Canadian dollar almost at parity with US, will pass it soon

[Victor Galis]

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?

Because it is a weak and pathetic currency

[Ben Kenobi]

I'm speaking of the early period when we first started using the Canadian Dollar. It's been in existence since prior to confederation in 1867.

I'm trying to figure out when our exports shifted to the US, checking out the dates.

[Wezil]

Originally posted by Ben Kenobi
Right now I think anything between 80-85 cents to the US dollar is about right given the productivity ratios. More then that is overpriced.

But isn't that really just a crutch for inefficient manufacturers at the expense of Cdn consumers?

We have to face the fact that manufacturing is not our future. We simply cannot compete with the cheap labour around the world.

[Ben Kenobi]

Ideally, trade between the US and Canada should be as free as interstate US trade.

That would require us lowering inter-provincial trade barriers. Trade between provinces is more difficult then between US states.

As for the trade, I don't think I can agree that the trade between us should be that free. I think Americans have legitimate security concerns with their own border, and that I would rather see terrorists caught at the border of the US, rather then using Canada as a conduit to the US.

Other then that, I have to agree that we should have free trade, and moreso then we have now. Especially on lumber. We can make it much more cheaply then you can, which frees up American industry to do jobs that they can do which we can't. We are nowhere near as efficient in terms of your manufacturing industry.

[Kidlicious]

Originally posted by Wezil


But isn't that really just a crutch for inefficient manufacturers at the expense of Cdn consumers?

We have to face the fact that manufacturing is not our future. We simply cannot compete with the cheap labour around the world.

Sure you can if you lower your labor costs.

[Wezil]

Originally posted by Kidicious


Sure you can if you lower your labor costs.

To match the Chinese? What do they make a day? 25 cents and a gob of warm spit?

[Kuciwalker]

Originally posted by Ben Kenobi
As for the trade, I don't think I can agree that the trade between us should be that free. I think Americans have legitimate security concerns with their own border, and that I would rather see terrorists caught at the border of the US, rather then using Canada as a conduit to the US.

It makes no sense to have border patrols between the US and Canada. It's far more efficient to just use a unified security policy at the ports and airports.

[Ben Kenobi]

But isn't that really just a crutch for inefficient manufacturers at the expense of Cdn consumers?

Not really. If our productivity is priced about equally then the dollar is just about right. Producers that are inefficient won't have any benefit or cost at that point.

That's the ideal situation. As it is now, the dollar is high, manufacturing jobs are going to go elsewhere, until either the producers become more efficient to justify the higher prices, or Canadian exports are going to come down and then the dollar will drop.

This recent expansion is an indication that the liberal policy of a weak Canadian dollar has been a crutch for Canadian producers, and the market is now correcting for 12 years of undervalued Canadian labour. I expect, unless our productivity rises that the dollar will eventually drop against the USD.

We have to face the fact that manufacturing is not our future. We simply cannot compete with the cheap labour around the world.

There are many types of manufacturing, until just recently Canadians were the cheapest labour in the developed world based on our productivity and the dollar being so low. Now that has corrected itself.

[Ben Kenobi]

It makes no sense to have border patrols between the US and Canada. It's far more efficient to just use a unified security policy at the ports and airports.

Kuci, I don't trust Canadian airport security to get the job done. Having a unified security policy would be good, but that means we would need to be just as rigorous as you are, and I'll be blunt, we are nowhere close.

The other problem is immigration. Canada has a much more liberal immigration policy. With no border, how would America screen out the dubious Canadian immigrants who come south of the border?

Better trade yes, but don't rely on the Canadians for security concerns, particularly with airports.

[Kuciwalker]

Kuci, I don't trust Canadian airport security to get the job done.

I don't see how you can be that different from our airport security. They aren't particularly good.

The other problem is immigration. Canada has a much more liberal immigration policy. With no border, how would America screen out the dubious Canadian immigrants who come south of the border?

The US adopting Canda's immigration policy

[Wezil]

Originally posted by Ben Kenobi


Not really. If our productivity is priced about equally then the dollar is just about right. Producers that are inefficient won't have any benefit or cost at that point.

That's the ideal situation. As it is now, the dollar is high, manufacturing jobs are going to go elsewhere, until either the producers become more efficient to justify the higher prices, or Canadian exports are going to come down and then the dollar will drop.

But the dollar isn't "high"! It is at par with the US.

This recent expansion is an indication that the liberal policy of a weak Canadian dollar has been a crutch for Canadian producers, and the market is now correcting for 12 years of undervalued Canadian labour. I expect, unless our productivity rises that the dollar will eventually drop against the USD.

Exactly. So you agree? A dollar at par means manufacturuers unable to compete as efficiently as their US counterparts will be in trouble. There will be a marginal loss of jobs with a dollar at par but most of the inefficient companies felt the pain long before now.

There are many types of manufacturing, until just recently Canadians were the cheapest labour in the developed world based on our productivity and the dollar being so low. Now that has corrected itself.

Yes the crutch is gone.

[Ben Kenobi]

I don't see how you can be that different from our airport security. They aren't particularly good.

It is much better then up here. Most people here rely on our 'stealth nation' defense technology.

I'm only half kidding. We figure that no one really cares enough about Canada to want to do harm to us.

Down there, it's much different.

I don't like our immigration system much. People who shouldn't get in get in, while folks who should get in are turned away. It's too political, the Liberals used the process to get the people they wanted.

From what I know of American immigration, it's stricter but fair. We have neither.

[Wezil]

BK - Btw, it wasn't just the Liberals. I remember the 69 cent "Mulroney Buck".

[DanS]

Originally posted by Wezil
I don't blame the dollar though. It's not like our factory jobs are going to the US.

They're going to China, however, which maintains a rough exchange parity with the US Dollar.

[Kidlicious]

Originally posted by Wezil


To match the Chinese? What do they make a day? 25 cents and a gob of warm spit?

Try to live without the warm spit?