i'd like to use this thread to welcome our new canadian overlords

[GetYourWarOn]

http://www.cbc.ca/money/story/2007/09/28/loonie.html


Loonie closes above parity
Last Updated: Friday, September 28, 2007 | 5:18 PM ET
CBC News


The Canadian dollar closed above parity Friday for the first time in almost 31 years, as the U.S. greenback continued its dramatic fall against major world currencies.

According to Bank of Canada data, the loonie closed at $1.0052 US, up two-thirds of a cent from Thursday's close.

Expressed another way, it means that a U.S. dollar is now worth a little less than 99.5 cents in Canadian money.

The loonie had reached parity with the U.S. currency on Sept. 20 — the first time since November 1976 — but had failed to close at or above that level.

The loonie's rise came in spite of a weaker-than-expected GDP reading for July. Statistics Canada said the economy grew by 0.2 per cent that month, while economists were forecasting growth of 0.3 to 0.4 per cent.

Higher gold prices also lent support to the dollar, analysts said. Gold futures jumped more than $10 US an ounce to above $750 US an ounce, a new 27-year high.

[Tompz]

Canada kick US ass.

You should give them Alaska.

[GetYourWarOn]

meh. i say we give them rhode island instead

[sam i am]

Good deal.....Canadians will now shop in the US, pay sales taxes here, and this will lead to budget deficits going down, increase in revenue to the state and national governments, kudos to the current Administration, and election of Republicans in 2008 due to the credit for said economic upswing!

Whew!

[Schmeltz]

One ought to consider that this trend is not really a reflection of the Canadian dollar's strength or increased purchasing power, given that prices here have remained the same in spite of the changing numbers. In fact, Canadians will probably find themselves with even less purchasing power than before as they feel the pinch of a less competitive currency in a commodity export-based economy. All the Canadian auto workers caught in a dying industry won't be making any hefty purchases or investments south of the border, I tell you what.

And at any rate, I find it tough to believe that any increase in the general volume of cross-border Canadian purchasing would be significant enough to offset the effects, domestic and international, of a falling currency in the States. The Canadian economy isn't big enough relative to its American counterpart to have any real impact in that direction.

[sam i am]

One ought to consider that this trend is not really a reflection of the Canadian dollar's strength or increased purchasing power, given that prices here have remained the same in spite of the changing numbers. In fact, Canadians will probably find themselves with even less purchasing power than before as they feel the pinch of a less competitive currency in a commodity export-based economy. All the Canadian auto workers caught in a dying industry won't be making any hefty purchases or investments south of the border, I tell you what.

And at any rate, I find it tough to believe that any increase in the general volume of cross-border Canadian purchasing would be significant enough to offset the effects, domestic and international, of a falling currency in the States. The Canadian economy isn't big enough relative to its American counterpart to have any real impact in that direction.

You do realize that Canada is the U.S.' #4 trading partner, right?

I believe China, Britain, and Mexico are 1,2, & 3 - maybe I'll research to double check....

[Schmeltz]

The most recent numbers I can find (from 2004 - this is admittedly with a minumum of searching) seem to indicate that Canada is actually the USA's #1 trading partner in both exports and imports, though in terms of cumulative percentage China is still ahead on both fronts. There are lots of different ways of measuring these things, I suppose.

Even so, it still seems to me that the nature of the Canadian economy as heavily dependent on natural resource commodities for export makes for trouble with a less competitive currency. This factor - the high importance of the primary sector versus a relatively lesser manufacturing sector - makes the Canadian economy somewhat unique among industrialized nations and would seem to offset any prospect of dramatically increased Canadian cross-border shopping.

[abcdefz]

I think we get most of our oil from Canada, actually.

[Schmeltz]

^Not only that but in 1988 our government promised Canada would never charge you Americans more for oil than we charge ourselves. What a fucking stupid idea. We could have throttled your horrific war machine single-handed and saved all those Iraqis. :(

[abcdefz]

I did not know that.