My Biggest Online Income Killer

There are many things that threaten my online income. However, none of them are as big a threat as this killer. No, I’m not talking about Google bitch slapping me – that’s nothing compared to this. I’m not talking about getting banned from any ad networks either – I don’t allow any ad networks to account for more than 30% of online income.

In the past five years, this killer has cost me hundred of thousands of dollars in lost income and the worst part is, I have no control over it and there is really nothing I can do about it. You see, I get paid in US dollars and unless you’ve been living under a rock, you’ll know that US dollar is turning into a Mexican Peso against other world currencies. If I lived in the US, this wouldn’t matter as much but I live in Canada and have to convert my US dollars into CAD to pay for stuff here. Each time I convert, I get less and less because the US dollar is in the toilet.


My last currency exchange was done at $1.018 CAD for $1.00 US. What the hell is happening to America? How can the most powerful country in the world let their dollar drop like this? I remember the good old days when my CAD dollar was call the Canadian Peso and I would get $1.60 CAD for ever $1.00 US. It was awesome to give the bank a $10,000 US check and have them credit $16,000 CAD into my account. When I do that today, I get $10,180.

This wouldn’t be so bad if the cost of living in Canada wasn’t higher than in the US (add in the fact that I live in the most expensive city in Canada). It would also be nice if businesses that import their stuff from the US start to lower their prices, but they don’t. The price differences on cars are now huge! For example, a new Porsche 911 Turbo cost $123,000 US ($127,000 CAD at today’s exchange). Walk into MCL Motorcars and they want $177,000 CAD for it. I told MCL I could save $50K by buying the car from the US and importing it to Canada. They said Porsche would not honor the warranty. I said $50K pays for a lot of repairs!

At the rate things are going, the Canadian dollar will be worth more than the US by the end of this year (or sooner). I believe reversing the US dollar’s fortune is going to take an administration change, which should have happened three years ago. I couldn’t believe Bush got re-elected.

For those of you living outside the US and getting paid in US funds, how has to decline of the US dollar affected you? It’s costing me a fortune.

162 thoughts on “My Biggest Online Income Killer”

  1. It’s because of the Republicans running up the Defecit. The US owes other countries so much that it’s own currency is deflating…..

    1. Adam says:

      If that was true then the currency would have deflated a long time ago. It is more about the projected stability of America paying off their debts.

      1. yeah debts are horrible in the states. Hey John I’m glad my open letter made your day.

        Hey I’ve created a new innovation call the Jet Train. It combines the idea of a contest and a Train.

      2. That’s also one of my online income killer. You see, I’m in France and all the US$ I receive from my online income are divided by 1,35 and up. Grrrr.
        If you want to see my daily progression:
        Greetings from France John.

    2. There are many causes to the falling U.S. dollar, and it’s not just Bush’s fault, although the ongoing war doesn’t help. Congress controls the purse strings in the U.S., and it is spending money like there is no tomorrow. That, coupled with the recession the U.S. experienced after 9/11 and more U.S. manufacturers pulling up stakes and leaving the country, is helping to drive down the value of the dollar. The U.S. used to be a manufacturing giant. Now, it is becoming a service-based economy and the jobs that used to pay higher wages are being outsourced to countries like India and China.

      1. Marc says:

        The increase in the U.S. money supply is the prime culprit in the devaluing of the dollar. This is for two reasons. One, to pay for the war and further planned U.S. influence in the mid-east. Two, we are in an economic/trade game of chicken with China. We are trying to assert U.S. economic dominance over China, the same as we did over Japan in the ’80s. The U.S. elite will sacrifice as many American jobs and lives necessary to retain contol of the world in a strategic sense.

  2. Rich Minx says:

    It is very depressing. The conversion used to be US47c to the New Zealand dollar – now it’s 81c! It’s all over the news here. Need to look for some non-US ad/affiliate companies.

    1. Jez says:

      Your lucky, I live in the UK:

      Today 1 British pound = 2.0495 U.S. dollars

      In the UK $1 will get you little more than a Snickers or a Mars bar.

      A cheeseburger from McDonald’s / Golden Arches will set you back almost $2

      1. Wallace says:

        it is terrible that $16 Hong Kong dollar = $1 pound, we were stopped to go to UK for summer trip.

      2. Tom says:

        yeh we in the uk seem to have been hit hit particularly badly.
        Not only has the US dollar had a torrid 5 years but the british pound has performed very well so we get hit twice.

        It wasnt all that long ago $1 = ยฃ0.70 today you wont even be getting ยฃ0.50

        1. But if you’re going to the States on holiday and you fancy a bit of shopping… ๐Ÿ˜† ๐Ÿ˜† ๐Ÿ˜†

      3. TextAdSearch says:

        Also being in the UK the fall in the value of the dollar has hit particularly hard. The UKP is also strong at the moment (damn you gordon Brown).

        Conversely it would be a great time to target the UK market. Stuff is real expensive here and there are 65 million of us.

  3. MrGPT says:

    It is very messed up. I was surprised Bush got re-elected. I could imagine how you feel though John. $6,000 less then what you should be getting is a crazy number, especially when you multiply that by 12.

