Monday, June 04, 2007

I disagree once more with Dealbreaker's Joe Wiesenthal

Imagine that!

From the Opening Bell
Loonie heading towards 95 cents (Toronto Star)
The Canadian dollar has hit the $.95 mark, and a new report from CIBC predicts that it will eclipse the US dollar by the end of the year. Sure, this is, in the end, a meaningless number, sort of like Dow 14,000 (yeah, we said it). But let's be honest for a moment -- this would be a major psychological blow to us all. Such a turn would mean that buying Poutine at a Canadian McDonald's would actually be more expensive than the stated price. Ugh, it would also mean that playing a game of $1-$2 no limit hold 'em at a Canadian casino would be a higher stakes game than in Vegas. Let's just hope CIBC is wrong on this one.

I disagree that the CAD/USD rate is a meaningless number. A lower exchange rate negatively impacts Canadian exporters, who sell more when their goods are priced more competitively because of a weaker CAD.

It also sucks for me personally, because my freelance cheques from US magazines used to have a ~11-15% bonus on them due to the exchange rate. That's why I'm socking more of them away into a USD account until the US government and economy can get their shit together again.

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1 comment:

Flatland Pastor said...

Waitaminit!!

"until the US government and economy can get their shit together"

The US government?!?

OK, I get it. Your co-worker is no longer schmoozing the barrista across the way and thus you are no longer being fueled by your free early morning Grande Café Americanos. The rising Canadian dollar has squashed the extra buying power of those American geenbacks you'd hoped to use to raise the level of your lifestyle and you have had to opt back to consuming the free, low-octane workplace java.

Inferior fuel leads to inferior performance Lee.

"waiting for the US government..."

Man you really had me going for a minute there.

And yes as you can see the mic's on.

Shalom