Dime For Your Thoughts Dollar

Canada vs. USA isn't just about Hockey these days. There is a battle between the currencies, and Canada is winning. What does all that mean to the two economies? There is good and bad effects from this, importing is hurt by a weak dollar, but exporting benefits from it. Given the state of the trade deficit with countries such as China, this actually helps the US in that regard. It is more expensive for foreign companies to export goods to the US. Commodities such as Oil and steel that is imported has hurt the US economy. Since Canada and the US trade heavily this has had an effect on both economies. Travelers from the US to Canada could enjoy having their money go much farther, but today they are worth virtually the same and travelers will no longer have the increased buying power. This in turn has had an effect on tourism from the US to Canada. It has had the opposite effect on Canadian tourist, instead of having to spend much more to go to the US for vacation, it is now the same as vacationing in Canada. Canadian manufactures have greater buying power in purchasing materials and goods from the US. This actually boosts sales for US exporters. Canadian exporters will make less because the goods now cost US importers more, though the value of the goods is increased.

The current rate at publication is; one Canadian dollar is worth $1.06 US. or 1 US dollar is worth $0.93 Canadian dollars. If you turn in a US dollar at the boarder you get 93 cents. Basically the US dollar is worth much less then it was 5 years ago, when the exchange rate was around $0.75 CAD for every USD.

Is this yet another damaging detail in the US economy? With the rising inflation, rising energy and food costs, now a weak dollar. This is really a matter of opinion; for some manufacturers this means that their products will be more competitive with foreign products. Those that rely on foreign materials to manufacture their products will now have to spend more on manufacturing, while the value of their product is decreased. The devalued dollar means the wages earned are worth less, because there is a huge trade deficit and the majority of products are imported, this means that they cost more because of the weak dollar (though this is just one factor for inflation). The weak dollar could actually help the economy in the long run; for example it could get too expensive to manufacturer and ship products in China, so companies may turn to local manufacturers to produce their products.

Why hasn't the Canadian dollar weakened along with the US Dollar? One major reason is that Canada is a major oil producer, and it exports large quantities to China. The rise in Oil cost has sparked the Canadian dollar. Canada is greatly increasing the production in oil. A report out from the Canadian Government stated that the Oil industry created 63,000 jobs in October 2007. Some experts have said that the rising value is killing Canadian manufacturers, especially when their number one exporter, the US, has a weak dollar. Foreign investors have been investing in the dollar heavily to try and get it to regain some punch with little success. Some investors in Canada are insisting that the Bank of Canada (the largest trader of the Canadian dollar) lower interest rates. This seems unlikely, because it would be only a quick fix. The effects are almost opposite of the US economy, their exports have more value, and imports are cheaper.

Investors that invest in companies that do heavy overseas sales are likely to see an increase in stock value, analysts say it is a good idea to invest in these companies. Analysts also state that gold is a good investment, though gold has also lost value in recent years.

As the theme song goes, it's bitter sweet. Much more bitter than sweet though. It's very unlikely that a more competitive market overseas will help American manufacturers. It will help some, but it's not going to shut down factories in China and bring them back to the US. This situation isn't really helping the US or Canada except for a few sectors. The weak dollar means that the money we earn is less valuable and the products we buy cost more. I doubt many have seen a raise to compensate. Since Canada exports to the US primarily it is less competitive in the US market and has suffered because of it.

Many of the experts have been more concerned with the housing and energy markets, but a weak dollar has played a vital rule in a slumping US economy.

The strong dollar situation is a little better for Canada compared to the weak dollar to the US. Investments in manufacturing equipment have been up. They can also take advantage of cheaper vacations south of the boarder. Another aspect that helps both US manufacturers and Canadian consumers is car buying. With slumping sales and value, cars are cheaper in the US. Canadians have taken notice.

I may have to change my dimes to Canadian dimes to get more value out of my thoughts.

Updates from past Dimes:

November 3 marked the 50th anniversary of the launching of Sputnik 2. This historic event marked the first living creature in space. Laika, a female dog that also was the first casualty from space. Sputnik 2 was another critical event in the history of space exploration. Dime for Your Thoughts Sputnik

A report has come out from China, which has stated that one (yes that's one) region of China now has more manufacturing jobs then the entire United States. This is very disturbing to me; I keep hearing "Service economy", Yeah we need services that manufacture products. Dime for Your Thoughts China

In a Dime for your thought article from August 2005 I discussed the bombing of Hiroshima. Last week the commander of the Enola Gay, Brigadier General Paul Tibbets Jr died in his home in Columbus, OH at age 92. Mr. Tibbits ask that he not be buried with a tombstone so it wouldn't give protestors a place to gather. He instead will be cremated and have his ashes scattered. I agree with the decision of the General, I also think how stupid it would be for anyone to go to the man's grave site to protest! This happened over 60 years ago, and the relationship between these two countries is very different today. I, as everyone am disheartened that it had to come to this, but I think there really was no other way to end that war. The true shame is not with General Tibbits (who was doing his duty), but rather the fact that we as a world have learned little from the lessons of WWII. Dime for Your Thoughts Atomic Bomb

Dog the Bounty Hunter sounds off. This guy is a walking time bomb! Now he has been heard making racial comments about his son's girlfriend. He later apologized for his comments, stating he meant he disapproved of her character, not her skin color. If you say so, Dog you're a real class act! (Sarcasm layed on thick). Dime for Your Thoughts Celebrity Justice

Comments:

How many satellites are there today? Todd, Ontario. I can only estimate, Todd. Altogether I'm guessing around 1,500. This includes all types of satellites including those that have different types of orbital paths. like LEOs etc. The use of different types of satellites gets pretty complicated, they are in use for research, communications, surveying, and yes big brother. I was unable to find a current list of satellites. Once again just a guess

Have a great Thanksgiving!