Tag Archives: pricing

Canadian & International Price Issues: The US Dollar Did It

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Analysts everywhere are reminding us that the US dollar is collapsing, both because of exploding debt in the US, but also because of substantial instability in this country.  Political uprisings in Libya have less to do with instability than rallies like this.

I’ve been warning about the prospect of a collapse in the US dollar for some time and have even invented my own term for the impact that this will have on anyone living outside the US:  interflation.  The US will continue to export its inflation to other countries, punishing us in prices for their inability to control their spending.  It’s the internationalization of inflation that none of us can afford.

The ponzi scheme has to stop.  Gerald Calente has described that food and oil prices will continue to skyrocket in the US and that resulting increases in interest rates will crush any opportunity for growth in the American economy.

This situation is what Jeremy Rifkin calls ‘Economic Endgame’, where the US economy (and the global economy by dependency) ping-pongs between states of uncontrollable and unpredictable deflation and growth hitting a wall because any growth translates to rapid expansion in oil prices (which then results in rapid price increases in most other commodities).

Canada, the EU and other countries around the world can avoid this instability by uncoupling themselves and their economies from the influence of pricing everything in US dollars.  Once they do, appreciation will translate to real price decreases in their own economies, fueling real and natural rates of growth and consumption without inflation.  These growth rates will then translate to real demand for US goods and services, presuming they are willing to make anything any more and not survive on the ‘hand in someone else’s pocket’ economy.

Once again, any politician in Canada would be wise to recommend and run on a platform of price equality and stabilization for Canadians, but that’s very unlikely to happen with our current slate of Harper clones.

Another solution for the US will be to eliminate their outrageous level of defense spending, but right now, it’s the only thing keeping this economy alive.

Prices: Why Canadians Should Be Outraged!

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I’ve been hearing a lot of talking heads lately yammering on about how we’re facing increases in prices for food basics like bread, meat, produce and other imports from around the globe.

Unfortunately, they’re all morons and they don’t know what they’re talking about.

Canada is a land of abundant resources and a dollar that’s appreciating because of a number of factors, the main one being the decline in the value of the US dollar.  Other factors include demand for our oil, wheat, soy, corn and other consumable products that are increasing in cost to the rest of the world.

As our dollar appreciates, we should be able to buy MORE goods in exchange for fewer dollars.  We should be selling our goods within Canada at Canadian prices, not international prices.

However, because we’ve surrendered our food security and general sovereignty to multinational corporations, most of which price their goods in US funds and then add a 20-50% markup for Canadians, regardless of the value of our currency, we are facing severe price increases.

If you don’t believe me, here’s an example:  Margaret Atwood publishes a book and the US price is $10.95.  The Canadian price is probably something like $14.95.  Canadian paper and Canadian author, but Canadian buyers get hosed.

This is insane.  If Canadians were faced with a 20 to 50% increase in tax rates, there would be rioting in the streets.

What’s also going to happen is that this will spike inflation, prompting our sophisticated economists with the Bank of Canada to hike interest rates, driving up the costs for all of us to borrow money.  Just when we need it most.

However, when the talking heads with mainstream media tell us that these things are unavoidable (eg. Libyan uprisings mean we pay more for food), we owe it to ourselves to call BULLSHIT.

What astounds me is that we live in a land that is filled with political opportunists, but NO SINGLE PARTY has jumped on the opportunity to demand price parity or price improvements for Canadians.

Until then, do yourself a favour and avoid buying from the companies that are behind these lies.  Loblaws and Weston (which is owned by Loblaws) seem to be the central forces behind this big push to increase prices.