BS: Low US dollar, high Canadian dollar...

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: artbrooks
Date: 03 Nov 07 - 01:15 AM

Ya named ya dollar after a duck...whaddaya 'spect?

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: Little Hawk
Date: 03 Nov 07 - 09:39 AM

Well, that wasn't until Brian Mulroney's overly extended stay on Sussex Drive (the prime minister's residence) back in the 1980's. It was under Brian Mulroney's reign that the "Loonie" (Canadian one dollar coin) came into existence. Prior to that we had paper dollars...and there were a few silver dollars minted now and then...but they were not called "Loonies". The Loonie is called the Loonie because it has the image of a loon on its front side, and the Queen, of course, on the back side as usual.

A loon is not precisely a duck, but it is a water bird.

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: Rapparee
Date: 03 Nov 07 - 09:44 AM

You show the Queen's backside on the loonie? I've never noticed that.

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: bobad
Date: 03 Nov 07 - 10:52 AM

You could also see the devil in the Queen's hair on the old bills.

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: gnu
Date: 03 Nov 07 - 12:44 PM

I have to strain to even come close, Bobad. However, surely you have seen the dollar bill folded to show the Queen's ass?

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: gnu
Date: 03 Nov 07 - 12:45 PM

Oh yeah. Remember the two dollar bill with the robins on the back... small game huntin license in Kent County... federal migratory game bird permit, eh?

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: Little Hawk
Date: 03 Nov 07 - 07:09 PM

Here's some of the latest news:

"The loonie, already soaring on high commodity prices, hit new records Friday, surging more than 1.9 cents to end the day at 107.04 cents US, its highest close on record. Earlier, the loonie traded as high as 107.3 cents US before cooling slightly as a new report showed U.S. employment also was healthy in October, gaining 166,000 jobs.


"That's a big move," said Bank of Montreal deputy chief economist Douglas Porter. "I think a reasonable near-term target now is $1.10, but there's no sign it's going to stop there."


The loonie has risen 22 cents this year alone against the U.S. greenback, making it the world's best-performing major currency. But it has also appreciated against the euro, Japanese yen, Brazilian real and other currencies, making goods imported from Europe, Japan and Brazil cheaper for Canadian consumers.


The rising level has benefited consumers booking U.S. vacations to the sunny south and cross-border shoppers flocking to U.S. border cities looking for bargains on everything from auto parts to CDs, shoes and clothes. It has also forced some Canadian retailers to lower their prices in response and helped more and more companies afford U.S.-built technology and machinery to boost productivity.


Opinions were mixed if the dollar has risen too fast, too high. Paul Gardner of Avenue Investment Management in Toronto said at best the economic fundamentals justified a loonie at par with the greenback, adding that much of the quick appreciation was based on speculation and an exaggerated view of the Canadian economy's strength. "

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: Little Hawk
Date: 03 Nov 07 - 07:39 PM

More news about the Loonie:

The loonie hit another record high in currency trading Friday, but it's not the first time in history that the once-battered Canadian currency traded well above the formerly almighty American dollar.

In the 1950s and early '60s, the currency traded in the 102 cent to 106 cent US range before a recession dragged it down and forced John Diefenbaker's Conservative government to peg the loonie in May 1962 at 92.5 cents US, plus or minus one per cent.

The so-called Diefenbuck didn't last a full decade, with the Canadian currency beginning again to float freely according to market forces starting in May 1970.

Within less than four years, Canada's dollar had risen to as high as $104.43 cents US on April 25, 1974. It continued to be worth more than the U.S. currency until shortly after Rene Levesque led the separatist Parti Quebecois to a landslide victory on Nov. 15, 1976, raising national unity questions in the minds of foreign money traders.

Since then, the loonie has spent most of the past three decades below par, falling to as low as 61.79 cents US in January 2002 and, as of Friday, as high as 107.30 cents US - although there's little reason to think the currency is done setting new records.

Some banks predict it could rise to US$1.10 or even higher if oil prices continue to soar and Canada's economy shows further strong jobs growth as it rides the boom in demand for commodities such as wheat, corn, coal, nickel, zinc and other metals.

Although the value of our currency is affected by a lot of different factors - including national interest-rate policies, the domestic and international political situation and the state of government finances - there's one that stands out from the rest.

"If you only had one variable to explain the dollar and you picked commodity prices, you would go a long way," says Don Drummond, chief economist at TD Bank.

