Canadian dollar now worth more than the US dollar.

Unfortunately since the mid 1900's the American dollar has been declared as legal tender, which means that you can no longer exchange it for the precious metal it once represented (gold). It's pretty much worthless paper and it's "value" is based on how much the treasury produces and gets back.

The current issue with housing loans and mortgages is that the treasury isn't getting back more money than it's producing. This is because more an more people aren't able to pay back the loans that they took out or keep up with the increase in mortgage rates. Factor in the current occupation of Iraq, and the US Treasury is forking out a lot more money than what it's getting back. Debt begets inflation.

Canada has also been experiencing a fruitful surplus in the past 5 years. Sure it has the regular government debt, but it's of the expected nature. As of now it's simply on a high in the business world, where more profits are being brought in from increased exports.

 

This isn't good for America as their dollar is going down. But this is a great time for Australia as I can buy things from eBay for cheaper. No offence intended <.<

 

Well all things considered, it's a good time to buy for pretty much anyone. Well unless you're thinking about oil. With the recent decrease in value of the US dollar, oil sales have actually increased, in attempt to take advantage of a number of countries that have seen an increase in value for their currency. So while it's easier to shop south of the border for me, gas prices are still pretty shiet.

Another thing that can be seen subtly in the daily market trends-- that and from what many economists are predicting-- is an eventual drop in much of the US market. Apparently it's rumored to be scary enough that a number of medium-sized and a few big business are starting to withdraw a few of their investments.

 

I'm assuming if this war doesn't stop soon America will lose its place as world super power.

 

Well keep in mind, that's not the war that's really doing this. War is is contributing by forcing the government to spend more, but the ultimate cause is ridiculous gap within the US poverty line, and the banks overstating themselves in clients that can't keep up with the rates being push by the rich. It's like a house of cards really.

 

The war is a big factor and America is kinda to take a step back but other countries grown stronger at the same time.

 

Ahh I see now. I was a little behind on the times.

I remembered learning about inflation/deflation in US History and I thought it still took effect.

 

Apparantly the USA is to lose its footing in the world market. The weakness of the dollar means it just can't compete. This really is a serious problem, but it means that we can fly to New York, do our Christmas shopping, fly back and it would still be cheaper than doing the shopping at home x]

 

It kinda sucks with Canada since we have to pay more, but some stores are going to use US prices for somethings, such as the brand name Coach. They are going to use the US prices here.

 

Woah...k? Yeah, I think it's good for Canadians^^But for those of you who live in the U.S.....yeah..I live in Canada,so...

 

Not to sound stupid, or mean, but I thought that american money was at the top.

 

Umm, no. American money is not at the top. In fact, it is far from it.

Like we repeatedly stated in this thread, the value of American money has been steadily declining for some time now, and it is now worth less than Canadian money.

Please read the posts and become educated a bit about the subject before posting obvious questions such as that.
​

 

Well about the economy, The bush admin has made a deal with E-Z Debt services in order to pay off the nation's $6.1 trillion debt over the next 70 years. Among the valuable properties being put up as collateral are Yellowstone National Park, NASA, and the state of Alaska.

http://www.theonion.com/content/news/u_s_takes_out_debt_consolidation

 

It's not just the war. The government mishandles money as it is.

 

Our country uses the euro and it's worth more than the US and canadian dollar.One euro is worth $1:50.