loonie now over us dollar.

[cannabisprime]

Originally Posted by RandomFerret

Has anybody thought about what this means for Canada's economy?

Hint: It's about to collapse

Hurry before the sky falls!!!!!

[Aernaroth]

Originally Posted by cannabisprime

Hurry before the sky falls!!!!!

Random's got a point. A lot of our economy relies on our proximity to the US, as well as a competitive advantage in terms of our dollar being less expensive than theirs (basically, an incentive for them to trade with us). So we could see some huge impact in our manufacturing, tourism, and raw materials industries. Which, unfortunately, are a huge chunk of our economy.

[RandomFerret]

The Canadian film industry doesn't get any money from Europe, and the second that it becomes cheaper to film in LA than Vancouver, there will no longer be a Canadian film industry. You people seriously don't think about this stuff.

Who here is planning to hop the border to do their Christmas shopping? Without that money, the Canadian retail market is completely fucked.

[Team Jetfire]

Originally Posted by RandomFerret

The Canadian film industry doesn't get any money from Europe, and the second that it becomes cheaper to film in LA than Vancouver, there will no longer be a Canadian film industry. You people seriously don't think about this stuff.

Who here is planning to hop the border to do their Christmas shopping? Without that money, the Canadian retail market is completely fucked.

I wasn't aware that the film industry was the only resource that Canada had to offer.

That being said, you do have a point, there will be some markets affected by this, including travel, film and manufacturing.

But there has to be a bright side: Canadian retail will have to adjust to the lower American dollar and give consumers the benefit of the lower price. Big business will survive, it is the little stores that will have it tough, but they will just end up buying there supply from the US too.

[Dark Rage]

Isn't the strong dollar simply pushed primarily by the strong natural resources industry? And what if the natural resources industry decreases in strength?

I thought that speculation was that the loonie will fall after the end of this year. Please tell me I'm wrong. Let's hope for parity throughout next year!

[Nightscrabbler]

"Economists predicted 13 of the last 4 recessions."

I think complaining about how the high dollar might hurt the economy is akin to complaining about a sunny day because we're worried about global warming.

[Robimus]

I'd prefer a wait and see approach to this equal dollar situation. Some things will be effected adversely, some wont. Like Dark Rage mentioned we have a lot of strength in natural resources, retailers have always had to purchase merchandise from US companies and still will, just at better prices for us.
The film industry and Tourism will be effected negatively I'm sure. The film industry only exists because of the low dollar which has now changed.
There are so many variables to this discussion I think its hard to know how we'll be affected as a whole yet. In the 60's and 70's we had an even dollar with the US and the economy didn't collapse. We had a ressession in the 80's when our dollar was weaker than the US one.
I don't understand enough about economics to really give an educated opinion but I really don't believe the sky is going to fall or that or economy is going to die because of an equal dollar.

[Robimus]

Originally Posted by Shan

"Economists predicted 13 of the last 4 recessions."

I think complaining about how the high dollar might hurt the economy is akin to complaining about a sunny day because we're worried about global warming.

But those warm days are going to destroy the earth!

[Aernaroth]

Originally Posted by Robimus

Like Dark Rage mentioned we have a lot of strength in natural resources, retailers have always had to purchase merchandise from US companies and still will, just at better prices for us.

Due to border issues (especially in a post 9/11 world), I wouldnt be surprised if we don't see all that much of a price adjustment on US Imports all that quickly. Of course, I could be wrong, I'm just saying dont hold your breath. Also, differing prices on some goods may be due to government taxation, in order to subsidize other industries, such as farming, etc.

Also, as Dark Rage mentioned, yes, we have a gigantic natural resources industry. Because we're a big, smart nation with a lot of natural resources to exploit and plenty of ways to do so. Problem is, we have to find someone to buy those resources, and as much as China, India, and other developing nations want them, along with the EU, our main trading partner is the US (in quite literally EVERYTHING). With a strong Canadian dollar, there is no more incentive for the US to buy Canadian resources (and pay larger transport fees), and companies may simply purchase from domestic sources. Hell, we may even see the reopening of closed mines/lumberyards/etc in the US if pairity becomes a long-term situation. So the Canadian natural resources industries will either have to take a hit on their prices or find someone else to buy, which may be difficult. So its not that the Natural Resources industry is strong, its just large.

However, I think this discussion is going in circles. I feel that, yes, there may be benefits from parity, but there will definately be consequences as well, and that those consequences outweigh the benefits.

Random makes an excellent point about cross-border shopping, however. Call me a nationalist, but if you can get something in Canada, I urge you to buy it from a Canadian store to support our domestic economy. Although ironically, a massive influx of cash into the US economy from Canadians could result in a stronger US dollar, eliminating the whole parity thing. This is just speculation, though.

[AlexDontius]

Being an American who comes to Montreal frequently, I was so used to adding a pause, and then a "canaaadian" after reading canadian prices out loud... and now, I can't gloat any more.