Canadian dollar

[happycamper1942]

After several years of heading down to the USA for a couple of months in the late winter, we have more or less decided we will not do it this year due to the poor exchange rate of the Canadian dollar. At the present time the US dollar will cost us over 40% more, making everything too expensive.
I'm curious about other Canadians take on this, are you thinking the same or have you bitten the bullet and are going down anyway?

[TJ_1975]

Fellow Canadians. Don't think that by staying home you are insulated from the low Canadian dollar. Everything you buy in Canada that is imported from anywhere in the world is affected. When reaching for my wallet, I'd rather be getting it out of the back pocket of my shorts.

[her_I]

Fizz wrote:
I hate hearing if I cut back on a cup of coffee every day for 20 years I'll save lots of money. I don't pinch my pennies, I watch my dollars.

I'll stay home one year so I don't have to pinch pennies the next time I go.

How many CND Snowbirds are just sitting there. No restaurants, no shopping, no golfing, just pinching pennies. Wooppee lot's of fun that.

Even if the dollar stays low next year. When I do go I won't be holding back, I'll be spending the dollars I saved this year.

As luck would have it this is the mildest Ottawa Winter in years 🙂

It is a very strange winter here on St. Joseph Island. It was -1C yesterday with fog. It is -18C this morning and overcast with sun predicted this afternoon and +1 with showers the next couple of days and back to very cold the first of next week. Far ways from the tough winter they here the last couple of years. Would seem like we picked a good year to stay home.

[Fizz]

I hate hearing if I cut back on a cup of coffee every day for 20 years I'll save lots of money. I don't pinch my pennies, I watch my dollars.

I'll stay home one year so I don't have to pinch pennies the next time I go.

How many CND Snowbirds are just sitting there. No restaurants, no shopping, no golfing, just pinching pennies. Wooppee lot's of fun that.

Even if the dollar stays low next year. When I do go I won't be holding back, I'll be spending the dollars I saved this year.

As luck would have it this is the mildest Ottawa Winter in years 🙂

[happycamper1942]

SoundGuy wrote:

happycamper1942 wrote:
After several years of heading down to the USA for a couple of months in the late winter, we have more or less decided we will not do it this year due to the poor exchange rate of the Canadian dollar. At the present time the US dollar will cost us over 40% more, making everything too expensive.
I'm curious about other Canadians take on this, are you thinking the same or have you bitten the bullet and are going down anyway?

Considering the only alternative is to simply not go the question then becomes how long are you prepared to wait for the Loonie to recover? - a year, 3 yrs, 5 yrs, 10 yrs? Could be dead by then. :R

You make a good point, and we have thought of that, we are not getting any younger:) Maybe in a in a year or two we will accept it, just like we all accepted higher gas prices over time, However, we are not at the acceptance stage yet.

[joebedford]

westernrvparkowner wrote:
Finally, since the US is also the most powerful nation on earth

Yup, you've got the most bombs.

I think the first country to put a person on Mars and bring them home is the most powerful country. Do you think that's going to be USA or China?

Back to the subject, I don't think the RMB will be the reserve currency until they let it float. It's in their best interests to keeps propping up the USA so I don't think they're going to let the dollar fall.

I'm not really sure what the Saudi's are up to. Why does nobody ask about their motivation for driving the price of oil down. Are they trying to ruin 2nd tier producers like Canada whose cost is $40 a barrel not $10 like them.

As long a Canada is perceived as a petro country, our currency is screwed.

[Harvard]

Jack_Diane_Freedom wrote:
Same here. Staying home this winter.

ditto

[wilber1]

Been in Hemet since the 3rd. When we got here the place was only two thirds full but a lot more people have arrived since. Lot's of Canadians, most of the people we met last year are here again. I think everyone is watching what they spend, not as much shopping or eating out but they are still playing a lot of golf etc. Fuel and booze are still cheap, paid 1.96 for diesel the other day. Next year will be interesting if our buck doesn't recover. We prepaid last year to lock in a rate. Won't be doing that this year.

