$1.0802
The above figure was the value of the Canadian Loonie against the American Greenback.
You have to love a people that don't take money too seriously and call their basic coin a Loonie with the image of a duck on it. How different that the sombre paper Greenback with the image of noble Presidents on it and the words, "In God We Trust". Wow, how serious that is! Does this say anything about the nature of our two countries? I wonder!
(When they came out with the two dollar coin it got named a Toonie (even more ridiculous than Loonie). Canadians actually talk seriously about their money using these silly nicknames. In fact, the Loonie has found a place in Canadian mythology when one made it into the Hockey Hall of Fame. ( For those of you who don't know the story it was secretly imbedded in the ice at the Winter Olympics in Salt Lake City by the Canadian who was in charge of the ice surface. The Canadian Men and Women's hockey teams won the gold metal. Hence, the elevated status of the Loonie.) http://www.hhof.com/html/olypress.shtml
Outside Echo Bay, Ontario the Loonie is raised proundly displayed for the designer of the coin Robert-Ralph Carmichael, was from that community.
I am not sure why the Loonie has become so valuable. I remember long ago in the '50's when it was $1.05. But just three or four years ago it touched $0.61. So its value rise has been dramatic.
Apparently, the rising value of oil, which we export , and base metals of which we have plenty has something to do with it. The fact that the Canadian economy is sound and that for at least the last dozen years Canada has not had a federal deficit, in fact surpluses seem to always be bigger than predicted. Canada is in the process of reducing its National debt. We are the best economic performers among the G8 countries. Given Canada's stable government and society Canada has to be viewed as a good place to invest. I am no economist. There are other reasons I am sure.
How the mighty has fallen
The biggest reason for the rise in the value of the Canadian dollar in my opinion is the decline in the value of the American dollar. Once the standard currency of the World the US currency is being challenged by others, like the Euro. I noticed this morning some fashion model wants to be paid in Euros rather than US dollars. This is an indicator of the dropping confidence in the US dollar and economy. The day oil producing countries start to demand payment in Euos rather than US dollars, ( as Venezuela and Iraq, before the invasion, threatened to do) the US dollar will drop dramatically in value.I read of muttering of a worldwide recession triggered by the US economy.Time will tell.
The legacy of the Bush administration will include the devaluation of the US dollar. It has paid for a war on borrowed money, run up a staggering deficit, while cutting taxes for the wealthy few. Now the US is indebted to the World's rival nation and potential enemy, China! Seems to this simple soul that you don't want your enemies holding the mortgage on your house and your loans. The day may come when they demand payment.
Of course, in currency exchange there are always winners and loosers. Canada is winning in selling some resources to the US and it is easier to travel to the US and gret bargains. Canadian NHL hockey teams pay less to travel in the US as that league functions on US dollars. But it is also harder to sell manufactured goods into the US. And, Americans are reluctant to visit Caanda after being spoiled by our traditionally lower dollar. The US will do better selling goods abroad. But American will find imported good expensive and travel abroad to Europe costing more. Since the US has to purchase oil on the open market it will be a drain on the economy.
They say Canada's dollar is over valued these days. It may go up to $1.10 US before it settles in at $0.95. I don't know most of this is a mystery to me. It the meantime I am enjoying the thought the the lowly loonie has risen above the US Greenback.
posted by Tossing Pebbles in the Stream @ 9:02 a.m.
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9 Comments:
I'm sure I remember a brief time of a $1.10 in the seventies, but perhaps it was less than that.
Meanwhile, Staples has a camera package on sale for about $340. I can buy the same package for about $250 in the US. However, once one pays for shipping and customs, you might as well not bother.
That's right - the old dollar isn't buying too much these days :p
Thanks for the education on Canadian money. Those are WEIRD names. LOL.
I'm enjoying it, too. Oh, I have no plans for cross-border shopping, you understand. I'm just enjoying feeling superior for a change. Ha!
Yes, our Loonie set another record. They are saying it will be $1.10 by the end of 2007 and settle around par. I remember when it was $1.05,(it was the Canadian dollar back then, not the Loonie) but not any higher.
The history of the Loonie is interesting. The coin was originally to have a voyageur on it, but the plates (dies) were lost on the way to Winnipeg and in order to stop counterfeiting, they changed the design. The depiction is now the Common Loon.
Are stores up your way dropping prices to account for the dropping US dollar. They are here. When I placed an order for a new winter coat at Sears today, I got a discount of $8.00 on $100. A nice surprise.
Thanks for posting this interesting article.
Blessings,
Mary
I only get to see Canadian money when I go there but since I haven't been there for 30 or 40 years I wouldn't know what it even looks like. We don't have a "looney" coin but we got a "looney president" in the Whine House.
oldmanlincoln
Yes....oldmanlincoln has the right of it...our "loonie" has way too much power.
You know, I read somewhere that we import more oil from Canada than we do from the Middle East.
While I do not begrudge the loonie doing better than the US dollar, I certainly resent deeply the fiscal policies of the current administration that has led us here.
I am furious over the protracted war in Iraq; I am incensed at the drumbeat against Iran. I did not vote for Bush, either father or son, and I certainly will vote for the Democratic candidate whoever she/he may be.
I am saddened that the US has been driven into the ground and all in the name of what?
As you said, a low dollar isn't necessarily a bad thing for we here in the US. Exports are at record levels, which is helping keep unemployment very low. Yeah, oil and gas are expensive, but that was bound to happen anyway given increase in demand fueled by emerging economies like China and India.
I remember in the early 2000's reading about Bush's desire for a weaker dollar, which would help stem the flow of US jobs to other countries. It definitely worked for those of us in the IT industry.
In response to Rosie. Canada is the biggest supplier of foreign oil to the U.S., accounting for 60% of U.S. imports.
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