Exhchange Rate discussion

[Dog]

We've discussed about what affects the exchange rate in past threads and posts and this article is being shared as a follow up to that conversation... like every other country in the world, oil prices effect Canada's economy. Canada's economy is hurt more than others because they actually produce oil (albeit using a more expensive extraction/ production method from the sand flats)... this article attempts to convey the struggle associated with operating the Canada sand flats in a depressed barrel oil price market and that effect on Canada's economy. a recession obviously devalues the currency, in this case the Canadian Dollar.

http://money.cnn.com/2015/08/04/news/economy/canada-on-verge-of-recession-oil/index.html?iid=obnetwork

[Fort Wisers]

A little off topic but semi-related;

Back even just a decade ago, a lower CDN$ was great for our manufacturing sector and general economy as well as it kept people in higher paying jobs with more cash in their pockets to spread around.

Exporting at a lower CDN$ meant better value to the end customer which drove up export demands for Canadian built products.
Unfortunately, the infinite wisdom of our government over the last little while has allowed the manufacturing sector to pretty much dry up and move out.
The Higher CDN$ actually hurt us in many aspects.....it caused a lot of work to move elsewhere because it made us not viable on a global market anymore.
That coupled with the banks recent ability to allow horrific household debts all in the interest of bank profits and we left our people starved from good higher wage work and nothing to show for it but heavy debt load.
Then, in an ill founded effort to "stimulate the economy", we put all our eggs in the "latest and greatest oil technology basket" which has still not proven itself to be a cost effective, reliable or even environmentally safe process.
And on top of that we "re-created a false healthy work force" with a bunch of low wage service industry (tim hortons, mcdonalds etc) type jobs to make it look like we still had a great employment rate, but the reality is a large majority of the population that just recently had great paying manufacturing jobs are now stuck in minimum wage jobs barely making ends meet. And the few that went west in hopes of getting rich in oil are now left high and dry
(except maybe the very few ultra wealthy financiers that funded both the projects and governments they needed in the first place, they never seem to feel the downturn).

I find it sad that just a short while ago at the same lower CDN$ we were all much better off than we are now......so what changed?
We used to depend on a few sectors to keep our economy strong, but now we have been sold that oil extraction technology is our only future......looks good short term but where has it really gotten us?
Globalization certainly hasn't helped anything either.....when you're competing against countries with lower standards for safety, environmental policy etc you have little chance of winning.
So the next few decades are going to be rough on any developed country, who is used to a higher standard of living, until the playing field is leveled again.

It seems almost every month there is a new report of a new country on the verge of recession.....and that's because we all depend on the same basic economic model that only works with continuous growth.
In the end, there's only one thing that's going to fix all of this (and I mean globally, not just Canada):
Our governments need to realize that more technology/consumption is not going to fix anything, cutting back on our ever increasing wants will.
Unfortunately, cutting back is not exactly ingrained in human nature.....


Sorry for the rant, that's my 2 cents.....
Brent

[Dog]

Love the rant. I was literally clapping... Haha
For a while there I thought you were talking about the USA, as we have a lot of the same problems here... Unfortunately our current administration believes social welfare programs are the answer... I tend to disagree. But hey, what do I know, I suppose we'll find out when inflation finally kicks in and our second great depression starts because our government stops propping up our economy with artificially low interest rates.
It's a joke reallly. A real bad joke for future generations to struggle through.

[Fort Wisers]

Hard not to become a cynic as we get older eh?!

[puckster_guy]

 I agree with you both. I work for a large aircraft manufacturer and see that first hand. We lost 500 jobs alone to a new plant built in Mexico plus 200 more to China. Many friends are no longer working here. A sad state of affairs.

[Dog]

Hard not to become a cynic as we get older eh?!

a cynic, a realist, all the above. haha

[CaptainCrappie]

Amen Fellas! You've hit a nerve!  Until our so called political leaders start evening the playing field, we are all screwed!  Ever notice that the political party that is not in office has all the answers?.... until they get in.  Then it's business as usual.  I have voted (in the U.S.) both republican and democrat so I'm on both parties mailing and call lists.  When I get asked for money, I now laugh at them. For the last 40 years I have seen the results of the decisions made by our fearless leaders that have literally screwed the working class.

