HomeMy WebLinkAboutThe Citizen, 1994-08-17, Page 5Arthur Black
THE CITIZEN, WEDNESDAY, AUGUST 17, 1994. PAGE 5.
A northern
Ontario
treasure
The artist brings something into the
world that didn't exist before, and he does
it without destroying something else. A
kind of refutation of the conservation of
matter.
John Updike
You know what's particularly wonderful
about this country of ours? Treasures,
treasures everywhere. No matter how
humble or unlikely the surroundings.
Take Beardmore, Ontario. Towns don't
come much more humble than Beardmore,
with its population of a few hundreds souls
nestled in the bosom of northwestern
Ontario wilderness about 90 miles due north
of Lake Superior's arched eyebrow.
It's a small town, boasting a couple of gas
stations, a general store, a motel or two -
hard to differentiate from any of several
hundred other small Canadian towns. You
could drive right down the main street, past
the grocery store and the barber shop and be
back out on the highway before you knew it.
Thousands do, every year.
Ah, but they miss the treasure that way.
It's that barber shop on main street. That's
where Ewald Rentz lives.
Who's Ewald Rentz? Well, first off, it's
i International Scene__________
By Raymond Canon
Big Macs
and foreign
currencies
Economists, or at least some of them, have
a fascination for Big Macs. It is not that we
rush out at any given time and gorge
ourselves on the best example of a mass-
produced hamburger (by best mean best
known, not best quality), but there has been
a certain fascination with the price of the Big
Mac in various countries as a means of
establishing how closely a nation's currency
is currently at what would be considered a
perfect exchange rale.
I have written about this in the past, but in
case you have come in late, let me make a
short explanation. There is a specific rale of
exchange between two currencies al which a
certain amount of currency in one country
would, when exchanged for the currency of
another country, buy the same amount of
goods in the second country.
Let's say that the Canadian dollar is
trading at 80 cents U.S. This would mean
that S1,000 Canadian would buy $800 U.S.
Now, if the Si,000 Canadian would buy the
same amount of goods as S8(X) U.S. would
south of the border, we can say that the two
currencies arc at a perfect rate of exchange.
This is culled Purchasing Power Parity.
Where docs the Big Mac come in? We
make the assumption that, since the Big Mac
is the same no matter what country it is
produced in, it costs the same to produce in
every country and the mark-up is the same.
Thus, if the hamburger is selling for $2.75 in
Canada, it should be selling for about S2.2O
in the United Stales. Any difference and the
two currencies arc out of line.
"Ed" to his friends. He was bom in North
Dakota, drifted around a bit through
Manitoba but made his way eventually to be
Bcardmorc, where he fell in love with the
land and stayed.
And since all that happened back in 1939,
folks take it for granted that Ed's there for
keeps.
In his 86 years Ed's done most of the
things a northerner does. He's been miner,
lumberjack, prospector, cook and, as the
candy-striped pole outside his place attests, a
barber.
Oh yes, and one other thing. Artist. Ed's an
artist. World-renowned, as a matter of fact.
There are collectors in England who
salivate for his work. Curators from the U.S.,
Montreal, Toronto and Vancouver make
periodic pilgrimages to the barber shop in
Beardmore to see if he's got anything new
they can buy. His work is on display in
museums across the country including the
National Museum of Man in Ottawa.
Ed Rentz is a national treasure. And the
barber in Beardmore.
Ed's what you call a folk artist. He doesn't
do abstract impressionist canvasses or
mobiles la Henry Moore. Balsam, birch
and poplar are his media. His inspiration
comes from the bush he's wandered through
for most of his life.
Ed can pick up a chunk of knotted forest
debris that you and I would reject as
firewood, turn it over in his own gnarled
hands, take it back to his workshop and with
the help of a knife and chisels and
judiciously applied dollops of house paint,
If the price is more than $2.20 in the U.S.,
the Canadian dollar is accordingly under
valued; if it is, say, only $2 in Port Huron or
Detroit, our dollar is overvalued.
Last year I reported that most currencies
were not at their Purchasing Power Parity
and a few were not even close. The cheapest’
for Canadians would be in Moscow, which,
quite by coincidence, is run by the Canadian
branch of McDonald's. The Russian ruble
was obviously undervalued.
However, for those of you who want to
feast in Big Macs while you are on your
world tour this summer, let's take a look at
what the current figures tclfus.
You can bypass Moscow if you are a
glutton for Big Macs and head straight for
China where you can exchange your
Canadian dollars for yuan and get a
hamburger for about $1. Much as I might
like you to go to Switzerland and enjoy the
scenery, hospitality, etc., I have to confess
that the Swiss have the most expensive Big
Macs on this planet. At current rates of
exchange Lhcy will cost you over $4. Head
instead for Germany where they are
somewhat cheaper (just over $3).
Given this rather unscientific way of
calculating the value of currencies, what,
you might ask, would be the correct value of
the Canadian dollar. Well, you have already
seen it in my example above since
McDonald's indicates that the Canadian
dollar would be at its correct level if it were
trading at 80 cents U.S.
Since, on international money markets,
our dollar's value is influenced considerably
by the American counterpart, has the guide
told us anything about the dollar over the
past three years. Yes, it has! According to
Big Macs, the dollar has been undervalued
and due to recent events on money markets
which saw our currency drop to unheard-of
lows against the Swiss franc and the German
transform it into the most exquisite and
unexpected bit of art - a ballerina, perhaps.