In fact, Drummond can list at least three other important variables to consider:

-Inflation, or more precisely, a persistent difference between Canadian and American inflation rates;

-The difference between Canadian and U.S. interest rates;

-And the difference between Canadian and U.S. productivity rates.

Drummond acknowledges these are important influences but says Canada's dollar certainly rises and falls in lock-step with prices for the kinds of commodities it produces.

"And so, if I showed you a chart of commodity prices and the Canadian dollar, you probably wouldn't be able to tell which was which. They track very closely," he says.

"Looking forward, if someone asked me where's the dollar going to go, I would say 'first tell me where you think oil prices are going to go and I'll tell you what the dollar is going to do.' "

The last historical period when Canada's dollar was on par with the American buck was the mid-1970s - about the time the Parti Quebecois came to power for the first time and created international uncertainty about Canada's political and financial stability.

It was also a period of higher interest rates and higher inflation than we've experienced in recent years and a time when oil and gasoline prices were being pushed higher under political pressure from the Organization of Petroleum Exporting Countries.

"The price of oil, of course, went through two shocks in the 1970s and that probably helped raise the dollar to some degree," Drummond says.

"If we look at the end of the 1990s and the beginning of 2000, of course oil prices went very low - almost all commodity prices dipped down - and that was in good part what dragged down the Canadian dollar."

In fact, when the loonie sank to its lowest levels ever in the global economic downturn that followed the September 2001 terrorist attacks on the United States - there were loud calls for Canada to adopt the U.S. dollar as its currency or at least use a fixed currency exchange rate.

That was countered, however, by voices both within official circles and the private sector who said a floating currency plays an important role as a shock-absorber when the economy undergoes major upheavals.

David Watt, senior currency analyst at RBC Capital Markets, says the Diefenbaker government's decision to fix the dollar's value at 92.5 cents US was abandoned after commodity prices boomed again amid high inflation in the Vietnam War era.

The inflation - which essentially reflects the eroded buying power of a currency - proved to be such a destabilizing force that central banks decided to wrestle it to a managable range by letting currencies and interest rates float.

Watt says the combination of an inflationary target and a flexible currency "has been a very successful monetary arrangement" - although, he notes, the policy is only about 15 years old.

"And it hasn't really been tested in a true inflationary environment because we had globalization, which sort of kept inflation under control," Watt says. "Inflation will probably be higher in the next five years than it was over the past five or 10 years."

TD's Drummond says that, based on the four main factors affecting currency values, the Canadian dollar shouldn't be above US$1 and nowhere near US$1.07.

"To be unscienfically precise about it, the dollar right now should be trading at somewhere beetween 96 and 98 cents US," Drummond says. "In other words, high but not quite as high as it actually is.

"And using the same factors, I can explain in 2002 a dollar that would get down to the 70-72-cent range. I can't explain 62."

He says that's to be expected because, once momentum gets going in one direction or the other, there is a psychological and a speculative element as well.

"Historically when the U.S. dollar has declined, we have tended to decline with them. And what has broken that pattern right now again comes back to commodity prices. That is the big distinction."

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: number 6
Date: 03 Nov 07 - 08:23 PM

Interesting posts L.H. When the 1970's oil crisis happened, I was a Business Administration student at Ryerson.

" "Historically when the U.S. dollar has declined, we have tended to decline with them. And what has broken that pattern right now again comes back to commodity prices. "

My Economics professor at that time stated the exact same reason.

biLL

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: GUEST,Arnie at work
Date: 04 Nov 07 - 01:29 AM

And just to depress you even more, the £ sterling is now worth over $2 - when I last went to the States I only got $1.40 for my £1. Shame your cars have the steering wheel on the wrong side otherwise it'd be worth shipping a new one over here. Loads of Brits are now doing their Christmas shopping in New York where the stuff costs half the price compared to UK high street prices. It's just too damn far to travel though - shame we can't tow these isles across the Atlantic and moor ourselves somewhere off New England!

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: gnu
Date: 04 Nov 07 - 04:36 AM

Well, well, well.... I just culled the Saturday newspaper for the grocery store ads and found a flyer from... LL Bean in Maine! Can you say, "Xmas is coming."

Oh... I am in Moncton, New Brunswick. Go up to Maine, turn right.

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: Rapparee
Date: 04 Nov 07 - 05:01 AM

Yeah, I've been to Moncton. I think I was on my way elsewhere, or maybe that's the place we stayed overnight and I got food poisoning from the fiddleheads...or it might have been somewhere else. But I've been to Moncton -- really.

