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.