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Funny Money - 9/21/2007 8:27:23 AM

norarc

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Has anyone noticed that Canadian money is now on par in terms of value with the U.S. greenback? Doesn't sound like much, I know, but consider: never in the entire time I've been alive has that happened. Ever. Canadian five-dollar bills with pictures of people playing hockey on their reverse side (and no, I'm not making that up...) are now worth just as much in currency markets as a U.S. five-dollar bill. Maybe even a bit more by now. There's even talk of dumping the U.S. dollar as a reserve currency in favour of the Euro or something else. Yikes.

We'll just have to put this one down as "yet another sign of impending doom," I guess.

Norarc
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RE: Funny Money - 9/22/2007 5:23:14 PM

Termyn8or

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Doesn't sound like much, is an understatement. Nothing is happening to Canada, it must be happening to the US. Perhaps China's threat to dump dollars if the yuan is unpegged ?

Didn't hear about that ? Thank your local news outlets, it is common knowledge outside of the American Curtain.

T

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RE: Funny Money - 9/22/2007 5:36:03 PM

cyberdude611

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It last happened in 1978 during the last major US recession (US and Canadian dollars were last on par).

What triggered the recent drop in the dollar is the US housing crisis and credit crunch. During the early 2000s the real estate market became overvalued and oversold and now its time to pay the piper and the market needs to go through a correction and sell off inventory. Since the economy outside the real estate market is still unstable to a certain extent, the real estate crunch caused the fed to radically drop the interest rates in order to make money cheaper and give relief to the banks that are drowning in defaulted mortgages. The problem was made worse further because the European central bank and the mid-east refused to also drop rates. And that caused the dollar to devalue some. Although this increased the Canadian dollar, British pound, and the Euro...it makes it more expensive for Europe to export goods. That's why French president Sarkozy is pretty pissed off right now because the European bank didn't drop its rate along with the US.

China is a big problem, but they had very little to do with this current issue.

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RE: Funny Money - 9/22/2007 5:56:56 PM

pahunkboy

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we sold out. now here we are. 9 trillion in debt

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RE: Funny Money - 9/22/2007 7:27:31 PM

Marc2b

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I just got back from spending six days in Canada. Setting aside the possible reasons for why Canadian money is now on par with American money, the newspaper that was at my hotel door every morning (the National Post) seemed quite jubilant about it. I think the Canadians see it as an end to jokes about their money and that’s understandable (I confess, if a store clerk let a Canadian quarter slip into my change I’d hand it back and ask for a "real" quarter).

While in many ways this is good economic news for Canada, I was a still little surprised to see only one article noting that this is not an "all good for Canada, all bad for America" situation but rather a mixed bag for people on both sides of the border. Both Canada and the United States will see benefits and negatives from this. In tourism alone vacationing in Canada is now more expensive for Americans whereas vacationing in the United States is now a lot more attractive for Canadians. Indeed, my business is tourism based and we are only twenty miles from the border. It might behoove us to advertise in Canada and see if we can’t get them to come over here and spend some of those Loonies on us.

I don’t want to hijack the thread but I want to add that despite the loss of the "discount" American money once meant while vacationing in Canada, the American dollar would have to do pretty poorly against the Canadian dollar, before I gave up my yearly sojourn to Stratford, Ontario. Anyone who loves theater needs to visit this wonderful town and see the splendid work they do there.

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RE: Funny Money - 9/22/2007 10:15:41 PM

Zensee

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Let's not forget the pressure currency traders bring to bear on such things. The very act of speculating on fluctuations in currencies causes or exacerbates those fluctuations. Not to mention the sheer perversity of trading symbols as if they were commodities...

Z.

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RE: Funny Money - 9/23/2007 1:46:45 AM

seeksfemslave

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The alternative is government arrangements on a global scale.
An anathema to Free Marketeers. Probably impossible too.

I agree tho' that speculation can cause problems, not the least is to penalise success.
The "free market" US (lol) is currently trying to get revaluation of the Chinese currency Those cunning little Chinamen cant be persuaded.

Maybe the US needs to think of a way to heighten international tension. That should stimulate the Arms industry at least.
I say wait until the UK has won a hatful of Gold medals at the next Olympics

< Message edited by seeksfemslave -- 9/23/2007 1:50:04 AM >

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RE: Funny Money - 9/24/2007 12:28:38 PM

came4U

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What better way to endorse feelings of National Pride than to use the currency as a means for advertising aspects of our every day life?

Hockey, scenery, poppies on the quarter in respect for those on Rememberance Day (in USA Veterans Day), our National birds, Olympic achievements, and since our constitution: the slow removal of the presence of the Queen as the main focal point.

I think it is a beautiful way of commemorating special events in history, culture, sport or diplomatic event.

When is the last time you saw 'Abe Lincoln' and actually think deeply about what he/the era stood for?

But, in regards to economy..it is likely that both dollars in sense recieve some regularity and balance as more companies are owned by American-born corporations.
(Walmart, GM, Ford and other of the top 28 leading markets).

It is about time we gained some equalibrium on the DOW / NYSE markets, after being ball busted economically since NAFTA and the free trade commissioners.

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