U.S. Dollar = Canadian Dollar For First Time Since 1976

According to the Associated Press the U.S. Dollar and the Canadian Dollar have reached parity for the first time since 1976, although Google is currently claiming that the ratio is 1 Canadian dollar = 0.987069 U.S. dollars. Fun!

Congratulations, Canada. Please come and spend your valuable dollars in our many fine retail locations.

Canadian dollar equals U.S. dollar for first time since 1976 [AP]
(Photo:AP)

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  1. it5five says:

    Does anyone know how I could start a Canadian savings account?

  2. Electroqueen says:

    Aw nuts. Looks like the Canadians are getting ripped off. $10 for a $7 book that was printed in Canada?!

  3. Pope John Peeps II says:

    YYYEEEEEAAAHHHH!!!! TASTE THE LOON, YANKS. TASTE IT! IT TASTES LIKE VICTORY.

  4. timmus says:

    Of course it’s not so much the U.S. dollar matching the Canadian dollar as it is the U.S. dollar index tumbling due to the Fed essentially printing Monopoly money with the rate cut. See graph: [quotes.ino.com] We’re just waving to Canada on the down elevator.

  5. j03m0mma says:

    Anyone else see this as a sign that our economy is REALLY in trouble!?!?!?!?!?!?!

  6. My husband, a Canadian, sent this to me this morning. I first asked him if he was going to reconsider starting the whole naturalization process now. Then I asked him to put in a good word for me when his countrymen take over.

  7. Scazza says:

    @j03m0mma: @timmus: Although its true the US dollar is hitting the shits big time. The Canadian dollar has been incredibly strong due to a number of factors. Retail profits in canada this year is the highest its been in a long time. The canadian housing market is also on a 4 year high streak that is not letting down, and unemployment rates are down for most major cities.

    So yeah, the US dollar falling is a factor, but you cannot shrug off the canadian dollar either. Sure the Pound Sterling is 2.01302 CAD, down from 2.4 only a few years back…

  8. asherchang says:

    oh shit… the last article i read on this topic said that it
    wouldnt happen till 2015… and I remember seeing a hoodie on sale at a
    gift shop marked for 130 canadian.

  9. adamondi says:

    Ugh. Bad news abounds.

  10. motoraway says:

    Looks like I will be making that trip to Buffalo for the iphone now that the dollar is even and the current price drop. mmmm yay!

  11. ibjp says:

    The dollars have been getting closer and closer for a while but the cost of our goods have remained the same. It feels like the retailers are gouging us up here. I’m heading south for the weekend to do some shopping.

  12. mkguitar says:

    It’s not just the Loonie…but the US dollar is tanking vs. all currencies, the Euro, the Pound…

    Welcome to the third world.

    I guess that war is expensive after all ( slam dunk?)

    MK

  13. peggynature says:

    As a dual citizen, my feelings on this matter are…mixed.

    Having a weaker Canadian dollar is often very good for the Canadian economy (for obvious reasons like tourism, but also for less obvious reasons, like the film industry, which often films in Canada due to the lower dollar.) And it sucks when my parents give me US $100 for a present and it no longer cashes out for $130 Canadian.

    It also sucks because dollar prices on consumer goods in Canada (at least in my city) tend to be higher than US prices, and that’s not even accounting for sales tax, which is even higher! So, with parity, I’m paying $5 for a gallon of milk here, as opposed to $2-something back in the States. Man.

    Get your shit together, USA. I want living in Canada to be a bargain again.

  14. North of 49 says:

    yup. we’re getting ripped off. the excuse is that it’ll take merchants a couple of years before the current products have enough of a turn over to be caught up to the current exchange rate.

    We’re planning a trip south pdq to buy a few things we want.

    It is cheaper for us to go to the bank, get US dollars and pay for things in US funds – if they have a US price on it and will sell it to me at that price.

    we’re getting gyped. oh yah.

  15. liquisoft says:

    I think Canada should invade the US. It’s for our own good.

  16. TechnoDestructo says:

    No more making fun of Canada then. “You paid how much for your car? 5000 dollars? What’s that, like 800 in real money?”

