It's the economy, stupid.
Are we back around to the economy for the 2008 election?
A Canadian dollar now costs $1.10. Oil at $98, likely to break $100. Credit issues, banking issues.....
A Canadian dollar now costs $1.10. Oil at $98, likely to break $100. Credit issues, banking issues.....
posted by mikevotes at
8:27 AM
8 Comments:
You know I follow currencies. I think it is really instructive from a psychological perspective that the conversation with Americans regarding their currency goes something like this...
ME: "The Euro is worth more than a dollar."
American: "uh,huh."
M: "The Euro now costs $1.10."
A: "uh, huh."
M: "The Euro now costs $1.20."
A: "uh, huh."
M: "The Euro now costs $1.30."
A: "uh, huh."
M: "The Euro now costs $1.40."
A: "uh, huh."
M: "The Canadian dollar is worth more than an American dollar."
A: "WHAT????!!!!! When did that happen?!"
By
Praguetwin, at 12:19 PM
You're right, but I don't think you understand the decades long joke in the US about the Canadian dollar.
It's been a decades long joke, so that reversal is particularly shocking.
By
mikevotes, at 1:26 PM
praguetwin was probably talking to me.
I recently ordered some motorcycle parts. "Good," I think. "They're in Canada. I'll save a little money." Imagine my cloistered American shock when I found that I paid a 10% PREMIUM on the parts, rather than an expected discount.
I'm in my mid-forties and for my entire life -- traveling regularly to Canada -- I've never seen the US dollar worth less than the Canadian. While the comparisons to the Euro may make more sense in an economic discussion, on a purely emotional level the Canadian-US valuations hit at a gut level. It's an "Oh, crap. Now I get it" kind of thing.
Are we at a tipping point for a national (global) depression? Despite the "economy is growing" numbers -- which seem to take no measure on individual financial security -- I don't know what good news there is for the average American.
By
-epm, at 1:53 PM
EPM precisely. Tghe Euro is far more significant, but it's not the same as being passed by the joke.
We're like the cool camp in one of those bad summer movies where the loser camp comes out winning. (And Canada is like the fat kid who gets stuck running the marathon.)
To your second point, I don't know if we're there. The mood and coverage seems far more positive than (to me)the situation warrants. We haven't really lost anything big yet, but the big risk is there and looming.
By
mikevotes, at 3:23 PM
Regarding economic risk...
That's what I see. The collars of those affected by the economic pinch is getting progressively white. Personal saving at record lows (negatives) and personal debt at record highs. Whatever goodness there is in this good economy is showered upon an ever-so-slim slice of the population -- Gated prosperity.
I'm just wonder if and when we will, as a collection of individual consumers, reach a tipping point. Where we stop feeding the beast of consumerism and this whole prosperity-by-debt thing begins to unwind.
By
-epm, at 3:57 PM
Consumerism will not die until the last drop comes from the stone. You can beat your head against that wall, but historically, preaching abstinence and restraint has almost always failed, especially in societies in decline.
By
mikevotes, at 5:08 PM
"...preaching abstinence and restraint has almost always failed, especially in societies in decline."
Profoundly true. Whether it's over consumption of material goods, food, or alcohol, those in decline tend to continue to decline -- by their own actions, no less -- until they hit bottom.
This is an interesting observation and one that, for me, adds new insight in understanding the workings of a free market.
Very thought provoking.
By
-epm, at 8:20 AM
Thanks.
By
mikevotes, at 1:41 PM
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