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Canadian Dollar

Mar 17, 2010#1

Jay

1 cent short of the American dollar! I'm heading to the US in 3 weeks for my Cruise... no longer are the days where everything was 30% more expensive!!

WILL WE BEAT THE AMERICAN DOLLAR TOMORROW?

http://www.google.ca/#hl=en&safe=of...dian+dollar+to+u&gs_rfai=&fp=c2ad2a9a3503d34a

Mar 17, 2010#2

GasBandit

I think I posted a link about this in the political thread... some experts think the canadian dollar will top out at $1.10 American. But yeah, washington, let's just print our way out of our money troubles, that'll do it.

Mar 17, 2010#3

klew

Alright, that leftover cash I have after my trip will turn a profit!

Mar 17, 2010#4

Garbledina

I guess this $10 bill I have from the states... I should cash that in today.

Mar 17, 2010#5

Adammon

GasBandit said:
I think I posted a link about this in the political thread... some experts think the canadian dollar will top out at $1.10 American. But yeah, washington, let's just print our way out of our money troubles, that'll do it.

Mar 17, 2010#6

GasBandit

Adammon;355872][QUOTE=GasBandit said:
I think I posted a link about this in the political thread... some experts think the canadian dollar will top out at $1.10 American. But yeah, washington, let's just print our way out of our money troubles, that'll do it.

Mar 17, 2010#7

Adammon

GasBandit;355873][QUOTE=Adammon;355872][QUOTE=GasBandit said:
I think I posted a link about this in the political thread... some experts think the canadian dollar will top out at $1.10 American. But yeah, washington, let's just print our way out of our money troubles, that'll do it.

Mar 18, 2010#8

GasBandit

Adammon;355902][QUOTE=GasBandit;355873][QUOTE=Adammon;355872][QUOTE=GasBandit said:
I think I posted a link about this in the political thread... some experts think the canadian dollar will top out at $1.10 American. But yeah, washington, let's just print our way out of our money troubles, that'll do it.

But then what do I know, I work in a bank.

Hey, I work in a radio station, but I couldn't tell you (without googling) why we're supposed to turn the plate on before the filament when powering up a transmitter. Or... wait... is it filament before plate?

Mar 18, 2010#9

ThatNickGuy

Given how well (I think) the Euro has done, I'm surprised that there hasn't been a move towards a global currency.

Mar 18, 2010#10

Adammon

GasBandit;356154][QUOTE=Adammon;355902][QUOTE=GasBandit;355873][QUOTE=Adammon;355872][QUOTE=GasBandit said:
I think I posted a link about this in the political thread... some experts think the canadian dollar will top out at $1.10 American. But yeah, washington, let's just print our way out of our money troubles, that'll do it.

BZZT, sorry, wrong answer. If it was inflationary, there would also be falls against the euro, Pound Sterling, Japanese Yen, Swiss Franc, etc.

Canada's natural resource focused economy is the culprit here.[/QUOTE]

Just wait till we buy more green inkjet cartridges.[/QUOTE]

Been waiting a long time for this superinflation. Considering that money hasn't been printed, hasn't been distributed to people to spend and exists solely as 1s and 0s at the Federal Reserve, I'm inclined to believe it won't happen.[/quote] Yet.[/quote]

That's the cowards way out. Just like Marc Faber and every other Doom and Gloom expert. Inflation will happen. Downturns in the business cycle will happen. Without a fundamental understanding of what effect the stimulus packages have had on the macro-economy, the assumption is always going to be "ZOMG, printing money! SUPERINFLATION!".

Except that money isn't in the hands of people who can spend it. You can't have superinflation if 1) the money is in the hands of 4 or 5 people (Or banks in this case) and 2) it isn't being spent.

And we're not in a stagflation event either because there aren't negative supply shocks like in the 70s. Demand simply isn't there, jobs simply aren't there. This isn't going to be like Germany or Argentina, this is going to be like Japan. "The Lost Decade".

But then what do I know, I work in a bank.

Click to expand...

Hey, I work in a radio station, but I couldn't tell you (without googling) why we're supposed to turn the plate on before the filament when powering up a transmitter. Or... wait... is it filament before plate?

If you were an engineer, I would hope you know that. I'm an economic researcher so your point is a little silly.

---------- Post added at 03:24 PM ---------- Previous post was at 03:22 PM ----------

ThatNickGuy said:
Given how well (I think) the Euro has done, I'm surprised that there hasn't been a move towards a global currency.

*Shudder*

Ask Greece how the Euro is doing...or ask the rest of the Euro holders what Greece is doing to their currency.

Mar 18, 2010#11

GasBandit

Let me get this straight... you're saying the government can make all the plans it wants then to spend, so long as it is the only one doing so?

Mar 18, 2010#12

fade

GasBandit said:
But then what do I know, I work in a bank.

Click to expand...

