September 21, 2007 / 09:49
Have a look at the cost of cars, when will this be adjusted? Ford Taurus base model , there is a $10,000 difference on the dealer stickers. We are being ripped off by merchandisers here in Canada.
September 21, 2007 / 09:56
Freddie!
You call....I answer....
Yes, I absolutely noticed that the currency is on par. Like you, I am old enough to remember the last time (30 years ago) when that was the case.
In the past, I've seen it as high as 50% or more in our favor, but in the past few years, I've seen this coming
yet, like you said, things are still (in general) more expensive in Canada with or without the GST issue.
I tend to doubt that the items you mentioned (books, tolls, etc.) will come down quickly, if at all. I think the two currencies will have to stay this way for quite a while before that happens.
On the plus side, perhaps merchants could accept both currencies at par at more locations, eliminating the need to stop and exchange money (which they now charge a FEE for!) Credit cards are still the best bet, but now THEY charge a fee as well.
Bottom line is, whether this lasts or not, it's still a pain for both of us!
Keep up the great work (even the political stuff--it needs to be said, whether it's your government or mine!)
Loving you!
JON
September 21, 2007 / 09:58
Don't know why my last post said "anonymous"....but this is Jon from Buffalo!
September 21, 2007 / 10:04
Fred: It's basic economics. Things will not be brought in line because it's the fair thing to do. Consumer demand will determine whether the price of any item drops or rises. A few years back when our dollar was at 65 cents, a steak dinner in the US was $40 a person while in Canada it was the same price. There was no adjustment then and there won't be one this time.
Just like the price of gas, the seller will charge what they think the consumer will pay. We just have to live with it or not buy it.
September 21, 2007 / 10:15
Things may move quicker than we expect. There are companies popping up like flies to help people inport big ticket items. I NEED a new motorcycle I am seriously thinking of buying in buffalo. There is a 25% difference between prices in the US and prices in canada for the bike I want. even with the duties etc I can save $1500 or more. Even the stupidest of distributers have to know people will croos the border in increasing numbers if the prices don't get in line. For that reason you may see prices come down. Well I hope so anyway!
September 21, 2007 / 10:21
Mine said anonymous too! This James Edgar Not from Corus!
September 21, 2007 / 10:48
People should just stop buying, period! Only buy what you really need. If possible, buy local produce. If, you need to buy big ticket items, do your homework. If it is cheaper in the States (cringing as I say this) buy it there. This may wake them up. Also, e-mail your MPP/MP. If enough people do..........you never know.....they may do something about it...........on second thought, never mind.
September 21, 2007 / 11:15
Fred, please explain to me why we should feel so smug.I remember the last time our dollar was at par. I was working in the tourist industry making mininum wage - I believe it was $2.65; and I was off to university. The economy was a mess - and we had wage and price controls..
What I remember most vividly was that American tourism died in my childhood town -destroyed by the at par dollar.
You think Toronto was a ghost town this summer? Just wait til next year. Even the panhandlers wont come...
September 21, 2007 / 11:29
Will all of the NHL players who insist on contracts in U.S. $'s when playing for the Canadian teams want to renegotiate now... and what about the Canadians who play in the U.S., will they want to be paid in Cdn $'s? Quick... call my agent.
September 21, 2007 / 11:56
Items like books, and magazines that print prices in US and CDN $'s won't change, you can "try" to purchase these items with US$ at the US price and see if the merchant will accept. I doubt they would.
As for things like tolls and restaurants with posted exchange rates, they should change their rates in accordance with the exchange rates of the day. Problem is that rates are different for buying and selling and just because yesterday the CDN$ traded at 1.0004 to the US$ doesn't mean the merchant gets paid 1.0004 when they go to exchange the money which could be the next banking day and they get paid in retail rates vs TSX trading rates.
Best thing to do now if you regularly make purchases in the US or you are going to buy something big, exchange your money now and watch for bargains.
This will turn around in time too, so I wouldn't count on the CDN$ being strong for long.
--Pete
September 21, 2007 / 13:02
Pam brings up an important point regarding tourism.
Personally, I love Toronto and, living in Lockport NY (not actually in Buffalo--maybe I should change my handle!), I will not change my mind about visiting.
BUT, with the bridge situation the way it is (and it will get worse as the new passport laws kick in), it will most likely have a serious effect on cross-border tourism.
Many people simply won't bother to go north. Unfortunate, but true.
September 21, 2007 / 13:18
You raise some good points, but in your rush to be condescending you forget a few things.
Most of whats on this posting is speculation. We're wonderng if the prices will reflect a strong dollar if it remains that way.
Meanwhile, the dollar has been nipping at ninety cents for the better part of a year now, but no adjustments have been made with books and magazines, they still reflect a 25 to 30 percent difference between Canada and the States.
Tolls at the Niagara border haven't been adjusted properly either.
It hasn't been a ten percent difference over the past year, it's been over 20.
Greeting cards, same thing, no reflection of what's been in place for almost a year.
I'm sure you know this Irvine, you just forgot, or you didn't do your research, right.
September 21, 2007 / 13:37
That wasn't the orginal point Irvine.
A simple question was raised, how long will it take for the new dollar to be reflected in prices.
That's all. Nothing about cross border shopping or boycotting goods.
Just simple speculation on when prices might find their level if in fact they ever do.
