Exotic Dancers Go Where the Money is Valued Most
September 23rd, 2007 by Grant in: Currency, Investing, Royalty TrustsI’m reading the Wall Street Journal this morning, and I came across a provocative article concerning the declining value of the US dollar versus the Canadian loonie.
Evidently, those in the “exotic dance” industry in northern U.S. states are seeing a workforce shortage. Not because morals and values are increasing, but because Canadian currency is increasing in value.
“The owner of five strip clubs in Detroit and Windsor, Ontario, says American dancers are heading to Canada to earn the strengthened Canadian currency, and Canadian customers are heading to Detroit because their dollars go further there. He’s fighting back by advertising more in the U.S. and offering free limo service to get Detroit men to visit his Windsor clubs.” -Source
I’ve never been one to partake in the services of the exotic dance industry, but I do think it’s interesting that the workforce is following the money.
In addition, I’m interested to see what effect the increased value of the loonie will have on Canadian taxes, and more importantly, how it will affect the royalty trust tax rate.
One of the big advantages of the royalty trusts is the spread between the Canadian and U.S. currency. For a long time, the U.S. dollar has out-valued the Canadian counterpart, and as such, my PVX dividend is valued accordingly.
Now that the tables are starting to turn, the Canadian Royalty Trusts may be more enticing, regardless of the tax situation.
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October 1st, 2007 at 9:06 pm
actually, since oil and gas are priced in USD they’re income drops.
so its a bit of a wash. unless the dollar drops like a brick and oil/gas go thru the roof.
then we’ll really be rolling in dough!