Exchange rate

[mr.elmwood]

Today, the exchange rate is paying my FVF.

[nan*55]

Well that's a good thing. Hope it drops some more 🙂

[femmefan1946]

There's an interesting oped piece in the Globe and Mail this morning by Jim Sanford of the UAW, argueing that the loonie is still overpriced.

He thinks the exchange should be about 81 cents to encourage exports and tourism.

[nan*55]

I've spend part of the morning adding shipping to a few item I have been previously offering free to US. Because of the nasty rate increase. This will soften the blow abit 🙂

[mr.elmwood]

I have been speculating for several years that the loonie is over valued. That happened in a world of turmoil. Canada was a very stable place to park money. It still is. Thing is, the world has stabilised a lot more. Money managers are finding they can put their money just about anywhere and it is just as safe, plus, the rate of return is higher.

Interesting little story, over on Bloomberg, about oil and the Ivory Coast. An area that was a hotbed for insurrection is now highly stable, pumping oil, pumping out money, rates of return double what they are here.

It is not just the African west coast. Iran has suddenly stabilized and they are going to soak up tens of billions of investment dollars. Libya and Iraq the same. Former Soviet republics have become very quiet as they realize stability brings in money.