    Those days are over. Now it’s our turn to take it.

  17. junkmail says:

    @Spaceman Bill Leah: I, for one, welcome our new Canadian overlords….

  18. xredgambit says:

    Ok, now it seems like it’s worth my time to take over canada. Ok whos with me. Everyone needs to bring tiny american flags and also bring a pointed stick. I think I’ll need about 5 people.

    Alright come with me, We can do it.

  19. mandarin says:

    Uh oh…. expect mayo on all american foods from now on

  20. That’s looney !!!!!1111

    – uh — sorry, that was bad.

  21. supra606 says:

    @j03m0mma:
    I see a lot of signs that say that.

  22. cde says:

    So it’s not really as bad as it seems. The Canuk Dollar was getting stronger as the American Dollar was getting weaker. So the USD isn’t ~33% weaker compared to the CD, more like 15% weaker.

  23. peggynature says:

    @xredgambit: You’re going to take over a nation whose pastimes include clubbing baby seals to death…with five people and pointy sticks? Good luck with that.

    [en.wikipedia.org]

  24. xredgambit says:

    @peggynature:

    Well I’ll bring some matches to. I mean what do they have? Hockey sticks and chain saws. I’m sure just even the thought of an american flag would send them running. I mean we already beat them all in WW III. Besides you can’t forget that a lot of them came from france or speak french. And you know what they do.

  25. peggynature says:

    @xredgambit: Yeah, I know what they do…they eat a lot of poutine and maple sugar candy. And poutine is to Francophones as spinach is to Popeye. Watch out.

  26. North of 49 says:

    hockey and lacross – both war games – are our national sports. The former is the public, the latter is the official government one.

    do you really want to anger people who are trained from toddler hood to run using razor blades, use big sticks, and kill people with projectiles launched from said sticks?

  27. killavanilla says:

    I wonder how much of this has to do with the fed rate cut as opposed to the increase the canadian economy is experiencing right now…

  28. Arch4ngel says:

    Actually, the parity with the American Dollar is a complicated situation. Canadian companies that need to buy new “American-built” equipment are going to have to pay way less money to acquire them. However, those same companies that export goods in the US actually need to US to buy them. But here is the problem… it’s more expansive for the US to buy them so they buy less. Buying less means less revenu to buy new equipement and it kind of balance things out.

    What is going to be improved, is everything that is related to importing stuff from the US. But the major problem is that Canada export more than it import. Can the Canadian survive this shift of wind?

  29. Trai_Dep says:

    Ways for Americans* to Ingratiate Selves to Our Northern Masters:

    o Get used to saying “ooowt” instead of “out”

    oo (and “aboooowt” instead of “about”

    o Profess love for Michael Moore – and mean it

    o Learn a great deal more about that football-on-ice-using-sticks game

    o Harrass Amoeba Records clerks: “Why aren’t there Bryan Adams and Celine Dion sections?!

    o Reserrect Peter Jennings; give back him ABC News anchor position

    o Erase skull bicep tattoo, replace with florid red maple leaf

    o Ask nicely before unilaterally invading weakened Middle East countries, blowing the crap out of everything there, turning it into a Hobbsian hell-hole for fictitious reasons. Once everything predictably turns to crap, apologize. Nicely!

    o For the love of god, stay out of Iran

    * Damn. I guess from now on, when people say, “American”, they really mean, “Canadian”

  30. Trai_Dep says:

    Killa -

    I think it’s because the Republicans have pretty much f*cked beyond belief our economy – and with it, the $US – for the next couple decades. Pretty much on every measure. The capital markets aren’t stupid. Remember when the Euro debuted, and the $US was a significant multiple higher than it? Then Bush/The GOP got to work, and the $US sank vs the Euro? Same thing. Except to a much weaker currency. That’s how badly it’s gotten.

  31. Buran says:

    I was hoping to go to Canada or Europe sometime in the next few years.

    They can just forget about that tourism income, at least where I’m concerned, until prices come out of the stratosphere.

  32. EtherealStrife says:

    @Buran: Ditto. There’s no way I’m going outside of the US with the current value of the dollar.

