Canada's wealth.

I'm not an expert or anything on economics i was just wondering why our dollar is so weak. we have Lots of Oil we have Lots of trees we have lots of water. and yet our $ is weak.

can some one explain this to me? is it because Britain just doesn't want our dollar to be high for reasons unknown?

Originally posted by thedangler
I'm not an expert or anything on economics i was just wondering why our dollar is so weak. we have Lots of Oil we have Lots of trees we have lots of water. and yet our $ is weak.

All the oil in the world means nothing-
All the trees in the world mean nothing-
All the water in the world means nothing-
If you don't have a large enough population spending the man power to turn it into capital.

Jon

I'm no expert myself, but has our dollar not been on a meteoric rise over the past year or so? I believe we are currently in the low 90 cent range in comparison to the American Dollar.

Correct me if I am wrong, but I believe our Dollar is doing relatively well. When we compare it to the last ten years, we should be more than satisfied.

Maybe some other members can inform us on some details surrounding our dollar and what causes it to fluctuate.

It's called the National debt & Social programs.

Everyone in Canada wants a free ride, however the IMF / world bank determined that Canada has of 2300 trillion dollars of un tapped wealth in the ground not including farming, fishing, forestry, Industry.

However the IMF owns all of Canada's resources cause we are in debt.
The Crown always takes their cut as well. Canadians really need to wake up & start realizing what's going on. Get off the gov'ts teet already.

Socialism is a disease, Democracy is mob rule. Tommy Lee is a 'tard.

Uh actually... If someone did an economic course

What affects the value of the dollar?

Well! The same thing that affects everything you find at the local Mall

Offer & Demand

When people buy a lot of canadian goods (importations) they need canadian dollars, this lead to a higher demand of canadian dollars, wich mean a higher VALUE of canadian dollars

Why is the US dollar an important money? because a lot of people around use it as a common trading medium. The same goes for the Euro

It's always the ratio of Offer & Demand, that is also why a Government cannot simply decide to print more money, as it will lead to a devaluation of the money

For a country of only 30 million people, Having a dollar that is worth 90cents for 1 US is pretty good, that means we are a net exporter (wich is easy to know about canada)

Edit: Oh just forgot, the thing about IMF owning all the Canadian natural ressources, uh sorry but where did you see that? Every country in the world has debts... and almost every single person has debts... Hey I own the bank 2000$... Do they own my place? No they don't ... When was the LAST time Canada couldnt honor a state debt? Just so you know, it never happened, that is also why State Bond is a safer value for your money than Stock Markets actions


RE EDIT: Another point I'd like to add, we are not a country that maintains it's money. We let our money float, unlike countries like China wich use a fixed value money. Each system has his advantages and desadvantages but most occidental countries have a floating money

[edit on 14-12-2006 by CanadianGlasnost]

[edit on 14-12-2006 by CanadianGlasnost]

There are a few things I need to address in this thread.

First, the Canadian dollar isn't necessarily doing better. It is doing better compared to the American dollar, which has seen a drastic decline in its value around the world in the last 3 years. If you compare the Euro and Canadian dollar you would see the exchange rate is actually lower than it was when the Euro was introduced in 2002.

Secondly, Canada has a floating exchange rate so the value of the currency is mostly affected by supply and demand for the dollar but it is also affected by the inflation rate, interest rates and output.

It's not always a bad thing that the Canadian dollar is lower than the American dollar. Considering that 85% of our exports go to the U.S. as our dollar rises U.S. companies will buy less Canadian goods because they cost more. This is what keeps our trade balance positive. If the good was inelastic, like oil, then a higher Canadian dollar is better because no matter what the price of the good, people will want it.

So, why was the Canadian dollar weak? Greater demand for American than Canadian, declining commodity prices, government debt, and low interest rates.

[edit on 14/12/2006 by slink]