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

[Victor Galis]

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

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

[Pekka]

Kassi, I use co.uk more often.

But, once the dollar is weaker, I'm definitely ordering bigger shipments.

[Kassiopeia]

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

[Pekka]

Me too. My wish list has over 100 books, over 40 with high priority I mean , but it's going to cost me a lot, and that list is always growing too.

With the rate that I'm able to buy now, the list is only bigger and bigger and I only buy the necessary ones, I can't go over 200 euros per month. 2-3k would be a nice relief.

[snoopy369]

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

[Pekka]

yeah .

But you know how it goes with books... I need a lot of them for work as well, and I can order the books I need for the Uni library and it'll be there in just a few days, but the ones I really need are the ones I also like because I like what I do. So they're of personal interest as well and I should have them as my own and that's the way I operate.

Also I can be challenged at any moment to back up what ever I have written, especially when I'm talking about someone elses work or ideas and have referred to them, I can be challenged at any moment for the broader context and I have all the bullets I need right with me at home and defend myself and make it known that I jsut didn't rip off one sentence and then claim to understand the context as well.

So there are benefits to just buying them. Plus they aren't THAT expensive, I mean for the personal value books have... please. Most books I need go for about 20 euros max, and I can often take them deals where you get some other book that is related to the first book and you get them cheaper, so that's like maybe 25 euros for 2 good books I need and will be using.

That, plus I think people who are like me should have books of their own. People like me, I mean people who have to read quite a lot for work as well as for their own personal fun. Why not just buy them? It's like renting a classic movie or just buying the DVD, except the movies won't go to any new mediums and then you have to byu them again. You get the book once and that's it .

Some things just cost some money and I'm willing to shell out the cash. I like supporting these businesses that I like. I like Amazon. I like play.com. I support them both, I'm always buying from them, several times a month. I spend considerable amount of cash as an individual customer to these businesses and I like the idea that not only do I get the products and services that I like, but that these particular businesses get my money.

[Tingkai]

Originally posted by snoopy369
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 comparative cost hasn't changed much (4% in that example) then who cares?

One of the concerns is that the strong Canadian dollar has been driven by Canadian oil sales and U.S. monetary policy so that the exchange rate does reflect the cost of doing business, but instead distorted to favor American businesses.

A 35% change in the exchange rate during the past four years is not normal given comparative inflation rates, tax policies and economic growth in the two countries.

[Kidlicious]

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

[snoopy369]

Originally posted by Tingkai


One of the concerns is that the strong Canadian dollar has been driven by Canadian oil sales and U.S. monetary policy so that the exchange rate does reflect the cost of doing business, but instead distorted to favor American businesses.

A 35% change in the exchange rate during the past four years is not normal given comparative inflation rates, tax policies and economic growth in the two countries.

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...

[Kidlicious]

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.

[Kontiki]

Well, that didn't take long :

http://www.reportonbusiness.com/servlet/story/RTGAM.20070920.wdollar0920/BNStory/robNews/home

The Canadian dollar traded as high as 99.98 cents (U.S.), a hairbreadth's away from parity.

The currency has seen bids at parity already this morning, but no trades yet, currency traders said.

It's been a stunning rise for the currency, one that's had exporters scrambling to cope and travellers flocking on trips abroad. The currency's 60-per-cent surge over the past five years "represents its most rapid climb on record," said Jeff Rubin, chief economist for CIBC World Market in a report.

The Canadian dollar has seen some steep ebbs and flows in its history. In 1864, the greenback traded at less than 36 cents (Canadian), an all-time low for the U.S. currency. In 2002, by contrast, the loonie traded as low as 62 cents.

Since then, rising commodity prices, a strong economy and buckling U.S. dollar have sent the loonie into orbit.

On Thursday, the loonie jumped more than a penny as investors continued to shun the American dollar, which sank to a record low against the euro. Gold prices are trading at a 27-year high while oil is near a record.

"We expect more U.S. dollar weakness is looming," Bank of Nova Scotia said in a report.

This year alone, the currency has soared 16 per cent against the greenback, the strongest performance of any G-10 country.

[Asher]

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.

[Agathon]

How shameful for the Americans. They are being passed by a currency that is known as the "Loonie".

[JimmyCracksCorn]

The CDN dollar was trading at US1.0003 earlier today. It slid back to the .9985 range, but for a brief time it surpassed the USD.

Wow.

[Wezil]

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.