Posted on: 18-12-15 15:03:50
And just to add,
Trudeau has just been elected into the office, he is not causing this. This is economics and it is basically based on factors outside his control. He can make policies and propose bills. At the end of the day, the economics of supply and demand will factor in, He is just a facilitator. And again as I said in my previous post, it is not just CAD which is going down all the currencies (except the ones with Fixed exchange rate/pegging). Look at the below chart which shows performance of major currencies and emerging markets against USD(USD appreciation vs other currencies) during past 2 years and you will realize that its not just CAD. The emerging markets except (India) have been far more worse.
Canada USD / CAD 27.83%
UK USD / GBP 8.44%
Australia USD / AUD 23.02%
Europe USD / EUR 25.37%
Emerging Markets
India USD / INR 8.24%
Russia USD / RUB 111.31%
South Africa USD / ZAR 45.70%
Brazil USD / BRL 62.03%
Loonie is screwed now. Lower oil price is here to stay, & household debt of epic/biblical proportion will keep loonie at depressed levels.
As far a manufacturing revival goes, Make in India is a new & emerging competitor to Canadian manufacturing.
Comparing anything against USD will result in this, and it shouldn't have anything to do with local economy. The USD is very strong and will remain strong in near future.
Canadian's were lucky to have loonie at par with USD for a very long time. And that has caused many issues including loosing out lot of business to Mexico and other countries.
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A Proud Indian Canadian
I want to compare our LOONIE's current standing as against a U.S.Dollar for only one reason. It is being pushed down to make us feel better when they squeeze a BUCK out of you for a liter of GAS. Now you know who is running the countries' Economy.
It is the oil companies that push the Loonie down, not us who hold on to our dear dollar. They are unable to sell their products to NO BODY and if they are doing it, it is at our expense.
If our Loonie was at PAR and any business man wants to do business with other parts of the world and make a good profit, they can make tonnes of money. NOW, we are not able to do so. That goes to show that we are not business people. We are a bunch of slaves to the Oil Industry.
We are not getting any benefit of a lower loonie. On the contrary we are paying a very high price for the drop in its value.
I know that there are pros and cons. We are hoping to sell more cars, generate more jobs in the auto parts manufacture etc., It takes time to happen and for it to take off. It is a very slow process and there are other countries that will do the same and hang us up with our progress. So, it is a very bad idea to drop our Loonie's value. Now we cannot even send money home and help a few or invest there to make a gain. Our capacity to help has gone down considerably and so on so forth. Take a look at Mexico, that got benefited before the Loonie hit the slide. They moved the kit and caboodle the whole shebang to the other side of the Border. We want to get US wages and spend Indian Rupees when we head for the groceries. NOT ANYMORE, they have gotten smart there too. Now we cough up a whopping big Loonie for it too. That goes for the Noon Lunches, and the Buffets too. We are caught up in the spiral. It will drag us all down gradually until one day you find yourself in the dumps. See below.
You remember that Justin said that the BUDGET balances itself. You now know how it gets balanced too. It is the OIL COMPANIES that balance it for them. What about you and me? Sorry senor, we are left out of the loop. Only the Government will throw a few crumbs at us. Don't ever forget, when the rates DROP for the Middle Class, the rates also drop for the ones who are up the TOP too, because it is built up wards, as we say from BASE UP. So, who is going to scream. Not the guy who is paying the top taxes. Yes he will pay a little more, but NOT MUCH.
Some times we fail to see the total picture. Now we all are stuck in the muck and cannot move anymore. No trips, No holidays, No cross border trips, anything more to add?! Well I will leave it to others to say a few good words here just to cheer me up.
I am sad and down in the dumps too. Need a transfusion.
FH.
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Quote:
Originally posted by Garvo Gujarati
Comparing anything against USD will result in this, and it shouldn't have anything to do with local economy. The USD is very strong and will remain strong in near future.
Canadian's were lucky to have loonie at par with USD for a very long time. And that has caused many issues including loosing out lot of business to Mexico and other countries.
Ok full house,
There is no reason for getting so depressed. These things are not in your control or my control. I would say focus on things you can do. I see that your main worry is cross border trips and vacation.
How many vacations will you go in your life time to USA? Honestly i think with 4-5 vacations one can cover the entire USA. Even if u assume 3000 $ per vacation, it is 15,000 $ which because of loonie depreciation will cost you 6K more that it would if it was on par. 6K is not a big deal for a period of 5-10 years or even more. If 6K is indeed a big deal then reduce the vacations or do better planning.
As I mentioned before Europe is still open and many more destinations. Life and Vacations has to go on regardless of what loonie is.
I agree Vivek.
Besides, US has all the similar locations as Canada (the latter being the better travel destination), with the same downtowns, theme parks, markets, etc. Europe offers the best with historic buildings, museums, food, culture.
This variation or the drop in the value of a Loonie has been cyclical and has been predictable.
So, I can make a cross border or any trip with an increase in costs. As you say wait and do it when you really want to. Multiply that by the number of travelers who want to take and also take into consideration those who will put it off, you will come up with a whopping figure. It does not help Canada or the Canadians. Things as it stands is coming to a screeching halt. I can hear it at a distance.
How do we go about it from here? What we need is a trend which is "Steady as she goes". We are rich in natural resources, but NO finished products to sell. As I said, we want US wages and spend as little as we can. It is no longer possible. We were a nation that was considered TOPs. I want you to just take a minute and think and see where we were and where we are today and where it is that we are heading.? It is not the political situation.!it is the brain dead, not so brilliant, filthy rich Corporations with tonnes of money, rotting in the bank with heads of these corporations, lying there in a recliner with a grin of a Cheshire cat, who are getting by very happily and not contributing to the expansion nor coming up with any iota of help to alleviate the misery that we will be heading into. Our Loonie has moved downwards from Par to 40 below. Yea! I sound like a weather man. And if you have not sensed it by now, you will see a few more heading home with pink slips. That is just to keep the HEADS happy and the others rolling.
Shuffle upto Buffalo and you will see the Gas at 45 cents/Liter today. Add another 22 cents that will push it upto 67 Can., and if you want to know, some of it is delivered from Canada!!
So, if you are heading with a buggy, the minute you are south of the border, the cost drops down drastically. Also pick up a few coupon books for teh hotel rooms too. Drop in at Four PM and take the early bird with a coupon.
There are a few good locations still left if one needs to take and enjoy a decent Holiday. So, I am not here going to boast about it or promote them. That is for another day.
I am here discussing the POOR Loonie of ours which stands devalued and I do not see any Knight in Armour to stand beside and prop it up with a few noble deeds. Hence, I am also waiting like yourself, hoping for a sensible solution and look forward to a better day.
Any more suggestions or alternate solutions to cheer me up?
I am heading for a cup of Java. (Is it a cup of mud?!) It has been on the back burner for a little extra time while I was writing this one, that's why..
FH.