    Speaking of Bush, I saw a funny bumper sticker today. It said “Grow your own dope. Plant a bush.”

    1. HAHA, I love it. Here are some of my favorite bushisms:

      Bush is Listening – “Use Big Words!”

      Be Nice to America – or we’ll bring Democracy to your Country!

      At Least Nixon had the Decency to Resign.

      At Least the War on the Middle Class is going well.

      1-20-2009 – The End of An Error.

      When bush took office gas was $1.46.

      Monica had more president in her than George W. Bush ever will.

      1. Shaun Carter says:

        That was great. I haven’t laughed that hard in a long time. Thanks!

      2. Bryce says:

        Stop complaining, how’s $4.30/Gal (equiv.) over here for you?

        1. Shaun Carter says:

          yeah I can’t stand people who complain about gas prices either. When you consider that people pay far more per gallon for 20oz bottles of water!

  4. Man I am upset longer time… I am using Visa card from Epassporte and there I have ATM withdraw limit $500 USD. I am withdrawing in Czech Krowns and it is pissing me off now… 3 years ago I could get 14.000 CZK 2 years ago 12.000 2 weeks ago 10.200 1 week ago 10.000 and today 9.800… Just need to mention that ATM gives numbers divided by 200.
    I cant imagine having John earnings that is not difference in 20USD in 2 weeks but may be 2000USD.

    Problem is that our currency is also getting stronger. And I dont know if it is good or bad. I think it is good if I have Czech sallary but bad if I stay only with USD.

  5. while not in your league John I remember fondly the 1.60/1.00 days .. wish they would get their act together :mrgreen:

    1. Marc says:

      I’ve been struggling with this problem too. The one thing I’ve been able to do to counteract this is to use some of my earnings to buy things in USD online. That way I don’t take as big a hit. But the reality of life is that I need to use some of my earnings here in CAD.

      1. Mat says:

        Not a bad idea there John, not a great compensation but you could save a lot of cash by buying as much as possible through the net. (if you don’t already)

        Another way to stop the effect is just move to the USA mano.

  6. Adam says:

    Don’t blame Bush, Blame the whole government. Sure Bush has started a sloppy war, but everyone else hasn’t done anything to help. The US economy is doing great right now our deficit went down 200 billion dollars in the last 2.5 years. We need to work together as a government to show the world we can work as a team and move our country forward. The world just doesn’t have a lot of faith in America’s abilities right now.

    1. Pam Hoffman says:

      I read an interesting book on this topic and I understand the situation a lot better. It hardly matters WHO sits in office if this continues.

      “Prophecy” by Robert Kiyosaki entails two generations of looking at this situation. It is only going to get worse. We are in an excellent position to start doing something about it RIGHT NOW if only we do it.

      I’ve been at this for about 4 years and it’s going to be just fine – because I am going for my freedom.

      John, the things you CAN control could experience a price increase OR you could set a US vs. Can price.

      2c worth,

      Pam Hoffman

  7. Stockshaker says:


    Your pain is my gain, my friend.

    As a Forex and Stock Market trader, this little burst of price has been exploding the accounts as of late!

    Maybe you just need to figure out a new angle to capitalize on this opportunity my friend! I’m sure you will!

    Maybe offer your beer link in Canadian dollars, and then convert it into US funds! Haha.

    1. John Chow says:

      Ya, I need to look at hedging the US dollar.

      1. mahdi yusuf says:

        yeah, the canadian dollar has hit a recent 30 year high, its good if you hold a job in canada, i blame enron! ๐Ÿ˜€

        1. Marc says:

          There’s lots of blame to go around, but I don’t think Enron’s very high on the list ๐Ÿ˜›

  8. yuga says:

    I think everyone can actually turn this into their advantage. Buy tons of US dollars instead of local currency. Open up a US Dollar account and keep it for safekeeping until the exchange rates are in your side.

    There’s a reason Forex business is doing good these days.

    1. Chris Stark says:

      What if the dollar never comes back on our side? The US is trillions of dollars in debt to countries like China and if they call in their loans the US economy will be in big trouble…

  9. Angel says:

    Spooky John. I live in Thailand and have to deal with a falling dollar and incredibly strong baht. It hurts. My Adsense earnings are worth less and less, meaning I have to work harder and harder.

    My post about living outside the US can be found here. Seems we’re in a similar boat, although of course I’m facing a bit more of an uphill struggle, having just started and all.

  10. I feel your pain John, I am also from Vancouver, Canada and make a living from my site. This is one situation where we can not do anything about but pray.

    1. Alex Ion says:

      Are you kidding me?

      Have people gone mad? You’re starting to pray to get 16 cad for 10 usd? Is this what you use God for?

      Why not ask God for a new car then ?

      1. Marc says:

        Now that’s the funniest comment I’ve read all week ๐Ÿ™‚ Well put Alex.

  11. Louis says:

    I got paid in US dollars but I live in Western europe, the US dollars is dropping badly against the Euro and it keep dropping….

