Discussions

By SUN MEDIA  
Source: Winnipeg Sun, Nov 5 2007  
 
 
 
THE GOOD AND THE BAD  
 
1. Consumers should soon benefit in Canada from the lower prices of imported goods - including electronics and bigger ticket items.  
 
2. Consumers will continue to reap rewards if they cross-border shop because there is an added cost for doing business in Canada.  
 
3. Travellers flying overseas, particularly to Europe, Switzerland and Japan, will enjoy the loonie being worth more there, too.  
 
4. The dollar is the world's best-performing major currency, partly thanks to job growth, which continues to keep unemployment at a 33-year low, a number that looks impressive to foreign investors looking for a country in which to spend their cash.  
 
 
5. As the price of oil goes up, so does the loonie, because Canada's dollar is now considered a petrodollar. This is good because a high oil price means more money will be generated by our developing oil patch in the west.  
 
THE BAD  
 
5. A destabilized U.S. economy, despite the developing and emerging economies around the world, could still cause long-term damage globally and would take years to get back on track.  
 
4. The loonie is being driven higher by commodities markets, as investors leave the financial markets, particularly in the U.S. This puts the U.S. at risk for recession, which would be felt in Canada  
 
3. With traditionally higher-paying manufacturing jobs disappearing, most job growth has been in the service sector, which often offers lower-paying employment.  
 
2. The battered manufacturing and forestry sectors will continue to get hammered, especially those who signed contracts in the U.S. when the dollar was under 90-cents.  
 
1. The fast rise of the dollar will likely mean key interest rates controlled by the Bank of Canada won't be cut anytime soon. Its next scheduled announcement is on Dec. 4.