Canadian dollar now worth more than the US dollar.

http://today.reuters.com/news/artic...854_RTRIDST_0_MARKETS-CANADA-DOLLAR-BONDS.XML

The economy is so screwed up and in debt. The dollar is becoming completely worthless.

What do you think this means long term? What is the cause of this inflation? Will our dollar ever be worth more than the Candian dollar again?
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Because I live in Canada, I don't really care. But I actually don't even know WHY the dollar is rising...

I know its about stock and all. I have a feeling its gonna go down again...

 

It's rising becuase the country is in so much debt.
http://www.brillig.com/debt_clock/
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Prioritizing the war effort is becoming more of a burden. Coupled with the increase in housing the market is barely holding together. The government isn't getting enough back to equate what it's putting out, thereby causing the treasury to make the paper it prints even more worthless.

 

oh wow. thats a lot of debt. I guess its not gonna change that easily :3

 

Well it's simply a matter of prioritizing. Seeing as the US won't be pulling out of Iraq any time soon, let alone slow it's military bravado with the Bush administration still fighting "terror" the country is being bleed.

 

yes I see, I think ><

talk about leaving a man behind.

 

That's plain scary. It triple since the last time I checked, which was about 2 years ago...

Anyways, I really dunno if the US dollar will ever rise again. However, I think if we pull back troops from iraq, every1 will b happier (well...almost every1) and our debt rate mite slow down...But I'm not too sure, I dunno much about stocks. But this is a big prob. for me since I live in the US...

 

im just happy that our ps3's arent f****** 800 bucks anymore. plus i have a friend who works at Zellers and can get me a 15% discount on a ps3 (80gig for price of 40gig FTW)

 

That's completely off topic. We're not talking about the price of the Ps3. We're talking about economics and inflation.

It might be smart to actually read the topic before posting.

Anyways, I agree with the fact that pulling the troops from Iraq would be smart, and so does the majority of America. It would help reduce the debt and save some lives.

But it wouldn't be profitable so we can't do it, seeing as our leaders don't think long term and only think of short term profits.
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The exchange rater between pounds and USD is over 2:1 at the moment. It is actually cheaper to fly to America to do your christmas shopping then do it in the UK.

From what I have heard it is mainly due to the sub-prime mortgage market in the US where banks were lending ridiculous amounts of money to people who were high risk. They then sold this bad debt around the world and nearly caused the first British bank to fold in over 100 years =_=

 

Wow, the U.S. is in a lot of debt. I agree, we really need to pull troops out of Iraq.

 

Correction. The U.S.A isnt in a lot of debt. It is in a huge amount of debt.

The sooner they take their troops out, the better.

 

Okay, so we've agreed that war is the cause of the debt.

I'm not sure at all when the war will end. Presumably when Bush is no longer in office? It's been going on way too long and that's how so much debt has built up and the dollar's worth has decreased so much.
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The war isn't the reason for the debt alone. There are other reasons as someone brought up; like the mortgage and all. They should NEVER have given out these loans to people who they knew could not pay them back. It is not even about just giving them to people with 'poor credit' but the fact that credit itself was issued to people that know nothing of it. Many people in the U.S. are now in debt by thousands of dollars and it is very common place. Credit is something many are encouraged to use for a variety of things and it is sinking us in a well. Not to mention the stupid Federal Reserve Bank is screwing us over. The war is definitely part of the problem but the state of banks in themselves is really not well either and we are being ran into the ground.

 

o.0 wow - if this keeps up the japanese yen will be worth more

nah jkz - any way i dont think this will be good for americans - though i live on the other side of the world this doesn't affect me

 

yes...
i've been hearing that many Canadians have been heading south...
i've also heard some have been denied purchase of motor vehicles due to where they came from...

 

Well, this certainly isn't good...however, in the past, debt and such has always been risen, lowered, returning, receding, etc. It just goes back and forth, so I happen to believe that with time, the United States' dollar will eventually return to its normal worth. Whoever's fault this is, it almost doesn't matter anymore, as long as the debt is paid in the end. However, as Repliku says, war isn't the only cause...

 

Hopefully it will, but some debts are so large that they end up irreversible.
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I'm probably going to sound stupid when I say this...

I thought we experienced inflation/deflation depending on which of the two precious metals backed out money, and how much money was backed? Businesses desire gold-backed money because then people are more likely to go into debt and get caught up in interest rates and owe more money.

The public desires silver-backed money because then there is a larger quantity of money out there and its easier to buy things and pay them off.

How does a countries debt factor into this? The only thing I can think of is the fact that we are in debt and losing gold/silver to pay off those debts to other countries.

I'm just a little confused. If we were in debt wouldn't the actual cost of the American dollar go up? Why is Canada's going up, are they in debt or something too?

I'm sorry I'm a bit ignorant on this matter but I ask questions to learn =]