# Canadian loonie at 70 pennies



## 1980z28 (Mar 4, 2010)

http://www.bnn.ca/News/2015/7/17/Why-we-could-see-a-US-070-loonie.aspx

Should help with exports and tourist


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## avrex (Nov 14, 2010)

Here's something in the article that caught my eye (i.e. that I hadn't thought of)

_"....but the prospect of Thomas Mulcair’s NDP coming to power is widely thought to be a worst case scenario in the minds of international investors."_


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## Emjay85 (Nov 9, 2014)

avrex said:


> Here's something in the article that caught my eye (i.e. that I hadn't thought of)
> 
> _"....but the prospect of Thomas Mulcair’s NDP coming to power is widely thought to be a worst case scenario in the minds of international investors."_


Let's hope that doesn't happen.


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## nathan79 (Feb 21, 2011)

Of course BNN would say that. I doubt it really matters, the economy doesn't seem to care who is in power.


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## jerryhung (Mar 28, 2011)

I don't think US people like to come to Canada that much

They'll probably go to Europe with EUR:USD at $1.08, super low!!!


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## none (Jan 15, 2013)

Emjay85 said:


> Let's hope that doesn't happen.


Hyperbole and stupid. Why would ANYONE vote for a party that got us into this mess makes me roll my eyes.

Mulcair is getting my vote.


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## sags (May 15, 2010)

Most people didn't and won't vote for Harper............but with opposition parties splitting the vote we end up with the worst of the lot.


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## AltaRed (Jun 8, 2009)

none said:


> Hyperbole and stupid. Why would ANYONE vote for a party that got us into this mess makes me roll my eyes.
> 
> Mulcair is getting my vote.


If you look at what the NDP has done in the last 20 years when they have held power in provinces, it is nothing short of basket cases. Manitoba is the latest to take on Greek economics. Surely you jest!

http://www.cbc.ca/news/canada/manit...ting-downgraded-due-to-growing-debt-1.3147120


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## BoringInvestor (Sep 12, 2013)

AltaRed said:


> If you look at what the NDP has done in the last 20 years when they have held power in provinces, it is nothing short of basket cases. Manitoba is the latest to take on Greek economics. Surely you jest!
> 
> http://www.cbc.ca/news/canada/manit...ting-downgraded-due-to-growing-debt-1.3147120


But currently we have a Conservative party that has been in power for several years, emphasized the need to cut taxes to stimulate the economy, and yet we're heading into a recession and will likely run a deficit this year. Are they a basket case too?


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## AltaRed (Jun 8, 2009)

BoringInvestor said:


> But currently we have a Conservative power that has been in power for several years, emphasized the need to cut taxes to stimulate the economy, and yet we're heading into a recession and will likely run a deficit this year. Are they a basket case too?


They clearly underestimated the effects of the global slump in commodities in their fiscal plan. That said, not much they, or anyone else, could have done to prevent it. As a trading nation, WE are at the mercy of global economic health. 

Ontario, on the other hand, could quit f**king around with nosebleed electrical prices, higher payroll burdens and the idiotic provincial pension plan they are going to stick business with. Why do you think Ontario and Quebec manufacturing have not been able to fill the export gap at a depressed loonie? What part of the message has Ontario not heard from CEO after CEO, especially the car manufacturers, the latest from Fiat Chrylser? It is because Canada is not competitive even at an 80 cent loonie.

From BNN this morning


> from Bloomberg: “Ontario, the world’s most indebted sub-sovereign borrower”. The province’s population is “about one third of California’s” but “its debt load is more than double that of the biggest U.S. state.”


If the 2 biggest provinces are in denial about their own economies and burden them with socialist crap, what can anyone do?


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## Cal (Jun 17, 2009)

avrex said:


> _"....but the prospect of Thomas Mulcair’s NDP coming to power is widely thought to be a worst case scenario in the minds of international investors."_


Not just international investors think this!


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## sags (May 15, 2010)

The head of the import/export association said the low loonie doesn't have the same impact anymore because Canada doesn't export many manufactured goods.

The low dollar helps with exports, but if manufacturers decide to rebuild in Canada............the low loonie would raise the cost of buying the necessary equipment from the US.

This issue and many others cannot be discussed in a vacuum, without examining what the ramifications of unbalanced free trade agreements have been.

It wasn't just jobs that were exported. The equipment, templates, blueprints, research and development and expertise where all exported along with them.

Until that issue is addressed..........nothing else the government does is going to matter very much.

