Canadian Dollar

[Boggy1 45]

It's of my opinion that the USdoller has been getting weaker and weaker for years. A combination of the Bush Administration and the Iraq War, the housing market crash, etcetera, I think most companies no longer trust the doller, and instead are going for a far stronger currency such as the Euro.

The difference between the Canadian Doller and the American Doller is slight. I believe it's something like 1 CAD = 0.999151 USD

Compared to the Euro, which is 1 EUR = 1.40916 USD

and then compared to the British Sterling, which is 1 GBP = 2.02079 USD

[Frankie_Grove 33]

Originally posted by: Barbarossa

The main problem with the US dollar is political, and the fact that we have left the Gold Standard and now use the Stock Exchange (which is dumb, IMO).

Barbarossaquote>

For once, Barbarossa, I agree with you. The loss of the gold standard has made the dollar extremely vulnerable. At least with the gold standard our currency is actually based on something of value, but now the value fluctuates far too much, and causes instability in our money. Inflation is another major factor, and since there are a lot more dollars out in the world that other currency, inflation would naturally be higher. Unfortunately we are all enslaved to the federal reserve bank and there is nothing we can do about it.

[Micah 16]

and then compared to the British Sterling, which is 1 GBP = 2.02079 USDquote>

But it's always been like that. Even when I went to England in '97, it seemed like everything was ridiciliously expensive for me.

I think most companies no longer trust the doller, and instead are going for a far stronger currency such as the Euro.quote>

Any examples? Btw, what's the story about Middle Eastern oil companies *or whatever they are called* not paying in the Euro but in American dollars? Just curious.

[coolotter88 2]

the gold standard is an idiotic and obsolete way of valuing money

there's a reason why no one uses it anymore...because it's stupid, gold causes problems because you have to manage the gold supply extremely carefully. with fiat money, these economic problems can quickly recover. there are banking crises with gold standard also.

Gold slows things down. you can't expand your economy if you don't mine gold.

whatever, gold is just too old. go buy it yourself at $800 (CAD OR USD) per ounce

[Frankie_Grove 33]

Originally posted by: coolotter88 the gold standard is an idiotic and obsolete way of valuing money

there's a reason why no one uses it anymore...because it's stupid, gold causes problems because you have to manage the gold supply extremely carefully. with fiat money, these economic problems can quickly recover. there are banking crises with gold standard also.

Gold slows things down. you can't expand your economy if you don't mine gold.

whatever, gold is just too old. go buy it yourself at $800 (CAD OR USD) per ouncequote>

or maybe you're just too young

[LarksTonguesInAspic 28]

Originally posted by: coolotter88 the gold standard is an idiotic and obsolete way of valuing money

there's a reason why no one uses it anymore...because it's stupid, gold causes problems because you have to manage the gold supply extremely carefully. with fiat money, these economic problems can quickly recover. there are banking crises with gold standard also.

Gold slows things down. you can't expand your economy if you don't mine gold.

whatever, gold is just too old. go buy it yourself at $800 (CAD OR USD) per ouncequote>

 

Historically, the actual value of gold (not speculative value) has proven extremely stable. And money always reverts to its true value, paper money will constantly "try" to revert to the value of a 6"x2.5" piece of paper. An ounce of gold will buy the same amount of groceries it did 100 years ago. Our debt-based currency system will inevitably collapse.

[hamsterTK 93]

what a crappy time for americans to visit canada

[Porter 68]

Well, historically speaking, gold really is a very stable way to base an economy. I mean, look what happened when we've trusted the stock market too much.... Anyone in the US remember the Great Depression of the 1930's? Or even the 2nd Depression of the Early 21st Century? As well as the Internet Bubble Burst?

Also, the value of gold (and silver) truely derives its value from its rarity on the planet.

Back to the original topic though, I think its rather interesting that the CAD has surpassed the USD. But, I have to agree with the majority and say that it will most likely return to normal, and it really is most likely because the US economy isn't doing as well as it was a few years ago.

[His Divine Hand 244]

Originally posted by: Micah

I think most companies no longer trust the doller, and instead are going for a far stronger currency such as the Euro.quote>

Any examples? Btw, what's the story about Middle Eastern oil companies *or whatever they are called* not paying in the Euro but in American dollars? Just curious.

quote>

Actually, that is because the standard trading currency globably for oil is the USD. Indeed, it causes slight ripples in member markets if an OPEC member talks of switching to the Euro, as Iran and Iraq (before invasion) have talked of doing.

[Micah 16]

Or even the 2nd Depression of the Early 21st Century?quote>

What?

We've witnessed a recession, but the teenagers of today have never witnessed a depression... yet.

Actually, that is because the standard trading currency globably for oil is the USD. Indeed, it causes slight ripples in member markets if an OPEC member talks of switching to the Euro, as Iran and Iraq (before invasion) have talked of doing. quote>

Wouldn't it make sense for the Middle East to switch to the Chinese currency since that is the potential for a much greater market of over 1 billion customers?

[ShortStraw 1]

Here is an interesting article about Chinas relationship with the global oil market that may answer your question Micah.

[LarksTonguesInAspic 28]

RE Shortstraw's link...While Congress was busy banning new oil exploration along the Gulf coast, Cuba was cutting deals with China to drill sideways (yes it can be done) into our oil fields from their waters. We are allowing the Cubans to steal our oil and sell it to the Chinese. This is one instance where blind enviromentalism threatens our country's energy security. And the press is silent about it!

[Boggy1 45]

It is now official. The Canadian Doller is now worth more than the American Doller.

1 Canadian dollar = 1.0003 U.S. dollars

[Barbarossa 51]

.

  Edited September 7, 2012 by Barbarossa  

[A Nonny Moose 8,261]

Barbarossa:  There isn't enough gold in the world to redeem all the paper currency that's around.  If you recall, when the U.S. was on the gold standard, the price was pegged at $35.00 per fine ounce.

Loonie hit $1.02 U.S. at close of trading today.

[kellydale2003 2,276]

Let us (Canadians) have the glory for awhile. The US has had it for 35 Years.

[LarksTonguesInAspic 28]

Originally posted by: Barbarossa I don't understand the vehement denial of the value of gold as a value marker for currency. Gold is relatively stable, the stock market is not. People who complain that it slows growth don't really know what they are talking about. A lot of the time, economies need to slow down. Unrestricted growth is bad for everyone. It is one of the main causes of inflation and loss of value. Even oil is less stable than gold (which oil would never work, either, since it is consumed; gold is not).

Barbarossaquote>

 

Originally posted by: N_O_Body Barbarossa:  There isn't enough gold in the world to redeem all the paper currency that's around.  If you recall, when the U.S. was on the gold standard, the price was pegged at $35.00 per fine ounce.

.quote>

 

You both are right, and therein lies the problem. I wholeheartedly agree with Barbarossa about the need for a gold standard. The use of fractional reserve banking to the point N_O_ Body correctly describes is a total inevitable disaster waiting to happen.

Hate inflation? It was nonexistent when we were on the gold standard. Where is all that 'lost' money going? LOL anyone who doesn't know that shouldn't be wasting their time on a game fansite, they should bone up on basic economics...or basic conspiracy theory.

[krbe 193]

The inflation rate is also a way to force investments.

[Micah 16]

I actually think a weaker American dollar is a good thing. First of all, that makes Americans have to travel within the US which boost tourism on the home front *unless they have enough money to afford higher foreign currency*. Then, foreign companies can more easily invest in the US and buyers/consumers can shop in the US since it is cheaper here then in their location as Europeans have been doing.