Loonies and BRICs
As most of you know, I live in SE Michigan, night clubs drive distance (if that’s your thing) from Canada. I didn’t go to my favorite Canadian ultimate tournament this year, so haven’t been in Canada for a while. So I was pretty darn shocked to hear this news:
The Canadian dollar breached 94 U.S. cents forthe first time in 30 years on Friday and analysts are speculating itwill be worth as much as the struggling U.S. greenback by year end.
Knownas the loonie because of the loon pictured on the one-dollar coin, theCanadian dollar closed at 94.22 cents in Friday trading — the highestit has been since July 1977.
It hit an all-time low of 61.79 cents on Jan. 21, 2002.
The latest surge comes after CIBCWorld Markets economists predicted the Canadian dollar will be worth asmuch as the greenback by the end of the year. That last happened inNovember 1976.
The Canadian dollar–the Loonie–has long been a kind of vacation time bonus for Americans. No longer, I guess. I’ll actually have to pay my way the next trip I make through Canada.
And then there’s this news (via Chris at AmericaBlog):
EW – as a Canadian tourist, I well remember the agony of vacationing in Massachusetts in 2002 with a 62 cent loonie. At that time, we used to call it the Canadian peso. For the Michiganders however, at least casino winnings are still not taxed in Canada, even if you are playing now with dollars at par. It would appear that a major cause in the US dollar decline has been the huge increase in the trade deficit that has accompanied not only increased exports from China, but the run-up in oil prices to $70 a barrel from under $20. The denomination of oil prices in US dollars has been another hidden structural subsidy for the US economy under Fourthbranch, and these petrodollars are going to have to be recyled at some point. If the oil producers decide to diversify their holdings in US dollars to euros or yen, then the dollar plunge could just be starting. You are absolutley right about Cheney’s shortsightedness – I vividly remember him coming to Alberta to â€visit†the oil sands – it felt like Tony Soprano â€visiting†my nice little pork shop and telling me it would be a shame if anything were to happen to it. Sometime I will post about our fearless Prime Minister – he used to be head of the National Citizens Coalition up here, which is the equivalent of the head of the Heritage Foundation becoming President.
It’s going to be a BIG psychological blow if the loonie is ever worth more than the American dollar. The Candians will be polite about it and cover their faces when they giggle at us, but it’s still going to sting.
EW – is it Michiganders or Michiganians?
I say Michiganders usually, which a good friend told me is what those who move to Michigan call themselves. But, I’m told, native Michiganders like to call themselves Michiganians. Though there is still some contention about the usage.
And you’re right about the dollar exchange. It’s going to happen, it’s one thing the Iraq war was supposed to prevent, and it’s going to be ugly. Argentina on a massive scale. I’m just glad mr. emptywheel’s an excellent scavenger.
Cheney’s internal security police (Homeland Security) are doing their best to keep you from feeling the loonie’s rise by reducing cross border traffic. I just spent a couple of days in Buffalo and ventured to Niagara Falls on the Canadian side. Both places are experiencing a 7-9 percent drop in tourist traffic which they ascribe to anxiety about the impending requirement that border crossers have a passport. This isn’t even in force yet, but ordinary Canadians and U.S. tourists don’t have such a thing and can’t imagine getting and paying for one.
Add this to the accounts I’ve been getting of US folks with 20 year old, long expunged, DUI convictions being kept out of Canada because the US has shared all our criminal records and DUI was a felony when those convictions happened. You can fix this stuff with lawyers and about $3000 but who’s going to do that? (Folks I heard it from were going to an AA convention.)
Apparently DHS didn’t give Canada my numerous civil disobedience arrests. Crossed the border in part to find out.
But I think it is right to believe that part of all this is simply making travel harder for proles.
For what it’s worth, I spent my summers in the 1950’s in Michigan, and I don’t think I ever heard Michiganians at that time. I’m pretty sure my mother always referred to herself as a Michigander. Also for what it’s worth, my Firefox spell checker redlines Michiganian (but not Michigander).
Apparently DHS didn’t give Canada my numerous civil disobedience arrests. Crossed the border in part to find out.
Love it, janinsanfran!
EW – you and Mr. Emptywheel will always be welcome in Canuckistan when the Greater Depression hits the US – and, not gloating, far from it, just think what will happen to Michigan when some hedge fund buys Chrysler/GM/Ford, bankrupts them to destroy the UAW, and keep the dealer network while building the cars in China – just get on the Overground Railroad/Ambassador Bridge and get on up here!
Well, thanks. But I’ve been arguing that global warming is fast making MI the most livable state in the country. We’ve got fresh water, the second most diverse economy in the country (and once CA loses it’s water, we’ll be first), and we’ve got medium sized cities placed a reasonable distance apart. So I’m going to stay here and pioneer our new sustainable economy.
But if I get in trouble, I’ll keep your invitation in mind!! mr. emptywheel and I also have the home country (Ireland) to fall back on, if NW will accept my half a million miles in exchange for passage.
I too live a couple of stone’s throws below the Canadian border. Got my college education there while the US$ was king and have to say more power to the Canadians! Our local business have become dependent on the CAN traffic in their stores. Your last comment EW got me to remember how the Can shoppers came down with suitcases filled with old clothes that they tossed into the local dumpsters (yes local bus set up extra dumpsters for them) and then the CAN shopped all day and filled their bags with new clothes to sneak across the border. Guess more of us locals might be checking out the dumpsters if things keep going like they are.
When I lived in Kalamazoo, we were always â€Michiganders.†Say YES! to Michigan! Except, you know, the auto industry is dying and property values in and around detroit are already sinking through the floor and people are getting out as fast as they can.
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But you have a Canadian governor, no? So why shouldn’t the Loonie be worth more than the Greenback?
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And- Ultimate! I had no idea. I bet you’ve got a mean flick.
I’m a native Michigander. Some object to being called after a goose, but I find it charming and unique. â€Michiganianâ€â€¦ boring.
FWIW, I think I call myself a Michigander but others Michiganians. Except marjo, because I know she prefers the former, as do I.
The idea I have heard advanced is that the idea is to
devalue American Currency so that it is easier to handle our balance of trade deficit.
Actually, Michigan natives call themselves â€Yoopers.â€
Ah. Those would be the subvariant of Michiganders who are from the Upper Penninsula.