Defend our borders!

First it was Virginia. Coming up here with the assistance of New Brunswick economic development officials to attract our companies to move there (or at least set up new facilities there). Now, I see numerous states planning ‘missions’ to Canada. Colorado’s governor is coming to western Canada. Michigan’s Governor is coming. The Campbells are coming, hurrah, hurrah.

You see. With the dollar at $1.06 (oops, it just dropped as I write to $1.04), it might actually make economic sense for companies that built factories or IT studios or call centres here at $0.62 dollars (2002) to service U.S. markets to move these facilities to the lower 48.

As a result, every U.S. economic developer from Bangor to Baton Rouge will be here attempting to seduce our firms (our meaning Canada – there’s not much to take from New Brunswick – after Irving’s oil, some pulp, a little rock and some fish who else is there that actually exports a lot of product to the U.S?).

But the currency cuts both ways. I see that Sarkozy himself made a pitch when he was here last week for a “strong U.S. dollar policy” coming from the U.S. and the Canadian dollar has dropped six cents since (say that six times fast).

I’ll bet you my collection of Barry Manilow records that our dollar drops to somewhere in the low $0.90 cent range within six months.

This entry was posted in Uncategorized. Bookmark the permalink.

0 Responses to Defend our borders!

  1. mikel says:

    I’ll take that bet! Take a look at our respective economies. Canada has a miniscule economy, but its based on resources, which currently is the market to be in. In the US, the markets are taking hit after hit. Their debt level is 20 times ours, and much of it is speculative. Plus, with the high dollar they know theres’ lots of service industries ripe for the picking.

    But that’s an interesting blog, yay, ‘good news for people who love bad news’. Take a look at how many canadian corporations have recently been bought out american firms, and this will just make getting investment even harder. As I like to tell people here in ontario who talk about the ‘good economy’, the economy of the maritimes was ‘good’ for the ten years right after the ‘canadian free trade deal’ (confederation) while canadian firms bought up all the maritime ones. Then after that….

    I wonder if NBFilm thought of the possibility that Maine will start sending flyers around NB telling people about the benefits of filming there ‘with their low dollar’. Six cents doesn’t sound like much, but on a 50 grand investment (a ‘no budget film’ if you will) thats $3000 or three days of shooting.

  2. David Campbell says:

    Mikel, you like Barry Manilow?

  3. mikel says:

    No, sorry, don’t follow.