Guest

Canada Should Adopt U.S Currency.

Fri Jul 27, 2001 7:15 pm

I recently found out that some people are trying to make it happen. Personaly I think its a great idea. No more exchange rates, inflation and rising prices. What are your thoughts on this?
 
kolobokman
Posts: 1112
Joined: Tue Oct 10, 2000 5:32 am

RE: Canada Should Adopt U.S Currency.

Fri Jul 27, 2001 7:40 pm

Nope..., hate globalization!

artiom
I can neither confirm, nor deny above post
 
go canada!
Posts: 2886
Joined: Wed Jun 06, 2001 1:33 am

RE: Canada Should Adopt U.S Currency.

Fri Jul 27, 2001 9:04 pm

what people, that sort of thing would have to be in a national vote by both countries, i cant see that happening.

I think people have seen the Euro currency and decided to jump other countries together, the problem is that the euro isnt working because each country has a different economic cycle to others.

It is amazing what can be accomplised when nobody takes the credit
 
EGGD
Posts: 11880
Joined: Sat Feb 24, 2001 12:01 am

RE: Canada Should Adopt U.S Currency.

Fri Jul 27, 2001 9:09 pm

Why?
 
yqtyyz
Posts: 48
Joined: Thu Jun 28, 2001 3:36 am

RE: Canada Should Adopt U.S Currency.

Fri Jul 27, 2001 9:14 pm

Hell no! Think about it, the day our currency reverts to the US dollar, we lose 35 cents for every CDN $ we have in our account. If I had $10 000 in my account, that becomes $6500 the day we're pegged to the US greenback. I'm no economist, but that's a large sum.

Unless the Americans subsidize Canadian losses due to the differences, there's no way I would support it.
 
JAL
Posts: 3875
Joined: Sun Apr 30, 2000 12:37 pm

RE: Canada Should Adopt U.S Currency.

Fri Jul 27, 2001 9:32 pm

I also like the idea of Canada adopting our beloved $$$.


Eric
Work Hard But Play Harder
 
Guest

RE: Canada Should Adopt U.S Currency.

Fri Jul 27, 2001 10:47 pm

Hey hoser, I think that it's probably a good idea, eh. A lot of problems, but still a good idea. Several other smaller countries have done it, Panama for example. While we're at it we need a few more states so why don't we offer them statehood, that is everyone except Quebec - they're so "contrary" they can't get along with themselves let alone anyone else. Personally, I find few differences between the US and Canada. The differences run between the east and west of both countries. The people and interests of both western Canada and the western US are very simular. Likewise with the midwest and east coast.
 
Guest

RE: Canada Should Adopt U.S Currency.

Fri Jul 27, 2001 10:54 pm

Umm.. No thank you, I'm not a big fan of globalization.

Nicolas
 
Guest

RE: Canada Should Adopt U.S Currency.

Fri Jul 27, 2001 11:04 pm

hat is everyone except Quebec - they're so "contrary" they can't get along with themselves let alone anyone else

I hope it was so bad humor Jetguy, because if you really think that about Quebec you're way, i mean WAY off of the track.

Nicolas
 
cfalk
Posts: 10221
Joined: Mon Dec 04, 2000 6:38 pm

RE: Canada Should Adopt U.S Currency.

Fri Jul 27, 2001 11:14 pm

YQTYYZ,

It already IS $6500 - US, that is.

If you're just interested in keeping a large face value on your money, move to Turkey. Your savings would be worth 8,607,198,750 Lira.

You'd be a multibillionaire  Smile/happy/getting dizzy

Charles
The only thing you should feel when shooting a terrorist: Recoil.
 
Guest

RE: Canada Should Adopt U.S Currency.

Fri Jul 27, 2001 11:19 pm

Nicolas...
The Quebecians (?) have been trying to "vote themselves off the island" for years. But OK, if they want to come over to our house and play nice...
 
EGGD
Posts: 11880
Joined: Sat Feb 24, 2001 12:01 am

RE: Canada Should Adopt U.S Currency.

Fri Jul 27, 2001 11:32 pm

ROFL.

Turkey, Italy, everywhere that has a weak currency!
 
Guest

RE: Canada Should Adopt U.S Currency.