    1. Yeah I know the feeling. The โ‚ฌ/$ exchange has become terrible.

      I made a similar post a couple of weeks ago:

  12. Mauro says:

    Well, in Argentina you get 3.15 pesos per dollar ๐Ÿ˜ˆ

  13. cut my taxes, let me earn my raises…government…leave me ALONE!

    Seriously, why is it that the government can’t “live on what it makes.” Oh, I KNOW I KNOW, its all that pork added to every bill that passes!

    As far as the falling dollar, as a US family who is making about the same wages I was making in 2002…we have actually receive dpay cuts….but what ya gonna do…

  14. Why you look at only $$$ ?
    use some other non-usa Affiliate / Ads . ๐Ÿ˜‰

    USA $ Down up2 next 3 years.
    USA $ Only Increase When There GDP is Higher Then Others.

    Its possible only when USA people moved towards more new Invention and marketing ( New Products ).
    “””””””USA is a country it still effect all others income….”””””we must cosider the point here ๐Ÿ˜Ž

    If you love $$$ u must consider the above points.

  15. gaman says:

    I am in the same boat. The Malaysian Ringgit is getting stronger by the day against the USD. It used to be RM3.8 to a dollar during the peg after the Asian economic crisis. Now it’s 3.3 to a dollar. It’s going to go below 3.0 next year.

    On the other hand, imported goods become cheaper. I can also spend more on my AdWords campaigns, such as the one you see here ๐Ÿ˜ˆ

  16. cmanlong says:

    you really really need to look at the historical track of the dollar vs the major currencies, yen, cad, british pound, i don’t count the euro it is too new.

    this would put the current dollar drop in perspective. i agree that if you are in forex, yeah me, you could be making a tidy profit on this issue, while hedging with the dollar for when the rates will rebound.

    if I were you john i would start keeping some of the money in dollars. exchanging it all right now if you don’t have to is a very poor investment.

    1. John Chow says:

      Right now, I keep everything is USD and only exchange what I need to run on.

  17. Whop, that is a 36% drop.

    Me too suffering a 20% loss in India, great part of it within the past one year. Just scared if it is going to be a continuous story.

    Was already in thoughts of getting hold of any advertiser who pays in Euros or Pound Sterlings per click as there has been an appreciation of these currencies in the meantime, now it is time to aggrevate action to those thoughts.

    1. Jez says:

      Can you imagine how hard it would be to sell PPC in a strong currency like sterling when your customers can go to google and pay in $$$…

  18. Shaun Carter says:

    The currency traders betting against the dollar the last 5 years are making huge fortunes…

    I suggest since you derive all or most of your income in the form of US dollars that you hedge against any further declines by shorting the dollar on the currency exchange.

    Warren Buffet has been betting against the dollar and reaping huge piles of cash for his intuitiveness, you could do the same.

  19. Matt says:

    You haven’t really lost anything, because you didn’t have it to begin with. When you go to exchange it, the current exchange rate is used and that’s what you have, and had, even in US dollars. You’re just mad that a few years ago, the exchange rate was better for USD -> CAD.

    I personally think that the fact that the Canadian Dollar going up is a good thing, for Canada in general.

    1. Michael Kwan says:

      I disagree. A strong Canadian dollar deters foreign investment.

      1. HMTKSteve says:

        And how do you think a strong dollar works in the same situation?

      2. Marc says:

        Only to a degree. By and large, so long as there’s no big spike like we had in ’03 we should be ok. Industry can adjust to a rising dollar, but it needs time to plan and adjust.

  20. I’m also pissed. Once, 1 US dollar was more then 7 HRK ( Croatian currency ). and today is barley 5.2 HRK. So now you can see the drop when I need to convert it to my currency John.

    Freakin shit. ๐Ÿ˜ˆ


  21. Debo Hobo says:

    Yes, the US buck sucks! We used to be the super power now we are hated and laughed at. It is a shame this is what my son is fighting for.

    1. Lewis Empire says:

      Your son is still respected by everyone around here.

      1. Marc says:

        That sentiment is shared in a lot of places. While most will spend a million words speaking all of the wrongs that the US is undertaking, we also realise that these are the actions of the few at the top.

        Those on the ground are people to be respected for the fact that they signed up to protect their country from harm. Here’s hoping he returns safe.

  22. Angela says:

    Thanks, Kenneth Lay!

  23. Santosh P says:

    Man, you should look at India now.. Rs 50 = 1$ and now its Rs40.33 = 1$… USA $ dropped to such an extent that Indian IT companies were most affected… Increased the work hrs from 8hrs to 9hrs.. and fewer places saturdays are working too.

    I feel the economies are going everywhere else than USA…. Look at Indian share market..
    It was slapped in newspapers as per the stats

    If a person Invests 1 lakh Indian Rupees (USD 2439 as per today) in any American stock exchange it would e only 1.57 Lakh Indian rupees (USD 3829 ) after 5 years…

    But if someone invests 1 lakh Indian (USD 2439) rupees in Indian stock exchanges he would get back 5.06 Lakh Indian rupees (USD 12341)…. Now thats what makes me feel ๐Ÿ˜ˆ

    Sooner all advertising networks shall start paying in your own currency….

