Oct 18
Economic Welfare of the country relies on stronger dollar?
Now I’m confused a bit - Canada thinks its dollar is going up too fast and that this is not good for the country. And on the other hand I am reading that the CEO’s in the US prefer a stronger dollar in the USA as it protects against inflation, gives credibility in the world etc.
Here is a direct quote from one CEO -
“Long term, the economic welfare of the country relies on a stronger dollar,” said Norfolk Southern Corp. CEO Wick Moorman. “While shorter-term weakness may accomplish certain things, it’s not a good long term monetary policy.” (note extracted from globeinvestor.com)
Why does Canada want to have a weak dollar? Weak dollar to help our exports, a weak dollar to keep Canadians buying in Canada. Two countries - same long term goals but different recipes.
October 21st, 2009 at 8:50 pm
It’s such an interesting Conundrum. What happens if the Loonie remains at par with the US dollar? Do the price of cars, tires, electronics etc. come down to similar levels as in the US? The first excuse would be “Canada does not have the population/volume that the US has”. Well the hell with all the canadian retailers.
Today I just ordered winter tires from the US (www.discounttiredirect.com) for my girlfriends car and saved about $150.
The idea that Canada has to be a nation that relies on GOVT. and Unions to survive as opposed to the US which relies on Capitalism and free enterprise drives me nuts. We have everything possible here to be a great country. Land, natural resources, technology, skilled workers, intelligent and ambitious ppl. but the more we allow the Govt. and unions to control the country the less incentive ppl. have to start businesses and develop this nation.
Canada keep on relying on subsidies and blaming everyone else except yourselves and your govt. for our problems and within 50 yrs. we will be owned (our businesses and real estate) by japan (toyota, honda), China, south korea, India.
A strong dollar prevents weaker nations from buying Canada. But a strong dollar does not entitle unions and govts. to keep on raising wages.
Why is it that the US has been the worlds economic power for the past 100 years or so? Capitalism and small govt.
October 26th, 2009 at 10:26 am
An article in the globe this morning is more in line with our thinking - a strong dollar brings more wealth to a country - a weak dollar the opposite - think of the mexican peso - are they better off over there?