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: gnu
Date: 04 Nov 07 - 05:21 AM

Yer supposed to cook fiddleheads first.

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: bobad
Date: 04 Nov 07 - 08:14 AM

Wouldn't you get splinters from eating fiddle heads and what do you do with the rest of the fiddle?

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: Little Hawk
Date: 04 Nov 07 - 10:05 AM

Eating bagpipes is hazardous too, but it least it stops the noise...

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: Rapparee
Date: 04 Nov 07 - 10:16 AM

The use bagpipes to make haggis. I won't supply the digusting, awful, recipe.

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: bobad
Date: 04 Nov 07 - 11:14 AM

Can't stomach it eh!

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: Little Hawk
Date: 04 Nov 07 - 11:28 AM

Matter of fact, my friend Johnny Death (local DJ and record collector) eats haggis. It's true! And it hasn't killed him yet. But he has 2 good excuses.

1. He's Scottish
2. He's the one and only Johnny "Death". Say no more.

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: artbrooks
Date: 04 Nov 07 - 12:42 PM

I have eaten haggis. I am still alive. I find it somewhat difficult to reconcile those two sentences.

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: gnu
Date: 04 Nov 07 - 02:06 PM

Hhhhaaagggissss. Excuse me.

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: gnu
Date: 04 Nov 07 - 02:09 PM

I have a lot of haggis type friends, but, for the love of all that is sacred, I don't know how they can choke it down. Whiskey, perhaps.

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: artbrooks
Date: 04 Nov 07 - 02:36 PM

So, LH...please advise me on the honorable (or is that honourable up there?) thing to do. I want to order a CD and workbook from people in Quebec. The price on their website is $30US or $40Can. Should I send them a check for $40US or go with the posted price?

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: Little Hawk
Date: 04 Nov 07 - 03:29 PM

Are you serious? Good lord. They need to update their website. It's a business transaction, isn't it? So send the silly buggers US $30 and you've got yourself a real bargain there.

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: Rapparee
Date: 04 Nov 07 - 06:31 PM

Hello. I found your name on the Internet and know that you are a trustworthy person. My nom des claviers is Rapaire and I am Executive Vice President of The Bank Of The United States. A man, an engineer who was looking for oil, opened an account in my bank, TBOTUS, but died and we have been unable to locate any relatives. There are fourteen million Canadian dollars (CDN $14,000,000.00) in this account and if it is not claimed it will either be siezed by George W. Bush and Dick Cheney or the government. I would like to see this money used for Good, and if you will help me in moving this money out of the United States I will give you 25% (twenty-five percentum) as a reward. I am making you this offer because I know that you are a good person and, like me, want to see this money used to feed starving children in Iowa.

Thank you.

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: Rapparee
Date: 04 Nov 07 - 06:46 PM

PS: I can also provide you with genuine replica Rolex watches and Viagra from genuine US-certified pharmacies.

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: Little Hawk
Date: 04 Nov 07 - 07:02 PM

I see. Okay, that's all pretty tempting, but what can you do in the way of penis enlargements?

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: Rapparee
Date: 04 Nov 07 - 07:13 PM

THAT I'll tell you how to do for free! No medicines, no patches, just tie a string around the end of the penis you want to enlarge. Tie the other end to a door knob. Walk backwards until your penis is the length you need to please the ladies or satisfy your own feels of inadequacy.

Here's a tip: tie the string to knob of a door that swings away from you. Make sure the door is fully open and that you have only about a foot of slack string. Now have your lady friend slam the door shut.

No, no, don't thank me. The look on your face when you see your brand new penis will be enough.

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: Little Hawk
Date: 04 Nov 07 - 07:42 PM

You are a truly good person, Mr Rapaire! I can see that, but before we do our deal you need to consider a bridge that I have for sale in Coldwater, Ontario, not far from here. It seems that the bridge was left to me by my Uncle when he passed away tragically after being attacked and dismembered by several beavers, animals which are quite common here and can sometimes act in an unpredictable fashion. My tragically late Uncle left me this bridge, much to my surprise, but I do not have the time to manage a bridge so I am selling it at a fraction of its real worth.

That is not all. I know for a fact that my Uncle had concealed a fortune somewhere in the support structure of the bridge, as he did not trust the banks. There is at least 25 millions dollars ($25,000,000) in gold bullion and it is hidden within the steel supporting structures of the bridge.

