Canadian Dollar about to surpass US Dollar

[#1baller]

[quote="Megatron"]

"SARS affected Toronto, almost exclusively, as opposed to Canada as a whole. And our economy has been pretty consistent the last 10-15 years. We took a bit of a hit after Desert Storm, but we've had a steady recovery, thanks in part to the Chretien government's trade initiatives. Primarily with China. And 9/11 was a boost to us.
Canada doesn't rely on the auto sector nearly as much as the U.S. Here we rely mostly on natural resources, timber, and farming. The airline industry is also key to growth, and ours suffered almost as much as the US did. Other than that, we're rollin'. "[/quote]


FYI, Ontario is the business hub of Canada and the Manufacturing Industry is astronomical to economic growth of Canada's economy. While Agriculture and natural resources are important, the Manufacturing industry is huge.

Ontario has a large number of American and Japanese car makers and a vast amount of other manufacturing based factories which supports and stimulate economic growth not only for that province but for the rest of Canada as well.

Ontario produces more vehicles yearly than Michigan state, the heart of the car industry in the US.

And also note that mass migration and Toruism to Canada is mostly centered towards the Ontario province. That is what accounts for most of your Tourism dollars which is why the economy was hurt with the outbreak of Sars and bird flu a few years back


Bottomline, like i said, the surge in the Canadian dollar will hurt the Manufacturing industry long term.

[Megatron]

LoL@ FYI

Again, Toronto IS in Ontario, and SARS was concentrated almost exclusively in Toronto, which is why only Toronto's tourism was affected. But in terms of the Canadian dollar as a whole, SARS registered barely a blip.
Also, I referred to the auto industry specifically. Not manufacturing as a whole. Naturally manufacturing will be affected. But that is why Chretien forged ahead on trade initiatives with China and India. For just this reason, that if the U.S took a hit, we could ride it out.
As for our auto industry, being that our population is 1/10th of the U.S, the amount of consumption of autos there is more than enough to float us in times like this. The auto Giants are too entrenched to move.

[Dhaga Bacayl]

Economically speaking, this isn’t a good thing for Canada. The majority of them live writhing 2 hours of the US border and they have such fascination for American goods. Now they will cross the border to shop since dollr worth more.

[#1baller]

[quote="Megatron"]LoL@ FYI

Again, Toronto IS in Ontario, and SARS was concentrated almost exclusively in Toronto, which is why only Toronto's tourism was affected. But in terms of the Canadian dollar as a whole, SARS registered barely a blip.
Also, I referred to the auto industry specifically. Not manufacturing as a whole. Naturally manufacturing will be affected. But that is why Chretien forged ahead on trade initiatives with China and India. For just this reason, that if the U.S took a hit, we could ride it out.
As for our auto industry, being that our population is 1/10th of the U.S, the amount of consumption of autos there is more than enough to float us in times like this. The auto Giants are too entrenched to move.[/quote]

Exactly why I mentioned the manufacturing industry. Your auto industry falls under that category and accounts for alot.

And if that SARS debacle was a blip, why was there a SARS concert held there and why did media coverage indicate your local politicians discussing the economic ramifications of the outbreak affecting tourism in the Province and Canada as a whole?


Signing trade deals with India and China is good but a strong dollar longterm hurts Canada. America and other nations will buy less from Canada and look elsewhere for similar products. Its pure economics.

[cabdallah252]

US dollar is heading towards the value of 1 somali shilling soon

i already started using it as toiletpaper

[#1baller]

[quote="Dhaga Bacayl"]

Economically speaking, this isn’t a good thing for Canada. The majority of them live writhing 2 hours of the US border and they have such fascination for American goods. Now they will cross the border to shop since dollr worth more.[/quote]

I think Canadians along border states have been doing that for sometime now. That is relatively minor compared to bigger US companies doing business there in the future.

If the dollar stays strong for a long time, American companies will look to invest elsewhere. You may even see downsizing of some US chain stores in Canada.

[Megatron]

Dhaga

Most people HAVE been shopping in Buffalo/Erie/Pitt, etc for years. But the hit on retail will be minimal, as that sector is doing great. Fact of the matter is, is that Canada did great pre-1977 when our dollar was worth MORE than the US buck, and we'll continue to do great. We're nowhere near as reliant on the US as people think.

[quote="#1baller"][quote="Megatron"]LoL@ FYI

Again, Toronto IS in Ontario, and SARS was concentrated almost exclusively in Toronto, which is why only Toronto's tourism was affected. But in terms of the Canadian dollar as a whole, SARS registered barely a blip.
Also, I referred to the auto industry specifically. Not manufacturing as a whole. Naturally manufacturing will be affected. But that is why Chretien forged ahead on trade initiatives with China and India. For just this reason, that if the U.S took a hit, we could ride it out.
As for our auto industry, being that our population is 1/10th of the U.S, the amount of consumption of autos there is more than enough to float us in times like this. The auto Giants are too entrenched to move.[/quote]

Exactly why I mentioned the manufacturing industry. Your auto industry falls under that category and accounts for alot.

And if that SARS debacle was a blip, why was there a SARS concert held there and why did media coverage indicate your local politicians discussing the economic ramifications of the outbreak affecting tourism in the Province and Canada as a whole?


Signing trade deals with India and China is good but a strong dollar longterm hurts Canada. America and other nations will buy less from Canada and look elsewhere for similar products. Its pure economics.[/quote]

Again, the auto industry does account for a lot. But nowhere near as much as it is in the U.S, as some will lead you to believe. America is much more an auto driven and auto buying country than we are. We have vastly different buying and spending habits.

The SARS concert was a money grab by the City of Toronto after the province refused to kick in more dough to offset lost tourism $$. I'm sure they would have discussed it, but the fact of the matter is, is that it barely registred. Far less than Mad cow, for instance, affected the cattle industry here.

It MAY hurt us long term, but I forsee a quick recovery down south, therefore no major changes into industry giants such as Wal mart, Home Depot, etc. And our federal reserve just lowered rates today, by a 1/2% point, so I see no problem. Mark my words.

[Steeler [Crawler2]]

The dollar's value is being directly affected by the trade imbalance. China has benefited from this, as has India and a number of other smaller countries. But it's a Faustian pact, and the trade imbalance has to be repaired and new sources of energy developed (which also accounts for the trade imbalance) and Americans have to learn to spend within their means. The Americans don't want to do this, those who export to them (on credit essentially) don't want them to do this, but in the long run, it has to happen. So might at well bite the bullet now.