O/T Has the USDollar going into the crapper had an effect on your business/purchases?

[alha]

I've been watching the US dollars slide over the last 4-5 years or so, when I rode up to the Calgary Stampede in '02, I think it was around .65, and now it's at parity or a little above. Not sure if it makes much diff to the Americans here, probably directed more to our Canadian friends, but if either has any input, I'm interested in hearing it.

[fun4now]

I think it was around .65, and now it's at parity or a little above
whats parity ??? i would think the dropping U.S dollar would make your business increase profits ?? how is your's doing??


not being a bung hole, seriously wondering the effects.

[alha]

I think it was around .65, and now it's at parity or a little above
whats parity ??? i would think the dropping U.S dollar would make your business increase profits ?? how is your's doing??


not being a bung hole, seriously wondering the effects.

Fun, parity means that they are at the same level, of equal value. As for profits, it all depends on where you get your raw materials, and where you sell your product. If you get your raw materials from overseas, but sell your product locally (in the US), the lower dollar would probably hurt. Conversely, if you get your materials locally and sell your finished products overseas, then you are making out pretty well with the exchange rate as it is.

The business I'm in isn't really effected by the exchange rate directly, though we have recently seen some price increases on some of the parts for European branded machines, some of them fairly significant.

[HMW]

I saw a thing on TV this morning where folks from Canada were coming into the US to buy products, apparently saving them some money. As far as my business I don't see anything different Everything is high!!

[pipeline Dan]

I haven't bought any big ticket items as of late but way back when I bought
my very first welder(301G) OHHH about 5ish years ago, I went into pay cash
and the dealer told me to come back the next day and I could save myself a bit of cash. I went back into Calgary the next day and I think I saved myself around $300ish dollars. now I cant remember what the dollar was and I am know it wasnt par but I did save some cash. I would think it helps alot of people in the western part of Canada but I think its real hurting the Eastern Part, place like Ontario and anything east of there. I think its because the east depends on export to the US.

[cruizer]

It's great!, just bought a Honda Rune at par 16K, here they go for 26K, if you can find one.

Going down and picking up a Chev diesel in November once the Canadian dollar surpasses the American buck a little more. Pay the Sales tax at the border and drive them up.

What makes money is War, not maintaning other countries economies after war.

We supply more oil and natural gas to the States, and with a no hassle factor. Dying and supporting Iraq doens't make alot of sense. As well as, we have more oil than Saudi Arabia and Iraq combined.

Pretty soon we'll be supplying all the fresh water.

Canada has significanty more resources to plunder, significantly larger area, and a tenth the population. cool that our dollar is worth more than the States finally.

[hankj]

In Japan in 1960, one dollar US exchanged for 360 yen. Now, it's 117.

Many things drive down the value of our currency. Our huge foreign debt is one, political (economic) decisions another. Still, in the face of a steadily declining dollar, the stock markets are at record highs!

Is something going to go in the toilet? Better believe it!

Hank

[fun4now]

thanks alha.
from the looks of the fields around me, we will be seeing a huge need for food after this summer.not so shore about every one else in the states but we got 0 rain this summer. every thing around me died. that will likely carie over at some point to the exchange rate if its effects are far enough reaching.seems like food prices are already going up too fast, this cant help.

[Conrad_Turbo]

Ah it makes things a bit tougher, the majority of my sales are to the US or overseas. My material is bought locally, which I'm sure comes from the US...however their prices have not gone down (and why would they?). So in effect the profit margin is less on each product I sell...my prices will be going up in the next couple months.

However I do plan on buying a plasma cutter and a few other big ticket items when I head down to the US next. Prices here are the same and nearly everything in the US is cheaper than here.

Edit: A Cutmaster 51 goes for around $1300USD in the US...while as at my local Acklands it's $2600CAD...

[PLUMMER]

Its a good thing that the dollar is coming down. Others aren't going up but the US is going down by a controlled pollicy. It levels the playing field with imports and they can't profit as much from their super cheap labor. This then brings our american products also at par with other countries. This means china cannot profit from the huge imports we take from them as much. Another reason why they reduced their intended exports to US. This is not a bad thing , yet it is a planned policy to protect US interests for the day to come. Still our dollar has more street value than any other currency in the world, and it will stay that way no matter how much it falls. Ask a foriegner if he would rather have his currency or the US curency of equal value in his hands. The only downside I personallly have seen is my dollar isn't getting the extra 30 cents in canada and even tho its at par they still haven't changed alot of the exchange rates , even at the border your getting 25% less when crossing with Canadian dollar.

[cruizer]

Alot of economys are based on the US dollar, some like China ( they have billions in surplus) supress thier dollar to make thier product, rather our product we buy from them at huge savings that we still pass on to some degree.

We buy from suppliers all over the world who supress thier dollar. Cats *** for us.

[HMW]

Cruzier, we're saving all your resources for last, after the world has used up the middle east Can you imagine what will happen when the middle eastern countries no longer have oil to sell? Hopefully by then we'll have found an alternative fuel. I hope we find another fuel source before we all use yours up too.

[calweld]

. . . . .to stay more on the ball, and keep diversifying like Calweld keeps saying. . . . .

Haha, "Calweld's online degrees . . . we offer BA's and MBA's in Business Administration, with a concentration in Small Business. Additional areas of study include 'How to make money in Stocks,' and 'The ABC's of Real Estate investing.' Receive a valuable education while enjoying the comfort and convenience of your own home. Now accepting applications for the upcoming semester."

Huh, if I was really smart, I'd figure out a way to make money doing this, instead I've been sitting here giving it all away for free the last couple years Ahh, heck, if in some small way I was able to help you or anybody else here, I'm happy.

[alha]

thanks alha.
from the looks of the fields around me, we will be seeing a huge need for food after this summer.not so shore about every one else in the states but we got 0 rain this summer. every thing around me died. that will likely carie over at some point to the exchange rate if its effects are far enough reaching.seems like food prices are already going up too fast, this cant help.

Well, I have an explanation for the price of food going up, at least one of the bigger reasons. Ethanol. We are growing food, to drive our cars. To me, it's crazy. I know we're energy dependent, but to force the cost of food up to all consumers because there is such a strong demand for corn (it's at or near record highs, I heard) and is driving more acres to it instead of other crops, that it raises the cost for farmers feeding cattle, which raises the cost to consumers for everything related - bread, milk, cheese, meat, cereal, etc, etc.

Interesting story I heard about it, if you have a min: http://minnesota.publicradio.org/dis...ugosonethanol/

And, to top it off, there is now a glut of ethanol plants on line or soon to completed, and the price of ethanol is in the toydee. They would be in a Real world of hurt if they didn't get a govt handout/subsidy for each gallon they produce. Supply & demand, farmers love it, everyone else suffers. Nothing against farmers making a fair living, heck no, but when we burn our food as fuel, there's something wrong with that. I've also heard that if we converted _all_ of our cropland to "grow" ethanol, no food for us to eat, just fuel, it would only supply around 10-15% of our fuel needs. They need to find a replacement, Fast, for this, or we're definitely going to have some inflation to deal with. Surprised we don't see it already in the official numbers, but I expect it will be coming, especially with the fed more concerned about a recession, hence lowering the interest rates, than their recent concern about keeping inflation in check. We'll have to see how that one goes. Tough balancing act, to be sure.

*rant mode off*

[fun4now]

yep, we are screwed.
should have pushed for more non-fule related options a long time ago. been too buisy keeping the world economy solid and now our's is screwed. must be some logic in there some where, just not shore where????