You certainly are an angry "dood."
September 21, 2007 / 13:55
I hate to admit it but I agree with Irv. Of course, we could always do without his “Let me explain the world to you, DOOD, because I'm so smarter than you other fools†attitude.
September 21, 2007 / 15:13
It is nice to hear from the consumer's point of view; however there won't be a lot of spending as we lose the manufacturing jobs. Irvine is okay, because he is soaked in oil. The rest of us should watch our pennies, if this continues. Let's pretend that the Yanks are as naive as we think, well they caught on…poor economy = lower the dollar = investment. What did Jean warn Canada and Mexico about when the elephant starts to roll over?
September 21, 2007 / 15:32
I think it is interesting that there is still that difference between the canadian toll and the american toll at the border. they should adjust it or give a little back to canadians somehow. Canadians coming over here are getting screwed by that. There is no reason for there to be a dollar difference there hasnt been that big of a disparity in years. When it was a 30% difference maybe. I think a lot of things need to be changed. Its a lot like the price of gas, when the oil prices go up gas shoots up as fast as can be, but when oil prices go down, it takes weeks if not months for gas prices to follow suit. I would be making a big stink. I think it would be interesting to do a little experiment, come over here with $100 canadian and go to stores around Niagara falls and buffalo and see how many stores tell you they either A)wont accept or B) try to charge an exchange. A book store would be perfect to try it and make the argument. IT would be even more fun to get those interactions on Youtube. Finish at the Border and hand them 2.50 Canadian or what ever the US toll is and see what they say. Then make the argument. It does have to change.
Im on Canada's side on this issue. In terms of me spending my money, im not concerned. It does make a difference on Jays tickets though I used to just go ahead and get the best seats at Rogers center knowing that a $60 ticket only ran me $40 or US....now its straight up.
September 21, 2007 / 17:42
If you dig through Irvine's various posts, you'll find the typical Canadian rationale - it's America's fault... yawn
September 21, 2007 / 20:18
Um, er, did you people miss this? "People should just stop buying, period! Only buy what you really need. If possible, buy local produce. If, you need to buy big ticket items, do your homework. If it is cheaper in the States (cringing as I say this) buy it there. This may wake them up. Also, e-mail your MPP/MP. If enough people do..........you never know.....they may do something about it...........on second thought, never mind."
Or did it go over your heads?
September 22, 2007 / 09:33
Irvine - I understand that Alberta is vulnerable, as we are a stop gap measure and a bit of a smoke screen. Extracting our oil is costly, so our bottom line is much different than the Arabs. Is Dubya at fault for miss-management or is this orchestrated? I'd like to know your opinion. My take is that his personal interests are reaping incredible dividends. Can you see the big picture on a big screen TV? I can't figure out if he is doing all this for the family business, or is his religious zealous wanting to be the man that holds Christ's hand.
As for the Martin plug, I was a big fan, but let's be honest because I was paying attention at the time. Mulroney (and I just had to spit) started the economic recovery that Martin followed. However, before I lionize Mulroney, take a look at the New Zeland economy at the same time, all we did was follow their plan for recovery.
September 22, 2007 / 12:29
Irvine - I don't need to tell the Economist that they are "anti-american". They already know it - it's their editorial policy.
Neither did I disagree with you on US culpabity - I merely wrote "yawn".
Perhaps it's you who doesn't read ...
September 22, 2007 / 12:37
I recall someone on this blog referring to Irvine as a know-it-all (not an exact quote). He reminds me of a woman I overhead on the streetcar one day. She rattled on and on about her education, her doctorate, job prospects. She sounded like the real deal until she mentioned "doctorate" too many times. I turned around and realized she was a street person and had no companions except an invisible friend. Anyway, Irvine reminds me of her.
September 22, 2007 / 16:34
Trish, you're hilarious. Irvine, get over yourself. It must be kind of lonely at the top, especially when you're the only one who thinks you should be there.
September 22, 2007 / 18:08
Horray for par!!! BRING YOUR MONEY to NIAGARA FALLS!!! Spend as much here as you like! Make it like 17 years ago, when the GST kicked in.. and there were more Canadian cars than US in the parking lot at our tire store! Just try not to buy gas in N.Falls..as the merchants charge more than in other nearby areas. WELCOME!!!
September 22, 2007 / 22:00
Thanks, Linda. That's what I was trying to say - "Irvine, get over yourself." They don't call you lastwordlinda for nothing. ;)
October 13, 2007 / 14:57
Actually the American economy is doing surprisingly well. The collective insight of the investment community put the Dow Jones Industrial index at a new record level.
Financial news reports in September pointed out that the amount of U.S. dollars it takes to buy other currencies rose because the U.S. Federal Reserve cut interest rates. Money flows to where it can get the best rates. It is a common misperception that comparing the unit of currencies between countries indicates a relative value. One U.S. dollar buys 117 Yen. This does not indicate that the U.S. econommy is 117 times better than the Japanese.
Unfortunately, the change in currency rates will prevent me for some time from visiting Canada as I usually have done every year. The prices are significantly higher than prices of the same items in the U.S. (when valued in U.S. dollars). I'll be back when the rates right themselves in the future.
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This is a shout out to a couple of American readers of FreddieP.ca. "Mike (Buffalo Boy)" and "Jon from Buffalo."
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