Fri Jul 27, 2001 11:43 pm

Granted there are still people in Quebec for the separation, it's not like you described it anymore. Quebec is becoming more and more bilingual everyday that goes on, and the separation "trend" is losing some motion everyday. If a new referudum was to be made the NO would win by far. This place have really changed for the better where French and English is treated the same way. We still have to work on a few things, like this stupid bill 101 but it takes some time.

Regards,
Nicolas
 
AC_A340
Posts: 2196
Joined: Wed Sep 08, 1999 12:01 pm

RE: Canada Should Adopt U.S Currency.

Sat Jul 28, 2001 12:20 am

What about the US adopting the Canadian currency. The US economy would rebound because of all the extra money they would have, and eventually Canada would benefit too from a strong US economy. Plus Canada wouldn't suffer on the poor exchange rate converting to the US dollar.
 
Guest

RE: Canada Should Adopt U.S Currency.

Sat Jul 28, 2001 12:24 am

Bad idea. It would never work. Our money is green. Their's isn't.
 
Superfly
Posts: 37735
Joined: Thu May 11, 2000 8:01 am

RE: Canada Should Adopt U.S Currency.

Sat Jul 28, 2001 12:49 am

Terrible idea!
Exchange rates is all a part of international travel. Our money has polluted the world enough as it is. I think it is good that Canada holds on to it's idenity as much as possible. They are so vulnerable to becoming completly dominated by the US.

Besides, whare else could I drive to and get great bargans, good beer and meet nice people?  Smile/happy/getting dizzy
Bring back the Concorde
 
D L X
Posts: 11628
Joined: Thu May 27, 1999 3:30 am

RE: Canada Should Adopt U.S Currency.

Sat Jul 28, 2001 1:03 am

"What about the US adopting the Canadian currency. The US economy would rebound because of all the extra money they would have, "

WHAT?! That's not how it works man. The US would not gain any extra money by converting to CND. That's not how it works. You don't get rich by exchanging your money for another currency.

The only thing the US would gain by sharing a currency with Canada right now would be a drag on our economy.
 
TWFirst
Posts: 5752
Joined: Wed Apr 19, 2000 5:30 am

RE: Canada Should Adopt U.S Currency.

Sat Jul 28, 2001 2:01 am

>>WHAT?! That's not how it works man. The US would not gain any extra money by converting to CND. That's not how it works. You don't get rich by exchanging your money for another currency.<<


Absolutely correct. If you did make money off of the exchange it's called arbitrage.


>>what people, that sort of thing would have to be in a national vote by both countries, i cant see that happening.<<


No, it wouldn't have to be put to a vote in the U.S. A couple of South American countries have already adopted the dollar as their official currency.


Quite frankly, I do see it happening some day. I'm not saying the entire western hemisphere will adopt the US dollar, but I do think eventually (20-50 years) we'll have a common currency.

I also think the Euro is working quite nicely. Just because its value is lower than the dollar's doesn't mean it isn't working.
An unexamined life isn't worth living.
 
Transactoid
Posts: 785
Joined: Sun Mar 18, 2001 2:03 pm

RE: Canada Should Adopt U.S Currency.

Sat Jul 28, 2001 3:02 am

Nope, cannot support this idea at all. Why the hell would I, as a Canadian citizen, want to be spending money with American images and history on it?

Now, if we came up with some sort of agreed-upon design, that might be different.
 
TWFirst
Posts: 5752
Joined: Wed Apr 19, 2000 5:30 am

RE: Canada Should Adopt U.S Currency.

Sat Jul 28, 2001 3:20 am

How about a picture of Liz' body with G.W.'s head on it?

Or G.W.'s head wearing Liz' tiara?

Or a Loon pooping on G.W.'s head?

Or Abe and Liz doing the deed?

Or Abe eating some maple syrup and drinking a LaBatt's?

An unexamined life isn't worth living.
 
N400QX
Posts: 1981
Joined: Sun May 06, 2001 9:51 am

RE: Canada Should Adopt U.S Currency.

Sat Jul 28, 2001 3:23 am

I don't think so.

No chance in hell!

Always someone trying to take bits of our sovereignty away.
 
Guest

RE: Canada Should Adopt U.S Currency.

