm going to go ahead and blame Bush for this anyway. Damn you, Dubya! Good instinct.

And yes this would make imports from the US a little more attractive, but I'm not holding my breath.

[Dildos]

Originally posted by Asher
The point isn't parity. It's just the current level.

The Canadian dollar is soaring and the US dollar is falling, soon it won't be at parity. Time to move my savings from an American to a Canadian bank.

[DoctoNilsonDen]

Yeah... my savings in American dollars are getting weaker by the minute

All that money I made this summer.... bleh.

[irrelaAnnekly]

Yeah, ordering a big bunch of books might be worthwhile. I've already been making a list of what to get, in fact.

[greeferweq]

What's the point at which it's cheaper to fly over here yourself and grab a few suitcases of them?

[Loxaeed]

Just consume all of your oil and lumber yourself. Make oil and lumber ... stuff.

[dushappeaps]

Originally posted by snoopy369


Absolutely. The context of my above quote was that parity in and of itself is irrelevant - ie, changing from 0.98:1 to 1.02:1 is basically irrelevant. The 35% change over the course of several years is most definitely relevant... Well it looks like it means that your trade balance is falling a bit.

[gopsbousperie]

Originally posted by Tingkai
One of the concerns is that the strong Canadian dollar has been driven by Canadian oil sales It's Albertan Oil, not Canadian.

Once again, Alberta straps the Canadian economy to its back and carries it along.

[Xodvbooj]

Originally posted by snoopy369
Parity means nothing, in and of itself. CA$ 0.98:US$1.00 as opposed to CA$1.02:US$1.00 are essentially identical situations. What is relevant to the industry calculation is the cost in US$ of doing business in Canada versus the cost of such in the US. If that comparitive cost hasn't changed much (4% in that example) then who cares?

If the Yen were to be 20:1 USD, that would be a lot more of a concern for Japan than CA$ 1: US$1, for example. Parity in and of itself is meaningless. There is more at issue here than just industry.

The higher our dollar goes the less I will pay for California fruits and veggies when the snow starts flying here. Not to mention, any other goods I buy from the US.

Granted, while is little difference between .99 and 1.00 there is a heck of a difference between .81 (where we were not too long ago) and 1.00.

Personally, I would be happy with a dollar at par.

[BritneySpearsFun@@@]

Originally posted by Asher

It's Albertan Oil, not Canadian. True. That is the cause.

Once again, Alberta straps the Canadian economy to its back and carries it along.

Now now. Ontario has done more than it's fair share over the years. Even the years when the boom/bust Alberta economy was in the toilet. I'm old enough to remember the "turn off the lights" jokes about Alberta. Hopefully they have spent some of that oil money on education this time so they will be clever enough to DIVERSIFY!.

[CoenceLomneedtrue]

Originally posted by Kuciwalker
I'm curious: is there any economic reason that just using the USD as your currency would be a bad idea? You mean besides the end of independent monetary policy? The Fed just slashed your rates, the BoC is holding steady and may (albeit probably unlikely at this point) be raising ours because our economy isn't going into the toilet.

[kictainiSot]

Originally posted by Kontiki
You mean besides the end of independent monetary policy?

The American states get by just fine without independent monetary policy. Ideally, trade between the US and Canada should be as free as interstate US trade.

[lXwVlTgO]

Originally posted by Kontiki
Alberta oil accounts for a little more than 2/3 of our output. Granted, by far the largest component, but there is still significant production in Saskatchewan, Nova Scotia and Newfoundland as well. It sounds to me like you're talking about petroleum rather than the larger energy industry...

[phenterminediett]

Time to bring on the Amero!

[NETvoyne]

Historically we have done most of our trade with Britain. Mattered much more the relationships with the Pound and not the US dollar.

Not recently. We buy 85% of your exports.