    Canadians! Come over to the dark underworld, you know you want to. It won’t even cost you anything to buy a house! Play money is now acceptable tender, and at equal exchange.
    We’re all just friendly neighbors, eh?

    @trai_dep: Canadians enjoyed Canadian Bacon? I mean yea it’s universally funny and predicted US politics to a T, but uh…well hey, if they enjoyed it then kudos to them for having a sense of humor.

  33. swalve says:

    @trai_dep: The Euro debuted equal to the dollar.

    The Canadian dollar might be worth a US dollar as a conversion, but it still has lower purchasing power. A Big Mac is still $5CAD.

  34. Trai_Dep says:

    Well, the prices are the same. It’s the rate, decided by neutral capital markets, that make the difference. The only thing that’s going to change that is to change our economy into something resembling a rational, responsible one.

    That means (gasp) taxing more than we spend, getting out of sinkholes like Iraq and addressing long-term problems (Social Security, Medicare, Veteran’s Care, Fair Trade, Corporate Welfare, Homeland Security…) in a rational, adult fashion. Kicking the Republicans out, in other words. The dollar’s plunge coincides with their being in power – coincides, but it’s not coincidentally.

  35. Trai_Dep says:

    Swalve: whoops, you’re right. It debuted at a bit less than USD, and now it’s worth 40% more. Same trend, though.

  36. Jesse in Japan says:

    I’m still waiting for yen to dollar parity.

  37. silenuswise says:

    Blame the Federal Reserve, the Jim Cramer types, and all the fools who think that “saving” homeowners (read: propping up a moribund housing market) is more important than the long-term health of our economy. Yup, rather than allow all the foolhardy flippers to foreclose, and housing prices to correct, the Fed thinks we can inflate our way to a soft landing. In other words: this is a sneaky way of providing a multi-billion (trillion? we’ll see) bailout to the debt-drowned and fraud-laden housing industry.

    So now, after having cancelled your European vacation this summer, you might want to postpone next year’s trip to Vancouver. Hosers!!!

  38. SilverStar95 says:

    Now if only we’d get every bloody pricetag in the nation fixed, to reflect the new parity in currency. We shouldn’t have to pay a 10-25% premium, when we have NAFTA and par dollars.

    For that matter, we shouldn’t have to pay bloody customs when buying goods over the phone or online, from the US.

  39. Bryan Price says:

    I’ll let my wife who’s working up there right now know that. She’ll be thrilled. Not.

    And I thought when she was traveling back and forth from Switzerland the exchange rate was screwy.

  40. saltmine says:

    @mandarin:

    Haha, like mayo hasn’t been invading all American foods slowly but surely for the past five years.

    It’s when McDonald’s starts selling poutine that I’ll start getting concerned.

  41. FLConsumer says:

    All that’s left is to wait for the peso to match us.

  42. dshjyd says:

    All of you guys that are complaining, please tell me how a weaker dollar has negatively affected you or the USA. If anything, it has helped balance our trade deficits and is helping our industries. Confidence in our economy is still very strong (you don’t see foreign investors cutting the flow of money into the US). China is not withdrawing their reserves.

    Other than you having to shell out more cash when going abroad, you really have nothing to whine about.

  43. silenuswise says:

    @dshjyd: Here are a few ways in which a weak dollar is bad for Americans, for you to meditate on:

    * Consumers face higher prices on foreign products/services.
    * Higher prices on foreign products contribute to higher cost-of-living.
    * U.S. consumers find traveling abroad more costly.
    * Tougher for U.S. companies and investors to expand into foreign markets.

    Oh, and just to be fair, here are a few ways in which a weak dollar is “good” (for Americans? well…):

    * US companies find it easier to sell goods in foreign markets.
    * US companies find less competitive pressure to keep prices low.
    * More foreign tourists can afford to visit the US.
    * Foreign investors can purchase US stocks, bonds, real estate at “lower” prices.

  44. Trai_Dep says:

    For me, the point isn’t whether the dollar is weakening. It’s that it wasn’t planned or part of a cohesive strategy to improve our (and the global) economy. The situation was created thru spendthrift, irrational policies. Our Republican leaders blundered into it thru incompetence and wishful thinking. That’s what’s pathetic.

