Comments on: The “sky-rocketing” Canadian Dollar http://www.piepalace.ca/blog/2007/10/the-sky-rocketing-canadian-dollar.html Sun, 13 Nov 2011 15:27:40 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Syed Ahmed http://www.piepalace.ca/blog/2007/10/the-sky-rocketing-canadian-dollar.html/comment-page-1#comment-80132 Syed Ahmed Mon, 28 Dec 2009 22:44:22 +0000 http://www.piepalace.ca/blog/2007/10/the-sky-rocketing-canadian-dollar.html#comment-80132 I don't understand the economy. But I couldn't have screwed it up any worse than it is today. USD is shrinking other currencies are scaling accordingly. Economies dependent on natural resources do better in such a time. The job situation remains complicated in Canada and is a dismal one. With the federal deficit increasing, it is just a matter of time before the mass layoffs are announced. I guess that would be right after the elections -- and it doesn't matter who wins. I don’t understand the economy. But I couldn’t have screwed it up any worse than it is today. USD is shrinking other currencies are scaling accordingly. Economies dependent on natural resources do better in such a time. The job situation remains complicated in Canada and is a dismal one. With the federal deficit increasing, it is just a matter of time before the mass layoffs are announced. I guess that would be right after the elections — and it doesn’t matter who wins.

]]> By: H1N-0U3 http://www.piepalace.ca/blog/2007/10/the-sky-rocketing-canadian-dollar.html/comment-page-1#comment-50028 H1N-0U3 Wed, 24 Oct 2007 21:06:33 +0000 http://www.piepalace.ca/blog/2007/10/the-sky-rocketing-canadian-dollar.html#comment-50028 I think it's more likely that the Fed's motivation is the US trade deficit, rather than a worry about deflation. Frankly, inflation is a bigger problem. A greater reliance on the Euro in place of the dollar for foreign reserves might also be factor. Canada's appreciation is probably real and has to do with oil. From time to time people worry about Canada suffering from "Dutch disease" which is caused by an economy's development of natural resources. I think it’s more likely that the Fed’s motivation is the US trade deficit, rather than a worry about deflation. Frankly, inflation is a bigger problem. A greater reliance on the Euro in place of the dollar for foreign reserves might also be factor.

Canada’s appreciation is probably real and has to do with oil. From time to time people worry about Canada suffering from “Dutch disease” which is caused by an economy’s development of natural resources.

]]> By: Ash http://www.piepalace.ca/blog/2007/10/the-sky-rocketing-canadian-dollar.html/comment-page-1#comment-49935 Ash Wed, 24 Oct 2007 15:49:58 +0000 http://www.piepalace.ca/blog/2007/10/the-sky-rocketing-canadian-dollar.html#comment-49935 Please, I implore you, please change the background. Any text on the background is completely lost and there are valuable things on your blog. Please?? Please, I implore you, please change the background. Any text on the background is completely lost and there are valuable things on your blog. Please??

]]> By: MG http://www.piepalace.ca/blog/2007/10/the-sky-rocketing-canadian-dollar.html/comment-page-1#comment-49818 MG Wed, 24 Oct 2007 05:27:56 +0000 http://www.piepalace.ca/blog/2007/10/the-sky-rocketing-canadian-dollar.html#comment-49818 I don't know that you can say for sure that the Canadian Dollar isn't increasing in value. Our economy is doing well right now so our dollar is probably increasing. There are plenty of other economies that are doing well so their currency is going up in value as well. I'm not saying that the US dollar isn't losing value, I actually think it's probably a combination of a strong Canadian dollar and a weak US dollar. The fact of the matter is, if you are importing stuff from the US, and a lot of the stuff we consume is, then it should be cheaper than it was last year. I don’t know that you can say for sure that the Canadian Dollar isn’t increasing in value. Our economy is doing well right now so our dollar is probably increasing. There are plenty of other economies that are doing well so their currency is going up in value as well. I’m not saying that the US dollar isn’t losing value, I actually think it’s probably a combination of a strong Canadian dollar and a weak US dollar. The fact of the matter is, if you are importing stuff from the US, and a lot of the stuff we consume is, then it should be cheaper than it was last year.

]]> By: Jon http://www.piepalace.ca/blog/2007/10/the-sky-rocketing-canadian-dollar.html/comment-page-1#comment-49145 Jon Mon, 22 Oct 2007 04:46:34 +0000 http://www.piepalace.ca/blog/2007/10/the-sky-rocketing-canadian-dollar.html#comment-49145 I meant to say "deflation" not inflation (they are trying to fight deflation by increasing the money supply). I meant to say “deflation” not inflation (they are trying to fight deflation by increasing the money supply).

]]> By: Jon http://www.piepalace.ca/blog/2007/10/the-sky-rocketing-canadian-dollar.html/comment-page-1#comment-49133 Jon Mon, 22 Oct 2007 04:16:20 +0000 http://www.piepalace.ca/blog/2007/10/the-sky-rocketing-canadian-dollar.html#comment-49133 First, thanks for the interesting article. I see that most analysts are concluding that the Canadian dollar has increased in value, though I haven't found any real reason for it doing so. What you say makes sense. The answer to your question is simple: The Federal Reserve has been increasing the supply of money since 2003 (probably an effort on their part to fight inflation). Just look at all the coins they are putting out and the new bills being printed and put into circulation. None of this money has any REAL value to it because it's not backed by anything and it's not made from precious metals (U.S. currency is no longer backed by gold). First, thanks for the interesting article. I see that most analysts are concluding that the Canadian dollar has increased in value, though I haven’t found any real reason for it doing so. What you say makes sense.

The answer to your question is simple: The Federal Reserve has been increasing the supply of money since 2003 (probably an effort on their part to fight inflation). Just look at all the coins they are putting out and the new bills being printed and put into circulation. None of this money has any REAL value to it because it’s not backed by anything and it’s not made from precious metals (U.S. currency is no longer backed by gold).

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