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The dollar hits 90 cents! (pg. 4)
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| Jayx1 |
| quote: | 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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| Jayx1 |
| quote: | 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. |
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| Orko |
| 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.
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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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| AwakenedAddict |
| quote: | 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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| simms327 |
| quote: | 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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| AwakenedAddict |
| quote: | 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 |
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| malek |
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)) |
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| Jayx1 |
| 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 |
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| 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. |
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| Jayx1 |
| quote: | 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. |
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| 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. |
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| Jayx1 |
| quote: | 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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