    Of course, they’d done it to every other segment that’s important to our (and the globe’s) security. But this is a telling, consise reality check.

  45. Eilonwynn says:

    Example of difference in purchasing power: One month ago, at a Linens & Things in Waterloo, ontario, I purchased a Kitchenaid Artisan Mixer for $400 + tax = $455. Two weeks ago, in buffalo, NY, i purchased a Kitchenaid Artisan Mixer for $220 + tax + exchange = $267 Canadian. There was a 20% off coupon involved, but one which I was told would not be acceptable in canada. I qualify as a canadian resident for a further $50 off that same mixer, bringing the total costs of either to $400 or $210. Meaning that in canada, the mixer cost 2x as much. It was no use asking the clerks – i simpy got an “i dunno” when i queried this – but the nice folks at the store let me return the first mixer nqa.

    If my hard drive hadn’t failed, i’d be on my way to buffalo to stuff myself in the olive garden and hit up 7 or 8 outlet stores, much the same way my parents did in the 70′s.

  46. dshjyd says:

    @silenuswise:
    Well the reason we have a deficit is because we’re consuming too many foreign products/services. A weak dollar balances this out by decreasing consumption of foreign goods. Plus, if you think about it, many of the things you listed that we can’t do anymore are exactly the things that are driving the deficit higher.

    These are just natural economic forces in response to the trade deficit, which you really can’t blame President Bush for… unless you’re gonna argue against free trade. I hope you wouldn’t.

  47. Rusted says:

    I’m all for free trade, if we were not the only place that practiced it. Hey Canada, need some extra provinces? We already have hockey here in North Carolina…..

  48. Yourhero88 says:

    Meh who cares, $1 is still $1 here in the states, and that’s all that matters.

  49. guymandude says:

    @peggynature: Dude… I dont’ know where you’ve been but a gallon of milk (in the US) has been about 5$ for a long time now.

  50. guymandude says:

    @Yourhero88: A dollar is a dollar? You’re an idiot. Although you could probably run fiscal policy for the Bush administration without raising any eyebrows.

  51. mookiemookie says:

    “There was a time in the 19th century when the strength of sterling reflected Britain’s unparalleled prosperity and imperial power. But since the deregulation of currencies and financial markets in the 1980s and 1990s, currency strength has conveyed almost no information about the health of a national economy – and none at all about a country’s competitive position in global trade. For example, anyone who believes that the falling dollar reflects America’s huge trade deficit and foreign borrowing should consider that the one leading currency even weaker in the past three years than the dollar has been the yen; yet Japan has the world’s biggest trade surplus and is the greatest creditor nation the world has ever seen.” – [www.timesonline.co.uk]

  52. no.no.notorious says:

    by next year our dollar will equal the ethiopian dollar

  53. Yourhero88 says:

    @guymandude: Well aren’t you a rude hot-tempered little conspiracy theorist.

    How is a dollar still not a dollar here in America? Granted I don’t go skipping around the globe anytime soon, why am I an idiot for being content with the way things are? This has not affected me at all, and that was my personal take on it, that’s all.

  54. dshjyd says:

    @guymandude:
    What’s wrong with what he said? I think he’s more right than you know.

  55. synergy says:

    As of yesterday the U.S. dollar was worth just less than the Canadian one. An older article I found says the Canadian dollar has been rising because it’s tied to the cost per barrel of oil.

    I care because once a month my husband has to pay loans in Canada. Guess who’s now screwed?

  56. synergy says:

    @timmus: IAWTC

  57. synergy says:

    @Jesse in Japan: It’ll get there. The dollar is dropping against the Yen too. I believe yesterday it was at 116. Today it’s at 115.

  58. Trai_Dep says:

    @dshjyd: Those little things – I think they’re called “treasury bills” – also slightly impact the currency balance. Slightly. I think – not too sure on this, since we had such a huge budget surplus when Clinton left office that it seems unlikely – that a (hypothetical) budget deficit might also affect trade. Hypothetically.