Sat Jul 28, 2001 3:38 am

Please watch the offensive language. We get your point, but there are more than a few of us are very offended with the language in posts like TWFirst's. As always, he makes some good points, but please watch the language. Thank you.
 
N400QX
Posts: 1981
Joined: Sun May 06, 2001 9:51 am

RE: Canada Should Adopt U.S Currency.

Sat Jul 28, 2001 3:40 am

>How in the hell would Canada adopting the U.S. currency "take a bit of our sovereignty away"???

I was referring to a new currency (niether American nor Canadian) that would serve the two countries. That would most certainly take a bit of our sovereignty away.

Well, Mr TWFirst, I sure hope I am long gone before your "inevitable one-world government" comes to power.. it truly is a scary thing. It would be nothing like America today where we have freedoms and wealth.
 
TWFirst
Posts: 5752
Joined: Wed Apr 19, 2000 5:30 am

RE: Jetguy/N400QX

Sat Jul 28, 2001 3:50 am

A) I apologize for the language. Bad habit from growing up Irish Catholic Big grin


B) Help me with the logic here... How does one conclude that a one-world government would unquestionably spell the end of "freedoms and wealth"??? Considering your stated interests, perhaps you are concerned about the "freedom" and "right" to carry a concealed deadly weapon?? Personally, that's one freedom I hope is taken away.

Instead of trying to prevent the evolution of worldwide integration, we should instead be trying to influence it in a positive way, through active participation and non-hypocritical demonstrations of our core values.
An unexamined life isn't worth living.
 
N400QX
Posts: 1981
Joined: Sun May 06, 2001 9:51 am

RE: Canada Should Adopt U.S Currency.

Sat Jul 28, 2001 4:00 am

>How does one conclude that a one-world government would unquestionably spell the end of "freedoms and wealth"???

The USA is, undoubtedly, the freest nation and one of the wealthiest. If you gathered everyone up from all nationalities and beliefs, you're going to have some friction. You're going to have to negotiate for this to happen, and freedoms will be lost. Not just the vital freedom to bear arms, but freedoms of speech (REAL freedom of speech, not the European version), press, religion, criminals rights... you get the idea. Also when you get everyone together, you have wealthy and poor. Again, undoubtedly, there will be a certain amount of socialism mixed in the equation and wealth will be redistributed. As is always the case when nations employ socialist practices such as these, nations simply become less wealthy.

No thanks, I'll keep my United States, where, yes, I have have a semi-auto under my coat, don't have to give up my core beliefs, and I still have freedoms that are protected by our Constitution.
 
Superfly
Posts: 37735
Joined: Thu May 11, 2000 8:01 am

RE: Canada Should Adopt U.S Currency.

Sat Jul 28, 2001 4:28 am

TWFirst:
How about a picture of Liz' body with G.W.'s head on it?

Or Abe eating some maple syrup and drinking a LaBatt's?

Those are hilarious! !  Big thumbs up  Big thumbs up  Laugh out loud  Smile/happy/getting dizzy  Laugh out loud  Smile/happy/getting dizzy  Laugh out loud
Bring back the Concorde
 
Alpha 1
Posts: 12343
Joined: Sat Feb 03, 2001 12:12 am

RE: Canada Should Adopt U.S Currency.

Sat Jul 28, 2001 4:37 am

Zach, you don't even know what core beliefs are, son-not at your young age. YOu've just eaten up the ideas of other zealots on the right and made them you own, because it makes you feel like a man. You're head's buried so far in this right-wing bullshit, that you'll never see the light of day.
 
caribb
Posts: 1502
Joined: Mon Nov 08, 1999 6:33 am

RE: Canada Should Adopt U.S Currency.

Sat Jul 28, 2001 5:03 am

I'm against it too.. why would we want some other government determining our monetary policy?... that alone would affect our sovereignty..

The only way I could see Canucks going for this would be if we developed a hemispheric currency but then why woudl the US want this??
 
Guest

RE: Canada Should Adopt U.S Currency.

Sat Jul 28, 2001 5:13 am

TWFirst: ROFLMAO  Laugh out loud
N400QX:  Yeah sure

I don't think having Canada adopt US currency per se would be well-accepted, but a joint currency a la euro (called the America Big grin) as well as a free border would be a benefit to both countries' business and tourism.


