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So, how about that greenback?

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  • #1

    So, how about that greenback?

    Man, this blows. I live in Canada, but I get paid in US dollars. What used to get me 1.57 CAD now gets me around 1.27, and its probably going to go as low as 1.20 within the year. I remember getting as high as 1.60 just months ago. This must be some kind of artificial deflation... it happened too fast. And its not like we're talking about the Russian ruble (sp), we're talking about the US dollar, one of the strongest in the world.

    Now I know that this is good for the (US) economy in that there is virtually a 15% (my math sucks) discount on all US products and exports are going to go through the roof, but I don't care, I want my money now!

    IMO this is just temporary and related to a slowdown in the economy related to the war, ect, ect... but it still sucks for all Americans living abroad (and there are tons). I fear that with Bush still as president, investor confidence in the USD is going to stay low... whereas if a democrat was in power, confidence might potentially rise. But I don't want to have to wait until 2004, and Bush is probably going to win again anyways.

    Its tough, you know, because I supported, and still do, his actions against Iraq, etc, but I'm suffering for it directly now.

    I'm no economics major though, so those of you who are experts, please correct me on anything.

    So what are you guys' predictions for the dollar? How soon do you think before it rises again, or will it?
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  • #2
    Lapdances are still about $5 American in Montreal
    If you look around and think everyone else is an *******, you're the *******.

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    • #3
      Originally posted by Timexwatch
      Lapdances are still about $5 American in Montreal
      I guess its not all bad then...

      But come on, more people must care about their own country's currency plummeting...

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      • #4
        It has little or nothing to do with Iraq. It has to do with our current account deficit. This will take some time to work out, even with a healthy economy.
        I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891

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        • #5
          Originally posted by DanS
          It has little or nothing to do with Iraq. It has to do with our current account deficit. This will take some time to work out, even with a healthy economy.
          Explain. So you think Iraq is just a coincidence? I do see what you're saying though... I'm just not an economy expert.

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          • #6

            now if the dollar would just plummet against the won...
            Stop Quoting Ben

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            • #7
              Originally posted by Boshko

              now if the dollar would just plummet against the won...
              The what? You mean the yuan?

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              • #8
                So you think Iraq is just a coincidence?

                Yes.

                The US' sizeable trade deficit has to be matched with investment coming from overseas. As appetite for US investment wanes (because of low interest rates in the US, for instance), the value of the currency falls. The currency fall makes foreign goods more expensive, leading to fewer people buying them, leading to lower trade deficits.

                The whole cycle lasts years and the deficit normally gets worse before it gets better.
                I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891

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                • #9
                  Originally posted by DanS
                  So you think Iraq is just a coincidence?

                  Yes.

                  The US' sizeable trade deficit has to be matched with investment coming from overseas. As appetite for US investment wanes (because of low interest rates in the US, for instance), the value of the currency falls. The currency fall makes foreign goods more expensive, leading to fewer people buying them, leading to lower trade deficits.

                  The whole cycle lasts years and the deficit normally gets worse before it gets better.
                  Damn. So what do you think this will do to the Canadian dollar, where we buy something like 80 percent of their exports? My only hope I guess is for the loonie to tank.

                  edit: loonie means dollar

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                  • #10
                    It's tough to know what will happen. Since investment from somewhere overseas has to offset any trade deficit, any corner turned will depend on the appetite of overseas investors for US assets, and on US appetite for foreign goods.

                    There are a lot of things tied up into how much people want to invest in the US. Perceptions, interest rates, American trustworthiness, economic growth, security concerns and security business impediments, etc.

                    US appetite for foreign goods is probably easier to figure out. If it costs more money, Americans will eventually buy less of the item.
                    Last edited by DanS; May 22, 2003, 11:14.
                    I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891

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                    • #11
                      Originally posted by Boshko

                      now if the dollar would just plummet against the won...
                      I dong know what you're talking about.
                      I make no bones about my moral support for [terrorist] organizations. - chegitz guevara
                      For those who aspire to live in a high cost, high tax, big government place, our nation and the world offers plenty of options. Vermont, Canada and Venezuela all offer you the opportunity to live in the socialist, big government paradise you long for. –Senator Rubio

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                      • #12
                        Being paid in US $ when you make your expenses in CAD is a speculation against the CAD. It was sometimes winning, as you recall, but now it is a loosing game. Individual (and business) should not speculate on currencies. In your case, you should be paid in CAD.
                        Statistical anomaly.
                        The only thing necessary for the triumph of evil is for good men to do nothing.

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                        • #13
                          Originally posted by DAVOUT
                          Being paid in US $ when you make your expenses in CAD is a speculation against the CAD. It was sometimes winning, as you recall, but now it is a loosing game. Individual (and business) should not speculate on currencies. In your case, you should be paid in CAD.
                          Well, I'm a student and my money comes from a long time worth of saving while still living in the US... and from summers when I have gone home and worked. I don't actually work here right now, although I will soon.

                          But still, 1.25 isn't quite chump change... its just that the CAD took a nose dive a few years ago.

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                          • #14
                            The fall against the Canadian dollar was overdue IMHO. Over the last few years the US dollar had gained against the looney despite strong fundamentals in the Canadian economy. Analysts were having a difficult time explaining the trend. The drop of the US dollar is probably faster than most would like but, against Canadian currency, it is just giving back gains that made little sense.

                            On the personal side, I sympathyze with your losses but at the same time it will make a trip south of the border very much cheaper for me
                            You don't get to 300 losses without being a pretty exceptional goaltender.-- Ben Kenobi speaking of Roberto Luongo

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                            • #15
                              I'm still thinking a currency union would be a good idea for NAFTA. Though I dread ever having to use an "AMERO".
                              Try http://wordforge.net/index.php for discussion and debate.

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