    @mookiemookie: good copy/paste. Here’s another: Asian debt crisis.

    @Yourhero88: Whoa, there’s just so much that’s uneducated about your line of argument. Give it up. Wiki “balance of trade” for starters.

  59. dshjyd says:

    @trai_dep:
    I’m not sure what you’re trying to say. Are you confusing budget deficit with trade deficit?

    And while we’re on the topic of budget surplus, do you think that it’s a good thing? Economically, a budget surplus indicates that the economy is ballooning too rapidly and the government is cutting back spending purposely to slow it down. Remember the dot-com bust?

  60. Cowboys_fan says:

    @xredgambit: Lest we forget US LOST every war fought against Canada.
    I wouldn’t read too much into this. As other commenters have mentioned, there are 2 sides to the coin. Higher dollar means cheaper imports, lower dollar means cheaper exports.

  61. Gesualdo says:

    Next time you hear Bush or some other “Republican” stooge claim that “the economy’s doin’ real good”, remind them of this. Bush’s foreign policy and the idiots who have blindly supported him have so damaged our reputation in the international community that the world has lost confidence in the US. So, not only has Bush’s war killed more Americans than Bin Laden did, but it’s also done far more economic damage than 9/11 as well.

    Also, the US dollar just reached an all time low against the Euro.

    Write your representatives. Without holding Bush and his cronies accountable for their crimes and malfeasance we will be unable to restore our county’s reputation.

  62. bbbici says:

    ebay, here i come!

  63. Trai_Dep says:

    @dshjyd: The strength of a currency is primarily dictated by a nation’s currency balance. Too much of your currency in the coffers of other nations is problematic. Trade deficits and budget deficits are the primary ingredients of a nation’s currency balance, which impact the exchange rate. In both cases, dollars sit outside our country that at some point, have to be swapped out.

    You were looking at trade balances, which is good. But it’s only half the picture of how badly the Republicans have sodomized our economy.

    Regards your mentioning surpluses, they’re very necessary if you anticipate large budget outflows. Such as Social Security payments paired with a shrinking workforce to pay for them. Or spending $600B to date – and anticipated costs of $3 TRILLION – to turn the Middle East into a Stygian hell-hole. THAT’S why it was such a big deal (and notable accomplishent) to get the surpluses built up when the Dems had a say in our economy. You know, when adults were in charge.

    Lacking a surplus, the only way to pay for these big ticket items is to boost M2 (inflation) or to borrow (cash outflows in form of interest). Neither of which is rational or in our national interest.

    For those curious about some of the terms/concepts that have come out in this thread, a good intro is a wiki on money supply: [en.wikipedia.org]

  64. I care because the weak dollar makes it too darn expensive for me to visit my sister in Ireland.

    Also it just seems so wrong for the Loonie to be worth the same as a greenback! Also Canadians are probably getting screwed on book prices since I bet they don’t equalize them.

  65. royal72 says:

    american corporate to do list:

    (1) stab anyone and everyone in the back to work your way through the ranks, to get that executive job.
    -check

    (2) form alliances with other greedy bastards in politics and business.
    -check

    (3) create “checks and balances” to make sure you can fuck anyone harder than they can fuck you (note: get lawyers, accountants, lots of ‘em).
    -check

    (4) work your way into top executive positions through contacts and get iron-clad contract(s), with insane bonuses.
    -check

    (5) kill company and move onto the next one for new and bigger bonuses.
    -check

    (6) get stinking rich and enjoy, because we all know “he who dies with the most toys wins”.
    -check

    (7) step and repeat, till there’s nothing left to rape.
    -check

    note: be prepared to have exit strategy, in case the mob rebels.

  66. Marko_Vulvic says:

    If only Americans could refine civilian Iraqi blood as fuel they’d be back on top baby!

    Also, in the words of Nelson Munce:

    “HA HA”

  67. cde says:

    @Yourhero88: A dollar is not a dollar anymore since you can’t buy a 2 litre bottle of Coke for a dollar any more. A Quarter is not a Quarter anymore when it now cost 35 cents to buy a small pack of wrigleys big red or wintergreen. A dollar is not a dollar when it cannot buy the same amount of an item that it once use to buy, a.k.a. when it loses its purchasing power.