As Ross Perot quipped in 1991................the "giant sucking sound" you will hear is the sound of jobs flowing out to low wage countries like Mexico and China.

https://www.youtube.com/watch?v=Rkgx1C_S6ls

Interesting to listen to what he says in the clip. The experts he talked to said the full negative effects of unfair trade agreements would take 12 -15 years to manifest themselves fully. He made the quip in 1991. It took a few years longer but his estimate was certainly in the ball park.

The trade negotiators knew it would be a temporary benefit with deep long term negative effects, but they were directed by the big business lobby.

Beyond the current state of conditions in the US and Canada, what further proof is needed that free trade has been a jobs disaster and Ross Perot was right ?

As Perot also said, offer the same deal and conditions to the trading partners..........environment, wages, pollution, health care, retirement, and they wouldn't have agreed.

Our dollar now is simply a petro dollar, based entirely on our main product..........oil.

Our economic future is now all tied to one commodity.


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## BoringInvestor (Sep 12, 2013)

AltaRed said:


> They clearly underestimated the effects of the global slump in commodities in their fiscal plan. That said, not much they, or anyone else, could have done to prevent it. As a trading nation, WE are at the mercy of global economic health.
> 
> Ontario, on the other hand, could quit f**king around with nosebleed electrical prices, higher payroll burdens and the idiotic provincial pension plan they are going to stick business with. Why do you think Ontario and Quebec manufacturing have not been able to fill the export gap at a depressed loonie? What part of the message has Ontario not heard from CEO after CEO, especially the car manufacturers, the latest from Fiat Chrylser? It is because Canada is not competitive even at an 80 cent loonie.
> 
> ...


What you're saying goes against the Conservatives own messaging over the past few years - namely it was only through their 'low-tax' agenda that Canada didn't suffer as badly as the States during the 2008/09 global meltdown, and that only they can keep Canada's economy strong.

Essentially, they've been exposed as an emperor without any clothes, and any talk about them being the only party that can keep Canada strong economically has been proven moot.


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## AltaRed (Jun 8, 2009)

BoringInvestor said:


> Essentially, they've been exposed as an emperor without any clothes, and any talk about them being the only party that can keep Canada strong economically has been proven moot.


Agreed, but that says nothing about 'degree'. IOW, there is bad, worse and terrible. Spending one's way out of a slump is hardly the way to do it.... as noted by the economic basketcases in Europe. We've been down that road in the past and it took concerted effort to back away from the wall.


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## gibor365 (Apr 1, 2011)

> Ontario, on the other hand, could quit f**king around with nosebleed electrical prices, higher payroll burdens and the idiotic provincial pension plan they are going to stick business with


Give one more term to Libs and ON will go belly up. Ms. Wynn cares only about unions, government workers and LGBT community... Vore for Libs in next election if you want all Canada be like ON :stupid:


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## none (Jan 15, 2013)

I think right now Alberta is wishing it was more like ontario. End of days for those oil suckers.


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## OnlyMyOpinion (Sep 1, 2013)

none said:


> I think right now Alberta is wishing it was more like ontario. End of days for those oil suckers.


You are kidding right?


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## gibor365 (Apr 1, 2011)

none said:


> I think right now Alberta is wishing it was more like ontario.


 Why do you hate Alberta?!


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## none (Jan 15, 2013)

I don't hate Alberta - I just think a lot of the people are misguided - they think Alberta is (was) great because they 'work so much harder" than the rest of the country. Actually it was only because of expensive oil. Now that's gone, what's left? Not so smug anymore. I think there are more real innovators in Ontario. At least there they try to make stuff compared to alberta where they just pump oil out of the ground (by burning +0.5L of oil for each L of oil extracted). It's gross.


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## Causalien (Apr 4, 2009)

sags said:


> The head of the import/export association said the low loonie doesn't have the same impact anymore because Canada doesn't export many manufactured goods.
> 
> The low dollar helps with exports, but if manufacturers decide to rebuild in Canada............the low loonie would raise the cost of buying the necessary equipment from the US.
> 
> ...


There is one observation I have moving back here after 3 years on the road. I have a bunch of leather products that I brought back to the shops to get serviced because of wear and tears (leather is the only thing that can survive 3 years of hardcore usage). Unanimously, they all have the same response. We no longer do repairs and cleaning as it is unprofitable to do so. 

To me, that sounds like something is seriously wrong on such a high premium product. Now I have to find stuff online and try to service it myself, or drive 3 hours away to this remote shop that has the special skill.


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## gibor365 (Apr 1, 2011)

> > I don't hate Alberta - I just think a lot of the people are misguided - they think Alberta is (was) great because they 'work so much harder" than the rest of the country. Actually it was only because of expensive oil.


