![Canadian-Dollar-vs-US[1].png](https://i.imgur.com/n1XqAPW.png "Canadian-Dollar-vs-US[1].png")
Why are the Canadians freaking out about a weaker currency?
Doesn't that just mean more Canadian exports to the US?
>mfw maple syrup becomes more affordable
>>66493562
And it means everything they buy which is not produced in Canada is 20% more expensive, and it's getting worse.
>>66493562
Hurr durr. Gold is a barbarous relic.
>>66493869
>and it's getting worse.
No it's actually going back down.
It was 1USD = 1.40CAD last week
Now its 1.33CAD
>>66493562
They import almost everything from the USA and export nothing of value besides low-quality oil and timber.
So yeah, their PPP goes down when their currency goes down and now they want to provide basic income that'll inflate their currency even more. Then they import another 100,000 people from the middle east.
Just glad I don't live in Canada.
Canada doesn't actually have anything to really export to the US, though. Their manufacturing is in the same state as ours -- it's all been outsourced.
So they have oil and they have agricultural products and whatever cars GM/Ford build up there.
>>66493948
the worst part is that the US dollar is already 1c of what it should be before the federal reserve.
>>66493562
>tfw haven't yet opened a Forex trading account
>tfw would have made a fucking killing shorting the fuck out of both the Ukrainian and Canadian currencies
When the Ukraine protests were happening, everybody was saying, "Yay! Democracy and westernization can finally come to Ukraine!" and I knew what was about to happen. I knew they were about to have a massive civil war and get pseudo invaded by Russia. I knew their currency was going to tank, and I thought about opening a Forex account to do a short sale on Ukrainian currency. I didn't, and it was one of the most underperforming currencies last year.
Same thing with the Canadian dollar. I wanted to ride it into the dirt. Now, it is reversing.
When Trump wins, I am going to short the fuck out of Chinese and Mexican currencies. He's going to make us start winning again. Not actually because of winning a trade war, but because they are going to rapidly devalue their currencies to try to beat us in a trade war.
>>66493562
>Why are the Canadians freaking out about a weaker currency?
>>66494778
Well they did pick a good time to sell gold. Prices are still a bubble.
Hurts some industry helps others.
Overall though, it's better to be as high as possible…I think 90 cents is probably ideal.
It gives a bit of a break to compensate for the US advantage in economies of scale… without becoming a huge crutch and hurting buying power too much
>>66494210
Pretty sure it's just a temporary rise due to weedman selling all of our gold.
>>66493562
What does Canada produce that isn't oil and maple syrup?
>>66493764
only syrup exports can save them now
some of us want a strong dollar so we can travel without paying a arm and leg
CRASHING THE ECONOMY WITH NO SURVIVORS
>>66495401
Lumber. They sell wheat to other countries, too.
There was a hilarious point in history when the USSR was buying all of it's grain from Canada and Canada quit selling it to them and like, millions of slavs starved to death.
They have lumber and fresh water out the ass (which the US will soon desperately need) and many many active mines
Get JUSTin out of office and focus on cheap exports
>>66493562
too much inflation is bad in the long run
literally macroecon 101
>>66493562
muh inflation
>>66496176
Wood alright but not worth alot. The water isnt worth shit unless you can transport it. Also we are mostly ok with water except California and good luck getting it there.
Might as well build a keystone water pipe instead of oil now kek.
>>66495736
>travel
I get you [wink]. I'd do the same.
>>66495797
Careful with that meme
>>66493562
We prefer our milk to not be in bags. It would be nice to have maple syrup cheaper but they have little else going for them.
On the positive side listerine will now be more expensive and the average "chug" will have to go without.
>20%
We got 250% drop.
Putin is great Trudeau is shit :D::D
>>66493764
This is actually no joke. Strong Canadian syrup for cooking can be expensive as fuck
>>66494778
>yfw I own more gold than an entire 1st world country
While I am here tell me if ZeroHedge is a reliable source of information.
>>66497887
Say pls gulag breath
>>66498016
pls desu senpai
>>66498121
No it's not.
>>66493562
it means when they go to buy high tech stuff abroad for manufacturing, ect.... it will cost 25% more
>>66493562
canadian economic policy since the 70s has been largely centered around providing cheap branch-plant manufacturing for the eastern US states and pumping oil from the western prairies. the downside is that when the economy becomes too heavily-dependent on oil exports, our dollar rises against the USD, which makes manufacturing less competitive and leads to plant shutdowns in the east. best economic practice has typically been trying to strike a balance between the two; keeping the dollar high enough that we can still afford US exports, but low enough that it's still attractive for the US to keep jobs here.
unfortunately the last government missed a memo and allowed for a huge oil boom to take hold, sending the dollar to par or above for most of the last decade. while jobs in the oil patch boomed, manufacturing closures took hold. interest rates were kept low by the bank of canada to encourage cheap foreign investment, but also created a nice housing bubble that has left canada's few large cities prohibitively expensive to live in for the 'average' canadian.
now that the price of oil has taken a massive shit, thousands are getting laid off in the oil patch. while the low dollar that followed will mean that those US manufacturing jobs will eventually relocate back, there's now a startup lag associated with so much industry being mothballed. the one real lever that the government has to spur investment is interest rates, and unfortunately the last government left those at an abysmally low 0.75%; taking it even lower likely won't make much difference at this point.
its a shit sandwich that the new guys will need to work hard to clean up. so far things have been reasonable, though.
>>66499248
wow, that was actually a very informative post
thanks senpai
>>66497554
Yeah it is. I stopped buying it because of the price.
>>66499248
Wtf.. government doesn't set the world price of oil. We'd have been idiots not to sell while the selling was good.
What we should have been doing was setting higher royalties during that time and using the money to save for a rainy day like we're currently experiencing.
That was Harper's fuckup. Trudeau's fuckup is that he's using our ability to borrow on shit like sending billions to other countries with no accountability attached while we're facing a crisis and need stimulus spending.
>>66499987
I never said government set the price of oil. the problem is that we only -can- sell when the selling is good, due to the high costs of even extracting shale oil from the tar sands. the conservatives were providing incentives for oil sands development at a time when it was already profitable to extract, essentially throwing fuel on a fire. they also had no problem with holding the dollar well above par for several years, which spelled the difference between factories simply operating at reduced capacity through the tough times to closing entirely. it was completely short-sighted.
as for this 'sending billions to the brownskins' stuff, i don't see how different it is to the billions we poured into afghanistan and got nothing out of it.
>>66499987
also I question the value of 'selling while the selling is good' if it just means we end up in cyclical commodity busts with no cushion to fall back on every 20 years. What alberta is facing right now happened back in the early 80s too, and they didn't learn from it the first time then either.
>>66493562
Conservatve Stephen Harper tanked the Canadian economy and the Canadian dollar.
Then /pol/fags try to blame Trudeau. Lol. Look at the chart. Jan 2015. That's under Harper.
>>66493869
The Canadian dollar has actually gone up under Trudeau.
As the chart shows, it crashed under Harper.
/pol BTFO
