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

[JimmyCracksCorn]

There is a big psychological difference between .98 and 1.00, though.

Overall, though

[JimmyCracksCorn]

By the way, XE.com is now reporting the CDN at 1.0002.

The Canadian dollar is worth more, at least for most of today.

[Wezil]

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!.

[Kuciwalker]

I'm curious: is there any economic reason that just using the USD as your currency would be a bad idea?

[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.

[Kontiki]

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.

[Wezil]

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?

Probably not. Nationalism is a huge factor against as you could probably guess.

I suspect we (Cdns) would agree to some sort of North American currency however. But that of course would require you to give up on the greenback.

[Kuciwalker]

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.

[Wezil]

Actually, the loss of control over the currency would probably be an economic reason against as well. But, as I strive to point out, I am not an economist....

edit - I'm too damn slow for you youngsters

[Asher]

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...

[Wezil]

Manufacturing is continuing to be hit in Ontario, as it has been for the last twenty years. I don't blame the dollar though. It's not like our factory jobs are going to the US.

[Aeson]

Time to bring on the Amero!

[Ben Kenobi]

I'm curious: is there any economic reason that just using the USD as your currency would be a bad idea?

Historically we have done most of our trade with Britain. Mattered much more the relationships with the Pound and not the US dollar. It was the same deal with Australia and NZ, didn't make much sense to adopt the US Dollar when they weren't the largest trading partner until after we started floating the dollar.

Now? Canadians aren't as efficient as Americans in general, and we are a primarily export based economy. When we trade at par it hurts our manufacturing, lumber, etc. It used to be that Canadian labour was very competitive, now it isn't, not after a huge rise in the dollar.

The previous rationale as far as I can see is that having a floating dollar allowed us to protect our industries better because they paid their costs in CDN and got their revenue in USD. A cheap dollar helps us mask our inefficiencies.

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.

[Kuciwalker]

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.

[Kidlicious]

Originally posted by Kuciwalker

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.

Depends on what your definition of fine is. There are costs.