Is a collapse of US dollar imminant?

$1 Cdn = $1 US

http://www.cbc.ca/money/story/2007/09/20/canadiandollar.html

The Canadian dollar reached parity with the U.S. greenback on Thursday for the first time since November 1976.

The loonie briefly reached $1.0003 US on foreign exchange markets shortly before 11 a.m. ET, the Bank of Canada said. The loonie's stint at parity was brief, however, as it later slipped back to just under $1 US.

Some financial data providers reported that the loonie had reached parity shortly after 9 a.m. ET. But the Bank of Canada said the data its trading room was looking at did not show parity at that time.

"Currency trading is an over-the-counter market," a Bank of Canada spokesperson told CBCNews.ca. "It's not like the TSX." So there can be small discrepancies depending on the trades the data source monitors.

At any rate, all data sources are now showing that the Canadian dollar did reach parity.
 
Looks like the glorious crusade is draining the Empire's reserves after all.

Oh well, it is all for the greater good of....Something!

:)
 
The Canadian dollar has reached parity with the U.S. dollar for the first time since 1976

1976? Wasn't that the year that Republicans ripped Jimmy Carter apart for leaving a Billion Dollar Debt?

LMAO .
 
The markets climb a wall of worry and you guys at CFC are one of the best contrary indicators I've ever seen. For that I thank you. :thumbsup:

Let's review treasuries for a minute.
The yield of the 10-year note is 4.70%
This year's 10 year range has been as high as 5.20%ish (June?) and a low of 4.30%ish (just a few weeks ago).

Looks like a pretty reasonable range and still low relative to the past.
However, I'm pretty sure everyone realized treasuries had no value below 4.50% and really doesn't offer much upside under 5.25% imo. In fact, there was a point a few weeks ago where 10 AAA tax frees were yielding the same as treasuries. I haven't seen that in my life.

In the meantime, U.S. exports and affliated sales are booming, exports alone account for ~13% of US GDP. Exports reached records in each of the past five months as Boeing Co., General Electric Co. and Deere & Co. shipped more airplanes, engines and tractors overseas.

Classical economic doctrine would hold that countries compete by producing and exporting what they make best, while importing from other countries those goods where they lack comparative advantage. The tally of exports and imports results in either a trade surplus, thought to be good, or a deficit, considered bad.

Keep pounding the dollar? Why? Huge trade deficit? Then you're the greater fool and Americans hope you'll continue to sacrifice margin for market share and keeping prices and inflation down. That's the bigger risk to the U.S.

Here's the thing....that 200-year-old economic theory on trade is flawed and overly simplistic. When combining U.S. and foreign-owned affiliate sales with the export-import data shows that the United States actually sold more goods and services abroad in 2004 (last data point) than it bought from the rest of the world. In other words, the U.S. enjoys a global commercial surplus with the world, totaling $1.2 trillion and still growing.

Bad dollar? Guess it depends.
 
:mwaha: :mwaha: :mwaha: :mwaha:

You once mocked it, soon you will have no choice but to bow to it.

Have a good look as soon you will be using it after we buy your little banana republic. :p

loonie_np_02052007.jpg


That's right, you've been usurped by a small bit of water fowl.
 
You know your currency is in trouble when its on par with something called a 'loonie'.

Water fowl they can accept. and worship. what they will have more trouble with is this:

loonie.jpg


GUESS WHAT! The loonie has no 'spy cameras'

unlike this:
2_61_coin_canada_poppy_1.jpg
 
We have an empire? That's good. We've been upgraded from just the sole superpower to a veritable empire. That's really awesome, in fact. Empires are cool.
 
We have an empire? That's good. We've been upgraded from just the sole superpower to a veritable empire. That's really awesome, in fact. Empires are cool.

Only one way for the USA empire to go down and that where we are heading (or are the 20%'ers going to claim we own the world just like in the last days of WWII the nazis thought that they would still win?)
 
$1 Cdn = $1 US

http://www.cbc.ca/money/story/2007/09/20/canadiandollar.html

The Canadian dollar reached parity with the U.S. greenback on Thursday for the first time since November 1976.

The loonie briefly reached $1.0003 US on foreign exchange markets shortly before 11 a.m. ET, the Bank of Canada said. The loonie's stint at parity was brief, however, as it later slipped back to just under $1 US.

Some financial data providers reported that the loonie had reached parity shortly after 9 a.m. ET. But the Bank of Canada said the data its trading room was looking at did not show parity at that time.

"Currency trading is an over-the-counter market," a Bank of Canada spokesperson told CBCNews.ca. "It's not like the TSX." So there can be small discrepancies depending on the trades the data source monitors.

At any rate, all data sources are now showing that the Canadian dollar did reach parity.


Jack says (Cynical Me)
And this is where the US Dollar will hover for the time being until the time is right to introduce the "Amero."
 
