I have to admit when I look at the US these days...I do wonder if it's Argentina from 2001 on Steroids. I hope it doesn't get to a point where grocery stores raise prices 30% while you're in the store, but it has happened elsewhere, and those who ignore the past are the ones who get burned in the future.
Still tobacco is now a really good buy in the US!
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Yeah, I didn't mean to come off as making fun of you at all
i didn't read it that way at all.
i must admit, it's nice to discuss stuff like this without having some people jump all over it, like some other threads where debating seems to get personal.
I have to admit when I look at the US these days...I do wonder if it's Argentina from 2001 on Steroids. I hope it doesn't get to a point where grocery stores raise prices 30% while you're in the store, but it has happened elsewhere, and those who ignore the past are the ones who get burned in the future.
Still tobacco is now a really good buy in the US!
Lest you get sucked down that road, David Brooks in the New York Times with some interesting statistics about what America will look like 40 years in the future versus it's primary competitors.
As an example, . . . .
Over the next 40 years, demographers estimate that the U.S. population will surge by an additional 100 million people, to 400 million over all. The population will be enterprising and relatively young. In 2050, only a quarter will be over 60, compared with 31 percent in China and 41 percent in Japan.
has the system created a 'little boy who cried wolf' for us? y2k will destroy life as we know it. once it comes to pass with no issues, we tend to not believe any other 'look out for' scenarios. then when we least expect it....the wolf is at the door.
and that is all i'm trying to do. find the middle. the truth most often lies in between the 2 sides of every story. i don't believe in doomsday, but i also don't believe things will be rosy forever. i'm leaning to the cautious side because i believe it's a wise thing to do. i have a seed vault and a small precious metals collection in addition to my typical 'market' investments. hey, i'll win some and lose some, but my bets are hedged.
The laws of economics can't really be bypassed. Look at the Great Depression, Argentina's situation the past 10 years, Greece today and even the downturn over the last 2 years. This economic system in place has rules and can be manipulated, but if you keep playing with fire you'll be burned like Darryl with the salary cap last year. The US has a lot of economic goodwill so people will continue loaning money but there will come a point where it catches up to them. And they will pay dearly.
The laws of economics can't really be bypassed. Look at the Great Depression, Argentina's situation the past 10 years, Greece today and even the downturn over the last 2 years. This economic system in place has rules and can be manipulated, but if you keep playing with fire you'll be burned like Darryl with the salary cap last year. The US has a lot of economic goodwill so people will continue loaning money but there will come a point where it catches up to them. And they will pay dearly.
In the darkest moments of 2008, when we may have been staring financial Armageddon in the face, yields on some US Treasuries went negative, sending the USA dollar soaring against all global currencies.
Basically, people were paying the USA government to hold their money for them because they didn't trust the global banking system . . . . . didn't trust anything in fact but the certainty that the USA government would pay them back at some point.
That was a very, very telling moment because it reflected the reality driven by unbridled fear, one of the ultimate emotions.
Even though we may believe the origins of the financial crisis and the greatest negative impact may have resided in the USA, it was still the place where everyone ran to hang onto mommy's skirt until the boogiemen went away.
The USA deficit situation is certainly heading the wrong way - about 72% of GDP right now - but we're still a long way from any decisive moment.
Cowperson
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I think, personally, it's pretty scary how much clout China has over the US since they've bought so much of their debt ... wonder when we'll see that all come down on the States.
The Economist asked Americans: "What is the best way to cut the deficit?"
5% said, "increase taxes."
62% said, "reduce government spending."
OK, said The Economist. "Here is a list of things the federal government spends money on. Which things should the government spend less on?"
As you can see in the chart above, over two-thirds of Americans don't want to reduce spending on anything single category, except foreign aid and foreign aid represents less than 1% of America's total spending.
Way too many Canadians and Americans are living beyond their means. Mortgages, credit card debt, car payments, and frivilous purchases like brand new clothes every month, eating out all the time, having two vehicles etc etc.
Look to our grandparents and the post WWII generations who were/are frugal and bought furniture only once or twice in their lifetime, are not compelled to overextend themselves to buy a home that is too big for them, or purchase a brand new car when the one they have is alright, or pay for purchases on their credit cards (back then, they didnt exist or werent as prevalent).
We are getting ourselves into an awful mess.
I hope interest rates never rise to double digits in North America, because there will be alot of people in trouble (I would be too on my mortgage!!!).
Anyways, if I had any extra money, I would purchase rental properties (up/down suites) that produce cashflow.
Especially in inner city areas, there will always be a demand for rental space in large cities.
Dollar will be back at 70 cents before next winter. I don't think the economy can survive with such a high Canadian dollar.
I hope this is true so i can sell my stocks, but it is nice to have the canadian dollar close to the american, with so much that we purchase from the states
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I hope this is true so i can sell my stocks, but it is nice to have the canadian dollar close to the american, with so much that we purchase from the states
Yeah, but they buy a lot from us too, and with our dollars similar they will look elsewhere.
Having the Canadian dollar on par with the US is hurting the Canadian economy. But it is nice for consumers. Catch 22.
More poking fun of some of the guys you hear on Coast to Coast AM and such.
I was listening to that show last night and they had some lunatic on there (a guest, not a caller) just ranting about how the global economic system is coming down around us right now and only fools aren't paying attention. Of course, the aliens, the Illuminati and biblical prophecy were all behind the coming financial meltdown, and not us.
You just have to look at those guys"well, if that guy thinks the house of cards is about to fall, it must be doing okay, cuz he's nuts".
In vaguely related news, that adorable Anderson Cooper had a guest on tonight. Some author who wrote a book about the big collapse on Wall Street. They were talking about the Bossman (name of Chuck) at Citi Group who left with a 12 million dollar "discretionary bonus" even though they lost 64 billion dollars on his watch. People do not like him.
This Chuck guy is quoted as saying something like "we had to keep dancing as long as the music was playing". In other words, he knew it was going to happen, but couldn't stop raking it in while everyone else was.
I hope this keeps up for my trip to LA at the end of the month...
Why do you need it to hold up? Just go buy some USD now and then you don't have to worry about it. I bought $2,000 USD and it only cost me $2,024 CAD last week. I figured it might go to par or even a bit above, but it has so much room to drop.
Also, if you put USD purchase on your credit card, VISA will charge you a 2.5% fee on top of their current exchange rate. By buying USD in cash, you can save that percentage as well.
Dollar was up as much as 1.68 cents earlier today and back above the US dollar. Bank of Canada has withdrawn on holding the current interest rate until the end of June. So likely another rate increase on the June 1st.
Looks like it's time to go buy more cigarrettes and bad beer.
__________________ "Some guys like old balls"
Patriots QB Tom Brady
