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| Subject: oil currency |
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Canadian dollar, 14 years record high.
crude oil jumped 4 dollars U.S /barrel today.
I can feel pain right now already, check out grocery store like Real Canadian super store, even milk, eggs are getting expensive,same as walmart.
Suppose high Canadian dollars should benefit Canada, import stuff gotta get cheaper,however, products have to be shipped by truck,therefore~~~
any comment?
[19-09-2005,23:37]
[**.66.36.59]
departure bay |
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(in reply to: oil currency)
There´s good and bad in the Canadian dollar being so strong. The loonie is driven by the price of crude oil, and being in the trucking industry, I see the effect of the high gas prices and the impact on trade. Everything costs more because shipping costs more. It costs more to fuel a truck, and we have no choice but to impose fuel surcharges. The customers have no choice but to raise their prices to defray those costs. The consumers have no choice but to pay more, because they have no choice. Just about everything you buy in a retail store, from electronics to bananas, got there by truck.
Will the economy benefit from such a strong dollar? That´s a good question.
[20-09-2005,01:40]
[**.193.72.81]
FWChelle |
(in reply to: oil currency)
Economy does not always benifit from a strong currency.
Yes, the imports are suddenly cheaper, however Canadian exports are going to take a hit.
Canada will have to embrace what US had to do - cut labor costs or downsize. Interest rates will come down and should help the internal corporate investment especially the housing market from a soon to see lower mortgage rates.
Canada´s internal economy itself is not as large as the US to support and internal spending revival. Definately a strong dollar will see a lot of capital mobility to foreign markets, since the interest rates are surely going to fall soon.
What Canada needs to do are the following:
1. Be more productive (inc. per wage productivity).
2. Develop a stong internal R&D base - for new products
3. Reduce govt. spending. With higher Dollar the money is best spent at overseas investments. Cheaper dollar should be used to increase govt. spending. Also with stronger dollar there is a phase of higher inflationary environment. Now is the time to reduce spending.
4. Privatize several govt. agencies like medical etc. for a more effcient use of resources.
[20-09-2005,03:44]
[**.244.21.193]
starwars |
(in reply to: oil currency)
Liberal won´t do so to piss NDP off, they are minority right now
[20-09-2005,04:15]
[**.66.36.59]
departure bay |
(in reply to: oil currency)
B.C. has hydroelectric power and should try to promote this and to take advantage of its lower energy costs. A lot of manufacturing can be done in B.C. therefore and shipping can be avoided.
[20-09-2005,05:56]
[**.153.133.162]
elli |
(in reply to: oil currency)
The loonie might be at a record high vs the Us$, it is not vs the euro. Got more to do with a weaker Us $.
[20-09-2005,13:24]
[**.194.183.155]
John |
(in reply to: oil currency)
The Euro was hit by the German elections ...
[20-09-2005,15:13]
[**.153.133.162]
elli |
(in reply to: oil currency)
US is Canada´s major trade partner. So you may see more US products on Canadian shops. They are now about 10-15% cheaper than last year.
Of course products from Asia and Latin America will also find way in.
[20-09-2005,15:26]
[**.244.21.193]
starwars |
(in reply to: oil currency)
The US dollar has a lot to do with it, but Canada is also a major fuel supplier. Crude oil goes up, the loonie goes with it.
[20-09-2005,16:52]
[**.235.111.195]
FWChelle |
(in reply to: oil currency)
... and all this is playing havoc for those of us holding settlement funds in foreign banks!!!!! ughhhh.
[21-09-2005,00:45]
[***.20.170.23]
sharon |