Corey777
 
SophieMaltese
Posts: 2023
Joined: Sat Feb 17, 2001 2:08 pm

RE: Canada Should Adopt U.S Currency.

Sat Jul 28, 2001 5:16 am

Not a bad idea at all. In fact, I went to Canada today and now have some lovely Canadian coins to try to pass off as quarters in the U.S.
 
Guest

RE: Canada Should Adopt U.S Currency.

Sat Jul 28, 2001 6:12 am

Some people have mentioned that certain South American countries have adopted the US dollar as their official currency.

One has to look at the reasons why this is so. These countries have had huge financial problems over the last years, with cases of hyper-inflation, and economies which have neared collapse. By adopting the US$ as their currency, they are able to bring some degree of normality back to their economy.

Why would Canada adopt the US$?

Simple....THEY WON'T.

The C$ is free convertible on world financial markets, the Canadian economy is not in danger of collapse and various other macro and micro-economic principles dictate that no change is necessary.

Also, by Canada going over to the US$ they put their own economy in danger when the American economy suffers. You may say that when the American economy is in recession, that the Canadian economy will also suffer anyway. But having their currencies linked will only add to that.

So the opening statement in this thread about no more inflation or price rises is just not true at all.

 
Guest

RE: Canada Should Adopt U.S Currency.

Sat Jul 28, 2001 6:25 am

Having a common currency might have some practical value as NAFTA evolves, but political considerations will probably complicate such a move to the extent of making it almost impossible.

I suspect that talk about the Canadian dollar being 'weak' is a bit exaggerated at times. Relative to the U.S. dollar, it's still one of the strongest currencies around; among the OECD currencies, only the Euro, the British pound, the Irish punt and the U.S. dollar itself are stronger.
 
Samurai 777
Posts: 2000
Joined: Thu Jan 27, 2000 2:56 pm

RE: Canada Should Adopt U.S Currency.

Sat Jul 28, 2001 6:58 am

Very interesting topic.

But I'm not in favor of giving up the loonie for the greenback. Maybe in the far future, but not right now.

The Canadian dollar isn't that bad compared to other currencies around the world. There really is no need to adopt the US dollar.

Among those who have posted here, Aviatsiya has made the simplest - and the best point here.

Unlike some other developing countries, particularly in Latin America, Canada does not have a high inflation rate. In fact, it's the lowest it's been in decades. Also, while the nation bemoans the fact that the loonie is worth only $0.66US, it certainly is in no danger of collapsing in value. The national economy, while it's slowing right now, doesn't even look like it's going to go into a severe recession anytime soon. The Canadian economy has actually been doing very well in the last five years, actually.

There have been recent polls saying that at least half or most Canadian favor adopting the US Dollar and ditching the loonie. But I think that's either media exaggeration, or those participating in the polling don't have a clue what they're doing.

If it is true, then the polls' results could also mean that there's what's called a "learned atrophy" among the people. In other words, they've grown up in an era where the Canadian dollar has been so low in value that they don't know what it's like to have a dollar that's stronger than the US Dollar anymore. The last time that this was the case was in the early 1970's, I think.

But really, there is no need to convert to the US dollar. I'm fine with having the Canadian dollar.
 
bombstar
Posts: 684
Joined: Tue Aug 08, 2000 9:37 am

RE: Canada Should Adopt U.S Currency.

Sat Jul 28, 2001 7:23 am

Very bad idea, we'd start to lose our sovereignty to the americans. They already have enough economical influence on us.
 
DeltaRNOmd-80
Posts: 1979
Joined: Sat May 13, 2000 7:42 am

RE: Canada Should Adopt U.S Currency.

Sat Jul 28, 2001 7:43 am

Alpha 1- I'm speaking on Zach's behalf here, but you calling him "son" all the time (when he is obviously not)- Is that "because it makes you feel like a man"? Just because he is younger than you does not mean his opinions aren't valid.
 
Guest

RE: Canada Should Adopt U.S Currency.

Sat Jul 28, 2001 7:47 am

Well I love Canada to pieces and I'd hate to see them lose a bit of their identity.

So for now I am against it. I kinda like the fact that Canada is foreign, makes it more interesting. One of these days I hope to drive on up there an do a bit of exploring. Big grin

Why am I talking about Canada being foreign. Well, here in Idaho it is a common joke (A distasteful one at that) that Canada is Really our 51st state.