    Though I feel pinched when I get paid in USD from my forign clients, but somewhere back of my mind proud that my country’s currency is getting stronger… ๐Ÿ’ก

    1. Sagar says:

      chennagi helide guru nindu yava ooru ??? …i hope santosh understands this

    2. Navjot Singh says:

      It is a 2 way effect. On one hand we get affected since dollar rates dropping too badly. Fall of INR 10 per dollar is too much to absorb.

      But consider this All tourists visting US will rejoice since they will spend less of their currency and enjoy more.

      I hope Dollar improves soon. ๐Ÿ™„

  24. I fully agree, I’m not a forex Expert – but our gov’t is way overbloated. and Bush has pissed me the hell off since he stole the second election.

    If this illegal war would ever end, maybe our fiscal situation would improve as it is, we’re just taking on more and more debts, I’ve been a slave to debt, how can the ‘most powerful’ country in the world have so many debts – In essence it mean’s America is as big a slave as it’s people are.

    Iraq is hopeless, and if we’re not careful we’ll be in Iran before the next election. I thought last November – yay, Democrats, things might change.. but still we’re in this stupid situation.

    I think it’s sad, the way we’re so complacent now adays, 2 hundred years ago, our founding fathers would have been opening a Can of Whoop-ass on a tyrant like G. Dubya.

    1. Marc says:

      From an outside perspective I have to agree. Your founding fathers had revolted against exactly this type of leadership. I just hope that your country will be able to recover once this is over.

      1. Carla says:

        At this point, its literally going to take generations.

  25. grandcanuck says:

    The end of the war, assuming it ever comes should be a big boost for American currency. The administration change may help too but I really think you need the war to end to back to more reasonable levels.

    Your best bet is too leverage some of that money. Open accounts in the US and keep as much money in US as you can. If the buying power of the US dollar increases later, you can than buy CAD with some of your US funds and pull it back in Canada.

    You could also open trading account, a money market account or buy bonds or whatever. The small returns you’ll make on the US market will help buy you more CAD with the same amount of $US.

    Basically, until you actually convert the money, it’s a paper loss only, the longer you leave it like that the better AND you run a chance of the situation improving over time.

  26. Mad More says:

    Here goes another Canadian taking his little slams at the US.
    Blame your own government for out of control prices and taxes.

    Of course you know have a conservative who is actually cutting the GST up there as well. So blame your previous government.

    Stop worrying so much about the US, and make your own country better.

    1. says:

      Our country is doing very well, massive surplusses, government is paying down debt and people are getting rich from the all the natural resources contained within our great nation… but we still worry about our trading partners like the US… especially when EVERYTHING (resources, oil, online advertising earnings) are priced in US dollars and a lot of our customers are from the US (and hence buying Canadian stuff will be more expensive).

      Our dollar is going up, and your dollar is going down… it just isn’t the US dollar falling.. our dollar is also gaining strength due to fundamental strength within Canada. So yeah, we do worry about the US dollar…

      Can’t wait for a change in US government (I don’t care which party wins), I just want the US to stop spending more money than it is making (taking on debt) and to run in a financially stable way…. the way a conservative should…

    2. Marc says:

      Our country’s fine. If you’re earning Canadian dollars then things are pretty good up here. Our biggest problem is that our economy’s growing a bit too fast out west leading to temporarily inflated housing prices. Of all of the problems a country can have, I consider that to be of pretty low severity.

      The issue is that some of us earn money online which is generally done in USD. That’s the problem. It’s not just for Canadians either, Europeans, South Americans, the far east, everyone in the world is losing out due to the dropping greenback.

      1. Jez says:

        Nice when your spending in USD though, I recently bought some content for sites, I thought I would end up going to India or something… ended up getting a good rate in the US….

  27. Ramil says:

    We’re facing the same problems – I am from Philippines. Last December 2006, the exchange rate was $1.00 – P56.00

    I’ve got good income there from freelancing jobs. However, starting from February, it slowly dropping. Now, I am only receiving P40.00 for $1.00 – you can imagine how big the drop is. It might be consider as GOOD for our country but like me and others such as exporters, Call Centers (there are a lot here) are suffering

  28. ISCR says:

    :mrgreen: ๐Ÿ˜ ๐Ÿ˜ˆ โžก ๐Ÿ˜ฏ ๐Ÿ™‚ ๐Ÿ˜• ๐Ÿ˜Ž ๐Ÿ‘ฟ ๐Ÿ˜€ ๐Ÿ’ก ๐Ÿ˜ณ ๐Ÿ˜› ๐Ÿ™„ ๐Ÿ˜‰ ๐Ÿ˜ฅ ๐Ÿ˜ฎ ๐Ÿ˜† ๐Ÿ˜ก ๐Ÿ™ โ— โ“

    All faces of evil America

  29. Michael Kwan says:

    I’ve suffered through this and I’ve only been making money online for a little over a year! I remember when I started as a freelance writer, I could typically expect to get about 14%… when I checked the exchange today, the mid-market is 4%!

