Drop Canadian Dollar! Drop!

Canadian Dollar

The biggest thing that affects my Internet income isn’t advertising sales or affiliate commissions. Over the past year, I’ve see my Internet income decreased by 50% because of the raise of the Canadian dollar over the US dollar. You see, I get paid in US dollars but I pay in Canadian dollars for stuff because I live in Canada.

During the good old days when the United States was a powerhouse economy, I would get $1.60 CAD for every $1US. Then the Greenback started tanking against world currencies. Suddenly I was getting less than $1CAD for ever $1US.

In the last month, the US dollar has came roaring back. I can now get $1.25 CAD for every $1US. That means the $38K I made last month can buy $47,500 of stuff in Canada. That’s not back at the good old days level but it is heading in the right direction. Hopefully, the trend continues.


76 thoughts on “Drop Canadian Dollar! Drop!”

  1. B. Durant says:

    Terrible quandary to find yourself in. Wish I had that same problem. Maybe moving to Canada is the answer for me?

    1. I’m hoping it drops too for the same reason! I lost money when it was at par a few weeks ago.

      1. Ryan McLean says:

        Wow, that would be a huge problem. But good thing it went back up. Otherwise JC might have to do more paid reviews then he does now. ๐Ÿ˜‰

        1. Danny Cooper says:

          What..Like TWO per day?!

          1. For those who had invested in CAD they are in bad luck.

          2. John,

            You could always hedge your USD exposure to the canadian currency in order to smooth your income in canada. Your financial advisor should have already suggested that.

            Please let me know if you are interested in hearing more!

    2. John i miss the strong dollar hay day too – I used to cross the bridge from Detroit to WIndsor to wander up to the casinos and as a student back then it really stretched my time at the tables. Now im stuck with only glorified gambling in the stock market. Thank god i know how to Short!

      Hopefully after the 5th or 6th Bailout package the dollar will regain strength!

  2. J Fontaine says:

    Good for you John. Unfortunately, the problem with a lower Canadian dollar is that US goods cost more to bring to Canada. So, eventually, we’ll see a rise in prices in those goods because the retailer will probably pass on the difference to the consumer. But, hey, if you’re buying Canadian then all’s good.

  3. John Hok says:

    Well what do you know! http://img505.imageshack.us/my.php?image=cdnat4.gif

    Had that on my MSN name for a couple days now. You know what they say, great minds think alike hahaha

  4. Ben Adkins says:

    The old U.S. Dollar has been taking a beating……
    But I think we’re gonna be on the ups once the election is over here….. (whoever gets elected).

  5. AhTim says:

    Same case to me. Although quite happy, but does it means our country economy will have big impact soon??

  6. The dollar will come on back. We’re too big and influential for it not to do so. Although i might just not know what I am speaking about. Chow, talk about a deal. Housing markets are going down. You purchasing power is going up and people are ready to give you a deal to get it out from under them. Are the canadians banks getting over loaded with foreclosures?

    1. John Chow says:

      Unlike the US Banks, the Canadian banks are doing very well because they actually required people to have a down payment before making the loan. ๐Ÿ˜›

      1. Yea, but I think that the European banks are going out best because of their highly competitive interest rates!

  7. Dan says:

    Invest in the US instead of pumping money across the border, John. Nowadays everything in the US seems to have a “sale price” attached to it, but it will come back, we are only having a hiccup now ๐Ÿ™‚

  8. 38K last month is really impressive number. majority people have to work one to two years to earn that money…anyway, if you earn close to 38 k every month i just wondering what you will do with that money ?.

  9. BusinessX says:

    Perhaps keeping money US until the dollar rebounds. But like much speculation, knowing when to cash out is problematic. Will $1.60 come back within a year? Or is $1.25 about as good as it is going to get for awhile? Always a tough call.

    1. Lanie says:

      The same situation with the Philippine Peso and unfortuanetly I don’t think we will see the higher end for a while.

  10. Keral Patel says:

    Just 6 months ago INR vs USD was 38 and now it is 49. My monthly earnings still come in but there is a drastic change in the amount I receive at my end.

  11. No cheap gas in Point Roberts though.

  12. Lanie says:

    I know what you mean John ! I send home Philippine Pesos. In June 2006 I was getting 57:1 PHP to USD and now it is 45:1. Thank god it has rebounded from a low of 37 PHP to 1 USD !

  13. wisdom says:

    Do other Canadians feel the same way?

    1. Danny Cooper says:

      Depends how they get paid!