Not very funny is it, but I think that's the way the U.S. government would like to think and personally, I would not like to see the U.S. start taking away pieces of other countries.

Now the S. American countries are another story as pointed out by Aviatsiya.

IF, however, the U.S. and Canada decide on a joint currency, I do think it should NOT be the U.S. Dollar, nor the Candian dollar. I like the idea behind the Eurodollar: design a whole new currency.

I do nto know the exchange rate but I think the currency should meet in the middle between the two nation's dollar values. That way both sides of the border lose a bit of money in their account, but not as much if only the Candaian Dollar or only the US dollar were used.

I hope you understand what I mean!  Big grin

This is a tough issue, where did you hear this at????

Aloha 737-200!!  Wink/being sarcastic
 
ryanb741
Posts: 5058
Joined: Thu Mar 28, 2002 6:36 pm

RE: Canada Should Adopt U.S Currency.

Sat Jul 28, 2001 8:45 am

Keep the Canadian $ but peg it to the Euro. It'll be worth 10% more against the greenback within 12 months. The Euro has only just started to kick off; once full commercial use starts next year it will rocket. It's a Win-Win situation - the Euro will be THE world currency. That's why I'm a bit concerned that we Brits aren't adopting it.
I used to think the brain is the most fascinating part of my body. But, hey, who is telling me that?
 
yqtyyz
Posts: 48
Joined: Thu Jun 28, 2001 3:36 am

RE: Canada Should Adopt U.S Currency.

Sat Jul 28, 2001 10:11 am

cfalk, right you are, about the $6500. but I still have full value in Canada, which was the point I was trying to make. Even right now, it is cheaper to stay at home and shop, rather than cross the border to Buffalo, or go across to Grand Portage Minnesota to gamble.

Another point is: who will decide the interest rates? I don't see the US Treasury board members ceding any influence to their Canadian counterparts (willingly, anyway).

 
tupolev154b2
Posts: 1269
Joined: Mon Jun 26, 2000 9:01 am

RE: Canada Should Adopt U.S Currency.

Sat Jul 28, 2001 10:54 am

Zach, stop indulging in your right-wing, nationalistic and bigoted bullshit. You even fail to realize that there are nations out in the world that are as democratic! If you want to embrace your ideology, go to someplace in the middle of Utah where you will be with others alike.
 
LH423
Posts: 5868
Joined: Sun Jul 11, 1999 6:27 am

RE: Canada Should Adopt U.S Currency.

Sat Jul 28, 2001 3:17 pm

Well, as already mentioned, a totally new design for each money would be needed. Aside from the 1$ coin, each of America's monetary units feature the face of a president. As in Canada, aside from the coins, and the 20$ bill, each of their money contains the faces of former PMs. To merge monies would lose some of that history.

However, that is small potatoes compared to the serious economic repercussions on both countries if this thing tanked. And once the US did this with Canada, you know that the Mexicans will be howling for the same treatment, which would drop the currency faster than a new coin dropped from the CN Tower!

It won't work, at least not until there is more of a pan-American inflation and economic stabilization.

LH423
« On ne voit bien qu'avec le cœur. L'essentiel est invisible pour les yeux » Antoine de Saint-Exupéry
 
go canada!
Posts: 2886
Joined: Wed Jun 06, 2001 1:33 am

RE: Canada Should Adopt U.S Currency.

Sun Jul 29, 2001 1:56 am

"I also think the Euro is working quite nicely. Just because its value is lower than the dollar's doesn't mean it isn't working."

Really?

what people dont seem to understand is that the euro is a bd idea.

It isnt working and it isnt just its value(although the value of a currency does show how well that currency is)

It is because each country in Europe has a slightly different economic cycle-the idea of a single note is a good idea in priniciple but the problem is that it comes with a central bank and a single interest rate.

