Just watched a Venture program regarding the pros and cons of dropping the Canadian dollar and switch it to the US dollar.

This has become more of an issue as the Canadian dollar drop towards the critical 60 cent barrier....actually the psychological fifty something barrier (e.g., US$0.5999).

What do you think?

Dave

This is an interesting issue, but I voted no. Personally, the low dollar doesnt drag me down all that much. Sure, some luxury goods and such that are imported directly from the states might be higher, but overall I dont feel all that affected.. Just a couple of examples: When I'm in the states and goto a restaurant, I go in thinking that it should be super cheap, cause of the currency gap I mentally calculate into everything. However, most of the time the meal is the same cost but in US dollars! Lots of other stuff like audio CDs, DVDs etc.. As long as we keep getting the "bargains" I dont see any reason to complain..

I think this issue has been a bit blown out of proportion in particular by cities with NHL franchises.. But lets face it, getting paid a few million of whatever hard currency (ie non rubles) to play a game is a sweet deal no matter how ya slice it



Lets not give up on the country yet, people!

I'm far from an expert on economics, but I do know that the dollar is only one factor in an interconnected web of financial tools that can be manipulated by our own and other governments for various purposes. If it was important (or more likely profitable to the right people), I'm sure the dollar's relative value could be jacked up. I suspect that it's value is being kept low and will ultimately be pushed through the psychological barrier you spoke of, to get Canadians onside for abandoning our financial independence (whatever that means these days...)

Losing our dollar would be just one more step to losing Canada. I don't want to be just another "state".

Proud Canadian.

I'm with brabb. TOO many people consider us just another state already! We are , let's keep it that way!

What about adopting a common currency for all of North America (including Central America and the Carribean) ? As much as we like to maintain our "independence" there is no doubt that our economy is heavily tied in with the rest of North America.

Originally posted by brash What about adopting a common currency for all of North America (including Central America and the Carribean) ? As much as we like to maintain our "independence" there is no doubt that our economy is heavily tied in with the rest of North America.

I think it will happen. They'll be watching how the
Euro does, then introduce something like that here.

Originally posted by momof2monkeys I think it will happen. They'll be watching how the Euro does, then introduce something like that here.

Then after that one world currency.

Originally posted by uprchra Then after that one world currency.

Ack! NO NO NO! No North American Currency....no no no!!! I don't feel comfortable at ALL with the idea of being tied so "emphatically" to the US...no offense, but that would be horrible. Besides, compared to the US dollar just about any currency is low.

Originally posted by othdawg Just a couple of examples: When I'm in the states and goto a restaurant, I go in thinking that it should be super cheap, cause of the currency gap I mentally calculate into everything. However, most of the time the meal is the same cost but in US dollars! Lots of other stuff like audio CDs, DVDs etc.. As long as we keep getting the "bargains"

I agree with othdawg many of the products that we buy in Canada are much cheaper when you factor in the exchange.

DVD's are a perfect example you would pay $15-$35 for a dvd in the US the same price we pay for one in Canada only in Canadian dollars.

The people that have the most to gain by changing the currency are corporations and the wealthy who invest in America

Originally posted by gilsan The people that have the most to gain by changing the currency are corporations and the wealthy who invest in America

Eh, and the country. We need foreign money to survive. When the dollar is weak, foreigners don't invest as much in Canada which means the government needs to get money elsewhere, i.e. taxes. Money has to flow in and out of the country. Why would an American put money into Canada when their investment will lose value reducing their profits.

And don't forget that if Canadian corporations suffer from the exchange rate, we also suffer. They will either reduce staff, shutdown offices (if the company is foreign) which raises unemployment rate, which costs Canadians more money, etc, etc... You get a snowball effect.

The extra costs of imported/exported goods is just a fraction of how our currency affects the country.

Wow, who would have known I learnt something from my Canadian Securities Course. It's a good thing too because I'm writing my exam in about 3 weeks.

I hated this idea at first. And I still don't like the idea of adopting the US dollar, but I think we will soon have no choice but to adopt an alternate currency. And not only because of the low Canadian loonie, but just because of globalization. The euro is the first step towards a global currency. And it seems to only make sense.

I don't think a small country like Canada should adopt the currency of a major power like the US. We would be just handing over control of aspects of our finances. But joining with a large group of countries, where just one country could not dominate (like the Euro) would be a good way to go. I don't know too much about these things, but would a global currency cause huge problems anywhere? It would really illustrate how poor some countries are (maybe a good thing) but other than that any reason for the UN or another body not to suggest such a thing? Wouldn't it make trade simple?

I think we've already handed in control of our own finances to the US corporations/government. Adopting a US dollar would just make it official. There are some benefits to a low Canadian dollar though (mainly for the manufacturers who export our natural goods to the US/abroad). A low loonie also makes for some "bargain" investments in the companies here. I'm sure the US car makers aren't exactly crying over paying less for Canadian labour.
I like the look of our currency though. A single "greenback" sucks. Our toonie looks nice as do our differently coloured money.

I am 51% in favor of "yes". My support will jump to 100% as soon as they announce that they accept CAD at par as part of the deal.

The way I figure it, the only reason CAD dollar is so low is because the government wants it so. By keeping the dollar low, it makes our export chaper to produce while we still charge the same US dollars. And since we are an exporting country, this can only be good. Grated, prolonged low exchagne rate can hurt your overall economy but short term lull is good for it.