Only you and I know this secret, and I would not trust the information with any other person, but I know that you are sincere and God-fearing, therefore I can trust you.

Alas, I do not have the wherewithal to dismantle the solid steel structures of the bridge. Therefore my desire is to be selling it to someone who does have the wherewithals, and I hope that you could be that person.

All your references indicate to me that you are that person, and that you are wholly honest and will not cheat me.

My plan is to sell you the bridge for the incredible tiny sum of $25,000 plus various carrying charges and documentation which can be handled by the municipality here at the time of sale.

It is then my plan to provide you and you alone with the secret map that shows in which support beam the gold is hidden. You with your many wherewithalls will open up the chamber and recover the gold, whereupon we will cash it in and do a 50/50 split, thus each getting approximately 12 and one half millions of dollars ($12,500,000 EACH).

I would only make this offer to someone I know I can trust in every regard and someone who is deserving and spotless in character, as I know you are from my investigations via the Internet.

Reply quickly and with God's will we can together consummate this fortunate arrangement. God be with you!

- Habib Suliman Jonesville IIIrd

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: Rapparee
Date: 04 Nov 07 - 08:15 PM

This that in Canadian dollars or worthless Yankee dollars?

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: Jim Lad
Date: 05 Nov 07 - 03:22 AM

"Historically when the U.S. dollar has declined, we have tended to decline with them. And what has broken that pattern right now again comes back to commodity prices. "
Good point. The commodity being oil. Given that Oil is well on its way to $100 US per barrel and that it is such a huge commodity, the drop in the dollar acts as a counterbalance. Go back 12 months and look at the exchange rate. $1 Ca was about $0.80 US or thereabouts.
That being the case, oil really stands at somewhere between $65 to $75. Just don't expect to see it drop at the pumps though. That's where the real gains are being made. It really is the perfect storm for oil producers.
A substantial rise in the price of oil along with a significant drop in the US Dollar. Then charge more than double at the pumps. Do this for a couple of years and sock away the revenue. Now, steer the dollar back up to its true value, lower the price of oil and Voila! The oil companies make a healthy profit for a change.
Can't say I grudge it!
Just one question though. When two or three companies drain that much money out of the market place... How do you fill the void?

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: gnu
Date: 05 Nov 07 - 06:28 AM

Guess I'll go down to Alberta, there's oil there in the sands.
Get me a job in the oil patch, and be a wealthy man.
As long as noone tells George Bush, about all that Canuck oil.
And he attacks Iran instead, and keeps the Middle East in turmoil.

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: Riginslinger
Date: 05 Nov 07 - 07:42 AM

And for those of us who have to use Yankee dollars, the most discouraging part is, all of the presidential candidates who really have a chance of winning, in both parties, say they intend on staying in Iraq.

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: Little Hawk
Date: 05 Nov 07 - 10:24 AM

Naturally. That's how the $ySStem works. The few politicians who would really change things and get out of Iraq are not the ones whom you will see chosen to lead their parties in the next election. The ones who get to be chosen are those who represent the $ySStem, not those who operate outside of it.

And that is accomplished quite simply...through money and media coverage. The politician with the most funding and the most friendly media coverage is the politician who wins a convention and wins an election.

It's like choreography. Well planned and executed. The rest is just a dog and pony show to make people think their democracy still is a democracy.

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: Rapparee
Date: 05 Nov 07 - 12:29 PM

The US never was a democracy. It's a republic.

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: Little Hawk
Date: 05 Nov 07 - 12:32 PM

Oh, piffle. You're playing with words. If it's not at least perceived as a democracy, why did the USA proudly boast of being "the arsenal of democracy" during the 2nd World War?

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: Ebbie
Date: 05 Nov 07 - 01:51 PM

I have read this entire thread at one time or another but I don't remember that anyone has definitively answered me from way back up there: How is the Canadian dollar doing in international markets, such as against the euro, the pound, the yen?

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: Ebbie
Date: 05 Nov 07 - 01:55 PM

I had to do my own barking: It appears that the Canadian dollar stands at 1.35 to a euro right now.

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: Ebbie
Date: 05 Nov 07 - 01:58 PM

(AGI) - Rome, Nov 5 - The euro has closed down below 1.45 dollars. After reaching 1.4528 dollars on Friday, it has closed today at 1.4467 dollars and 165.45 yen. The dollar has recovered, especially against the Japanese currency, after the release of the US figures which surprisingly highlighted an increase of the ISM index in October. The dollar is exchanged at 114.41 yen.

