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Almost at par
Thursday, September 20, 2007
In 2003, when we first visited wonderful Alberta, Canada to spend some time in Banff and Jasper National Parks, we received CAD$1.33 for every U.S. dollar we exchanged. Last year it was $1.10. Today it would be $1.00.
We plan to return next summer - any guesses on what a U.S. dollar will fetch then?
Ninety cents?
10 comments:
Tim,
look at the bright side - it is not much easier to do the currency conversion. ...
I meant "now", not "not"
It makes it much easier to look at quotes on the Vancouver and Toronto exchanges for gold miners.
Anyone care to weigh in on the pros and cons of holding Canadian stocks in dollars versus loonies?
Are the wheels coming off the dollar? Check Saudi news, oil, gold. I guess you can't print forever, no?
The Fed is between a rock and another rock. Even Greenspan admits the obvious now. History-making times...
we are just the new china.
weak dollar-> cheap exports.
I don't know about next summer, but I am fairly certain, in ten years, it will be US $ = 50 cents CAN or less. You think these are difficult times for US $? When the baby boomer retirement+Social security+Medicare tsunami hits, it will make Mexican Peso proud.
On the bright side, I live right at the US border, so I can fill up my gas tank with cheap gas. $3/gallon....what a deal:)
I saw a chart at Minyanville showing money supply growing at 2%. If the Fed keeps the printing down, the bottom in the dollar is within sight, even if it takes a year or two to reach it. Canadian and Australian dollar have the resource boom to help them, but other currencies are questionable versus the dollar.
Re: Cdn stocks in USD vs CAD
No advantage in terms of currency though you may get more liquidity and better execution trading directly in the Cdn markets.
Re: USD
A currency crisis (oops, I meant revaluation) is the ultimate form of default. You bet it's going to happen. Only question is how? All the other paper currencies are just different grades of the same trash. Why bother with them at all unless you're so big you need the liquidity? Just take bullion and forget about it.
below $0.90, maybe $0.80 There are enormous structural problems in the US economy, when the rest of the world, our creditors, discover that we have fantasies of 'bailing out' whoever, instead of paying them the debt we owe things are going to get ugly. This little 1Trillion dollar war is going to have to get paid for. The Republicans have very successfully achieved their goal, the US Government is bankrupt. Should the US experience a large recession at the same time the government decides to raise taxes in order to make the world safe for Mortgage Brokers, the disconnect between reality and politics will suddenly become very clear.
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