 This is a reality! In the last 15-20 years Canana completely converted to "banana" republic. And suddenly we see that there are too much "bananas" in the world... I was telling for a long time that Canada in fuc%$# deep hole and it will be worse and worse (unless "bananas" price suddenly will increase).

P.S. And Canada still pretends that it's some kind of superpower..... bombing ISIS, "helping" neo-Nazi Ukraine .... what a j0ke


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## none (Jan 15, 2013)

I totally agree with that. Canadian's are defined by their sanctimonious hypocritical bullshit.


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## gibor365 (Apr 1, 2011)

When we came to Canada 16 years ago, Canada had ATI, RIM, BBD.B, INTC (where actually my wife got reallocated).... what do we have now?! 
P.S I advised to Greece to sell/rent some islands ... maybe Canada also should start thinking about it... ?! Sell/rent some islands in Baffin Sea.... who the Hell needs them?!


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## none (Jan 15, 2013)

well almost everybody has a house worth a million bucks!!

(not really but wouldn't it be great if it was true???)


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## gibor365 (Apr 1, 2011)

none said:


> well almost everybody has a house worth a million bucks!!


 Our maybe in 550-600K range, but those are Canadian "bucks"  in "real money" in last 4 years Canadian houses lost value as CAD$ was 40% down comparing to US$! 
P.S. If you measure it in Ukrainian Hryvni , every house worth 10 millions


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## andrewf (Mar 1, 2010)

Gibor calls Canada a banana republic, wannabe superpower. Also a huge fan of Putin's Russia. Hilarious. Russia is broke (far more dependant on oil than Canada), pretending they can actually challenge the west militarily. Russia is so weak, the only way they could attack Ukraine is the pathetic kabuki theatre non-war they have been engaged in.


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## gibor365 (Apr 1, 2011)

Typical Liberal move! When there is nothing to say, andrewf is diverting topic to Russia  



> Russia is broke (far more dependant on oil than Canada)


Oh, really?! Who told you it?! Russia is dependant on oil , but much less than Canada. 
Russia is number 2 Arms exporter in the World, they export 25 times more than Canada. And Russian weapon is one of the best (probably the best) in the World.
https://en.wikipedia.org/wiki/Arms_industry

By Gold reserves, Russia is number 5 in the World. Canada is not even on the list
http://www.bloomberg.com/news/artic...nd-the-ones-that-have-been-buying-it-the-most

Twenty Most Powerful Nations at Given Years .... check out where is Russia and where is Canada.
https://en.wikipedia.org/wiki/National_Power_Index

Just cannot imagine what would be Canada with Russian-type sanctions


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## andrewf (Mar 1, 2010)

70 percent of the Russian exports are oil and gas. Less than 10 percent for Canada. Russia is selling obsolete military hardware to countries that can't afford or have poor relations with the west.

Canada had no pretensions about being a superpower. Russia is still pretending. It is turning itself into a hermit kingdom ruled by king Vlad.


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## gibor365 (Apr 1, 2011)

> Russian arms were exported to 60 countries. The most significant supplies went to countries in Southeast Asia and the Asia-Pacific region — 43 percent. The second most significant market remains the Near and Middle East, together with North Africa — 23 percent.[2] For the period 2010-14, the Stockholm International Peace Research Institute, SIPRI, found that Russian exports of major weapons had increased by 37 per cent between 2005-2009 and 2010-14. .....Three countries— India, China and Algeria—accounted for almost 60 per cent of total Russian exports. Asia and Oceania received 66 per cent of Russian arms exports in 2010–14, Africa 12 per cent and the Middle East 10 per cent


 And what Canada exports?! Maple syrop?!


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## andrewf (Mar 1, 2010)

https://atlas.media.mit.edu/en/profile/country/can/

Cars, aerospace products are the top two. This only shows exports of physical goods, Canada also exports services and technology.

You really should be embarrassed to know so little about the country you live in. But I guess you are just passing through and have very little at stake.


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## gibor365 (Apr 1, 2011)

Planes, Helicopters, and/or Spacecraft (2.6%) - really impressive number :biggrin:



> From 1995 to 2000, Canadian auto & parts exports increased to a high of $92.7 billion, decreased to a low of $41.7 billion by 2009, then gradually increased to $65.3 billion by 2012.


 so in 2012 it's 50% less than in 2000! Also, we're talking about factories , all manufactures are US and Japan companies.... so Canada is like Mexico 


> 'The hardest thing of all is to find a black cat in a dark room, especially if there is no cat.'


P.S. We personally never had and never gonna have any North American car.


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## andrewf (Mar 1, 2010)

I'm sure you enjoy driving your Lada.


