Canadian Dollar

[cacruden]

There is free trade, the only thing you have to pay on most consumer items when you come back is the sales tax. Most items are duty-free.

As for the border guard numbers... I expect it costs a lot and takes a long time to hire and train new ones... if the only reason why we need more is to satisfy consumers heading south of the border to spend spend spend to no benefit to the Canadian economy, I say don't do it. The dollar is so volatile right now we have no idea where it's going to go... if it sinks back to the 95-cent range, as some have predicted, cross-border shopping will decrease... and then we'll have too many guards. Or suppliers and retailers will finally lower their prices, again, cross-border shopping will decrease, too many guards.

The cross-border phenomenon is a knee-jerk reaction after the dollar reached parity. I can understand people wanting to go over there to make their big ticket purchases... but a bunch of divas on a tour bus to go shopping? You're really not saving that much, honey. I think it's more likely it's their first time ever out of the country and they thought it'd be like driving to Yorkdale.

It is those cross-border shoppers that will get you a better price in Canada - until the retailers in Canada (and distributors) begin to hurt - the prices will NOT be adjusted.

 

[299 bloor call control.]

and..... $1.10 :O

 

[billonlogan]

It is those cross-border shoppers that will get you a better price in Canada - until the retailers in Canada (and distributors) begin to hurt - the prices will NOT be adjusted.

I was able to negotiate a lower price on some high-end electronic equipment. I told my supplier if he does'nt match the price I can get in the US, I won't buy from him. He relented. Happy Capitalism

 

[caltrane74]

What is the US doing to stop China's growth?

The new empires will be the one's with control of the earth resources. China is buying oil assets on a mounmental scale. Hence PeterChina is now the world's largest and most valueable company ( worth 1 trillion dollars). The US didn't go into Iraq because of WMD's. They went there in an effort to hedge off the inevitable, China's growing financial control over the earths ommodity resources. I wonder how much of the Alberta Oil Sands have a Chinese Financial Interest? China is empire building, but in a more sadistic-financial way than the US ever did. And there is nothing the US can do to stop them. Today China annouced it's dumping it's US Dollar reserves (some) and moving to the EURO. It's only a matter of Time before Oil and Gold de-link from USD based valuations. In the end it might be the best thing for the USD slide to continue, at least the United States can pay back China in devalued dollars, which it has spent on the wars in Iraq and Afganistan.

 

[Observer Walt]

Caltrane, as China switches its foreign exchange reserves away from the US$, they may go to Euros, but might also go to the Canadian dollar. This may be part of the reason that our dollar jumped up to $1.10 this morning. It's a bit scary, IMO, that these changes are happening so quickly.

 

[dt_toronto_geek]

It's downright frightening is what it is.

 

[nicetommy]

The rapid rise of the loonie is a pattern echoed in other currencies as well. IMO, this is exactly what the US gov't wants. The French president commented on how the US is using the weakness in the dollar in order to boost growth in the US economy.

Here's a very good Bloomberg article from today outlining what's going on with the USD, and what to expect:

http://www.bloomberg.com/apps/news?pid=20601101&sid=alGVN031e30s

 

[299 bloor call control.]

caltrane, by PeterChina, you mean PetroChina, right?

 

[dt_toronto_geek]

Interesting article tommy. From today's Star

Lower rates, says McGuinty

Nov 07, 2007 11:31 AM
THE CANADIAN PRESS

The meteoric rise in the Canadian dollar is hurting Ontario more than other provinces and the federal government should lower interest rates to clip the loonie's wings, Premier Dalton McGuinty said Wednesday as the dollar continued to break records.

While he called on retailers to lower their prices to reflect the continuing strength of the Canadian dollar – which hit US$1.10 in morning trading Wednesday – McGuinty said the strong dollar puts Ontario manufacturers and exporters at a huge competitive disadvantage in the global marketplace.

The current federal interest rate policy caters to the ``super-heated" economies of western, oil-rich provinces rather than an economy like Ontario's, which has seen steady but more moderate growth, McGuinty said.

"The high dollar is hurting us much more so than it is Western Canada," McGuinty said before going into his first cabinet meeting since the Oct. 10 election.

