Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: Proud Deplorable who wrote (32830)	11/25/2004 11:07:41 PM
From: Rocket Red	Respond to of 39344

Canadian dollar was at 1.07 way back when. Yes its good for the consumers and for those who buy USA goods in Canadian dollars. Bad for those that sell in US dollars but they had some very good years too and so the time changes and reverses and it will happen again and again. All balancing it self out

To: Proud Deplorable who wrote (32830)	11/25/2004 11:17:53 PM
From: E. Charters	Read Replies (1) \| Respond to of 39344

But, But, think of all those brilliant democrats who are coming up north because the hate Dubya. They will make Canada into a worker's paradise and Canada will flower anew.. while the USA, already wounded by the east will slide into a morass. (Which won't need any biting) EC<:-}

To: Proud Deplorable who wrote (32830)	11/26/2004 4:57:28 AM
From: Taikun	Respond to of 39344

Ralph, <The world NEEDS our resources no matter what the exchange rate.> Get a grip buddy. If that were the case, Canada could jack up prices on all commodities right now, and assume the Loonie at par then. Only two problems: most commodities are still largely priced in USD and competition. I remember when mining became so expensive in Canada most miners shipped off to South America. I think Chile has the most Canadian miners outside Canada. You're talking price inelasticity and I'll agree it may apply to Canadian oil and gas but not uranium or copper or grain. I lived in Vancouver all through the busts of the 70s and that is one boom and bust economy. Eastern Canada, where manufacturing is, has a more stable economy, a lower 'Beta'. Manufacturing has benefited from the low CAD, and when the CAD goes up it really hurts everyone. The boom bust West, with its higher Beta, has a lower rate of predictable profits. Whole mining towns get built, infrastructure and all, only to be shuttered as soon as business turns down. Do you know it takes more money to scale down infrastructure than to build it? The power stations need replacing because they're inefficient and the water supply has pipes too large so the water gets stagnant with too much bacteria so all the pipes get replaced etc etc. I've seen it all. My brother works in forestry and when other countries are more competitive that's where they go for business. Perhaps oil and gas in Alberta is an exception, but aside from that there is supply in other parts of the world and there your 'no matter what exchange rate' is lower than Canada, along with lower taxes and labour costs. Australia has more uranium, Chile has cheaper copper and China will go to Africa (Congo) for oil if 'no matter what the exchange'-Canada gets too big-headed. I've been hugely short the USD for quite awhile now. Sure, Canada gets some punts, just don't get ahead of yourself. D