Or a bear cub. Or a mountie. Or a great
spotted fantasy pterodactyl in full flight,
with a man on its back, hanging on for dear
life.
Ed's liny barber shop on the main street of
Bcardmore is crammed full of his works of
wonder. Elves, moose, mermaids, wolves,
prime ministers...
If you’re good and he's not too busy, Ed
might fetch his stepdance dolls - all
meticulously hand-carved - out of their
special cloth bags, set them on the floor,
haul out his mandolin and make them dance
for you.
But have a care. Just because he's a world-
renowned artist and an unusually fine chap
of 86 winters doesn't mean that Ed's not a
working man, too. My no. If it's a Saturday,
you may have to talk to him between
haircuts. Ed still knows how to give a
haircut.
He still knows how to handle knotty
customers too - be they balsam or
bushworkcr.
"One time," says Ed, looking at your
correspondent thoughtfully, "a bald guy
comes in here. I cut his hair. He gets out of
the chair and says 'Wait a minute. You
charged me a buck, the same as these other
guys. How come you charge me a buck
when I only got a little bit of hair?' "
"I told that guy" continues Ed, "I didn't
charge you a buck, I charged you 20 cents to
cut your hair.
"And 80 cents to look for them."
mark, this undervaluation is getting worse
instead of better.
While, in the long run, this state of affairs
should correct itself, it is obviously not in a
big hurry to do so. I would not like to
predict, given the current state of money
markets, how long it will take. In the
meantime you can count on any trip to either
Switzerland or Germany or a number of
other countries being very expensive. I
certainly found that this year and the
situation has gotten worse instead of better
since I came back.
It must be admitted that the Big Mac is not
a perfect indicator since there are several
things that might throw it out of killer. The
higher the rate of a value added lax (goods
and service lax), the higher will be the price
in a specific country. Levels of farm support
prices also enter into the picture as do the
rate of mark-up in the various countries
where McDonald restaurants arc to be found.
However, there is no denying that it docs
give a round and ready indication of what
Purchasing Power Parity is for a large
number of countries.
But, if Big Macs are your thing, after you
have gorged yourself in China, head for such
places as Hong Kong, Poland, Malaysia,
Brazil and the Czech Republic. By that time
you should be out of money.
Got a beef?
The Citizen welcomes letters to the
editor.
They must be signed and should
be accompanied by a telephone
number should we need to
clarify any information.
The
Short
of it
By Bonnie Gropp
Bridging the gap
Parents!
They spend the first few years of your life
encouraging independence, then thq next
few reminding you that there are bounds to
that independence.
Blyth Festival Young Company is getting
a little back in this summer's production Our
Parents Made Us Do It which is running
throughout this week. A sneak peck last
week showed an aggressive scries of
vignettes that appear to have a very definite
frustration directed to adults.
It's an old song, one that was truly given
voice in the 60s and 70s.
And if kids today think they have parent
problems, just imagine — mine wouldn't let
me go to Woodstock! In 1969, I was the
original hippie-wanna-be, with visions of
Haight-Ashbury, peace signs and an
unmaterialistic life in a commune, dancing
in my head.
Unfortunately, at the height of the craze, I
was a mere 15, an age, back then, when most
parents still had some control. Therefore, the
best I could hope for was a front row seat in
the theatre when the movie came out and
enough money to buy the LP.
I remember vividly how I felt when I saw
the movie. The message against the Vietnam
war was clear, but it was also the underlying
ones which impressed me. Even in my
frivolous immaturity I was able to sense the
significance of what ultimately happened at
Woodstock. Though the young people pretty
much did what was expected, the drugs,
nudity and sex, the overall peaceful,
carefree gathering was a lesson to the world.
Even in adverse conditions, they presented
themselves in an exemplary light.
That was 25 years ago apd when I first
heard there was going to be a silver
anniversary concert I was slightly indignant.
What happened at that first Woodstock was
historical. It can not and would not be
repeated.
Though the first Woodstock might
originally have been about making money,
that was obviously not the intent al its
conclusion, as hundreds upon hundreds
poured over the fences. Conversely, with
commando trained guards at lhe gale, the
1994 Woodstock, staged this past weekend,
seemed to me a superficial and commercial
imitation.
However, I found my feathers less ruffled,
when I began to look at lhe modem version
as less of an anniversary and more of a
celebration of an important time and event.
(Not to mention, as someone pointed out to
me, I was one of the "wish I'd been there
group", who tend to have a little more
romanticized view than the ones who were
there).
We caught some of the revelry on TV over
the weekend and though the styles may have
changed it certainly resembled the original
party. There was gate crashing (though
unlike 25 years ago this situation was
quickly rectified), the food looked disgusting
and conditions, with another deluge of rain,
seemed even worse. A good number of lhe
throng made lhe most of the bad, and
copying those that went before, turned the
mud into an amusement.
Down the road, a small crowd who were
around in 1969 came back to the original site
for their own celebration. Older and wiser,
their parly I'm sure didn't have lhe
exuberance of the Gcncration-X gathering.
Many of them parents now of those at the
silver anniversary, they know that what
happened then will never be duplicated. But,
if their kids and the other young people
experienced even a sense of what
Woodstock was about, it did for a time
bridge that age-old gap.