  14. kenny says:

    I don’t think the lofty US dollar will be up there for too long, when your “print” $700B the natural result is a devalued currency. With that said, the next Google EFT is in a couple days so I am hoping the Cad$ plummets into the $1.30 – $1.35 range this week.

    My earnings are up this month and our lower dollar is the icing on the cake! ๐Ÿ˜€

    1. John Chow says:

      The US gov hasn’t printed money in decades. The $700B will be raised like it’s been done for years – they’ll borrow it from China. ๐Ÿ˜›

      1. This is a big story, US actually is printing money but they’re not letting that money circulate within US, they give it in exchange of oil to other countries. Only because USD is a strong currency, the USDs paid for the oil hardly come back. So, no inflation is US at all even after printing new money without proper reserves! What geniuses!

  15. Rory Hansen says:

    Oh man, did you take Darren’s advice for that newsletter popup?

    Gah, I hope I don’t see that everywhere now!

  16. Acakadut says:

    you’re the master of evil. but please don’t be so selfish. think about other people in your country as well.

    1. Ian says:

      Actually, a low Canadian dollar is great for Canadian export industries, the film and television industry in Toronto and Vancouver.

      Heck, when the dollar was at parity with the greenback, many Canadian business groups were saying the government should step in to weaken our dollar.

  17. Eric Tan says:

    go green back!!!!

  18. James Wilcox says:

    So John, isn’t it better for you if the CAD is worth more than the USD? If so, why do you want it to drop? What you really want is for the USD to be worth more because it pushes up the Canadian currency, right? Seems like the CAD and USD trade in tandem…a lowering USD value also lowers CAD value and vice-versa.

    1. John Chow says:

      Why would I want the CAD to be worth more than the US? I get paid in US dollars. If I got paid in CAD, then yes, I would want it to be worth more than the US.

  19. Mike Huang says:

    Lol John…no matter what you’re making more than enough ๐Ÿ™‚

    -Mike

  20. web hustler says:

    you the man john! the canadian dollar shouldve never gone that high to begin with. let it drop to 50%!!!

  21. Andrei Buiu says:

    Well, I would like for the USD to drop, because I have to make payments in USD.:D

    1. It depends where you’re living and in what currency you’re getting paid. If you live in US and get paid in USD, then there’s no point to USD falling or rising, you’ll be paying the same!

  22. Tyler Cruz says:

    Damnit John, I was going to post about this but you beat me to it… as usual.

    Yeah, I’m loving the crappy CDN dollar. It essentially means over $2,000 completely free each month! For John’s blog, it means about $10,000 free each month…

    1. Tushar Dhoot says:

      Your $2000 or $10000 isn’t going to go as far anymore so it’ll even out.

  23. You know John I see where your coming from but when we pay 2 times more for almost everything here the exchange rate is a mute point.

  24. Wuiqed says:

    I love watching the USD swing up and down. Ever since I were a kid, maybe 9-10 years old, I’ve been checking the exchange rates for USD to SEK (Swedish kronor) because that’s how we valued ice hockey cards as kids (even though everyone just arbitrarily picked numbers; “Yeah, this Eric Lindros card is worth 8 dollars!”).

    I’ve seen it go from 6 SEK per USD when I was a kid, to almost 11 SEK per USD months before 9/11. After that started plummeting. 3-4 months ago it was down LESS that 6 SEK per USD. Now it’s moving up again, hitting the 8 SEK mark soon. That means I’m earning the equivalent of an extra 25 cents on the dollar compared to a couple of months ago. WOO!

  25. John, but I’m sure your cost of living in that part of Canada is a lot higher then many places in the US. So it all evens out.

    1. Yea, it depends on how much high your living standard is. For john’s case, anything is possible!

  26. laberdash says:

    Capitalismis a lose lose situation.

  27. Christy says:

    I hear you, we Canadian bloggers just got a big raise over the last few weeks, just in time for Christmas!

  28. Bloggers are not the only ones whose wealth is linked to the U.S. dollar. This is the dilemna of all world businesses who export goods and services to the U.S. in exchange for dollars. They bear the cost of the declining dollar. The opposite side of the “coin” is that U.S. exported goods are cheaper in the world markets.
    Have a very happy day.

  29. Josten says:

    glad to see the US is coming back strong again

  30. MLRebecca says:

    I’m glad to see things are looking up for you, John. I’m remaining quite optimistic that a stronger US economy is in the future. That should be good news for you! Good luck!

  31. Al Young says:

    It would good time to visit Canada. The price of a good meal should be a little cheaper

  32. excellent post…one of my favorite from you so far.

