The greenback: How low can it go?

[marmar]

from the XE.com currency converter website:

Live rates at 2007.09.30 16:12:21 UTC
1.00 USD = 0.994750 CAD
United States Dollars Canada Dollars
1 USD = 0.994750 CAD 1 CAD = 1.00528 USD


I think the US dollar is trading just above the Monopoly game board dollar at this point. :scared:

[Warpy]

1. I believe we were at or close to parity in the late 70s to 1980

so the report of its demise is premature. The fact is that we've been this low before.

Of course, what we'd seen in the 70s because of it is the near doubling of the price of oil, something that sent inflation all through the economy.

That's what the fall in the dollar means in the short term: inflation. It means a penny saved will be half a cent when you need it. It means that old folks on fixed incomes like pensions are going to be back to cat food--or worse.

Back in the 70s, this was due to something outside this country's control, an oil monopoly that decided to fix prices at a high level. This time, it's due to sheer fiscal stupidity: deregulation of financial institutions, war, and a fool who thinks he can just print money whenever he finds a new toy to buy.

It's going to be a cold winter. It's going to be a drab Xmas. I really don't like where these fools are dragging us.

[whistle]

4. Even a 4.5% inflation which Alan Greenspan boosted was normal means

...that a penny saved now will be worth 1/2 cent in 16 years.

Remember BushCo has been lying to us about the inflation rate ever since taking office in January 2001 and most certainly since invading Iraq and even starting the war over in Afghanistan back in 2002. War and all of the associated waste and shortages created by war and all the rearrangements of economic priorities and shifts which a society is asked to make under war, especially one which is dragged out for years fires up inflation.

I believe in the 1970s even following the end of the Vietnam War Carter had a devil of a time trying to curb inflation which hit levels of 18% to 20% and resulted in stagflation, rising prices and declining production. Bush's war, corruption and economic mismanagement on the massive scale he has fostered, has thrown open the barn doors and allowed all these demons to rise up with a vengeance.

[whistle]

2. Relative to the Canadian dollar back in the late 1950s I believe

...in 1958-1959 the Canadian dollar was worth about fifteen cents more than the American dollar, but I recall many merchants in Canadian towns like Niagara Falls Ontario and Windsor Ontario were honoring the U.S. dollar at par just to keep the tourist trade stimulated.

This new currency fluctuation represents a 25% swing in value from only six months ago which will have a direct impact on tourist trade between the two countries, positive for U.S. destinations as Canadians will see their money buys more in the States and negative for Canada as suddenly Canadian destinations are much more expensive for Americans to visit.

That coupled with the hassle of border crossing security measures and delays, so I predict that Americans will do a lot less discretionary travel to Canada more leisure travel within the U.S. now that money is at par. If the money exchange rate keeps falling between the US vs CAN currency then other trade values will be hit also such as the cost of raw materials and Canadian labor will drive up costs of goods made in Canada and imported to the U.S. Nuts, right when hockey season has begun too!

[SoCalDem]

3. How festive of the US.. we have Limbo Money..

[whistle]

5. Wow, where did you find that photo? Looks like a Connie Francis

...and Chubby Checker limbo rock party!

[SoCalDem]

6. found it on Google

:)