[justme]

I guess the US dollar being the reserve currency is good for the US. Unfortunately, there countries like China, Russia and others trying to change that. They could win out over time because they have a lot of natural resources while the US seems to be stagnating because of increasingly poor government policy. Time will tell.

[Steeljag]

I see allot of Canadian plates here in central Florida! The parks, both public, and private are full here in my area.

[westernrvparkow]

Why would the weak Canadian dollar force Canadians to liquidate probably their best investment, US real estate? The fact that the Canadian dollar has fallen 30+% means that their US real estate investment has given them a 30% return in Canadian Dollars, even if the value of the property has remained completely flat in US dollars.
The only reason to sell is if you feel the weakness is only temporary and the Loon will soon return to a value nearer Par. You sell your $100,000 US property, collect $100,000 US, convert it to $130,000Cn and then wait for Par. Then you convert $100,000Cn to $100,000US and buy the property back. You profit $30,000Cn. The falling Loon is great for Canadian holders of US, dollar denominated assets. Any increase in expenses to travel in the US would easily be offset by the currency exchange values created from owning that US property.

[westernrvparkow]

justme wrote:
Why have most currencies devalued against the US dollar with our debt at $19T.

Because the US is the premier government and economy in the world. In times of uncertainty, the US is the ultimate safe haven. Our national debt is not the same as you owing on a credit card. First, much of our national debt is owed to ourselves. The largest holder of treasury debt is the Federal Reserve.

Those countries holding US debt have a vested interest in keeping the US and the Dollar afloat. They become defacto supporters of the US when they hold Treasury bills. They have no interest in the value of those investments falling.

US debt is always denominated in US dollars. We don't owe gold, oil, or Rubles. If there was some sort of worldwide catastrophe and all the creditors of the US demanded instant payment, we could just turn on the printing press and send them stacks of paper. Ultimately, US currency is only legal tender in the United States. All that money those nations could in theory possess can only be used to purchase goods and services in the US. Since we are a net exporter of primarily technology and renewable goods (agriculture) even a run on everything US wouldn't create lasting damage to the country because everything we sell that can be exported can either be replaced (grains, beef, etc) or really exists only in theory (technology is 99% intellectual property, take the software, but the intelligence that created it remains to make the next generation). Things many foreign debt holders covet cannot be removed from the US (you can't buy land and buildings and then somehow take them to China, for example) so when they buy those items, they suddenly become vested in the US remaining strong, since you wouldn't buy a building hoping the nation it was located in would collapse into chaos.

Finally, since the US is also the most powerful nation on earth, those debt holding nations cannot do anything to collect that debt should they feel the need. This is probably unprecedented in history. Historically, poor, weak nations owed the big powerful nations and eventually those powerful nations either bled the weak ones dry, or invaded and took what they felt they were entitled to. That cannot happen in the US.

[justme]

Why have most currencies devalued against the US dollar with our debt at $19T.

[homefor2]

Last time I made a purchase on my credit card, I paid over $1.49 of a US dollar. Enough is enough. We're not sure if we'll return next year if it gets worse as predicted.

[joebedford]

Yeah, here in Texas, diesel is $1.99 which makes it slight less expensive than at home i.e. very expensive compared to last time we were in Texas 3 years ago.

I need 6 tires for my truck @ about $300 each; they're cheaper in Canada.

Was thinking about buying a standby throttle idle cable for DW's Harley: it's the same price here as home. I'll wait.

The problem for us with staying home is that we're not set up for that. As an example, we'd need 4 tires and rims for DW's car: probably $1000 once tax is added. I don't have winter boots and gloves etc. As much as it stinks, I think I'd rather pay the exchange.

[Lenny_K]

We'll still keep on coming down for the winter regardless. Most items (except booze )here in Arizona are now more expensive than at home with the exchange rate. But life is too short to worry about the small stuff......