  33. I hear ya there, everyone was so happy to see the Canadian dollar go up and then when we all realized how much it sucks we want it to go back! It’s very bad for business here too…

  34. Danny Cooper says:

    Ooh, the GBP is still going strong, I might come over there and feel a bit richer =P

    1. Tushar Dhoot says:

      I doubt the GBP can keep up for long. I was there this summer and everyone on the news there was talk about how you have the possibly the most vulnerable to recession economy in Europe.

      1. Danny Cooper says:

        That’s true, unless you want to constantly watch recession news, don’t come to the UK ๐Ÿ˜›

  35. The uh, pop up for your book is totally obnoxious. It’s your business, but man it’s too much for me.

    Also, the U.S. can, and does print money as it needs it. No one can properly audit the amount of paper money in existence, they can only take in economic factors like trade deficits, GDP, and National Debt. That’s the problem with a Fiat system. I’m amazed just how many bankers, don’t know how the Fiat system is self-defeating; not to mention everyone else. It’s the nature of Federated banking through privatization; it should just be split between private banks with their own currencies backed by gold. Or, whatever you guys think.

  36. hairsols says:

    good for you john but the things are not same for every one else. Me and my friends had a big losses in past weeks due to drop in the rates of dollar

  37. eGruve.com says:

    great for you , lets hope things get better around other parts of the world.

  38. Yeah, I’m pretty happy about the situation as well ๐Ÿ™‚ Now let’s hope it keeps on going down!

  39. David says:

    Yeah Currency exchange is always something us foreign publishers have to deal with, luckily as you point it out the dollar is starting to recover some of its lost value.

  40. soares says:

    At this moment its good to be in this side of the world Europe,cause $1 its almost 0,70โ‚ฌ …

    1. TechDude says:

      I guess it is good to be anywhere, but US )

      1. Danny Cooper says:

        There are worse places, 3rd world countries.

  41. Well, I can relate to the weakening of the Canadian dollar resulting in a nice dollar arbitrage gain for revenue on sites from advertisers that pay in USD, but don’t you have expenses that have to be paid in USD ?

    We manage sites that generate revenue in USD, but also have significant costs in USD as well (CDN hosting, US data centre colo fees, not to mention PPC campaigns to drive traffic, etc…)

    Is it really possible to have all services provided by Canadian companies that are competitive with US providers and still benefit from the gap between our two currencies ? Not sure…

    Ultimately it boils down to whether you are more of an exporter or importer….

    Rob

  42. I got more income because AUD getting weak over US this few weeks, but before that I have the same case with you

    when the AUD almost the same as USD I get less income than before.

  43. CoolProducts says:

    Well, I guess this is great news for those Canadian bloggers. John, how much do these fluctuations affect those of us who blog and live here in the U.S.?

    1. Tushar Dhoot says:

      Maybe a good news for Canadian bloggers, but awful for Canadians in general.

    2. John Chow says:

      It should affect bloggers living in the US. Unless you like to travel all over the world.

  44. Frank says:

    You can always find some Canadian company willing to advertise here and then currency problems will go away, but the truth probably is that the US companies still rule and the US dollar maybe down but the advertising market is still very much under US companies control.

  45. You meant “Hopefully, the trend continues” in the last sentence, right?

  46. Tushar Dhoot says:

    Meh, what’s good for John is bad for me. I know pay more for adwords, hosting, domains, and all that good stuff.

    1. Danny Cooper says:

      I’m not really sure how it affects me, that being said I don’t spend massive amounts across different currency so I doubt its anything substantial.

  47. Maybe I need to move to one of the northern states, right beside the border. So depending on which dollar is worth more, I can choose which country I want to shop in. ๐Ÿ™‚

    Might have to figure out a way around bringing food and things across the border.

  48. charles says:

    That was the thing that is also happening in our country.

  49. Russ says:

    Wow,.. thatโ€™s great JC,.. spoken like a true mercenary with a vested interest. โ€œDrop Canadian Dollar Dropโ€!! โ€ฆare you kidding me? Sure that may be great for you John,.. and youโ€™ve explained your reasons very well but what about all the poor folks (i.e. most of your fellow countrymen) that get paid in Canadian dollars and buy stuff in Canadian dollars? Itโ€™s one thing to brag about your success and how great it feels to start to rake in even more expendable cash than you had before but cโ€™mon man,.. be reasonable and spare a thought for the patriots at home and especially those abroad that rely on their Canadian incomes to live in foreign countries as expats where the US dollar dictates lifestyle.

  50. Dfunda says:

    you made some money with out putting effort.celebrate now

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