Twenty Six Percent More

October 23, 2008 @ 08:16

I'm happy for Neighbour John. He runs a manufacturing company that does almost all of its business in the United States.

With the Canadian dollar dropping below 80 cents, John is a very happy man these days. Over the past couple of months, he got a 20 percent raise. How many people can say that?

Of course John would counter with this. During the brief moment in time that the Canadian dollar was strong, he wasn't so happy. Like many Canadian manufacturers, it put a lot of pressure on his business from top to bottom.

I like to think of Neighbour John and people like him whenever I get pissed off about the dollar. It makes me feel better.

Tomorrow morning I'm leaving on my third annual sports trip to Michigan and although it's only for two days, I 'm still not thrilled about paying $1.26 for an American dollar.

Thank goodness all our tickets were purchased when the dollar was in the upper 90's, so that makes it even easier, but all of a sudden a quick trip across the border will cost 26 percent more than it would have a month ago.

I've guess we've been spoiled over the past couple of years. With a dollar floating around par, it made trips to the United States a lot more enjoyable. Especially when you consider that besides smokes and booze and "some" clothing, prices in the States didn't seem to differ much from Canada.

Definitely not food - groceries or restaurants.

I admit, I'll probably only spend a couple of hundred bucks in Michigan this weekend, but that instantly means $250.00, and I don't know about you, but I don't like having 50 bucks disappear into thin air. Not only that, but a $240.00 dollar hotel bill will turn into almost three hundred.

Here's the deal. This trip was planned a few months ago, so we're on the hook to go. But honestly, if the dollar had been worth 79 cents when we were planning it, I probably would have declined, on principle. And it will definately make me rethink a planned trip to Florida in the spring.

It lets you appreciate how the United States will probably suffer over the next few months from a tourism standpoint. How many Canadians planning extended trips will decide to stay home? Lots.

But I go back to my original point. Guys like Neighbour John are happy today, and so is the Canadian tourism industry, and when you get right down to it, that's way more important than my trip to Michigan.

I think I'll check out Newfoundland in the spring.

Category: Stuff

31 Responses to "Twenty Six Percent More"

Neighbour John
October 23, 2008 / 08:34

Hey Fred,

I will give you $50, have fun, Woo Hoo.

Erik
October 23, 2008 / 09:27

Newfoundland is my favorite province and makes for a great vacation. Stay in bed and breakfasts, drive the Trans Canada and make sure you visit George St. in St. John's. You'll have a blast and the people are some of nicest around.

Doug
October 23, 2008 / 09:33

Indeed, manufacturers margins will improve but the state of the USA economy and their decrease in demand could hurt neighbor John as well as many other canadian manufacturers selling into the USA.

Neighbour John
October 23, 2008 / 09:51

Not to mention buying from oversees Doug.

dave
October 23, 2008 / 12:12

Do the "lefties" now give Harper credit for this lower dollar?

I know they sure thought it was his fault when it was par or better

RickyP
October 23, 2008 / 12:19

The US economy is still in worse shape than most other countries. I think that this dip in the Canadian dollar (and UK Pound, and Euro) is temporary. There should be a rebound soon, but the markets are not always rational.

brother Al
October 23, 2008 / 15:00

Yeah, and if you tell everybody to keep the change, it'll be even more expensive.

LEW
October 23, 2008 / 15:33

Forget Newfoundland, come West Fred.
It will be the only time Canadians (middle class that is) will be able to enjoy Whistler. Campbell just reduced Ferry prices by 30% as well (I'm not saying you like to ride ferries, but the coast is a beaut)
My trade has traditionally enjoyed a boom in business with a low dollar, but I think the States will not be spending like they once were when our dollar was low, and it is not as if our dollar dropped, it is more like their dollar is artificially inflated - wait for the bottom to fall out fast.

BIG BLUE TIDE
October 23, 2008 / 16:06

You sir or madam are a poopyhead.

Buffalo Boy Mike
October 23, 2008 / 16:43

Yeah, as if the US economy isn't bad already, you guys are going to start staying up there instead of coming here which further hurts our retail, who decides the value of the currency? I think we should combine like the Europeans did and have one currency between the US and Canada.

Stafford
October 23, 2008 / 16:45

What happened to the Anonymous post?

It was chilling, like a sentient supercomputer barking the reminder:

"In time, you will come to regard me not only with respect and awe, but with love."

Who will win in the war between Anonymous and the humans?

BIG BLUE TIDE
October 23, 2008 / 17:02

...and my brilliant, pithy reply sits there like a despondent orphan making absolutely no sense.

julie mizzoni
October 23, 2008 / 18:45

I hope you were kidding about
the Rock. The best place in Canada. I took my kids, age 5
and 10 and they loved it.
The people are the best.
I visited family I didn't know
and we had a night of music.
They all play an instrument
and were so warm and happy.
If you have not been, seriously, check it out.

Irvine
October 23, 2008 / 21:31

Important thing: Fred Patterson has to pay more for his cheap beer in Michigan

Unimportant thing: Falling dollar benefits trade & may rescue the economy of the province of Ontario

James Edgar
October 24, 2008 / 09:53

Not just Fred I'll have to pay more for chaep beer on MY annual trip to Michigan.It's a travesty I tell Ya.

James Edgar
October 24, 2008 / 10:03

Besides Irvine it's Fred Blog . When you get a blog YOU post what's important to YOU.

Irvine
October 24, 2008 / 10:04

Given what I'm seeing happen in front of me right now on my computer screen, cheap beer looks to be our last worry.

Thank God for a falling dollar..which effectively pushes up the price of oil (it's traded in US bucks).

Ho
October 24, 2008 / 10:25

Hey Fred take a look. Feel free to use.

http://i234.photobucket.com/albums/ee242/horonto/Loonie_reverse_view.jpg

Irvine
October 24, 2008 / 13:48

James:

Ah, is that how a blog that's all about discussion works?

Sounds fine to me. Now James, go back to your lousy little radio gig that pays 10 bucks an hour.

~kapoof~

Jake
October 27, 2008 / 11:53

Blogs OUCH!!!!!

Canadian Dollar---still a buckeroonie here!!!!!!!!!

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