11.11.07 (8:29 pm) [
edit]
Exchange Rates
I cannot remember a time when the Canadian dollar was worth more than a US dollar. But today, I was curious about the rate and was shocked to learn that the rate is $1.07 USD to $1 CAD. Wow. What will this mean?
My first thought was that I might need to learn to appreciate American beer since my favorite beer, Labatt Blue, is made in Canada. My second thought was that now probably isnt a good time to visit Toronto. My third thought was that this is probably good for Michigan and the rest of the country too.
You see, a weak dollar means a lot of things. Foreign vacations get more expensive. Flying in water from France gets even more decadent. Basically, imported things become more expensive relative to domestic versions. That will mean higher prices for anything imported. It also means that moving jobs offshore becomes more expensive which means jobs that would have otherwise been lost to foreign competition will remain the US.
Michigan, in particular, probably needs jobs more than it needs cheap crap from China or expensive French cheeses or nights out at the Windsor Ballet.
posted by:
sebastianjoshua (
reply)
post date:
11.11.07 (5:48 pm)
US Dollar is really weak right now... the price for crude oil is over USD 80 due to this...
they say US economy is down pretty sharp right now... better go local
still remember Wild Hogs... :-)
posted by:
Gort (
reply)
post date:
11.11.07 (6:39 pm)
Well, the weak dollar works in reverse for exports, making them cheaper. I'm not sure what goods or services are made in Michigan primarily for export, though; do people in China buy GM cars, Steelcase furniture, or Dominos pizza?
There's a hotel in a seedy part of town that has (for years) had a sign posted touting the fact that they accept Canadian currency "with no discount!" I wonder if they still have it?
posted by:
Barnabus1 (
reply)
post date:
11.11.07 (8:50 pm)
US debt is so huge we cannot even pay the interest on it!!! and have to borrow for that!! Thanks to Bush for bankrupting the country, but I understand the plan for one world government is 5 years away, and the dollar has to be totally collapsed by then!!
posted by:
Vera (
reply)
post date:
11.12.07 (12:12 am)
The Peso is gaining strength also partly due to the weakening dollar. Our Overseas Filipino Workers are not too happy though because the money they send home can't buy as much as it used to. If only the strengthening of our currency actually was 'felt' by stronger buying power...
posted by:
rosietulips (
reply)
post date:
11.13.07 (12:16 pm)
My boyfriend and I took full advantage of the dollar this weekend and went down to Seattle for shopping. We spent and spent and spent!
posted by:
fractalmom (
reply)
post date:
11.14.07 (6:38 am)
oh hell. MY dollar has been weak for years!!
posted by:
lynne (
reply)
post date:
11.14.07 (4:28 pm)
Reply to: rosietulips
Haha. Well, I am sure that a lot of Canadians are coming across the border for just that purpose here in the Detroit area too. The town that I think is *really* going to do well with the weak dollar though is a town up north where I lived for while. When I lived there, the exchange rate was something like 1.15 CAD to 1.00 USD. That was Sault Ste Marie. Sault Ste Marie, Michigan is a pretty small town with around 14,000 residents but Sault Ste Marie, Ontario has around 80,000 residents. And even when the exhange was what it was then, there would be huge lines every Friday and Saturday on the bridge as hoards of Canadians came over to grocery shop and fill up their gas tanks. I am sure the store owners up there are just thinking CHA-CHING! every time the dollar drops a little more.