[Newsbot]

Title: 7 Weeks High for the Loonie
Category: Business
Posted By: Dillon
Date: 2010-03-08 11:31:20
Canadian

[tritium]

aaaah. Sunny Florida this year for March Break.

[Robair]

Yea, it's great for that. Not so good if you're a steel fab shop that hasn't been winning any American contracts lately.

Apparently we've become too expensive.

[Caelon]

Robair Robair:

Yea, it's great for that. Not so good if you're a steel fab shop that hasn't been winning any American contracts lately.

Apparently we've become too expensive.

That is the problem of a low valued dollar. It promotes inefficiency. Our current problem is the rise of the dollar has been more rapid than industry can change. Eventually we will make the necessary changes to get our cost of production in line with the market. If at a future date the US dollar rises again relative to the Canadian dollar our industry designed to be competitive at par will blow the socks off a US producer.

That will in turn force the Americans to improve efficiencies to compete and the cycle repeats.

[Lemmy]

Caelon Caelon:

Robair Robair:

Yea, it's great for that. Not so good if you're a steel fab shop that hasn't been winning any American contracts lately.

Apparently we've become too expensive.

That is the problem of a low valued dollar. It promotes inefficiency. Our current problem is the rise of the dollar has been more rapid than industry can change. Eventually we will make the necessary changes to get our cost of production in line with the market. If at a future date the US dollar rises again relative to the Canadian dollar our industry designed to be competitive at par will blow the socks off a US producer.

That will in turn force the Americans to improve efficiencies to compete and the cycle repeats.

Your economics is right on the mark. And I'm off to the Bahamas on the weekend, so I exchanged $500 today.