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View Full Version : US Dollar Slips To Parity with Candian Dollar


SilentScope001
09-26-2007, 06:46 PM
http://www.smh.com.au/news/business/us-dollar-knocked-off-its-perch-by-loonies/2007/09/26/1190486394353.html

http://www.theaustralian.news.com.au/story/0,25197,22489114-14742,00.html

The US economy is in trouble! Woot!

Jae Onasi
09-26-2007, 07:01 PM
Why w00t for any economy being in trouble? People are going to suffer the consequences of those problems, after all. I'm always mindful of the adage "When America sneezes, the world catches cold."

The housing sub-prime loan industry is having a lot of problems and the Fed just cut rates to help deal with what could be a looming financial disaster. Housing starts plummeted as interest rates went up, which has idled a lot of construction people. Oil prices are going up which also affects our economy, so I'm not surprised to see that we're having problems. I'm sure the business gurus will have something far more cogent to say, since my field is eyeballs rather than finance.

SilentScope001
09-26-2007, 09:42 PM
Why w00t for any economy being in trouble?

I dunno. It just seems that I'm getting tired of the whole economic boom and all, and so an economic recession may wake people up and realize the economy is in cycles. I guess this news is far more interesting than the other stuff in the newspaper.

Commander Obi-Wan
09-26-2007, 10:11 PM
Everything is still cheaper in U.S. :indif:

On a more serious note, I suppose it's a good sign in the retrospective that our Canadian dollar is getting stronger, due to a stronger economy because of oil production and our real estate market seems to be in fine shape.

Though, you could also say that the American dollar is just sinking.

Totenkopf
09-27-2007, 12:08 AM
The real question here, though, is exactly what are the intentions behind depressing the USD down to appear competitive? What's the point of no return? In about a six years or so, the $US has gone from ~1.17Euros to about ~.72 (thereabouts)Euros and depreciated against the loonie by about 25-30%. I'm curious as to where they intend to stabilize the drop.

^^Everything is still cheaper in U.S.
Even more so now that your $$ has appreciated in value (relative to the $US anyway)

Rogue Warrior
09-27-2007, 05:10 AM
I guess the 'woot' is because America is going to suffer.

Prime
09-27-2007, 10:58 AM
YEEEAH BABY! Go CANADA!

To bad about or manufacturing sector...

tk102
09-27-2007, 11:05 AM
I guess we need a little macroenomics refresher. :) If the country A's currency is devalued compared to country B's currency, that means that country B can buy more of country A's products. And more of country A's citizens will also buy country A's products. That's a good thing for country A. :) It's only bad if a person from country A goes to country B to buy something.

So w00t indeed. Our trade defecit is huge and the slipping dollar will help narrow that a bit.

Prime
09-27-2007, 11:11 AM
I just get excited when a Canada number other than landmass square mileage is bigger than an American number. Does that make me a simple person?

tk102
09-27-2007, 11:36 AM
It'll take more than that Prime. :) If you would've said: "Now I can buy more American beer!" that would've made you a simple person.

Personal w00t: I'm glad I invested in precious metals and foreign stocks a couple years back. Gold is at a 28-year high.

John Galt
09-27-2007, 06:26 PM
I think the current administration's addiction to voodoo economics and deficit spending, along with the two ongoing conflicts(I refuse to call them wars until congress formally declares war), and commitments to free trade that have harmed our manufacturing centers ever since the early 19th century have done a lot of damage to the dollar's value. However, the petrodollar is keeping the value inflated somewhat over what it would be elsewise, but Iran(gasp!!!) is opening an oil market soon that deals in Euros that will certainly(along with the rancor against America) hurt, if not break, the petrodollar. Add to that the fact that the People's Republic of China has in its national reserves the largest collection of US dollars in the world, and things begin to look really scary for the US in the near future.

Prime
09-28-2007, 10:29 AM
Personal w00t: I'm glad I invested in precious metals and foreign stocks a couple years back. Gold is at a 28-year high.Lucky bastard! I was thinking about that the other day...

Totenkopf
09-28-2007, 12:10 PM
Well, in the case of gold (& other precious metals), the proponents were bound to be right one day......good for you tk. Do you remember where they were pricewise when you got in?

tk102
09-28-2007, 12:45 PM
Do you remember where they were pricewise when you got in?
I think it was around Feb 2006 -- gold was about $550/oz. then. It's like what $740/oz now? 35% gain over 20 months isn't bad. The S&P 500 gained 20% by comparison.

And just barely keeping on topic: With the decrease in new home construction, probably won't be too long before forest products (lumber) will begin to look like a bargain.

John Galt
09-28-2007, 09:48 PM
And just barely keeping on topic: With the decrease in new home construction, probably won't be too long before forest products (lumber) will begin to look like a bargain.

I don't think that willl have much effect on price to consumers. The companies that grow the specific trees (I remember seeing a documentary on tree farming) will simply switch to a longer growing season, so that prices won't change much until the next building boom.

Corinthian
09-29-2007, 01:45 AM
So, basically, you're happy about anything bad that happens to America? What the hell is wrong with you, Scope? Taking Anti-Americanism to the next level?

SilentScope001
09-29-2007, 11:47 AM
So, basically, you're happy about anything bad that happens to America? What the hell is wrong with you, Scope? Taking Anti-Americanism to the next level?

Uh. I am American, you know?

I'm just bored about the current newspaper stories, all so boring. And technically, this is good for America, since it can very well decrease our trade deficit. I just typed "Woot" because "something" finally happened to interrupt the constant "War with Iran is coming", "Iraq is suffering", "blah blah blah"...those things are temporary, the economy hurts us the most, and hearing something about the economy, even if it is going down, is at least better than hearing the mind-numbing news.

Still, maybe I should have edited out that "w00t" instead...