Should the Loonie be downgraded?

[Desmond Hawkins]

Artificially lowering the value of their money.

Nope..........

 

[AL_DA_GREAT]

Lower it. Canadian goods are getting to expensive. I have heard that this has caused a lot of trouble in epecialy Ontario.

 

[JerichoHill]

AL, did you even read my post on exchange rates?

 

[Desmond Hawkins]

Ya, in the long run exchange rates are neutral if left to market forces.

A lower currency value means cheaper exports and more expensive imports, which raises the price of importing necessary capital to produce further exports.

A higher currency value makes exports more expensive, but reduces the cost of importing necessary capital, which will ultimately make the costs of exports drop.

Neutral.

 

[El_Machinae]

I'd prefer to get overseas capital products than export our (limited) natural resources.

 

[blackheart]

Lower it. Canadian goods are getting to expensive. I have heard that this has caused a lot of trouble in epecialy Ontario.

Canada has exports?

But really, lowerin your own currency is kind of shooting yourself in the foot, because why did the economy go through all that hard work to have it cut itself?

 

[History_Buff]

Canada has exports?

But really, lowerin your own currency is kind of shooting yourself in the foot, because why did the economy go through all that hard work to have it cut itself?

The Canadian Trade Surplus with the United States is near 100 Billion Dollars I think. I can check that number next time I goto work, and check the census results.

Most of our exports are natural resources, ie, Albertan/Saskatchewan Oil. We export more Oil to the States than Saudi Arabia does. There's also Natural Gas, Timber, and Minerals.

Even if you were joking, I had to throw that out there

 

[sysyphus]

Most of our exports are natural resources, ie, Albertan/Saskatchewan Oil. We export more Oil to the States than Saudi Arabia does.

A few countries export more oil to the US than Saudi Arabia. Canada is the biggest supplier though, followed by Mexico.

The thing that will hold us is that the US needs more resources than it can produce itself. Our abundance of resources and close proximity will at least keep that market moving.

Manufacturing will be hit hardest by this, but it's been hutring for a while and Canada has been weaning itself off manufacturing dependency, though we have a long way to go, especially in Ontario.

 

[AL_DA_GREAT]

Canada has exports?

But really, lowerin your own currency is kind of shooting yourself in the foot, because why did the economy go through all that hard work to have it cut itself?

I am saying lower it to make up for that it has rised. It will still be higher than it was before. Change should be slow.

 

[JerichoHill]

Al,

Are you saying you know the Canadian economy better than its financial markets?

 

[blackheart]

I am saying lower it to make up for that it has rised. It will still be higher than it was before. Change should be slow.

That's intuitively counterproductive. And why would the government be any good at determining growth rates? They're too slow acting to adapt to market conditions that rise.

 

[sysyphus]

That's intuitively counterproductive. And why would the government be any good at determining growth rates? They're too slow acting to adapt to market conditions that rise.

Of course they're slow, they're Tories!

 

[blackheart]

The Canadian Trade Surplus with the United States is near 100 Billion Dollars I think. I can check that number next time I goto work, and check the census results.

Most of our exports are natural resources, ie, Albertan/Saskatchewan Oil. We export more Oil to the States than Saudi Arabia does. There's also Natural Gas, Timber, and Minerals.

Even if you were joking, I had to throw that out there

Yes I was joking . However, you forgot the natural exports of hockey, beavers, comedians, actors, and mounty-related movies.

 

[History_Buff]

Yes I was joking . However, you forgot the natural exports of hockey, beavers, comedians, actors, and mounty-related movies.

I don't know that I've ever seen a Mountie related movie. I've heard a Mountie related song, and watched a Mountie related TV show though. I think I once read somewhere Canada is also a top importer of Sweden's main export: Modular furniture.

Of course they're slow, they're Tories!

Quoted for truth.

 

[AL_DA_GREAT]

What I am saying is a lot of change at once is bad the goverment should slow it down.

 

[sysyphus]

I think I once read somewhere Canada is also a top importer of Sweden's main export: Modular furniture.

I think my wife alone may be the reason for that.