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Unfortunately, the higher canadian dollar will not last....oil prices are having a huge factor on the dollar. Also....with the planned tax cuts by the federal government the market place is looking favourably on this and that also is causing the dollar to rise. When the US Economy goes through hard times the canadain dollar rises as well. The latest news I heard was we could expect the dollar to hit 96 cents before the end of the year and pull even with the US dollar within 2 years.

At this time, I haven't seen any signs of the Economy crumbling...it may happen but right now things are looking good.

Ideally, the canadain dollar should shit around 86 cents US.

I remember a time when the canadian dollar was actually higher then the US dollar.

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Originally posted by ChemEnhanced Unfortunately, the higher canadian dollar will not last....oil prices are having a huge factor on the dollar. Also....with the planned tax cuts by the federal government the market place is looking favourably on this and that also is causing the dollar to rise. When the US Economy goes through hard times the canadain dollar rises as well. The latest news I heard was we could expect the dollar to hit 96 cents before the end of the year and pull even with the US dollar within 2 years. At this time, I haven't seen any signs of the Economy crumbling...it may happen but right now things are looking good. Ideally, the canadain dollar should shit around 86 cents US. I remember a time when the canadian dollar was actually higher then the US dollar.

Wasn't that back in the 60's or was it the 70's then it was higher?

One thing, if the Dollar does crumble at some point and time I hope it wont take a huge hit and go back to the 0.60$, hope it would stay in at 0.80 - 0.90$ range, it would be nice.

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Originally posted by jesteraver One thing does anyone know the amount of tax the Government of Canada will hit you when you bring back a car from the States. Seeing its cheaper to buy certain cars there now. Anyone have a clue or atleast a slight guess?

Importing vehicles into canada is a pain in the ass:

http://www.riv.ca/english/html/how_...ort.html#notice


I also believe you have to pay federal tax plus a flat duty ($200?) if your vehicle has air conditioning.

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Originally posted by tonybologna Importing vehicles into canada is a pain in the ass: http://www.riv.ca/english/html/how_...ort.html#notice I also believe you have to pay federal tax plus a flat duty ($200?) if your vehicle has air conditioning.

Thank you for the link

People.. don't forget that the strength of the Loonie vs. the Greenback is the product not only of Canadian economic growth, but also sub-par American economic growth. Once the Greenback appreciates back to former levels, a lot of the gains made by the Loonie will be erased. I think for the US and Canadian dollars to reach parity, weakness in the US economy and strong Canadian economic growth must be maintained.

One thing I have to say is... its cheaper to buy a car in the States then in Canada right now

Depending on the car you can save $$$.

People saying that we are losing jobs and that a high canadian dollar should consider something.

The only real difference between the US and Canada are taxes. Why cant we compete? Because our welfare state demands that higher taxes and wages be paid thus our operating expenses are higher than those of the US. So we have 2 choices. Cut taxes and expenses and become more productive, or try to find a like mided socialist country with the same types of overhead and ship our good there instead. Since the latter isnt going to happen, we need to change our idea of business in canada.

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Originally posted by Jayx1 People saying that we are losing jobs and that a high canadian dollar should consider something. The only real difference between the US and Canada are taxes. Why cant we compete? Because our welfare state demands that higher taxes and wages be paid thus our operating expenses are higher than those of the US. So we have 2 choices. Cut taxes and expenses and become more productive, or try to find a like mided socialist country with the same types of overhead and ship our good there instead. Since the latter isnt going to happen, we need to change our idea of business in canada.

+1

I think many people would agree on that but I can be wrong

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Originally posted by Jayx1 People saying that we are losing jobs and that a high canadian dollar should consider something. The only real difference between the US and Canada are taxes. Why cant we compete? Because our welfare state demands that higher taxes and wages be paid thus our operating expenses are higher than those of the US. So we have 2 choices. Cut taxes and expenses and become more productive, or try to find a like mided socialist country with the same types of overhead and ship our good there instead. Since the latter isnt going to happen, we need to change our idea of business in canada.

Bollocks. Who says we can't compete with the US? Maybe Canada can not match the US in the production of low-value added manufacturing goods... but the educational subsidies paid out by the government of Canada definately give Canadians a leg up in knowledge-intensive industries.

If anything, high taxes restrain the economy from overheating in this time of Canadian prosperity (and American economic stagnation).

do we really want low-value manufacturing jobs??

we can't compete in the socks market? bah who cares.

I prefer competing in the plane engines/pharmaceuticals/engineering/financial/educational/etc markets.

My father gets paid in US dollars but lives in Canada and has taken a massive massive pay cut from a few years ago because of this.

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Originally posted by AwakenedAddict Bollocks. Who says we can't compete with the US? Maybe Canada can not match the US in the production of low-value added manufacturing goods... but the educational subsidies paid out by the government of Canada definately give Canadians a leg up in knowledge-intensive industries. If anything, high taxes restrain the economy from overheating in this time of Canadian prosperity (and American economic stagnation).