I am also a Navy vet that cannot get any help from the VA for my $620 / mo insulin bill. It was explained to me that due to my social security, some 401K and small pension income ...along with my wife's social security income, puts me way over the limit, so no benefits from the VA.  It also was explained that "your buddies in Congress initiated the new guidelines for benefits." I wish they would have told me that back in 1965. Come to think of it, I wasn't married in 1965 so what the heck has my wife got to do with it?  Oh, but they lied to me then, didn't they?. Now if you are homeless, have never kept a job, never tried to save any money, or paid any bills, are an alcoholic or are addicted to drugs... You may be the kind of vet that qualifies.   But those good old boys in Congress wear the flag on their lapels, and continue to tell us to please support all the veterans charities....  because God knows the VA won't cover all their needs!  And keep allowing corporations to shelter money in off shore accounts while keeping taxes low on the super rich and mega corporations.  After all,  those "job creators" do keep creating more minimum wage jobs don't they?  Got to keep those record profits up and create more tax shelters!  Allow those companies to keep deducting moving expenses when jobs are moved off shore too. Who in the heck wrote that in the tax laws? And encourage us to quit bitching, and work longer hours and get another job while we're at it too! Just because you people paid into a system for 47 years, don't expect to rely on it because we as leaders have spent it all, and then tell us that we have to make cuts in order to balance a budget so out of control that they cannot even begin to balance....Lets start by cutting food stamps and VA benefits.....

But we're told that we have to fund ever increasing military budgets, and police the world,  all the while declaring how conservative we are! ... With all the politicians clamming to be fighting for the middle class,  why does the middle class keep getting the crap kicked out of it?  Oh, and any donation to my campaign will be used to fight for you!  How in the heck can anyone believe the crap the politicians are spewing? And please keep peeing on me, I'm too darn dumb to tell that it isn't rain! 

I also apologize for my rant. Uh,... maybe not.

C.C.

[RHYBAK]

I agree with you both. I work for a large aircraft manufacturer and see that first hand. We lost 500 jobs alone to a new plant built in Mexico plus 200 more to China. Many friends are no longer working here. A sad state of affairs.

With 5000  people working in that facility,how can you notice a few hundred missing?

[puckster_guy]

 They are mostly guys off the shop floor. I trained a few of them. Some have come back due to production increases, but we have only about 1500 builders left out of about 2000 about 5 yrs ago. Also some support staff ie. parts chasers, engineering mgt etc. This place blows me away insomuch that we have so much support staff for so few assemblers/mechanics.

[Dog]

@CaptainCrappie if I wasn't laughing at your rant, I would be crying because it's oh so true on a lot of fronts.

[Fort Wisers]

They are mostly guys off the shop floor. I trained a few of them. Some have come back due to production increases, but we have only about 1500 builders left out of about 2000 about 5 yrs ago. Also some support staff ie. parts chasers, engineering mgt etc. This place blows me away insomuch that we have so much support staff for so few assemblers/mechanics.

Both automotive and medical are exactly the same (becoming very top heavy).
All it takes is for one of the people laid off to be a close friend (or as you say someone you trained) and even if the plant is a 4 million sqft facility filled with thousands of people, you'll still notice they aren't there every day.

[johnny walleye]

If We can get C.C. elected he can have great benefits for life

[SgtCrabby]

Amen to all.   

Capn;  I have  a "service connected" disability.  VA won't even talk to me other than say I'm in the last group for aid consideration because I worked and provided for myself and family which with my income puts me above their minimal wage threshold.  Which was not what I was promised when I served, the same false promise you were given.   Not that I need it today, but someday I might.     
Add my voice to your "rant". 

I apologize for slipping off topic, it just hit a nerve of mine too.
SgtCrabby