Blixtein
Active Member
If McGuinty wants Ontario's manufacturers to be competitive why did he raise the corporate tax rate?
|
|
|
- Thread starter Jarrek
- Start date
unimaginative2
Senior Member
Because the province was running a surprise $5 billion deficit left by the previous, tax-cutting government?
MisterF
Senior Member
Aw man, you were on such a roll until you said irregardless!
ganjavih
Senior Member
All I can say is that hittin' those outlet malls in San Diego over the past week was super sweet.
cacruden
Senior Member
SWEET! I loved living in San Diego ....
ganjavih
Senior Member
dt_toronto_geek
Superstar
Loonie drops on warning
Nov 15, 2007 08:53 AM
THE CANADIAN PRESS
The Canadian dollar continues to fall in the wake of a stern warning from a senior official of the Bank of Canada about the economic downside of a sharply higher currency.
The currency dropped about six-tenths of a cent this morning to 102.86 cents US after falling almost eight-tenths of a cent Wednesday.
The loonie has been on a downward track since hitting a record high a week ago of just over 110 cents US, at the same time oil prices were creeping closer to US$100 a barrel.
But it got an extra push Wednesday after Bank of Canada official Paul Jenkins said the dramatic rise in the loonie this year is putting Canada's economic growth in peril.
The bank's senior deputy governor told the Ontario Economic Summit in Niagara-on-the-Lake, Ont., that while domestic demand in the economy remains strong, it is uncertain how long that momentum can last if the loonie continues to reside in the currency stratosphere.
As of last week, the Canadian dollar was up about 25 per cent this year.
Nov 15, 2007 08:53 AM
THE CANADIAN PRESS
The Canadian dollar continues to fall in the wake of a stern warning from a senior official of the Bank of Canada about the economic downside of a sharply higher currency.
The currency dropped about six-tenths of a cent this morning to 102.86 cents US after falling almost eight-tenths of a cent Wednesday.
The loonie has been on a downward track since hitting a record high a week ago of just over 110 cents US, at the same time oil prices were creeping closer to US$100 a barrel.
But it got an extra push Wednesday after Bank of Canada official Paul Jenkins said the dramatic rise in the loonie this year is putting Canada's economic growth in peril.
The bank's senior deputy governor told the Ontario Economic Summit in Niagara-on-the-Lake, Ont., that while domestic demand in the economy remains strong, it is uncertain how long that momentum can last if the loonie continues to reside in the currency stratosphere.
As of last week, the Canadian dollar was up about 25 per cent this year.
Long Island Mike
Senior Member
The Canadian Dollar-edging back towards par?
Everyone: I noticed myself that the CDN dollar is falling back towards par with the US Dollar again-I believe it is 1.0280 or something now. Will the two dollars at almost par will it help or hurt if they both stay neck and neck for awhile? LI MIKE
Everyone: I noticed myself that the CDN dollar is falling back towards par with the US Dollar again-I believe it is 1.0280 or something now. Will the two dollars at almost par will it help or hurt if they both stay neck and neck for awhile? LI MIKE
afransen
Senior Member
The non-distortionary value of the Canadian dollar is about 85 cents to the US dollar, so it's still 'bad' for the dollars to be worth roughly the same.
caltrane74
Senior Member
How is the value distorted? We have want the world wants, and in almost unlimited supply. - Our manufacturing sector will likely be destroyed; but who cares, we'll be fuckin' rich with oil and gold money. If the manufacturing sector wants to stick around they better use this high dollar to do some "big time" capital investment to upgrade productivity.
Admiral Beez
Superstar
Wasn't that over four years ago now? How long does McGuinty get to play that violin before we say enough already.
Admiral Beez
Superstar
There's not a lot of oil in Ontario. The provinces control the resources.
Jayomatic
Active Member
Until the Fed's fix the equalization payments to include resources like oil, the only ones getting rich will be Albertans.
caltrane74
Senior Member
Then move to Albera and get rich. Your still a Canadian, right? Supply and demand will eventually balance wages across the country.
Last I checked, most of the oil developments in Alberta still have large Ontario investor backing. (probably the biggest amoung Canadian investors, just due to our size and wealth)
Also, the feds still tax corporate profits last I checked. And I'm pretty sure all of the major oil operations in Canada do business in Ontario as well. - Of course I may be wrong on that.
______________
dt_toronto_geek
Superstar
David Dodge Comments on the Loonie
Dollar about where it should be: Dodge
Central bank governor says its drop to parity justified by economics
Dec 07, 2007 04:30 AM
Julian Beltrame
THE CANADIAN PRESS
OTTAWA–In the closest he has come to publicly putting a value on the Canadian dollar, Bank of Canada governor David Dodge said yesterday the loonie may be very close to where it deserves to be against the U.S. dollar.
Testifying before the Senate banking committee for the last time, the outgoing central bank head said the currency's wild roller-coaster ride of the past several weeks is largely inexplicable, but a loonie close to parity with the greenback is justified by fundamentals.
The bank governor and Finance Minister Jim Flaherty have voiced concern about the value of the dollar in the past, but have steadfastly refused to peg it against its American counterpart. Last month, they complained at an international meeting of finance officials that Canada had absorbed one-third of the greenback's depreciation since 2002.