A central bank which is held to account by the EU conmission, the most undemocratic 'government' in europe for the last 50 years, it has no accountability and is run by civil servants.

the problem of a single interest rate is now apparent in ireland.Ireland wishes to invest in its infrastructure yet it cannot not invest a lot because the EU central bank keeps telling it not to raise the chance of higher inflation.

having your conutries economic decisions being made by unelectable bureaucrats in brussells is a bad idea.ireland is booming so it can afford to invest but other parts of europe such as germany are not, therefore it cannot grow at the rate it wants to.

also germany had a very strong currency but has now found that its economy has worserned because of the euro and because the interest rate set by the eU bank isnt really relevant for germany, it needs a lower rate to boost its economy while ireland could do with a higher interest rate.

Britain is on a different economic cycle to the rest of europe, the global downturn will affect the uk but it will steer clear of recession and will escape the brunt which will hit USA, Japan and europe.

european countries are hit one at a time, therefore they will need an interest which suits their economy.

even ken Clarke, very pro-single currency (and former chancellor)and set to be next conservative party leader recognises that britain cannot join at the moment because the economic conditions arent right.

the current chancellor of the exchequer(Britains head finance minister) is even less confident and is a bit of a euro spectic as is the governor of the bank of england, eddie george(UK version of greenspan with less clot) is further anti euro.

therefore, 3 economic heavyweights of Britain believe we cant join at the moment.

thats it.full stop.

next onto quebec which raised its ugly head.I have been to quebec city and montreal many a time, i was beaten by quebecians in montreal (near Mcgraw-hill uni)and was accidentaly taken to the French speaking hospital, when the staff realised i was British, i recieved very poor treatment and was promptly moved to the english speaking hospital.

Montreal is a divided city between english and french speakers and french speaking youths are very pro-quebec.

Every year independence seems to raise its ugly head and im sorry to say that a lot of quebec has an attitude problem and its refreshing to see a quebecian who doesnt.

in fact the reason why quebec voted no last time was because of the native american tribes whihc wanted to stay part of canada.thats why it never went independent, not that it could without crying to france for money or the US.

next Zach,

well you have excelled yourself,america the land of free speech?

really? how come your government wont say what is at area 51 and all yes the treasured 'freedom'

the freedom to be racist and to say freedom of speech, the freedom to place criminals on death row(in some cases) without checking to see if they are really guilty(altough mcveigh did deserve it) and the freedom to carry a firearm.

the freedom to start school killings, to shot down classmates, to threatern others with guns and call it part of the great american constitution.
GET OVER YOURSELF.

I live in the 4th largest economy in the world that of britain and we have a high GD, we may not be as powerful as the americans but we have standards.

we dont excute people to look popular
we dont allow firearms, we had school killing of infants at dunblane and instead of having barbara walters, oprah and billy-bob suck it and see saying what a tradgey it was we did soemthing about it, we banned handguns.

how many more school killings or presidental assinations does it take before you realsie that everyone owning lots of guns is a bad idea.

as for freedom of speech-'the european version', the british press has freedom of speech as does the BBC, we have freeddom of information(data protection act) and we have the freedom to elect a government which won the most votes.

our teenagers can drink at 18 as well, another freedom.

as for the currency i can really see the quebecians, native americans and other canadians and god old lissie the queen accepting the american dollar instead!!

Single currencies are nice ideas but dont work.they cant.each contury has a different economic cycle and needs and interest rate to give them flexibility.


It is amazing what can be accomplised when nobody takes the credit
 
TWFirst
Posts: 5752
Joined: Wed Apr 19, 2000 5:30 am

RE: Go Canada!

Wed Aug 01, 2001 12:05 am

Regarding your view about the Euro and your response to my views about how the Euro is working, I disagree with you.

No member of the EU, nor any official of the ECB, expected each country's individual economic cycle to disappear immediately with the introduction of the Euro. The Euro Zone is gradually morphing and evolving into a single economy with a corresponding economic cycle. Even here in the U.S., different regions of the country experience regional fluctuations in their economy - does this mean having a single currency for the entire U.S. is a bad idea? Of course not. If the UK wants to play the isolationist game, you're going to get burned.
An unexamined life isn't worth living.
 
go canada!
Posts: 2886
Joined: Wed Jun 06, 2001 1:33 am

RE: Canada Should Adopt U.S Currency.

