CAD worth more than USD...

SAM · Post by **SAM** » Wed Jul 16, 2008 4:27 pm

This is the second time I see the exchange rate for CAD to USD becomes larger than one in my life. The next might be CHF...

My island's currency is pegged to USD, and I found my paycheck shrink with the USD.

I did tried to reduce/counter this impact by puting two third of my investment in Canada, Switzerland & UK. But see these investments loss 15%, 20% & 10% respresentively. It seems that the only think that's goes up in value is gold and Cave PCBs...

Japan and China hold huge amouts of USD debts in the States, If they allow the USD to decrease in value against JPY & RMB. The US could then settle her debts by paying less with cheap dollars. But then what would happen if they make their currency weak so it won't devalue against the dollars?

jonny5 · Post by **jonny5** » Wed Jul 16, 2008 4:36 pm

the cdn dollar has been worth more than the USD a lot as of late......

heh heh....its actually good to be a canuck for once.....lolz

neorichieb1971 · Post by **neorichieb1971** » Wed Jul 16, 2008 4:40 pm

Currency evaluation is just stupid. The average person on the street shouldn't have to worry about this. Even if the USD was worth 50p in the UK, you would still be able to buy a car cheaper in the USA.

I believe there should be an overall currency that no one country dictates. The fact is the USA has the rest of the world by the balls and there is nothing we can do about it.

Super Laydock · Post by **Super Laydock** » Wed Jul 16, 2008 4:51 pm

neorichieb1971 wrote: I believe there should be an overall currency that no one country dictates.

Maybe, but that is a thing not to be realized soon in this divided world.

The fact is the USA has the rest of the world by the balls and there is nothing we can do about it.

you kidding?

European currency dominates the currency markets. China, Russia and India and the EU are soon to become larger players in the world economy than the US if they aren't already.

And the only thing that gives US some dominance in the world aside of economics is the military... which is proved to be only a lesser factor in the last few years since they can't control even some smaller countries (let alone major ones like China, Russia, India and the EU)

US fucked up it's own economy and others are taking it by it's balls.
So far for unbridled capitalism.

Limbrooke · Post by **Limbrooke** » Wed Jul 16, 2008 6:31 pm

jonny5 wrote:the cdn dollar has been worth more than the USD a lot as of late......

heh heh....its actually good to be a canuck for once.....lolz

For buying things in America, yes, it's good. For everything else, including prices back home on anything, no, it's real bad. Most notably for gasoline, house prices, and inflation. Incidently, gas and house prices were evaluated at a lower price this week while inflation continues to rise.

Ceph · Post by **Ceph** » Wed Jul 16, 2008 6:46 pm

For now, if you want a stable currency, you'll have to buy EUR. GBP has lost a considerable amount of value, too. A few short years ago, 1 GBP used to be 1.50 EUR. Now it's 1.25.

PROMETHEUS · Post by **PROMETHEUS** » Wed Jul 16, 2008 7:41 pm

Ceph wrote:For now, if you want a stable currency, you'll have to buy EUR. GBP has lost a considerable amount of value, too. A few short years ago, 1 GBP used to be 1.50 EUR. Now it's 1.25.

uuuh, I thought it was 1.50€ now too @_@ at least it definitely was when I went to England 1 year ago.

Super Laydock · Post by **Super Laydock** » Wed Jul 16, 2008 7:49 pm

PROMETHEUS wrote:
Ceph wrote:For now, if you want a stable currency, you'll have to buy EUR. GBP has lost a considerable amount of value, too. A few short years ago, 1 GBP used to be 1.50 EUR. Now it's 1.25.
uuuh, I thought it was 1.50€ now too @_@ at least it definitely was when I went to England 1 year ago.

check out www.xe.com

It's about 1.26 something atm.....
Good times for people from Euro countries wanting to buy stuff abroad...*

Selling is another story of course...

*Got myself a digital camera I always wanted from Canada recently.
It's over 225 Euro here, but got it for 126 Euro total (including postage costs and customs' tax)

CIT · Post by **CIT** » Wed Jul 16, 2008 8:08 pm

In the long run the dollar weakness will hurt the EU (and Japan, and China, and India) as well, though, because they're too dependent on exporting stuff to the US. America needs to sort out its current account deficit asap.

Super Laydock · Post by **Super Laydock** » Wed Jul 16, 2008 8:21 pm

CIT wrote:In the long run the dollar weakness will hurt the EU (and Japan, and China, and India) as well, though, because they're too dependent on exporting stuff to the US.