"From an Ontario perspective, we would benefit from an interest rate reduction – something that makes the Canadian dollar less attractive on the international market."

But there is a flip side to a high loonie, McGuinty said. Ontario families should see their money go a lot further than before, and people will shop in the U.S. for bargains if they don't see better deals at home, he added.

"They have . . . limited money coming into the house and you want to make those dollars go as far as you possibly can," McGuinty said.

"There are still cases where lower costs have yet to translate into lower retail prices in Ontario. I would urge Ontario retailers to do what ultimately is in their self interest. If Ontarians can't find the deals here, they're going to look elsewhere."

The rising loonie and the province's economy will be an element of the Liberal throne speech when the legislature resumes sitting Nov. 29, but education remains the government's central focus, McGuinty said.

Finance Minister Dwight Duncan said the government predicted the rise in the dollar in its last budget, but admitted they didn't see it hitting US$1.10.

"The rapid rise has caught many analysts off guard and it will affect the manufacturing sector, there is no question," Duncan said. "We've taken measures in past budgets and we'll continue to work with the manufacturing sector."

But the opposition is looking for more from the Liberals. Conservative Joyce Savoline said it's fine to let the market take care of lowering retail prices.

But she said the province has to take a more active role when it comes to helping struggling manufacturers and saving jobs.

"We just need a plan in place," she said. "The economy is huge right now. We've gone through two recessions in the last 25 years . . . We really can't go through that again."

 

[caltrane74]

caltrane, by PeterChina, you mean PetroChina, right?

I need to work on my spelling!!

thanks.

Chinese Comments

``We will favor stronger currencies over weaker ones, and will readjust accordingly,'' Cheng Siwei, vice chairman of China's National People's Congress, told a conference in Beijing. The dollar is ``losing its status as the world currency,'' Xu Jian, a central bank vice director, said at the same meeting.

It's only a matter of time before the dollar de-links, evil Communist Chinese dudes.
(i.e commodities marked to EURO?)

 

[299 bloor call control.]

...the federal government should lower interest rates to clip the loonie's wings, Premier Dalton McGuinty said Wednesday

Uhm... doesn't Dalton know that the Federal Government has nothing at all to do with interest rates? And doesn't he know that no matter what he says, it will have absolutely no bearing on what the BoC will do? And doesn't he know that meddling in the affairs of the BoC is just futile?

....oh wait... he just wants to make it look like he's actually doing something... instead of doing something he can control, like you know, raising the PST by 1% and allocating it all towards cities, so they could improve infrastructure... which would improve economic performance as goods won't be stalled on the 401... and get people to work on time... and improve quality of life, which would improve productivity and benefit the economy...

...but that would be much harder than lip service...

 

[caltrane74]

yeah Daulton, raise the PST by 1% you just won a 4 year mandate.

Give the money back to the cities.


That would be too easy, and I live in Ontario.

 

[nicetommy]

I'm not a fan at all of McGuinty... but I'm willing to bet that behind closed doors, the Federal government does indeed have sway with the BoC. I think we can expect to see a rate cut, if Quebec demands one. They seem to have a lot of sway with Harper these days. As for Ontario... nobody seems to care.

 

[caltrane74]

I'm not a fan at all of McGuinty... but I'm willing to bet that behind closed doors, the Federal government does indeed have sway with the BoC. I think we can expect to see a rate cut, if Quebec demands one.

If you think the economy is hot now.

 

[299 bloor call control.]

I'm not a fan at all of McGuinty... but I'm willing to bet that behind closed doors, the Federal government does indeed have sway with the BoC. I think we can expect to see a rate cut, if Quebec demands one. They seem to have a lot of sway with Harper these days. As for Ontario... nobody seems to care.

It is a VERY dangerous game for a politician, even Harper, to attempt to sway the BoC. David Dodge has never shyed away from blasting politicians from meddling in BoC affairs. There is absolutely no reason why the BoC board has to listen to politicians - there is absolutely nothing for them to gain, and everything for them to lose. Their job is to steer the economy irregardless of political mantra.