View Full Version : This is Just 'Loony'!
"Canada says hardest hit by U.S. dollar weakness"
"Canadian consumers are already benefiting from the higher dollar, but they shouldn't expect instant price adjustments or purchasing power equal to the greenback, Bank of Canada governor David Dodge says.
At a press conference Thursday after the bank's semi-annual monetary policy review projected a soft landing for Canada's hot economy, Dodge said the strong loonie is being reflected in lower prices for gasoline and other products, including food.
But Dodge said local market conditions, such as higher consumer demand in Canada and lack of competition, also go into the setting of retail prices.
"One would not expect the law of one price to be held to the nearest penny at all times and at all places," he said. "But yes, I think competition in markets is the key thing, an awareness on the part of consumers ... on what they ought to be demanding when they go to buy some good."
Some economic analysis have estimated Canadians may be paying well above 20 per cent more for many products than Americans, despite the respective currencies being at or near par for several weeks."
"Canada's soaring dollar has set back the recovery of its pension plans.
Two different companies estimate the typical fund lost ground in the third quarter as the rising dollar overwhelmed investment gains in foreign markets.
Things only got worse in October.
Our dollar has risen a further three cents against the weakening U.S. dollar, while stock prices have also fallen. The dollar closed yesterday at $1.0355 (U.S.), up 0.85 of a cent on the day and more than 20 per cent this year.
While the large rise is behind us, concerns will now turn to the local economy as exporters struggle to cope with the high dollar and consumers turn south to shop.
The backsliding will add urgency for employer groups who were lining up this week to ask Harry Arthurs of the Ontario Expert Commission on Pensions to call for changes in legislation that would help reduce the cost of providing pensions.
"Canada's soaring dollar again wreaked havoc on pension funds in the third quarter," RBC Dexia Investor Services said yesterday in a news release."
And to think, Soonet was awash in comments about how great and wonderful it was for Canada that the currencies were at par.
How does one control the schadenfreude?
They quit teaching economics in Canada when?
"Weak U.S. demand and a stronger-than-anticipated Canadian dollar are expected to exert a "significant drag" on exports and lead to slower economic growth, the Bank of Canada said Thursday in its latest monetary policy report."
When the U.S. Sneezes, Canada Catches Cold
"Canadian stocks fell the most in almost three months after earnings and sales by U.S. banks, manufacturers and industrial companies raised concern that the economy of Canada's biggest trade partner is headed for a slump."
"Canada and its currency are bearing the "brunt" of U.S. dollar weakness and the readjustment of global imbalances, creating challenges for its economy, the country's two most senior economic officials said Friday."
10-20-2007, 12:32 PM
Fortunately we will weather those challenges quite well. Times change and there are/will be some adjustment pains, especially in areas like the Algoma region. The Weyerhaeuser Plant is a good example. A weak U.S. dollar and a weak U.S. economy are not good for Canada. They are even worse for the U.S. though so I don't see why you seem gleeful about this.
10-20-2007, 12:35 PM
I wish you guys would stop interrupting the parrot. Hes going for the record trying to best his 11 uninterrupted replies to himself.
Dollar hits another record low vs. euro
The U.S. Labor Department reported Thursday that applications for jobless benefits hit 337,000 last week - up 28,000 from the week before and the biggest one-week surge since claims jumped 42,000 in the week of Feb. 10.
The jobless rate increase in the U.S. was more than four times the gain of 6,000 that economists had been expecting and was taken as a possible sign that the labor market is starting to weaken under the weight of a severe housing downturn and tight credit markets.
Earlier this week, both U.S. Treasury Secretary Henry Paulson and Fed Chairman Ben Bernanke warned that the housing crisis was likely to last longer than had been expected.
Already on Wednesday, the U.S. Commerce Department said the construction of new homes and apartments plunged to a 14-year low in September, while the National Association of Home Builders' survey of builder confidence fell in early October to the lowest level seen in the 22-year history of the survey.
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Brutal selloff on Wall Street
Dow down almost 367 points, its third worst day of the year, on fears about credit and housing sector, earnings, record-high oil prices, slide in dollar, what the Fed will do next.
Oil prices ended lower Friday, but not before hitting an all-time high of $90.07 a barrel in electronic trading. The dollar fell to a new record low against the euro and also slipped versus the yen. Treasury prices surged, as investors sought safety in the comparably safe haven of bonds.
The declines reflect a certain shifting in perspective, said Ram Kolluri, president at Global Investment Management.
"We have fully come to the queasy realization that the U.S. economy may slow down considerably," Kolluri said.
He said that this realization has been driven by the ongoing problems in the real estate market, rise in gold and other commodity prices, and especially $90 a barrel oil - all of which is hitting Corporate America, and the consumer.
Consumer spending fuels roughly two-thirds of economic growth, and after a lot of predictions, actually does seem to be slowing substantially.
Canada booming while U.S. struggles
North America is becoming a tale of two economies -- sinking housing and shrinking job markets south of the border, but boom times in both sectors here.
Canada's job market, like its housing market, has so far been unaffected by the financial market turmoil that spilled across the U.S. border. Canada pumped out 23,000 jobs last month and kept the unemployment rate at a modern-day low of six per cent.
And not only were there more jobs here, they were paying more -- four per cent more on average than a year earlier, and well above the 2.2-per-cent increase in the cost of living over that period.
In contrast, the U.S. lost jobs last month, while the employment gains of the previous two months were revised downward.
The big winners here were older workers. The employment rate for elderly male workers is at its highest level in more than two decades and for elderly women workers at an all-time high.
The employment rate for those aged 15 to 24 was also at a 15-year high.
The US gets the Doctors, we get everyone else.
Canada’s economy is booming, and needs skilled tradesmen. Canada’s Oil and Gas reserves are the 2nd largest in the world, and the Construction, Mining, and other industries are facing a shortage of skilled trade workers. Recruiting foreign workers is the key to helping Canadian firms prosper. You can read more about Alberta’s Oil and Construction industries and about British Columbia’s Construction industry.
Foreign workers now have the chance to work in Canada with some of the highest paying trade jobs in the world. Canada’s immigration laws also allow you to bring your family to Canada, and apply for Permanent Residence in Canada.
Canada’s booming economy has created tremendous growth and expansion opportunities for Canadian companies. However, along with prosperity comes a labour shortage. A critical shortage of skilled tradesmen has resulted from an aging workforce, fewer young people entering into trades, and more competition among employers.
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