Has anyone else noticed that as the numbers are rising for the Conservatives in the polls, the Canadian Dollar is rising right along with them? I know I just stated I don't follow the polls but... this one just hit me when I heard on the news that the Canadian dollar has risen above 87 cents for the first time in 14 years. Ummmm the Liberals were not in power back then were they? Hmmmm could those polling numbers be encouraging some investment in Canada? Is this a good thing for Canada or is the rising dollar going to severely impact the manufactoring sector of Canada? I know that my employer imports a fair amount from the U.S. so they will likely be enjoying this. What is this going to do to the interest rates? I am no economist, just asking the questions...
Thursday, January 05, 2006
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A high value on the Canadian dollar is good for us as consumers -- we get more for each dollar we spend.
If we work for an American-based company (like I did just recently), a high Canadian dollar can mean layoffs and cutbacks because it costs the company more to keep going.
If your employer imports from the US, a high Canadian dollar will have a positive effect for him.
It will have a negative effect on out tourism industry, as well as on our exports.
I find it helps to translate everything into the current price of gold, which is stable. An ounce of gold now will still buy you exactly what it bought you a hundred years ago, within pennies.
I guess I should have specified that this is all dependant on to which other currency you're comparing ours. I'm asuming the American dollar here...
thanks for the input Chimera...you did asune correctly. I was comparing ours to the U.S. dollar... really is there any other way?
Looks like I spoke too soon..I see the dollar took a dive today.... Told ya I was no economist...
It's a sign of better times if you ask me....
I think the drop has to do with the income trust issues (faith in our markets) but want to believe the earlier rise had to do with our electoral prospects. Then again, I was a cheerleader in high school so shouldn't be taken too seriously.
HAH! You were a cheerleader Candace?! I can feel a joke or two coming on.... (Just kidding!)
If the Can-duck rises too fast, too far, they will have to raise interest rates to cool the economy. But all 'n all, it is a good thing for our country.
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