The Canadian dollar seems to be in a free fall right now, having dropped another four cents today alone. The Peso is doing the same and the USA, the country with the collapsing economy is watching it's dollar doing well in relation to the other two. What is going on! When we bought the motorhome in April, the CAN dollar was at par with the USA. Today our Loonie is worth only eighty-five cents! When we were in Mexico last winter we could buy 10.5 Pesos for one CAN dollar, today that one CAN dollar will buy eleven Pesos so whatever has happened to the CAN dollar has pretty much happened to the Peso!
What is inflating the Yankee dollar remains a mystery. Maybe it is being artificially inflated by all the folks bailing out of the Stock Market and converting to cash. That might do it, but if this is what is doing it, it should reverse when things start to recover and people start using these dollars to buy back into the Market. I am not an economist but this seems to make sense. At least in my scenario there is some light at the end of the tunnel.
Nobody is exempt from this free fall. It will pass, if it doesn't we are in for a major adjustment in lifestyle. Maybe it is time.
ReplyDeleteHopefully, you have your USD account intact for travelling, that should ease the pain a bit.
ReplyDeleteIt is interesting how the US almost destroyed the world economy, and their dollar is ahead. It seems like there may be a bit of manipulation involved, eh?
Hopefully, happier times are ahead of you in Mexico. You must be getting really excited!
Thanks for the comments Chris & Rob.
ReplyDeleteChris, I fear you are right but when a multi-millionaire looses half, he is still a multi-millionaire. When you and I lose half, it requires a "major adjustment in lifestyle" which I am not ready for!
The USD account is empty Rob but all we have to worry about is gas to get through the Lower 48. The Peso is still affordable for us and I can keep my head in the sand so I don't have to read my Fund Reports for a few months..
I think you are right that the US dollar is up because people are bailing out of stocks and bonds and are buying gold and dollars (while they are high). It's a typical panic move, and the dollar will fall again. I'm working hard not to get upset about my falling investments, just keep telling myself I'm in it for the long haul.
ReplyDeleteRight Rivergirl, but the "long haul" was further down the road when I was 50. Now at 64 I want to start spending it! I am more fortunate than many because I have a very good Union pension and do not need my savings except for "toys". I will be in Mexico in three weeks but maybe with fewer toys.
ReplyDeleteGood to hear you're keeping your spirits up despite the bumpy road. Like RiverGirl, I have to keep the long term in mind despite my RRSP's being down $5.50/ unit (as of Friday). Ouch.
ReplyDeleteOn the bright side brother, gas is getting more reasonable in the US, and is much better than before.
Looking forward to reading about the upcoming adventures!
Journey well, compadre!
I found your blog when I Googled, "Dismal Canadian Dollar"...It is unbelievable what has happened to our Canadian dollar. I am in the midst of buying a place in Costa Rica that we are moving to within months, to retire and now our Canadian pension is pretty well useless.
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