Theoretically yes.
The US is rapidly becoming a less important (well comparatively anyway) market though.

Still a force to be reckoned with, it'll be playing second and third guitar to the EU and more importantly India and China more and more in the future.
The dollar will be replaced by the Euro (presumably) as the most important trade currency in the near future (more than it has been so atm even)...

Isn't it it strange that a former semi communist country like China can hold the biggest example of capitalism hostage if it wanted to by it's own means?

Ceph · Post by **Ceph** » Wed Jul 16, 2008 8:25 pm

CIT wrote:In the long run the dollar weakness will hurt the EU (and Japan, and China, and India) as well, though, because they're too dependent on exporting stuff to the US.

Actually, there is a lot of trading inside the EU itself. For instance Germany's most important trade partner is France.

Specineff · Post by **Specineff** » Wed Jul 16, 2008 8:30 pm

Either way, I do hope the situation changes. It sucks having to pay more for any imports than before.

Ceph · Post by **Ceph** » Wed Jul 16, 2008 9:05 pm

Specineff wrote:Either way, I do hope the situation changes. It sucks having to pay more for any imports than before.

Not likely. The national debt of the USA is enormous and ever increasing. For instance, if the Japanese creditors alone would demand their money back today, the USA would have to declare national bankruptcy tomorrow.

neorichieb1971 · Post by **neorichieb1971** » Wed Jul 16, 2008 9:45 pm

Yeah well. This thread just tells me that the USA doesn't need to be accountable for its mistakes. No matter how worthless the $ is, nothing seems to get that expensive over there. No matter how much the GBP is strong or the $ is weak, everything there is a pittance compared to here (UK).

A small country like the UK gets murdered when it makes mistakes. If the GBP went really weak the world would invent reasons to hurt us.

There are several economic mysteries this century -

1) Why can the USD $ get more value for money when its worth a shit?
2) Why does oil continue to increase in price and nobody including OPEC knows the real reason?
3) Why are taxes going up and up and up and nothing changes?
4) Where does surplus cash evaporate to? All the money from stocks/shares/pensions just disappear without trace.
5) As oil gets more expensive, flashier and fancy cars suddenly hit the road (at least here). I've never seen so many BMW's, Porches, Lamborghini's, Ferrari's, Astons, Lotus's and SUV's.

The world should just print lots of money for everyone. It shouldn't be about what you can offer, but one mans appreciation of another mans quality of life. It should be as easy to find a place to live for a man as it is a bird to make a nest. The rest will find its place.

nimitz · Post by **nimitz** » Thu Jul 17, 2008 12:03 am

To neorichieb1971:
http://en.wikipedia.org/wiki/Economics

Ceph wrote:For instance, if the Japanese creditors alone would demand their money back today, the USA would have to declare national bankruptcy tomorrow.

Although your main point is true, this example doesn't mean anything.

Michaelm · Post by **Michaelm** » Thu Jul 17, 2008 4:38 pm

nimitz wrote:
Ceph wrote:For instance, if the Japanese creditors alone would demand their money back today, the USA would have to declare national bankruptcy tomorrow.
Although your main point is true, this example doesn't mean anything.

Cause they are already bankrupt ?

Anyway, those with the most cash will laugh in the end.
Just like in the old days when we actually sailed to a far away country to rob them of their goods, today we are all robbed of our goods without anybody actually having to do anything besides having a shitload of cash.
The rich double their income in times of worldwide stagnancy and triple their income when there's no stagnancy.
Cash makes cash, labour makes next to nothing.
It's like capitalism is the rightful son of colonization.

Ed Oscuro · Post by **Ed Oscuro** » Thu Jul 17, 2008 7:23 pm

Holding onto my euromoneys and canuckdolers for dear life

Daedalus · Post by **Daedalus** » Thu Jul 17, 2008 9:34 pm

neorichieb1971 wrote: There are several economic mysteries this century -

1) Why can the USD $ get more value for money when its worth a shit?
2) Why does oil continue to increase in price and nobody including OPEC knows the real reason?
3) Why are taxes going up and up and up and nothing changes?
4) Where does surplus cash evaporate to? All the money from stocks/shares/pensions just disappear without trace.

1. Not sure what you're saying here. The USD isn't exactly worth a shit though - It's low by historical standards, but still valuable.