Wed Aug 01, 2001 12:12 am

we have fantatics in the UK thinking we can join the euro tomorrow-we cant because of our stongpund and because we have a different economic cycle and interest rate.

sharply devaluing the pound would lead in inflation and rate sprialling.
Britain isnt a region of europe, its an independent country.

we must have investment in public services, we cant do that if we have the euro because the ecb will stop us because of pressures from other aprts of europe.

economic policy in the usa and spending in the usa is for the whole of the usa.

it may be a nice idea and it would have been if every country in europe was one part of a bigger untied states and had had a single currency since time began but we dont, we are seperate countries with seperate needs.
It is amazing what can be accomplised when nobody takes the credit
 
turbulence
Posts: 876
Joined: Sun Nov 14, 1999 1:33 am

RE: Canada Should Adopt U.S Currency.

Wed Aug 01, 2001 1:54 am

A lot of things have been said, and almost all of them have been answered to.
The fact different countries having different economical cycles is not an obstacle for a single currency. Or will you say that California economy is the same as Wisconsin one, for an example?
Here, in Spain, I am a Catalan. Catalonia is 10% of surface, 12% of population, and... 27%!!!! of the gross. We know quite well what does mean to help the weaker spanish regions: we pay 120% of the taxes above them (if they pay 100 we pay 120), and get in return aboput 80% of it (for every 100 invested there, only 80 are invested to us). And Spain is a small country that has less population than California alone.
The goal of a single currency is the armonization of all the different economic cycles, in order to create a bigger and more stable one, and there WILL STILL be some differences, but smaller. And the stronger areas will help the weaker ones sending money for financial balance. And, tell me something: is this not the same way the US Treasury balances the economy of the weaker states?.
It is the same here: Spain, Greece, Ireland, Portugal, have received lots of financial help from the EU. Help that, simply, came from Germany, France and Italy.

Some people here say that Germany had a strong Mark and now is not doing well because of the Euro.

WRONG: Germany is not doing well (sorry: They are doing VERY WELL, simply not as much as they used to...) because they have been economically funding and developping the former Democratic Republic. That's why.

Finally, something else:

Facial Value DOES NOT EQUAL Financial Value.
Were it so, the strongest currency in the world would be the Sterling Pound, followed by the Irish Pound.

But, although US$1 is worth only GBp66, the USD is quite stronger than the GBP. Even the German Mark (1DEM=31GBp, or, what's the same 1GB£=3.11DEM) is at least as strong (if not even stronger) as the GBP is. For getting 1 Euro, you have to pay almost 2,000 Italian Lire (1,936.27). On the other hand, you need only 200 Portuguese Escudos. (200.482) This does not mean that the Lire is so weak. Actually, it is (OK, it was, before the convergency) quite stronger than the Escudo.

Something is true: the Euro is not doing too well in front of the dollar lately. On Jan 1st, 1999, when the Euro was reconverted fromt he E.C.U., 1 EUR was worth 1.12 US$. Two weeks ago 1 EUR was just 83 USc. That's a huge difference. But I bet this is owed to the too strong Dollar right now, than to a weak Euro. Aussies, Brits, Canadians: has your currency lost some facial value in the latest two years in front of the greenback or not?

Do not forget that every 7 to 10 years, the USD gets into a finacial bubble that raises it against ALL the rest of the currencies of the world. Now, the dollar is in one of those bubbles. Maybe the strongest one after many many decades, it is true, but is going to get out of that. And for USA's sake..., because the ONLY advantage of the US$ being so strong is for the US tourists going abroad. For the whole rest, petroleum gets too expensive, exports from US decrease because they cost more, imports to the US increase because they cost less, and touristic income lowers because foreigners can't afford it.

What I'm gonna write is quite simple, but an artificial facial strenght usually leads, if kept for too long, to a financial weakness, due to deficit and trade balance with other countries.

It is time for the dollar to start descending procedures... I give less that 12 months from now to the parity EUR-US$, 1-1 or 1-0.95 either above either below.

Back to the topic, a convergency would be good for both economies. A cesion of a little bit of sovereignty is not a catastrophy.
But the solution is not USA adopting CN$, neither Canada adopting US$. The creation of some kind of "Ameros" would be balanced, kind, and fair. And would boost NAFTA even with Mexico joining the "Amero". Just count the gross product and the population of the three countries together...
They could even help small center american countries with much less effort than the Germans helping the whole Europe...

Best turbulences.

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