Thursday, September 20, 2007

It's a historic day today

Or at least that's what the guy on the news is saying. Yes for the first time since the 70's, the Canadian dollar is on par with the American dollar. I'm not an economist so I don't really understand all the ramifications of this. I'm sure it's not a good thing in many ways and if I really wanted to understand, I could call Ryan for a detailed explanation.

But getting down to the bottom line for me tonight - it means I can go shopping at Amazon!!!! All those recommendations they give me that I can't really afford taking the exchange rate into consideration no longer apply!

I shall be back later with a list of my purchases. I'm headed to check what they recommend for me. :)

'til later


Kailana said...

wow, we are on par! That's cool, but yes, I know there are probably lots of problems too! Good thing I don't have any extra money, I would be on myself...

CindyS said...

I considered that but the shipping will still kill ya.

What I know is that for businesses that sell to the US (like Bob's) the dollar on par means it's harder to compete with US companies. It's cheaper for US to buy from Canadians even with the shipping costs. Now we can't be as competitive because the goods are sold at the same price as the US so the shipping knocks us out of the running. Much like buying from Amazon when our dollar is low killer.

Okay, my head hurts.


Sherry Thomas said...

This is a direct result of the fed rate drop. Here's the relationship between interest rate and currency value: it's proportional. The higher the interest, the more desire people have to hold that currency and vice versa.

The dollar has been dropping like a rock. And I'm not too optimistic about that.

Jenster said...

So is that a toonie??? Cindy mentioned a toonie on my blog and I'd never heard of one before.

Happy shopping!!

nath said...

See the thing is, yeah, the US$=CDN$ now, however, we're still paying more ^^; I could understand it in the past, but now? doesn't make anymore sense, no?

and yeah, such a strong CDN$ will cause some economic problems... sigh. Apparently, predictions are that by March 2008, 1CDN$ = 1.10US$...

Kristie (J) said...

Cindy: I heard now they are predicting that $1.05 CDN = $1.00 US. A few months ago Ryan - my little accountant who's taken economics - didn't think the CDN$ would ever reach 95 cents. I bet he's shocked it's par.
We need Rosario to help explain things. I do know that it will weaken people wanting to invest in Canada.

Jenster *chuckle* No the toonie is a $2 coin. The loonie is the $1 coin. We don't have paper dollar or two dollars anymore.

Sherry: I watched an interview with Eddie Greenspan on 60 Minutes on Sunday night and he was talking about them lowering interest rates. I didn't understand it too much - but I do get that the US is or will be in a financial mess for quite some time.

Cindy: I was listening to the guy on the radio and he was saying the same thing. Some one some where is making a killing because our prices are still higher.
And I was looking at Amazon and you're right! The shipping rates are killers.

Kailana: Part of me says it's cool that were equal now, but I don't think it's a good thing overall!

Rosie said...

Wow, you all know more than I do. GG is the accountant in our family. He has his MBA, but he minored in accounting. He also likes economics. He loves to explain things to me. I stick with a lot of head bobbing and a smile. Beyond our basic household finances, I'm lost.

However, I'm proud of you Kristie for trying to turn the strength of the Canadian dollar into a book shopping spree. Only another reader can truly appreciate that.

Kristie (J) said...

Rosie:ROTFL At times despite what it might do to the economy for the whole country, it is all about me and my addiction!! And us book fanatics - we can use just about any excuse to buy books can't we?

Wendy said...

Won't someone please think of all the poor college students in Buffalo, NY? Going across the border to drink in Niagara because the drinking age is 19 - only to get sucker-punched by the higher Canadian dollar.

And what of the drunken frat boys who want to attend the Canadian Ballet? (Strip clubs to those of you not familiar with the term).

College students are on a budget people!

So says the girl who lived in Buffalo for five years.

Kristie (J) said...

WEndy: Canadian ballet??? Never heard of that term before *g*. And now those poor college students will have to pay the ridiculous prices we have to pay here. Although the beer is better. Now all our students will be going the other way.

nath said...

LOL Wendy :D I don't know, but I think the American students still get a good deal :) i mean, at least, they can drink beer without breaking the law :D