A collapse of anything only happens when 'they' want it to happen.

Anyone who thinks that there is a 'random' factor to economics is not seeing the way things work.

...

You're trying to sound badass and mysterious but you just come off like an enormous nerd.
 
No.

Its just usual fear-mongering and making news so there is news.

The US dollar is weakening and will continue to weaken until the ship rights itself, but collapse? lol
What do you mean "until the ship rights itself" lol?

:mwaha: :mwaha: :mwaha: :mwaha:

You once mocked it, soon you will have no choice but to bow to it.

Have a good look as soon you will be using it after we buy your little banana republic. :p

loonie_np_02052007.jpg


That's right, you've been usurped by a small bit of water fowl.
I wonder when the loony will overtake the dollar.
 
The euro is being independantly devalued by member states in violation of EU currency agreements. I wouldn't bet on many new countries adopting it (barring the actual formation of a single euro country), let alone it's long term competition with the dollar (even if opec standardizes on the euro).

It was also devalued ~2001 by a couple countries who simply did so in blatent violation of the agreement. No penalties were levied.

You should see it in perspective - Eurozone countries have set up a cap on their budget deficits - 3% of their annual GDP I think - which shouldn't be exceeded. Of course, some big EU countries had problems with that, Germany and France are the most notable examples.

On the other hand, US deficits are much worse and there is no cap on them. US economy is dependant on foreign investments coming from Europe, Japan and Asia. It is essentially a 'consumer' economy with huge disbalance of its exports/imports. It profits from the factthat US dollar is a sort of a "world currency".

Perhaps it's a time to switch to another currency, and Euro is one of the top candidates. Europe, despite its problems, is still a major trading hub and an economy based on exports, not imports.

As for the Eurozone, the new member states are expected to join in the next decade, which means another 100 milion people will be using euro by the end of 2020.
 
Prophesies have a nasty tendency of being self-fulfilling in these matters. Or so the economic historians tell me. They tend to take the longer view, and then borrowing for consumption and letting the budget deficit grow sooner or later always produces a reaction.:)

Economics is the most vulnerable when it comes to self-fulfilling prophecies.

This fear-mongering, as one of the posters here called it, is exactly the thing that can trigger it.

Media: "Fears are looming that the US dollar may weaken rapidly in the coming weeks."
People: "We don't like it, let's save some money for a change, just in case..."
Economists: "Sudden downturn in the households spending in the US may threaten the stability of the US economy and the US dollar itself."
Prominent Gulf oilocracy: "Dollar is weakening! We must sell it before the others do that and it depreciates!"
Other investors: "They're selling it, they know it's gonna depreciate, we have to sell it while there's still time!"
US investors: "OK, let's pack it up, we're leaving!"

-> Kabooom....

It's a bit unsettling to know that economy is based not on gold, not on oil, but on people's confidence, given how easily they can be manipulated by the media...
 
You guys probably won't remember, but back in January the media was saying oil prices were going to collapse. That's around the time when I went contrarian & bought/invested (even more than I already was) into the energy sector, which worked out splendidly. As for the USD collapsing, eh, just look at the source of that link, will ya? There are too many market forces out there at work, and there's a right price range / value for everything. The smart ones just know where that range is, while everyone else is acting hysterical.
 
You guys probably won't remember, but back in January the media was saying oil prices were going to collapse. That's around the time when I went contrarian & bought/invested (even more than I already was) into the energy sector, which worked out splendidly. As for the USD collapsing, eh, just look at the source of that link, will ya? There are too many market forces out there at work, and there's a right price range / value for everything. The smart ones just know where that range is, while everyone else is acting hysterical.

The dollar is already down 33% from 2000 (vs everything but the yen and stuff that is pegged at the dollar)

How much lower does it have to go to be considered a crash?
 
The dollar is already down 33% from 2000 (vs everything but the yen and stuff that is pegged at the dollar)

How much lower does it have to go to be considered a crash?

You can call it whatever 'c' word you want, but it's just been an inevtiable relative weakness trend considering the vast array of world economic forces in action over the said time frame - not the least of which is that the USD is increasingly standing on it's own, combined with the fact that foreign institutional (& gov't) investors are diversifying accordingly. Essentially, it's resulted in massive moves out of the USD, into a more balanced portfolio. All I was saying is that the idea that 'they're all gonna keep going, and leave the USD for dead', is pure lunacy or naivity.

Basically I would think of it as; the RSI (relative strength index) of the USD has declined. But, just think of how high it was... couldn't stay way up there forever, especially with all this nice globalization in recent years.
 
You're trying to sound badass and mysterious but you just come off like an enormous nerd.

The bit you have wrong is that I am not trying to sound like anything of the sort.

Just giving my views...Like them or lump them.

It's up to you how you perceive me, but know that you are totally off the mark.

:p
 
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