Hey, I work in a radio station, but I couldn't tell you (without googling) why we're supposed to turn the plate on before the filament when powering up a transmitter. Or... wait... is it filament before plate?

"I can get a better look at a steak by sticking my head up a cow's ass, but I'd rather take the butcher's word for it."

Mar 18, 2010#13

Adammon

GasBandit said:
Let me get this straight... you're saying the government can make all the plans it wants then to spend, so long as it is the only one doing so?

Mar 18, 2010#14

fade

This is a very psychological recession. I mean they all are to some degree, but people are really afraid to spend right now, and spending is the solution. But everyone just got burned on spending, and we've been rapped on the knuckles every time we spent in the past.

Mar 18, 2010#15

GasBandit

Adammon;356177][QUOTE=GasBandit said:
Let me get this straight... you're saying the government can make all the plans it wants then to spend, so long as it is the only one doing so?

There are other options for financing debt other than the degradation of the currency. As much as Obama is destroying the nations coffers through debt, no one seemed to care when Bush was doing it, or Clinton did it, or Bush did it, or Reagan did it. None of those resulted in (hyper)inflation - what's going to make this time around special?[/QUOTE]

When Bush did it, it was pretty bad actually, and a number of us did commonly complain that republicans were "spending like drunken democrats." But the democrats came back into power, and I guess they were jealous because now they're spending more in a month than the republicans were in a year.

---------- Post added at 10:42 AM ---------- Previous post was at 10:38 AM ----------

fade said:
This is a very psychological recession. I mean they all are to some degree, but people are really afraid to spend right now, and spending is the solution. But everyone just got burned on spending, and we've been rapped on the knuckles every time we spent in the past.

They're afraid to spend because they're not entirely convinced they'll have an income next year, or even next month. The psychological recession was back in 05 when the media kept harping about how awful unemployment was at 5.7% and that the economy was in such trouble, day in, day out, despite having lauded the Clinton administration previously for the same economic indicators.

I guess you COULD say it's a psychological recession because the reason people aren't hiring, and thus aren't spending, is because we currently have executive and legislative branches working in unison on the most business-hostile agenda since October 1917.

Mar 18, 2010#16

fade

If it makes you feel any better about the human race, I think a lot of democrats would agree with you. Right now, it's as though congress brought nuclear weapons to school to beat up playground bullies.

Mar 18, 2010#17

Covar

ThatNickGuy said:
Given how well (I think) the Euro has done, I'm surprised that there hasn't been a move towards a global currency.

Mar 18, 2010#18

Kitty Sinatra

I'm buying up Klingon Krona and Vulcan Yen right now in anticipation of the coming world currency

Mar 18, 2010#19

Adammon

Covar;356249][QUOTE=ThatNickGuy said:
Given how well (I think) the Euro has done, I'm surprised that there hasn't been a move towards a global currency.

A large part of the value of currency is how it relates to other currency. If there is only one currency in the world you would have to have something else to compare the value to, essentially putting everyone back on the Gold standard.[/QUOTE]

*clutches his heart* Augh, please, please don't compare one currency to the Gold Standard. Although there are some similarities in terms of fiscal control (Or rather, the lack of control associated with each idea), they are two very different animals.

One world currency is essentially allowing your neighbour to set your budget. A government controls the value of their currency through the budgetary process, the purchase and sale of bonds on the open market, the bundling and purchase/sale of domestic/foreign currencies on the market and the outright printing of dollars. In a One-Currency situation, you lose control of your currency and are forced to adopt the economic policies of an outsider whose interests may be in direct opposition to your own.

I'm going to analogize this down to Halforum Street, in Halforum, Wisconsin.

On Halforum Street lives CajunGal, Dave, Chazwozel and Gasbandit. Each person person currently has a printing press in their house so that if they need more money, they can just print it off. This has the unfortunate side effect of changing the value of each currency in relation to everyone else. Because Gasbandit is irresponsible with his money, he's been printing more money off like crazy in order to buy his new guitar. These GasBandit Kronas are now worth half of what a Dave Dollar is. Dave is still operating within his income for expenses and has no need to print money off - in fact Dave Dollars have appreciated in value because Dave is making much more income than his expenses and so each neighbour buys Dave Dollars knowing that it is unlikely for the Dave Dollar to collapse any time soon. Cajungal uses her Colons to buy a lot of Dave Dollars and Chazwozel sets aside some Chazwozel Schillings to buy Dave Dollars.

Thus, in the large scheme of things, Dave Dollars are worth the most, Cajungal Colons second, Chazwozel Schillings third and Gasbandit Kronas last.

Each currency reflects the strengths and weaknesses of the holders. Dave is successful, Cajungal is playing it safe, Chazwozel is focusing on a protected market and Gasbandit is essentially Nigeria or Mexico.

