Friday, September 21, 2007

Currencies Rollercoaster

Now, now. The Canadian Dollar is at nanometers of reaching parity with Uncle Sam's Green Bill.

Heck, the Euro is even further beyond that; it's almost half higher in value now.

Wow. Means Europe and even our beloved country's economy are doing good. Exporting and stuff. But isn't having a higher currency supposed to be bad for our exportations, since it becomes more costly for our client neighbors? Still, we seem to be doing good... to an extent.

Since we're not the only ones going up (ref. Euro), it mainly means that U.S. Economy is falling lower and lower. Since a couple of years, but it seems it won't turn back before long. Is it the whole war thing? Is it other countries getting more independent? Possible.

Still, gets me thinking what would the world look like if say, in a couple of years or decades, the U.S. weren't the most powerful economy anymore. Who would it be? China? I don't know. Maybe it's simply going to be a bit more widespread accross the rich countries (G8 and stuff). But it does feel odd thinking about it.

Why do we still have all those currencies anyway? With the economy becoming so global now, wouldn't it be more convenient to have one goddamn global currency, and the hell with change rates?

I mean, we've already tried with languages before, but that issue's a bit more touchy since there's all the cultural background matter to which any language is so much attached to.

But currencies don't have such barriers, do they? They all say "Business is Business" and crap like that, and it's always about profit. Do currency stuff really make business life easier, more profitable or whatever? I hardly see why.

Then again, i'm no economist. But I still think it's stupid to keep so many of them.

Oh well, let's at least rejoice that our loonie's so high now. Or maybe we shouldn't. Oh, crap. I never know how to feel, either side it goes.

Take care of your bills, whatever they are. And don't spend it too much (unless it's for grabbing me a beer or something).

1 comment:

Olivier said...

Actually the CAD did reach parity. It's even worth slightly more than the USD at this time. :) Yes, it means Canadian economy is going well, though the weak USD can hurt Canadian companies that export to the US. It will eventually have to stop and go back down... then up again... like a rollercoaster! This is what economy is all about: ups and downs.