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: Rapparee
Date: 05 Nov 07 - 02:05 PM

Because FDR was a Democrat, and during the Depression the Democrat party began playing up the "democracy" idea because they felt that "republic" was too "Republican."

Much like the Republican dinners before the last election putting a "Bush/Cheney" label over the labels on the Heinz ketchup bottles, actually.

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: Little Hawk
Date: 05 Nov 07 - 02:24 PM

Now look here, Rapaire...a "democracy" in general usage of the word today does not mean a society where every single adult human being (of whatever accepted qualifications) meets in council, and there discusses and votes on every proposal that is presented in government. It means a society which democratically elects representatives for the public by voting amongst a variety of candidates. A republic, in other words...or a parliamentary system of some kind. You, sir, are egaging in mere nitpicking blathertwaddle when you say that the USA is a "republic", not a "democracy", and if you persist in same we will have to send some large fellows down there with gentle instruments of persuasion to still the thunder in your impertinent goozle. ;-)

Ebbie - Your question was answered back in one of those articles I quoted from, and I again quote from it: "The loonie has risen 22 cents this year alone against the U.S. greenback, making it the world's best-performing major currency. But it has also appreciated against the euro, Japanese yen, Brazilian real and other currencies, making goods imported from Europe, Japan and Brazil cheaper for Canadian consumers."

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: Jim Lad
Date: 05 Nov 07 - 02:40 PM

The Canadian Dollar is up in the world market.
It now sits at about Two Dollars for One pound Sterling.
One Year ago that One Pound would have cost you anywhere between $2.25 to $2.35 and has been as much as $2.50.
A couple of years ago it would have cost you about $1.65 for One Euro. (The Euro is the real story)
The US Dollar is at its lowest though.
So... A combination of both. US, down/Ca, up.

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: Q (Frank Staplin)
Date: 05 Nov 07 - 03:55 PM

Exchange rates Nov. 5, 2007:

USD 1 GBP 2.07 CAD 1.07 Eur 1.44689 AUD* 0.919599

JPY 114.54   *Australian

Mexican peso = 0.0931914 US
Chinese yuan = 0.134138 US

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: artbrooks
Date: 05 Nov 07 - 04:05 PM

$1 US = $1 US. What else matters?

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: Little Hawk
Date: 05 Nov 07 - 04:14 PM

Ha! Spoken like a true resident of the Okefenokee Swamp...a self-absorbed quagmire totally sufficient unto its own sense of imperial grandiosity. ;-)

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: Rapparee
Date: 05 Nov 07 - 04:30 PM

Ah! But the US does not elect the chief executive! The President is elected by the Electoral College. It is not, and never has been, a one-person, one-vote where the Pres is concerned.

(Whether this is good or not is irrelevant to the discussion. Personally I think that it should be decided by a combat between everyone crazy enough to want to the job -- a melee, and the survivor becomes President. And no champions or substitutes allowed!)

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: artbrooks
Date: 05 Nov 07 - 04:43 PM

No, no...the loser should become President. That would be consistent with our long tradition of electing losers.

Swamp? As in water standing around doing nothing? I am a resident of the Great American Desert.

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: Little Hawk
Date: 05 Nov 07 - 04:45 PM

So? We Canadians, who live in a parliamentary democracy, don't directly elect our chief executive by popular vote either! I am referring to the Prime Minister. Canadians do not vote for their prime minister unless they happen to be living in the local riding that he is running in as a member of parliament. They vote for their local members of parliament, who usually belong to a political party. The political party that gets the most members elected nationwide then has it's leader appointed as prime minister.

I think your politicians should either:

1. be chosen by lot
2. be chosen by a vote of the collective world population outside OF the USA.

In either case, but specially in the latter, you would end up with far better and more responsible leadership, in my opinion. I mean FAR better! No doubt about it.

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: Little Hawk
Date: 05 Nov 07 - 04:52 PM

That last was a reply to Rapaire...

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: Rapparee
Date: 05 Nov 07 - 04:56 PM

I think that there are several better ways to elect people to federal office in the US. We could use proportional voting, for example. But all of them would require a change to the Constitution and frankly that's a can of worms best left unopened.

Actually, it wouldn't be a bad deal if they actually followed the Constitution....

Subject: RE: BS: Low US dollar, high Canadian dollar...
From: Little Hawk
Date: 05 Nov 07 - 05:04 PM

True enough.