[Dr. Howard]

(01-21-2016 08:13 PM)TheSlayer Wrote:  

(01-21-2016 06:49 PM)rudebwoy Wrote:  

The price of food has gone up noticably, I went into the supermarket just now and saw a head of cauliflower selling for $4.00. I have feeling as times get tougher the LCBO (government controlled liquor stores) might lower the price of booze.

It has been no secret that the Loonie has always been kept lower to encourage business with Uncle Sam and other countries, like you stated it sits at 0.69cents right now and some are saying it could go alot lower.

I really don't like talking politics, I have been in Canada for over 30 years, I have seen many PMs come in and help themselves to the cookie jar. The last joker Harper use to preach anti-immigration many years ago when he started out.
Before he was booted out, he was making many trade trips to China begging business and holding panda bears for PR purposes.

I also recall many years ago Canada was recruiting the Hong Kong rich people to come to Canada and take advantage of what we had to offer.

Yes, grocery prices have jumped exponentially in the last few weeks very noticeably.

The mentality of lower loonie = good for manufacturing/consumer just isn't' true anymore (though economists and politicians like to say that to save face). Whether we like it or not we are in a global economy and most companies are paying USD for the goods Canadians buy. Manufacturing ain't what it used to be and whatever does exist here still has to pay many expenses in USD when they buy parts/components etc.

I think the sweet-spot is around 80-85 where goods and food can be purchased by companies without getting hit by an incredibly low loonie, you can still travel internationally, and your manufacturing sector has a slight edge over the US with a cheaper loonie. When you start getting to 65-70 in 2016 you are hurting the average person on the street.

I think you have a good point on costs also being in USD nowadays, which hurts any manufacturing edge. Lets take forestry for example. Even 15 years ago you could buy heavy equipment for operations that was made in Canada, along with plant equipment for paper mills. Now the factories supplying those goods and the technical expertise are overseas or in the US.

My family has also been telling me about the rising prices of consumer goods. It sounds insane, but will also be a shot in the arm for HST revenues. I remember the last time the dollar was low (2003?) and retail and fast food prices went up...guess what happened when the dollar recovered 5 years later (2008) the prices didn't recede at all. This is a permanent price hike for Canadians.