Saturday, June 6, 2009

The Canadian Dollar

I love it when our dollar rises. I am richer when our Canadian dollar rises. I can buy more lettuce and golf balls and gas per dollar when our Canadian dollar rises. Some get hurt when our Canadian dollar rises (vs. the US dollar). Manufacturers who export to the US get hurt. Their product becomes more expensive to Americans and less will be bought. This is somewhat mitigated if inputs needed to manufacture the product are bought from the US.

There is an attitude in Canada that a rising Canadian dollar is bad for Canadians. It isn't. It is nothing but a positive except for exporters. As there are more Canadians than Canadian exporters, a rising Canadian dollar is a net positive for Canada.

Let it rise Bank of Canada!

Right On.

1 comment:

  1. And why should people be angry when our dollar is worth a dollar.What is the point of having a dollar if the sellers want it to be a 70 cent value so they can sell to the USA .I want my dollar to be a dollar not 70 cents.Otherwise we would have a 70 cent loonie and $1.40 tooniw etc.And it should work the other way also when it reaches $1.00 thats it $1.00 thats what our dollar is worth 100 pennies.So it shouldn,t go down or up it should always stay at $1.00...And while i,m at it.GET RID OF THE PENNY...Have a good week-end everyone.

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