US dollar currently at 93.5 cents against Canadian currency?

Question

While this is a boon to me personally because some of my investments pay in foreign currency and while the drop in the value may actually help place American goods in foreign markets or spur tourism to the US, I think the long term problem will be sliding faith in our ability to repay massive debts.

Am I just being a worry-wart here? Is there a bright side I'm not seeing a year or two down the road?

I'm astonished that so many are spending time bashing candidates but not questioning what got us to this pass or what to do next.

Answer 1

The Canadian boom is due largely to the development of mineral resources in the North (especially the oil - they have larger reserves than Saudi Arabia). It is also reflective of our own weak economy in the face of massive deficit spending. The U.S. simply cannot use hundreds of thousands of troops to occupy a foreign land without paying massive dues. It is interesting how many Americans were led to believe that Iraqi oil would pay for the occupation.

I am not optimistic about the near future. Recent gas price hikes will hurt our economy further, and I feel we are in for record high prices in the next year.

I am with you Arby - we are not dealing with the issues that brought us into the current depressing situation. I haven't seen a candidate in either major party who seems to have a workable plan for turning things around. I see the same old fairy tales and Americans put up with it. Bummer.

Answer 2

Bush fam - You are suggesting the approach is to do nothing? It's okay...your grandchildren have nothing to do but pay off your debts, so never mind. By the way, China has pegged its dollar to ours for years. Of COURSE their currency is weak.

Regarding the Carter years - yes, there were problems, many stemming from the OPEC nations manipulating the oil supplies. And you know what happened? We drove 55 MPH and conserved, and they said, "erp! Maybe this won't work if we get too heavy handed," and they backed off the prices. Remember Carter was also cleaning up after Nixon's price controls fiasco, too, so cut the nonsequitors! Too bad we didn't recognized the " HMS Get OFF the friggin' Oil Teat" when that ship was docked the first time. We had the technology to build more efficient homes and non-fossil power grids back then, but then along came "The Well," and we were so busy enjoying how great life had been in the 50's that we forgot we were eventually going to wind up where we are now. I lived through Carter, and just wish he'd been more willing to tell the Republicans to stuff it and fire up his own party. No...he had to go all bipartisan on us.

As for a weak dollar being good for the economy ----yup. I ALWAYS like getting less for my money. Sign me up for that deal of the month....

There may be some small advantages to making our stuff cheaper for foreign markets, asthe original question said, but long term?

Give me a break

Answer 3

Whoever posted this Needs to talk to a wall. You might be able to convice a wall of facts more easily than a christian or a righty!

Answer 4

It may be a short term worry for some but in the long run it is good for America.

A weak dollar is good for America. Japan, China, Russia, Brazil, and India all enjoy the benefits of weak currency.

Canada's devalued currency benefited Canada for decades. American factories were moved to Canada because it was less expensive to make products there. Now it is less expensive to make products in America, which doesn't make other countries that survive off of American consumerism very happy. Many countries around the world parasitically survive off of the U.S.'s $12 trillion yearly GDP (gross domestic product). Those countries survive by making American designed or invented products at a less expensive price due to their currency being worth less than the U.S. dollar.

Understand more here:
Why Do People Keep Thinking A Weak Dollar Is A Disaster?
http://answers.yahoo.com/question/index?qid=20070920193903AA1OcdY

They don't know countries around the world purposely devalue their currencies to make their country economy better and to improve the country's standard of living.

Japan devalued their money (yen(¥)) for decades which resulted in Japan having a very large market share of the U.S. automarket.

Up until the mid 1980's, Japan's Yen was trading as low as 360 yen to one U.S. dollar (USD). (Today it is trading at over twice the value-115.) That allowed Japan's companies to sell products in the U.S. for half of their real costs. It was very difficult for American car makers to compete when Japan's auto makers were spending twice as much on making a car and were selling them in America for the same price as an American car.

Wishing for 300yen/USD, Japan still trys to keep the value of the yen low. It still closely watches the USD/Yen exchange rate extremely closely. They know a weak dollar will slow their GDP growth, decrease business profits, and cause Japanese to buy U.S. goods.

Countries now benefiting from weak currencies: Russia, China (extremely weak currency), Brazil, India(extremely weak currency), Mexico, etc..

Answer 5

someone posted "a weak dollar is good for America"...which make sit nearly impossible not to merely dismiss them as foolish.

What would be good for the American economy is 1) a return to the gold standard to halt inflation, 2) disbanding the fed so the market can regulate itself, and 3) disband the IRS so every American has more liquid cash to jump-start the economy.

Answer 6

Wait until EURUSD hits 1.5000, that's when the real fun begins.

Of course it didn't help when China spoke up tonight about moving out of USD and into the Euro.

so, yah, thank bush and the republicans.

Answer 7

Good question.

Most of the americans are busy reading Britney's Spending habit but they donot care about country's spending habit.

Answer 8

Oh if you think this is bad do this. Take a little trip down memory lane when Jimmy "Commy" Carter was prez. We had double digit inflation, car loans were at 14% interest, homes at 12%, and gas was almost $2.00 a gallon if you could find it. Many stations could not get gasoline and people actually fought over it in lines to buy gas. Yeah, it was that bad. Now imagine if Hillary and the tax machine take over again. It could be a lot worse.

Answer 9

It's a clear indicator that the Bush debt and deficit has hurt the US very much. We are becoming a third world country.

Answer 10

What products does the US produce? We don't. We be f7cked big time!