Dodge stuck by that number yesterday, saying that Canada has taken a disproportionate hit from the U.S. dollar's decline even though Canada accounts for about 16 per cent of U.S. trade, the same as Europe and China.
"But we should be quite clear that at least some of that correction is entirely appropriate because we've had a big improvement in our terms of trade against the U.S.," he told the senators.
"If you leave aside this awful experience with the spike that took us from $1 to $1.10 and back to $1 in the course of several weeks, the answer is that ... more or less the move from a mid-60 cents value to the mid-90cents value accords with what was going on from a domestic perspective."
In its projections in October, the bank assumed the dollar would trade, on average, at the equivalent of 98 (U.S.) cents.
Dodge countered critics who urged him to cut interest rates to rein in the dollar and help the manufacturing sector.
Cutting interest rates would not have helped factories and "we would have simply had inflation higher than what we've got now," Dodge said. "In the real sense, Canadian manufacturers would not be any better off because they'd be paying higher wages and higher domestic costs."
Dodge, who will hand over the central bank's top job to former finance department official Mark Carney at the end of January, backed up his designated successor's testimony Wednesday that it would be a mistake to peg the loonie to a fixed value against the U.S. dollar, or for Canada and the United States to adopt a single currency.
"Monetary unions should follow economic unions, not vice versa," he said. "Without that, a single-currency union is likely to bring trouble."
Explaining the bank's decision on Tuesday to trim short-term interest rates by a quarter percentage point, Dodge said worsening difficulties in markets, the U.S. subprime mortgage crisis and weakening U.S. demand had lessened the risk of inflation and increased the likelihood the Canadian economy will run into a rough patch.
He predicted growth would slow in the current quarter and the first half of next year before recovering later in 2008.
Earlier, the Bank of Canada released a report that suggests an "unexpected shock," such as a chaotic collapse of the U.S. housing market, could have severe repercussions for Canada.
Dodge cautioned that tight credit conditions are lasting longer than anticipated because investors, having been burned once, are skeptical of complex structured investments with opaque underlying assets.
"Now we have a problem that financial institutions have to market all this stuff where there is no market for them."
Dollar about where it should be: Dodge
Central bank governor says its drop to parity justified by economics
Dec 07, 2007 04:30 AM
Julian Beltrame
THE CANADIAN PRESS
OTTAWA–In the closest he has come to publicly putting a value on the Canadian dollar, Bank of Canada governor David Dodge said yesterday the loonie may be very close to where it deserves to be against the U.S. dollar.
Testifying before the Senate banking committee for the last time, the outgoing central bank head said the currency's wild roller-coaster ride of the past several weeks is largely inexplicable, but a loonie close to parity with the greenback is justified by fundamentals.
The bank governor and Finance Minister Jim Flaherty have voiced concern about the value of the dollar in the past, but have steadfastly refused to peg it against its American counterpart. Last month, they complained at an international meeting of finance officials that Canada had absorbed one-third of the greenback's depreciation since 2002.
Dodge stuck by that number yesterday, saying that Canada has taken a disproportionate hit from the U.S. dollar's decline even though Canada accounts for about 16 per cent of U.S. trade, the same as Europe and China.
"But we should be quite clear that at least some of that correction is entirely appropriate because we've had a big improvement in our terms of trade against the U.S.," he told the senators.
"If you leave aside this awful experience with the spike that took us from $1 to $1.10 and back to $1 in the course of several weeks, the answer is that ... more or less the move from a mid-60 cents value to the mid-90cents value accords with what was going on from a domestic perspective."
In its projections in October, the bank assumed the dollar would trade, on average, at the equivalent of 98 (U.S.) cents.
Dodge countered critics who urged him to cut interest rates to rein in the dollar and help the manufacturing sector.
Cutting interest rates would not have helped factories and "we would have simply had inflation higher than what we've got now," Dodge said. "In the real sense, Canadian manufacturers would not be any better off because they'd be paying higher wages and higher domestic costs."
Dodge, who will hand over the central bank's top job to former finance department official Mark Carney at the end of January, backed up his designated successor's testimony Wednesday that it would be a mistake to peg the loonie to a fixed value against the U.S. dollar, or for Canada and the United States to adopt a single currency.
"Monetary unions should follow economic unions, not vice versa," he said. "Without that, a single-currency union is likely to bring trouble."
Explaining the bank's decision on Tuesday to trim short-term interest rates by a quarter percentage point, Dodge said worsening difficulties in markets, the U.S. subprime mortgage crisis and weakening U.S. demand had lessened the risk of inflation and increased the likelihood the Canadian economy will run into a rough patch.
He predicted growth would slow in the current quarter and the first half of next year before recovering later in 2008.
Earlier, the Bank of Canada released a report that suggests an "unexpected shock," such as a chaotic collapse of the U.S. housing market, could have severe repercussions for Canada.
Dodge cautioned that tight credit conditions are lasting longer than anticipated because investors, having been burned once, are skeptical of complex structured investments with opaque underlying assets.
"Now we have a problem that financial institutions have to market all this stuff where there is no market for them."