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## gibor365 (Apr 1, 2011)

I enjoy driving our Toyota and Honda ... and you may enjoy your Ford :biggrin:
and I really enjoyed AK-74, M-16 comparing to AK is piece of sh..


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## andrewf (Mar 1, 2010)

Toyota and Honda both manufacture in Canada. And while Canada does not have any large independent auto makers, we do have some world leaders in the parts making business, including magna and linamar. At any rate, Canada has a large, diverse and sophisticated economy. Something for Russia to aspire to. I think that will first require a change in regime and a commitment to the rule of law.


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## uptoolate (Oct 9, 2011)

Gibor really? 

I always found myself just a little bit reassured when boarding a Canadair regional jet or Dash-8 when traveling in the countries of the former Soviet Union. Loved the white knuckle flying on those Il-62's. Thankfully the vast majority of all planes of Russia's 'major' airlines are made by Boeing and Airbus. 

Just having returned from Russia it struck me that just about every major implement I saw from plane to train to heavy construction equipment was of Western or Oriental origin. Of course many of the Soviet era subway cars in the underground were very impressive. They looked to be in such good shape for antiques. 

The loonie has it's ups and downs. Nothing new. That's the way it works.


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## lonewolf (Jun 12, 2012)

The greenback cash closed above the 08 high @ 1.3088. 

Major resistance around 1.60

In the middle of the depression was the all time high for the green back against other currencies. The strong greenback is deflationary


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## james4beach (Nov 15, 2012)

Agree we're in a deflationary mode (with a strong US dollar). Commodities tell the same story; broad commodities have been falling for 4 years straight now.


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## GPM (Jan 23, 2015)

AltaRed said:


> If you look at what the NDP has done in the last 20 years when they have held power in provinces, it is nothing short of basket cases. Manitoba is the latest to take on Greek economics. Surely you jest!
> 
> http://www.cbc.ca/news/canada/manit...ting-downgraded-due-to-growing-debt-1.3147120


I'm mostly apolitical and don't give a rats butt about who rules. However, anyone believing we have a Conservative party is fooling themselves. There is no Conservative party. Joe Clark and Brian Mulroney were the last conservatives. We're now ruled by the an Evangelical Reform party (both dangerous, especially in combination - separation of church and state and all) in conservative colours. Oh, how I fondly remember having a "Canadian " govt instead of one named after its leader. By the way, Saskatchewan was fine under the NDP for MANY years. It was the now defunct Conservatives that made the asinine move of selling sask potash. A few went to jail but many more should have. Regrouped under the even worse Saskatchewan party . Mostly made of old Conservatives. That's my story. Not interested in opinions from albertans.


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## GPM (Jan 23, 2015)

andrewf said:


> Gibor calls Canada a banana republic, wannabe superpower. Also a huge fan of Putin's Russia. Hilarious. Russia is broke (far more dependant on oil than Canada), pretending they can actually challenge the west militarily. Russia is so weak, the only way they could attack Ukraine is the pathetic kabuki theatre non-war they have been engaged in.


Putin Shoulda ***** slapped Harper (not worth a real beating but would be enjoyable to see any of our former leaders get one) when he told Russia to get out of the Ukraine. He's a closet hiding pansy, not a real Canadian. Like the PM is indispensable. Putin is ex KGB, and can there be a bigger joke than our miniscule army. Brave no doubt(and REAL CANADIANS doing the best with what they have) and ALWAYS getting the toughest assignments since boer war. But compared to Russia, HO HO HO. I was embarrassed to be Canadian when that hit the headlines, I'm afraid.
Met a Canadian oil patch engineer just back from Russia. Said he'd never seen anything like some of the military equipment there, when he was in the north. Still a global threat(?) I'm afraid, or just a threat to G7 domination?
Day Oh! I say Dayay Oh...


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## GPM (Jan 23, 2015)

none said:


> I don't hate Alberta - I just think a lot of the people are misguided - they think Alberta is (was) great because they 'work so much harder" than the rest of the country. Actually it was only because of expensive oil. Now that's gone, what's left? Not so smug anymore. I think there are more real innovators in Ontario. At least there they try to make stuff compared to alberta where they just pump oil out of the ground (by burning +0.5L of oil for each L of oil extracted). It's gross.



I am a proud hater of Alberta.


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## lonewolf (Jun 12, 2012)

Big Mac in the U.S $4.79
Big Mac in Canada $4.54

The Canadian dollar is not going far when converted to U.S dollar. If $4.54 Canadian could be converted into $4.79 U.S then there would be no spread of one currency being worth more then the other when converting U.S to Canadian. The flight to safety into the U.S dollar could be causing the U.S to be worth more on the exchange then it really is when spent in Canada.


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