2. More people want oil.

3. Unnecessary expenditures (ie war) and ignorant economic policy.

4. It doesn't evaporate anywhere. For comparison, lets say that you buy a game from Gamestop for $60. Suddenly, the game is worth about $20. Gamestop still has your $60. Just because an asset value changes doesn't mean money is appearing or disappearing.

The world should just print lots of money for everyone.

I have good news for you, friend. This country already exists, and it is called Zimbabwe.

GaijinPunch · Post by **GaijinPunch** » Thu Jul 17, 2008 11:32 pm

neorichieb1971 wrote:Currency evaluation is just stupid. The average person on the street shouldn't have to worry about this.

It's a world economy. It affects everyone. Nobody in the US buys products that are 100% made in America.

Actually, there is a lot of trading inside the EU itself. For instance Germany's most important trade partner is France.

Even if it's only a sizeable percentage, it still hurts those neighboring countries. I see Japan taking larger hit (cars, stereos, and other luxury goods).

For instance, if the Japanese creditors alone would demand their money back today, the USA would have to declare national bankruptcy tomorrow.

Chances of this happening: -20.2 %. The US isn't even paying rent on the fucking Embassy in Tokyo. If I'm not mistaken they're only asking $15,000 a year in rent. I pay more than that in rent.

Ed Oscuro · Post by **Ed Oscuro** » Thu Jul 17, 2008 11:51 pm

Daedalus wrote:
The world should just print lots of money for everyone.
I have good news for you, friend. This country already exists, and it is called Zimbabwe.

Not even that anymore - the German source of their banknotes just stopped shipping to Zimbabwe after being put under pressure from their government.

The thought of Mugabe's cronies breaking their backs lugging around tons of banknotes would be more satisfying if it weren't affecting everybody else as well.

neorichieb1971 · Post by **neorichieb1971** » Fri Jul 18, 2008 9:09 am

Daedalus wrote:
neorichieb1971 wrote: There are several economic mysteries this century -

1) Why can the USD $ get more value for money when its worth a shit?
2) Why does oil continue to increase in price and nobody including OPEC knows the real reason?
3) Why are taxes going up and up and up and nothing changes?
4) Where does surplus cash evaporate to? All the money from stocks/shares/pensions just disappear without trace.
1. Not sure what you're saying here. The USD isn't exactly worth a shit though - It's low by historical standards, but still valuable.

2. More people want oil.

3. Unnecessary expenditures (ie war) and ignorant economic policy.

4. It doesn't evaporate anywhere. For comparison, lets say that you buy a game from Gamestop for $60. Suddenly, the game is worth about $20. Gamestop still has your $60. Just because an asset value changes doesn't mean money is appearing or disappearing.

The world should just print lots of money for everyone.
I have good news for you, friend. This country already exists, and it is called Zimbabwe.

1) What I'm saying is, when the USD is weakened, apart from Gasoline everything else stays the same price. I've never once an American moan about the price of a console, TV, loaf or bread. Only gasoline.

2) Holy shit Batman, there are more people in the world. I was taught this was going to happen when I was 10. I'm now 36. I guess the fact that nothing has taken over from oil in the past 30 years doesn't help the price though.

3) Playing Chess with peoples lives is not ignorance. Any leader who believes in a war should put his first born on the front line imo. Fucking retards.

4) Panarama (UK documentary) said that Billions of pounds of pension funds disappeared in the past 10 years. Maybe the governments think its their petty cash. I know someone personally affected, saved all their life and now have nothing to show for it.

One thing is for sure. Nobody is safe. If you think you own something your living in a dream world. Its an illusion.

The USD is just a cog in the mechanism to make us believe. Americans will fight years to bring it back up again only for another 911 to happen or something similar, or a government scam. Whilst the country is land sliding, look at the people who are smiling and wondering why that is.

D · Post by D » Fri Jul 18, 2008 2:29 pm

Yes, all different currencies make no sense.
We should also all grow to start speaking 1 language.
But there are so many crooks and thiefs in this world. most are in charge.
We will not see this happen in the foreseeable future unless civilians take back their rights from the governments, which will not happen, because we are too lazy now and don't even care about all the assraping going on.

-In a nutshell-

About cars costing alot less in the US

Please never consult US cars sites and toy with the car configurators and then in the end calculate the total price back to your own currency. It's brutal. They cost so little over there. everyone there with a stable job could easily drive a brand new S2000.