If Gasbandit's country collapses under the weight of its inflation (that is, Gasbandit Kronas are now worth 1/10,000th of a Dave Dollar), there isn't a commiserate risk to Dave, Cajungal or Chazwozel that they will experience the same problem. In fact, because Gasbandit has screwed up his economy so much, Cajungal takes the chance and invests in Gasbandit knowing that while there is significant risk, she can purchase much of Gasbandit without significant impact to her own bottom line. This naturally brings up Gasbandits currency because the foreign flow of investment increases the value of the Gasbandit Krona. By exerting pressure on Gasbandit to smarten up, the currency may even recover.

This is how the world works now.

In a one world currency situation, we're all on Yen.

Dave yen is equal to Cajungal yen is equal to Chazwozel Yen is equal to Gasbandit Yen. And will always be equal.

Dave is still running a successful company and because he is the largest and oldest country, the yen grows according to his growth more than it would in comparison to Cajungal, Chazwozel or Gasbandit. The growth of the Yen means that Gasbandit begins to have problems affording basic goods because he doesn't pay his people enough, or they aren't developed enough to compete with the bigger guys. And because his currency is the same as everyone else, there's no benefit for Cajungal to invest and hope to strengthen his infrastructure. He may have to start going into debt to just stay on the same playing field as the rest.

Conversely, Cajungal, Chazwozel and Gasbandit all agree to help repay their debt by printing off more Yen. Printing off more Yen means that in an affluent country, all of a sudden it requires even more Yen to make a purchase. Now for Dave to purchase a TV it costs 50,000 Yen, versus 25,000 Yen earlier. Wages don't inflate as quickly as prices so Dave's economy takes a dive to pay for Cajungal, Chazwozel and Gasbandit's spending.

On the Gold Standard, whoever holds the most gold wins. It comes down to whose house is built on the largest gold nugget. Cajungal had the largest lot size and had the largest amount of gold to mine. She mines it up, and then puts it in a safe. Dave had no gold so he dies. Chazwozel marries Gasbandit and creates the United States of Gaswozel, but Gasbandit supports slavery and Chazwozel supports gay marriage so this union is turbulent until eventually Chazwozel in a drunken rage drives his car through the center of the house.

Mar 18, 2010#20

Cajungal

Why do I have to be a colon?

Mar 18, 2010#21

Adammon

Cajungal said:
Why do I have to be a colon?

Because I just got back from Costa Rica and their currency started with C and was called Colon?

Mar 18, 2010#22

Cajungal

:laugh: Very well, then. Colon it is. Sorry, I'm giving you a hard time.

Mar 18, 2010#23

Adammon

Cajungal said:
:laugh: Very well, then. Colon it is. Sorry, I'm giving you a hard time.

If it makes you feel any better, the colons are very pretty

Mar 18, 2010#24

Covar

An excellent analogy and explanation, although I think it got away from you at the very end. Still useful information, thank you.

Mar 18, 2010#25

Rob King

Adammon;356267][QUOTE=Cajungal said:
Why do I have to be a colon?

Because I just got back from Costa Rica and their currency started with C and was called Colon?

[/QUOTE]

Shitty deal.

Mar 18, 2010#26

GasBandit

Adammon said:
Gasbandit is essentially Nigeria or Mexico.

I'm almost tempted to put that in my signature.

Adammon said:
colons are very pretty

Quote of the week right here.

Mar 18, 2010#27

Adammon

Covar said:
An excellent analogy and explanation, although I think it got away from you at the very end. Still useful information, thank you.

Some stuff doesn't translate well. One piece of complexity I purposely skipped (but probably shouldn't have) is that each house produces and consumes goods from each other house. So Dave buys his TV from Cajungal who was purchased the component parts from Chaz, Gasbandit and Dave, etc etc. This adds a layer that may explain better the inflative/deflative practices in the one world currency.

Mar 18, 2010#28

fade

At Fade's house, there is no currency. It's a Free Lovin' commune baby.

Mar 18, 2010#29

Adammon

fade said:
At Fade's house, there is no Lovin'. It's a Free Currency commune baby.

FTFY

Mar 18, 2010#30

Chazwozel

I'm still cracking up over "Gaswozel"

Mar 18, 2010#31

Jay

Fuck went down 0.003 today. NUUUUUUU

Mar 18, 2010#32

GasBandit

ITT: SeriousJay bankrupts himself through currency speculation

Mar 18, 2010#33

Jay

Gasbandit, explain to me in detail why the Canadian dollar lost 0.003 today.

Mar 18, 2010#34

Covar

SeriousJay said:
Gasbandit, explain to me in detail why the Canadian dollar lost 0.003 today.

Because 4658 Canadians realized that as most books, magazines and several other products will continue to print the USD and loony prices together keeping the US Dollar superior to the funny money. :Leyla:

Mar 18, 2010#35

Cajungal

I was in class earlier and couldn't really read all of Addamon's analogy... just finished. That's pretty cool. Somehow you got my personality down pat in my currency with the whole 'playing it safe" bit. and yes, Gaswozel = :laugh:

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