    I can’t even begin to fathom the impact the exchange has on people who have been in the game longer — like John — especially if they grew accustomed to the 40-60% exchange years ago.

  30. I need to work hard for my website.
    Maybe i need to get a full time job now or find the local ads network. ๐Ÿ™„

  31. Chris Stark says:

    Yeah, I completely agree John. I’m working in Toronto (which can’t be far off of Vancouver for the most expensive city in Canada) and every time our dollar gets closer to parity, my income takes a hit.

    That’s not really the worst of it though. The worst is the fact that Canadian retails are not factoring in the shifting exchange rate AT ALL. Nothing is going down in price. Take a look at books. You go into a Chapters, and books are still 3-4 dollars more here when they should be almost on par.

    I’d say oh well, at least we are on the rising economy side of the border, but Canadian business relies so heavily on the US, if they collapse, I’m afraid we won’t be far behind…

  32. Brock says:

    Porsche will honour the warranty (legally they have to) but Canadian dealers will tell you otherwise if you casually ask…especially MCL. They are notorious for hating US cars.

    Search rennlist for “canada warranty”. Tons of threads on it. It comes up relatively often.

  33. bobmutch says:

    Yes it’s bad. My little basement based company did $415k CDN last year and 90% plus was USD. I put my prices up but you can only do that so many times. Then I took to saving up my US and selling it to my friends that go to Mexico all the time (give them 1% off on the buy price so I pick up another 3%).

    Other than that I am considering moving my prices to CDN if it goes over on the other side.

    1. Marc says:

      I don’t think you’ll be the only person taking that route. Moving to CAD will happen once we cross the 1:1 exchange for an extended period.

  34. Jamaipanese says:

    it’s not affecting me one bit!

    I get amost 70 jamaican dollars for every 1 american dollar ๐Ÿ˜€

  35. Katie Zoey says:

    Hi John, it’s my first time here leaving a comment on this entry… Your ebook is informative and useful to a certain extend I should say… But I think there’s something else more happier than those dollars and cents you are making… Cheers!! =)

  36. bob cobb says:

    Definitely sucks. I’m confident it will rebound eventually though.

    1. Lewis Empire says:

      What makes you confident about that? Maybe everyone else will start to lose strength. America may be in the slumps for a long while.

  37. moshu says:

    You guys seem to have a short memory… or you all are too young :mrgreen:

    Go here
    and enter as a start date 1971 (they don’t have older data) and for end date this year. Have a look at the history of the exchange rate. You will even notice peiods when the CAD was stronger than the USD…

  38. Patrick says:

    I wish I had your problem of complaining about what a new Porsche 911 Turbo cost in the US vs. Canada. That’s a great problem to have!

  39. Softsled says:

    Ohhh…so now this is a political blog ๐Ÿ˜‰ ?

    Because I read regularly I’ll put my 2 cents in.

    Many people want to blame the current President/Administration for many of their countries problems and I am not going to be so naive as to say that isn’t somewhat true.

    However, many of the problems we face as a nation today didn’t start with George W. Bush, and the prosperity that came when Mr. Clinton was in office didn’t start with him and his administration.

    President Clinton was riding the coat tails and reaping the rewards of decisions and policy made before he was in office – and he gladly took credit for it just like Mr. Gore took credit for creating the internet ๐Ÿ˜‰ .

    We are suffering the consequences of many of our former President’s decisions and sins. If he would have taken some action we might not even be in this war. So say what you will about the war, but left wing tree huggers can’t solve everything with sanctions and peace talks ๐Ÿ˜ˆ . Let the flaming proceed!

    1. Kevin says:

      I’m a newer reader, and since this is the field that I work in I thought it would be a decent place for my first comment.

      The weak dollar is something that this administration is counting on. It’s the weak dollar that’s helped fuel the American economy by making our goods so much cheaper to the rest of the world.

      True, there are a lot of other reasons for the dollar being weak (see the giant deficits), but the main reason is that it’s good for our embarrassment of a president’s economic record. A significant percentage of the GDP numbers released this morning are attributable to the weak dollar increasing demand for US goods and services internationally.

  40. ralphieb says:

    Everytime I go to my bank and deposit my US check, bank teller always ask me to open a US account because of the rates being so low right now.

  41. Binoj says:

    John, I don’t see any google adsense in your page today. Any specific reasons?


    1. Binoj says:

      Ohps! its there When I refresh the page.

  42. Bryce says:

    USD>AUD is also going down, it’s gone from being nearly $2AUD/USD in 2003 to $1.14AUD/USD. I guess it’s a good time to start buying things from the US ๐Ÿ™‚

    That’s why I keep seperate balances, I use my USD PayPal dollars to buy hosting and stuff instead of converting it to AUD

  43. Angel says:

    Seems a lot of people are in similar situations. Has anyone come across any good ad clients in Asia?

  44. Teen Forums says:

    America is becoming poorer and poorer by the wars with iraq and crap wars….Bush is sick! Because of Bush, I am earning less…I am earning atleast $150 less every month because of him, if we take account of what $$ was 1-2 year back….damn this bush!