  68. dshjyd says:

    I’m curious, how many of you have really studied economics? Many of the comments I’m reading show that either logically you don’t understand the argument or you don’t understand what fiscal policy is.

    First of all @cde:
    He’s not saying there’s no inflation. What he means is that although the dollar is weaker, there are no significant lifestyle changes a majority of Americans IN THE USA have had to make as a result of it.

    @trai_dep:
    With the argument you’re making, I hope you understand and have studied fiscal policy. Wikipedia will not make you an expert. So let me start by saying government spending (budgets) is one of many tools of fiscal policy. So it is controlled. In an effort to expand our economy, we are currently experiencing expansionary fiscal policy, meaning the government is spending more money to increase cash flow into the economy. This includes going into debt, so that it can increase cash flow even further. Our economy grows and when it reaches a desired/optimal level, at which point we want growth to slow down, contractionary fiscal policy is enacted. In effect, spending (among many other elements of fiscal policy) is decreased and debt goes down.

    And oh please, we need surpluses to fund Social Security? That’s the dumbest thing I ever heard. When we had a surplus, it was because Clinton or his economic adviser knew that the economy was growing to quickly and that it would lead to a recession. AGAIN ON THE TOPIC OF FISCAL POLICY, THEY (CLINTON) CUT BACK SPENDING TO SLOW DOWN ECONOMIC GROWTH, RESULTING IN A SURPLUS. THE SURPLUS IN FACT WAS AN INDICATOR OF TROUBLES TO COME. AGAIN THE DOT COM BUST. THIS IS THE SAME FISCAL POLICY THAT IS STILL IN ACTION.

    “Too much of your currency in the coffers of other nations is problematic.” I’m not even sure what your argument is about this, but please tell me how it relates to a weakening dollar. If you’re so concerned about the value of our currency, it’s in fact a good thing to have more currency abroad because it shows people still have faith in our economy.

    Please before I respond, make an effort to fully read and understand what I wrote, or else I’ll be going in circles. I think an intro to macro will debunk much of what you said.

  69. Trai_Dep says:

    Wiki isn’t perfect, but it’s not entirely practical to send anyone here interested in learning more my grad-level currency markets textbook, is it? But it IS a start.

    Deficit spending only makes economic sense when a country is borrowing to improve their economy. Giving Paris Hilton a bigger tax cut or dropping trillions of unaccounted dollars from a plane flying over Baghdad doesn’t quite pass this test. If the Republicans were investing in infrastructure, education or efficient emerging sectors, one could make that argument. But you read newspapers, and you know it’s quite the opposite. They’ve sodomized these areas too.

    However, what I’m talking about isn’t the US economy, since it’s off topic. I’m talking about why capital markets are selling USD and buying Euros or the Loonie. And for this, net in- and outflows of capital – whether due to trade balances or bonds – are the key drivers here. A tertiary one is the market’s expected value of the USD in the mid- to long-term future. Which, because of the above, also doesn’t help the USD.

    3 for 3, Republicans have reversed significant gains made in the ’90s. Not because of some overarching strategy, consistent and well thought out. But because of bungling, ignorance, incompetence and cronysim. That’s what’s truly sad.

    But they can’t help it. It’s their core philosophy, their nature. Expecting them to run a gov’t competently is like asking a scorpion not to use its stinger.

    If you don’t understand that double-edged sword that foreign currency reserves represent – and why, I suggest you take a course beyond Econ 101. Capital markets are a strange beast. But I’m not here to school you. Suffice to say that the capital markets are generous to those that run their economy well and are rapacious to those that don’t. And they don’t rely on Fox News’ spin for their info. Guess from which, to which category we’ve moved to in the last six years?

  70. Trai_Dep says:

    “What he means is that although the dollar is weaker, there are no significant lifestyle changes a majority of Americans IN THE USA have had to make as a result of it.”

    If you think that a collapsing dollar has no impact to the majority of US citizens, you really need to take some upper division econ courses. No offense. Simple truth.