It is a statistical fact that productivity in Canada lags behind the US. Ask any economist about that. It is the reason a high dollar affects our ability to compete.

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Originally posted by malek do we really want low-value manufacturing jobs?? we can't compete in the socks market? bah who cares. I prefer competing in the plane engines/pharmaceuticals/engineering/financial/educational/etc markets.

And to do this on the same level as americans we either have to make heavy cuts to employment or increase prices. And the reason for this is higher overhead in canada primarily the result of higher taxes.

quote:

Canada losing trade advantage: Emerson Last Updated Thu, 08 Jun 2006 09:54:04 EDT CBC News Canada is sitting comfortably when it should be aggressively working to sign more free-trade deals with other countries, International Trade Minister David Emerson is warning. Exports hit a record $516.4 billion in 2005, and the Canadian economy continues to surge, according to a new report on foreign trade to be released in Ottawa on Thursday. But while Canada is expected to lead G7 countries in economic growth this year, it is actually losing its competitive edge internationally because it is not negotiating more bilateral trade deals, Emerson said. "We need to be trade competitive or we will suffer more than most � if not all � countries in the world for lack of competitiveness," Emerson said. The U.S., for example, has 12 free-trade agreements with 18 countries, while Mexico has 13 deals with 43 countries. Despite the strength of a booming commodities sector � with hot demand for natural resources, energy and forest products � Emerson says Canada depends too much on trade for its economic future to be secure. "We need to take actions now to have dramatic implications for trade and prosperity and the jobs and employment opportunities to our kids and grandkids, even though we think we're doing great," he said. As trade minister, Emerson said he wants to focus on strategic investments in technology and transportation infrastructure, as well as on reducing business taxes.

Link

I kept saying that Canada is doing fine even with the high dollar, but it looks like I was not looking for the right clues. I was merely looking at the trade suprlus, and its continued growth, but most of that was driven by the commodities.

Our dollar also dropped a few days ago, amid news of the US Federal reserve raising interest rates. Are these signs of things to come?

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Originally posted by Orko Link Our dollar also dropped a few days ago, amid news of the US Federal reserve raising interest rates. Are these signs of things to come?

The dollar is already down more than 4/5 of a cent. Housing and job reports came out today.

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Originally posted by Orko I was merely looking at the trade suprlus, and its continued growth, but most of that was driven by the commodities.

despite the attempts to diversify into high-tech indsutries, canada is still a commodity based economy. minerals and oil.

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Originally posted by simms327 despite the attempts to diversify into high-tech indsutries, canada is still a commodity based economy. minerals and oil.

True, but the banking sector in Canada is one of the world's strongest. It has had the highest return on investment to shareholders in the world over the past 5 years.

source

for the last 30 years Canada sit on its laurels because it had a low dollar, which compensates for low productivity. (cost per unit high (in C$), cheap price sale (in US))

Now that the dollar is much higher, we have to be much more productive to be able to intrest importers again. (cost per unit high (in C$), high price (in US))

quote:

Originally posted by Orko Link I kept saying that Canada is doing fine even with the high dollar, but it looks like I was not looking for the right clues. I was merely looking at the trade suprlus, and its continued growth, but most of that was driven by the commodities. Our dollar also dropped a few days ago, amid news of the US Federal reserve raising interest rates. Are these signs of things to come?

Our dollar has only been doing well against the US dollar and those currencies pegged to the US dollar. We have only done slightly well against other major currencies.

For example the british pound is still 2.10 canadian. During the 60 cent dollar it was 2.25 on average.

The Euro is $1.45. During a 60 cent dollar it was $1.60 canadian.

So as you can see, the so called strength of the canadian dollar is actually not any strength at all. Its all based on the weakness of the US currency.

Note the difference in patterns over the last 5 years for each currency. The only currency with a major upswing is the US currency.

US dollar
http://ichart.finance.yahoo.com/5y?cadusd=x

Euro
http://ichart.finance.yahoo.com/5y?cadeur=x


British Pound
http://ichart.finance.yahoo.com/5y?cadgbp=x

I was just at a rest stop along the 401 and saw the exchange offered at 6%! I can remember looking at those signs and they said 40. crazy.

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Originally posted by Skipper I was just at a rest stop along the 401 and saw the exchange offered at 6%! I can remember looking at those signs and they said 40. crazy.

a lot of places just do it at par now.

over here many places charge 10% extra if paid in US dollars... many smaller stores don't want to bother to go to banks and change the money.

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Originally posted by malek over here many places charge 10% extra if paid in US dollars... many smaller stores don't want to bother to go to banks and change the money.

Or so they say because most businesses make a daily or bi-daily stop at the bank.

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Originally posted by Jayx1 Or so they say because most businesses make a daily or bi-daily stop at the bank.

yes but they usually pay a fee for changing US dollars plus a couple of % in the exchange rate.

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Originally posted by malek yes but they usually pay a fee for changing US dollars plus a couple of % in the exchange rate.

Is it different for a business? Everytime I have exchanged money from US $ or British Pounds, its always just been a % of each dollar, and not fee.

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