  45. I used to get 2800 Colombian Pesos for each American dollars….

    Now I get around 1800, due to the declining power of the dollar and the emerging Colombian economy, things are so much more expensive for me!

  46. James Wilcox says:

    I’ll tell you why our dollar is in the shitter…it’s called a costly and expensive useless war in Iraq. Hey at least you get free healthcare in Canada. ๐Ÿ™‚

    1. Alex Ion says:

      That’s a good answer.

      Reasons why people get less and less for their US$ is because the dollar goes down on the international markets.

      It may not mean their currencies are strong. It’s just that the dollar is going down.

    2. Jimson Lee says:

      depending on your household income, HEALTH CARE IN CANADA IS NOT FREE!

  47. Come to America if it bothers you so much…

  48. Rhys says:

    At the moment, the British pound is worth $2.04, so my income is taken a hit too, as i used to be around the $1.40

    Quick question, I keep all my paypal income from tla and other us income sites within Paypal as US$. Suppose I got paid today, and retrieved it when the dollar was high say next month. Would I get today’s price or next month’s price?

    1. Paul B says:

      You get it at the FX rate for the day when you withdraw your money. I’m in the same situation so I changed my Paypal settings to convert to GBP on the day I receive payment (storing my money in GBP). Until the USD looks like taking an upturn then I’m sticking with this way.

  49. Richard says:

    Dollar may get lower too, who knows.

    Arriba, US Pesos!

  50. Mybloggo says:

    Same in my country….last time the rate is 1USD = RM3.8 but now is 1USD = RM3.2

    Every 100 USD i will lost RM60

    1. cougarjump says:

      Double-sided sword – exporter lost; importer gained.

  51. Edwin says:

    Same thing here have a Euro that started as a weak thing and now is very strong.

    I do not think the US dollar will ever gain it’s value as much as it had in the past. Other things were going on and you can not compare apples with Apples

  52. Allen Young says:

    I always enjoy going to Vancouver for all its great variety of food. What I used to enjoy during my culinary adventure trips to Vancouver was thinking “All this great food for about 30% less than the states”

    I still go to Vancouver and still enjoy the food. Its just not a bargain anymore.

  53. Dave says:

    In my opinionโ€ฆ โ€œThe Real Reasonโ€ we went to war with Iraq was to help prevent further OPEC momentum towards the Euro as an oil transaction currency standard.

    The Federal Reserveโ€™s greatest nightmare is that OPEC will switch its international transactions from a dollar standard to a Euro standard. Iraq made this switch in Nov. 2000 and later converted his $10 billion reserve fund at the U.N. to Euros. (when the Euro was worth around 80 cents)

    (We invaded and Iraq is now using the Dollar as the currency standard again.)

    Why is this important?

    At this timeโ€ฆ The U.S. dollar is the monopoly currency for the international oil market. (โ€œOil Markerโ€)

    The effect of an OPEC switch to the Euro would be that oil-consuming nations would have to flush dollars out of their (central bank) reserve funds and replace these with Euros. If that happened, youโ€™d have foreign funds stream out of the U.S. stock markets and dollar denominated assets.

    Since 1945 the Dollar has been the fiat currency for global oil transactions (ie. โ€œpetro-dollarโ€). The U.S. prints hundreds of billions of these fiat petro-dollars, which are then used by nation states to purchase oil/energy from OPEC producers (except Iraq, to some degree Venezuela, and perhaps Iran in the near future). These petro-dollars are then re-cycled from OPEC back into the U.S. via Treasury Bills or other dollar-denominated assets.

    World trade is now a game in which the US produces dollars and the rest of the world produces things that dollars can buy. To prevent speculative and manipulative attacks on their currencies, the worldโ€™s central banks must acquire and hold dollar reserves in corresponding amounts to their currencies in circulation. The higher the market pressure to devalue a particular currency, the more dollar reserves its central bank must hold. This creates a built-in support for a strong dollar that in turn forces the worldโ€™s central banks to acquire and hold more dollar reserves, making it stronger.

    This phenomenon is known as Dollar Hegemony.

    Iran is selling more oil is a currency other than dollars now. Others like Venezuela re also switching Oil Currencies.

    You should also search Google for the phrases โ€œOil transaction currencyโ€ โ€œIranian Oil Bourseโ€ โ€œOil Markerโ€ & โ€œDollar Hegemonyโ€. I think you’ll find it eye opening.

  54. Matt Jones says:

    All my earnings online are in USD and they all have to be convertered to UK pounds, it’s costs a lot, especially the sale of my old site – I would have made a couple of hundred more if the dollar was what it used to be.

  55. Ed Lau says:

    Well at least shopping in the States is a heck of a lot cheaper. As you said, we can buy Porsches for a lot less than what we’d pay up here.

  56. ian says:

    I hear ya loud and clear, I feel your pain!
    In Australia, I recall the days when the australian dollar was only worth around 49 cents. You could double any cheque you banked. The cheque I banked today was 1 australian dollar = 88.76 cents. This weak us dollar is hurting all non us residents.

