It’s been a while. But we’re back, baby.
Oh no how are exporters going to compete now?Instead if buying new equipment with the stronger looney, to revamp and modernize, which will help them be more efficient in the future, I am sure many will threaten layoffs. Of course no C.E.Os will be harmed during these treacherous times. C’mon BoxMart role back those prices more slavelaboured crap could line your shelves now.
Everyone is excited about the dollar going to par. The effect of our exports will be hurt. For example even industries like the film companies come to canada to benefit from the low dollar will not come up. This dollar parity in the long run will benefit the US not Canada and the way Obama is printing money the effect will be for years.
It will benefit the U.S. in the short term too. Simple logic means this will send money outside the country, which isn’t good for our economy.
The flip side is that the dollar at parity is a sign that the economy is strong. It’s what parity represents more than it is the value. Which is why an undervalued dollar is better than an overvalued dollar.
But for most Canadians, it means cheaper prices for goods, particularly imported ones.
And, you know, bragging rights.
Bragging Rights! I don’t think so!
Our parity is mostly due to the price oil going up. And guess which province has plenty of it.
It simply means that the greenback is weak. And the loony will plummet when our housing bubble bursts (which should be happening anytime now).
Actually, the big excitement will come on each of the two days that Quebec hikes their sales taxes. Alas, it will be contained to places like Plattsburgh and Burlington where retail owners will all shout out “chhhh CHING!”
By the way, I don’t expect imports to fall too quickly. I would expect middlemen and retailers/distributors to continue to milk higher margins until enough Canadians realize that the high dollar is really here to stay for awhile and put loud pressure on them to change. And in areas like food prices or more essential goods, we’ll see little change.
Your “chhh CHING!” reminds me of a comment elsewhere that kids who say that phrase have never actually heard an old cash register that makes that sound.
Time to go shopping!!!
Well, when will retailers follow suit with retail prices at par???
(Of course never, the public likes to be screwed — witness the cell-phone/internet service clusterfuck)…
As usual, there’s whining when the dollar’s too low, and when it’s too high. A few years ago, when the dollar was high, people complained that US books should instantly be reduced in price for us. Keep in mind that those books were manufactured and priced when our dollar was lower. If our dollar remains at parity of higher for awhile, then you can expect the US/Canada price discrepancy on books here to shrink.
It’s funny, though. When the loonie goes up, merchants sell “old stock”, but when it goes down, the stock magically turns around much faster…