SAM · Post by **SAM** » Sat Jul 19, 2008 4:03 am

Well, there was once a single common world's currency, and that was GOLD. This is called the Gold Standard.

Once upon a time, all the world currency was fully backed by GOLD. And the amount of banknotes a country could print is limited to the amount of GOLD in stock.

But soon people discover that it is very hard to access to enough GOLD to follow the need to increase the total amount of money in circulation as then economy expands. Thus money would tend to INCREASE in value over time. In other words, workers would be given a cut in wages once a while. And goods would cost less and less.

Goverments over the world found that it is very hard to regulate enconomy by incresing / decreasing money supply, if currency had to be fully backed with somthing that limited supply.
Then one day, someone invited the US Dollars, somthing the intric value worth no more than the trade in value of paper for recycling. This currency is backed by IOU of the US Goverments. Its supply could be increase by borrowing more money and decrease by returning the borrowed money.

So if more people demand the US Goverment to pay back their debt, the supply of US Dollars would decrease, and the US Dollars would rise in value?!?

Am I missing somthing here? The conclution just dosen't sound correct.

neorichieb1971 · Post by **neorichieb1971** » Sat Jul 19, 2008 8:46 am

Those printing machines have never run so fast mate. I bet they change the bearings in those things every 24hrs.

Ex-Cyber · Post by **Ex-Cyber** » Sat Jul 19, 2008 11:48 am

SAM wrote:GOLD
GOLD
GOLD
GOLD

Is that an acronym?

Ed Oscuro · Post by **Ed Oscuro** » Sat Jul 19, 2008 9:38 pm

A GOLD COMPANY!?

A...GOLD...COM-

-panEE?

GOLD is an acronym for "HIDE YOUR MONEY ANDY JACKSON IS COMING FOR THE CENTRAL BANK"

Somehow I doubt going back to the GOLD standard would be a solution for stockbrokers and other traders doing dumb shit like putting all their money into single stocks, or short sell manipulation, or putting lots of money into junk bonds. But...well, it happens.

GaijinPunch · Post by **GaijinPunch** » Sun Jul 20, 2008 2:00 am

1) What I'm saying is, when the USD is weakened, apart from Gasoline everything else stays the same price. I've never once an American moan about the price of a console, TV, loaf or bread. Only gasoline.

This is simply not true. Gas prices go up, prices of loads of other shit goes up with it. Those products do not deliver themselves. Also when people are spending X% more on gas a month, they cut back in other places. This has a domino effect towards businesses. Let's not even get into air travel. The very basics. Actually, let's get into air travel. I'm going to Hawaii next month for a work trip. With JAL's oil fees, the tickets are 200,000 yen. Summer vacation coupled w/ the gas crunch has literally driven the ticket up to double it's regular cost. You'd think the plane is empty, but I wanted to use miles for an upgrade. Only 75 people in front of me.

When the US dollar is weakened, the prices of imports go up... and I'm not talking only about video games. It takes a bit longer to trickle down, but many people feel the pinch whether they are buying imports directly or not. This is economics 101. I'd love to think that me, being the greenest person I know (I don't own a car, and I cycle as much as I can) am not affected by rising gas prices. I'd be living in dream world if I said that though.

4) Panarama (UK documentary) said that Billions of pounds of pension funds disappeared in the past 10 years.

They would laugh at Japan then. Due to piss poor systems planning, they lost thousands and thousands of records. When I say lost, I mean "poof". They tried to pull that "you'll get your pension if you bring your old pay stubs in" bullshit.

No_not_like_Quake · Post by **No_not_like_Quake** » Sun Jul 20, 2008 3:50 am

As a Canadian, I'm still being ripped off by game companies, even at CAD being on par or +. Nothing new to that though.

Ed Oscuro · Post by **Ed Oscuro** » Sun Jul 20, 2008 7:47 am

Another good thing about the dollar being weak: If you're a company with inventory to ship worldwide, are you going to ship it to

a.) the country with the weak currency
b.) somewhere else?

Nintendo did this, other people do it. It's crummy but it's also no mystery.

I'll be over here in the corner reading my latest issue of "CHINESE CURRENCY WARFARE TACTICS EXPOSED" nevermind that our own banks' bad practices got us into this position

GaijinPunch · Post by **GaijinPunch** » Sun Jul 20, 2008 7:57 am

c) the country that pays for it.