  57. Paul B says:

    About 75% of my online activities pay in USD and over the last 4 months it’s really started to cripple me. My last Adsense payment was just over ยฃ300 for $618. Put into perspective a loaf of bread here costs ยฃ1.10, a pint of milk ยฃ0.50 a litre of petrol ยฃ1.06

    I’m now charging in GBP for my software products but of course that hits the American market who buy the most, but not at inflated prices.

    Come on America get your a$$ in gear!

  58. Hey John,
    Indeed the currency exchange from US dollars to CAD dollars costs you a nowadays. Imagine how much it costs me to convert US dollars into EURO ๐Ÿ˜ฏ , the fact is tho that most online business work with dollars as monetary currency there for, i doubt there is much we can do to this. But we have to live with it day after day, or try to halt our money and keep them online until Bush falls from the US government and comes a smarter person that instead of wasting the money for the war tanks it will invest them and start thinking about their people instead of “fathers war”.

    I am in big in regard of the currency exchange since always, but there is not much i can do, and every time i think about it i get ๐Ÿ˜ก

  59. B. Durant says:

    It’s to be expected since we got away from the gold standard. US money has NOTHING of value backing it aside from the so-called “full faith and credit” clause of the US Constitution.

    Critics warned Woodrow Wilson that the Federal Reserve Act was going to turn around and bite the US in the ass and that’s exactly what has happened.

  60. Fable says:

    Personally, I wasn’t even aware that the US dollar was becoming weaker. I had noticed quite a dip in my AdSense profits, though. I’ve never really questioned it.


  61. HMTKSteve says:

    This may be bad for those of you outside the US but it is good for those of us in the US.

    1. Imports become more expensive so you have to buy local products.

    2. Foreign investment increases because prices are so low.

    3. Off-shoring jobs becomes far less lucrative because the price goes up.

    Just because a falling dollar is bad for you does not mean it is bad for the US.

    1. Jez says:

      I agree, strong currency in the UK completely killed our industry… like the US we have a trade defecit which grows year on year, that simply is not sustainable… at some point things have to balance out again….

  62. JW says:

    Make some money online doing currency arbitrage, aka Forex!

  63. nikhusni says:

    This should be a new killer which is beyond our control. In my case…i’m still better off getting USD 1 to RM 3.49….that’s lot if you have USD 1000 to RM 3490. During Asian financial crisis, Malaysia pegged its RM to US at the rate of USD1 = RM3.80.

    Hell…that time is awesome for USD 1000’ll get RM 3800. That’s one month salary of Senior Executive here.

  64. Martin says:

    you are still VERY lucky because my currency in eastern europe dropped like 200% in last few years against US dollar. i could buy the double few years ago for the same money

  65. That’s interesting John, It’s not much of an issue with GBP though.

    1. No it is, the dollar also dropped a lot against the British pound over the last couple of years. Check out this graph:

  66. Angel says:

    An interesting topic, and one that perhaps not many people have thought about before. Good stuff.

  67. Minty Blog says:

    Blame the current US govt its the most applicable reason i can think of

  68. Amanda says:

    I think thats pretty selfish the fact that you are actually making extra money just because its being converted. What about the american readers who don’t get to convert it over?

  69. It’s now just over 2 US dollars to a pound. My blog is new though so haven’t really made much from ads and therefore not feeling the strain. Is good for us British though because if you’re earning in pounds then shopping is dead cheap in the US now. Think I’m going to plan my next holiday… ๐Ÿ˜€

  70. Mick says:

    The change in the dollars value has seen my earning slide too, when I first started earning online 6 years ago $1.50(ish) got me ยฃ1.

    Now it takes $2 to get a ยฃ1.

    When it’s mentioned like that it seems nothing but when your earnings are in the thousands it’s very apparent.


  71. Sucker says:

    I remember the good old days when you could go up to Canada for a fishing trip, exchange US for CAD, buy bait, then exchange back to US, and end up with more money than when you started!

    (ok, that story might have been exaggerated a little (like the size of the fish we caught, ๐Ÿ‘ฟ ) but it gets the point across…)

  72. Ma2T says:

    I am a full time blogger in England, and the American $ pay for my rent, food etc.

    I noticed on my last google adsense payout that it was just 0.487 : 1, thats ยฃ0.49 per $1. This is the first time I have seen it under the 0.50 amount.

    Basically many things cost 2x in England as they do in america. If I were to move to American I would be a lot richer!

    I am going on a vacation to Hawaii in 2 months for a fair amount of time, while I live / work there I will be richer, crazy huh?

    John, where did you get that graph from?

    1. Angel says:

      Why don’t you move to America?

    2. John Chow says:

      The graph was made from Yahoo Finance.

    3. Ma2T says:

      Many thanks John, I will keep my eye on that site.

      Angel, it is tempting, and maybe someday I will. A few months in Hawaii will be a nice paradise test.

      For the price of a 1bedroom apartment in South east of England, I could get a very nice 2 or 3 room apartment for the same price.

      In a few years, who knows ๐Ÿ™‚

      1. Angel says:

        I’d do it! London prices are too much these days. Heck, I don’t think I’d move back to the UK at the moment.

  73. gzone says:

    This has been the best read ever!

