There’s been no end of analysis and speculation with regards to the impact of recent events on the US economy. But what about the rest of us? As a Canadian I’m one of the 30 million nearest to the implosion that will soon be the US economy, but what will it mean for we Canadians and other countries that do trade with the US?
2007 showed us one clear sign of what some of the impact will be. As with all changes, there’s some good, some bad. In this case, it’s meant stronger purchasing power for Canadians. Automakers are finally beginning to offer better pricing that reflects the strength of our dollar. Where pricing hasn’t budged, we’ve been going over the border to shop. Bombardier snowmobiles were flying across the border faster than the wind earlier this winter due to non-competitive pricing. Therein lies a potential concern. Recent trade numbers are showing that our binge on US goods has been chewing into our trade surplus.
Those are all high level observations though. What does it mean on the ground? For me, it means less earnings from my advertising ventures. All the programs I’m participating in operate in US funds. It’s not that bad yet, but the further I look forward, the bleaker the picture becomes with January 2009 being only a slight glimmer of hope. On the other hand, I’m going to be shopping for a new car soon and the price advantages we’ve been enjoying will likely help me out quite a bit when I head out to buy.
It’s another big advantage for anyone who’s been itching to buy a guitar. Prices have largely reached parity. You’re getting way more bang for your buck since the large portion of quality guitars are built in the USA. Fenders, Gibsons, Rickenbackers, etc… almost all of the high-end stuff is built in the USA. There’s a point where things are going to go a little nuts once the inflation in the US picks up, but in the meantime, enjoy the great prices on quality guitars.
Those are some observations from my end, let me know how the softened US dollar has been impacting you, both positively and negatively.
Ling // Mar 16, 2008 at 11:56 am
The problem comes when you have a falling dollar and rising gas prices. Oil is still purchased, worldwide, in US dollars. The US trade deficit is going down, but the price of oil is stopping everyone, both in the US and outside, from getting any advantage out of the low dollar. Unless oil starts dropping, you’re going to end up with a low income in US dollars and high prices…
Matthijs Enschede // Mar 17, 2008 at 4:58 am
You see the stock markets dropping worldwide. Things like my pensionfunds and my mortgage are highly depending on those markets.
Don’t really bother about the oil prices because i don’t consume a lot off fuell.
Matt // Mar 17, 2008 at 2:26 pm
Gas prices have been hurting. That’s the only thing about the dollar value that’s actually been hitting home with me. $3.15 over St. Pattie’s weekend … no fun.
Charles Wilson // Mar 18, 2008 at 2:59 am
It does not hurt bad when you are buying from US. But if you are earning in USD but resides outside of the US, that very much shrink your earnings.
I am not too sure how long before the virtual world decide to buy and sell using Euros.
But sure hell, webhosting in the States is surely more afforable now.
Jeff Gordon // Mar 19, 2008 at 9:29 am
gas prices hurt everything, even if you don’t drive much. gas effects the cost of bread and milk, as it gets places on trucks.
Josh // Mar 19, 2008 at 12:01 pm
Does the weak dollar contribute to higher oil prices, since oil is traded in dollars? When the rest of the world gets tired of losing money trading in dollars and switch to trading oil in euros, would this help in reducing oil prices to some extent?
Daisy // Mar 21, 2008 at 9:21 am
Same here, the gas prices hurt the most. But on the plus, I buy a lot of things in the US nowadays and can get great bargains. And webhosting is cheap!
RCHT // Mar 22, 2008 at 7:26 am
Living in Canada but doing business in US dollars is killing me.
Yeah, purchasing power goes up, but my income goes down and most months I make more than I spend
James // Mar 22, 2008 at 1:49 pm
Stop worrying everybody! The dollar will be back up in no time
Sagar // Mar 23, 2008 at 4:36 am
I hope it gets back up. I Live in India and wanna earn dollars on net but … falling rates will decrease my income
so hope for it to rise …….
km // Apr 12, 2008 at 12:27 pm
The USD currency rate down has decrease my internet income which heavily effect more than 20 percent.