Freight Fallout Across the Seas . . . .

[tipsy]

vwalk you don't think a75 cent dollar is doom and gloom. I guess you are not fortunate enough too travel the USA.
Good on ya, the rest of us will just watch as 131-133% of our Canadian dollasr just evaporate in exchange.
Oh well sucks to be us!!! Thank YOU MR. Harper...

[macdon02]

Harper isnt steering the ship anymore Tipsy, its Justine's gig as of this week. That USD chart is impressive to say the least, CAD looks like we are going back to 60ish. All monthly. If the rate hike comes in Dec lookout, USD to the moon and CAD in the crapper, which isnt the end of the world. I figure we gross an extra $100 an acre on a 50 bushel weed crop at present, pure currency and only downside is on the fert, and fuel. Iron if you're a junkie. Screw it, buy parts and a set of westward wrenches. Short grains,meats, long USD, basis will improve as CAD goes down. If the US doesnt throw blocks up on their borders it will be a small miracle, China likely dumping their corn stocks back into US ethanol plants, and If I was a US wheat mill I would be buying Canadian weed and blending to the max with local product so I could call it product of USA. Rcalf should be making an appearance soon as well. Im just not sure if BOC will follow the rate increase in Dec or tank the loonie? What's under .6170?

[Hopalong]

If some low or negative interest rate is good policy, have to ask why more would not be better?
Think US is on right track to support a return to more traditional interest rates.
Hope Canada can stay closer to US policy than European ones.
Reminds me of when wheat board and pools told us they could not sell more by lowering price and question was asked was why not raise the price.
Never got an answer.

[stonepicker]

One too many tipsy? It continually amazes me how powerful harper was, i mean he gets blamed for everything from lowering our $ all by himself, to trade deals, climate change, you name it he's the major power player around the world! Justin has big shoes to fill. Now which cabinet min. did he just name that was forced to resign in cretian's cabinet because of giving contracts to his buddy's?

[errolanderson]

Hopalong. . . . out-of-control government debt.

The U.S.is in no safe financial position to hike rates at all (IMO). If they do from intense lobby pressure and the experiment fails, this could be a disaster as Yellen would have to cut rates possibily into negative territory. Then welcome QE4 . . . and the global currency war worsens.

The outcome is this would not be good. . . .

[errolanderson]

Hopalong. . . . out-of-control government debt.

The U.S.is in no safe financial position to hike rates at all (IMO). If they do from intense lobby pressure and the experiment fails, this could be a disaster as Yellen would have to cut rates possibily into negative territory. Then welcome QE4 . . . and the global currency war worsens.

The outcome is this would not be good. . . .

[Hopalong]

Thinking about low or negative interest rates and why they are not a de facto way to lower the value of a currency as compared to othe currencies or mediums of exchange.
How can lower value dollar be both cure for world economic problems and at same time give us confidence that it will not continue until it becomes worthless?

[errolanderson]

Hopalong . . . you are right, that's the dilemma. But global exporters trying to get past the debt curve want the lowest possible currency to maintain factory output and jobs.

The U.S. is the exception and so the U.S. thinks they are the exception despite their government debt nearing doubling in the past 8 year approaching $20 trillion.

Mis-timed rate hikes are much like a stick of dynamite. Allen Greenspan found that out when he hiked rates effectively popping the dot.com bubble in 2000.