  74. Guk says:

    You cry for $6000 differences…I cry for $15,000 difference…

  75. Angel says:

    It’s amazing how much the exchange rates have changed, even over the past two years. $1 has diminished in value so much that a very interesting global situation has been created, particularly for foreigners living abroad. That is unless they make a living off Adsense checks.

  76. Art says:

    buy puts on the US dollar

  77. Pete says:

    I live in the states so can’t say much…except about our debt and funding for the ‘war.’ ๐Ÿ˜†

  78. Marc says:

    it seems like the entire world is going against America because of war on terror and its effecting their trade this shouldn’t be happening…

  79. Thomas says:

    Try living in the god damn UK! I got about 48 pence for each of my dollars last time I converted! ๐Ÿ™

  80. Robb says:

    If you think Canada is bad, try the UK. It’s great getting paid in GBP and buying from US, but doing it the other way around is a harsh reality check. Maybe moving to America would solve your conversion woes ๐Ÿ˜‰

  81. simon says:

    I think the problem is the Canadian dollar gets too strong.

  82. Trakin says:

    You know I have put up a posy just yesterday about the same thing. Dollar vs Rupee is really a worst scenario. The dollar has depreciated more than 15%, so essentially I am poorer by that amount. Have a look at this:
    Rise of Indian Rupee and Dollars fall from Grace: Job losses to many.

  83. I feel your pain john. Hopefully things will start to change and the U.S. dollar will start getting stronger.

  84. I never thought of this, but that just plain sucks! Hopefully the US dollar will rebound…

  85. It’s amazing that you printed out the currency exchange. A little more than a month ago I stated almost the exact same thing on my blog

    Living in Canada and generating mainly US income has significantly affected us. I think we’re one of the few companies that have adjusted our Canadian price to reflect the currency. Too many companies are still charging Canadian’s the same price as a year ago which isn’t right.

  86. shaun says:

    Yup it sucks for all of us Canadians ๐Ÿ˜ฅ .

  87. Leroy Brown says:

    If this keeps up, I won’t be able to make fun of the Canadian dollar anymore, like I’ve been doing for years. I can’t imagine a world where money from Canadia is worth more than money from the US. ๐Ÿ™

  88. w2look says:

    I hear ya John! The US dollar is killing all of us good Canadians who rely on income from the net in USD. Maybe we’ll get lucky in November and another democrat will be elected.

  89. USD is going up right now… I hope it keeps going.

  90. musicNmovies says:

    Thought the Earnings have rose, my income has gone down due to this dollar inflation. Cost of everything has gone up from cars to real state in India, but due to Dollar weaking, it’s getting difficult to affoard big things now, even though I earn > 10K Dollars !

  91. I know it sucks, and it’s costing me almost 10% cost of whatever I used to earn one year or even few months back.

  92. I have exactly the same problem. The Thai Baht used to be 40 Baht to the Dollar about a year ago and now its just broken the 30 Baht barrier ๐Ÿ˜ฅ
    Thats a 25% loss of income for me…

  93. Ash Haque says:

    Oh I feel you man, I just cashed in a 1000$ USD cheque this morning and I didn’t even get 1040$ CAD in return -_-

  94. You think you have it bad in Canada? The cost of living in the UK is even higher, added to the fact I’m suffering from the same currency exchange problems…

    Though it does mean that I’m considering moving to the US. ๐Ÿ˜‰

  95. the baglady says:

    Good thing the Chinese Yuan is government regulated, otherwise the whole world will be turned upside down.

  96. Ades says:

    I guess the dollar crisis is really coming. Turn your money into gold, that’s my advice.

  97. I had noticed the issue with the dollar recently, because all my eBay customers suddenly turned out to be from out of the states. When I started I had one or 2 international customers a month. Now 75% of my inventory gets shipped out of the country. I imagine most of my new customers are thrilled they are getting such a deal, since I list in puny old USD.

  98. The whole thing happened when the U.S. got off the gold standard. When that happened, it made it easier for the goverment to print money and inflate the currency.

    I think that the dollar will continue to slide, but there is a certain low that it will reach and then it will rebound. This will happen because the Fed will raise interest rates, so hang in there. I’m sure that there’s some pressure on the Fed to do something, because a lot of important folks hold dollars.

  99. Nathan Roe says:

    very true the american dollar sucks. you should really do something to prevent losing that much $$$$$

  100. Georjina says:

    And I was thinking of ‘sneaking’ into Canada from the US ๐Ÿ˜•

    Getting paid in US dollars doesn’t make it any easier by being in the US, it just means you are just more familiar with your money having jet wings as it leaves your bank account โ—

  101. Milo says:

    That’s not sa bad John. Take this. Here in the Philippines the rate used to be 56 pesos = 1 USD. Right now its ranging at 44 pesos = 1 USD.

    That’s very bad as I feel the difference everytime I go to money changers.

  102. Hi, this with the low dollar is not only your problem, this thing affects millions of people. It is really bad for us, the webmasters that receive checks only in US currency. I can give you free advice to sell all the US dollars you have cause by the end of the year the dollar will go down again and will be more cheaper than it is now.

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