Published by Giovanna on 26 Jan 2008 at 09:53 pm
What Happened to The Mighty Greenback?
When I started working after college in my early 20’s, I was very proud of the United States’ progress and the strength of its currency. I have traveled to pre-Euro Europe, Canada and Mexico. The U.S. Dollar went a long way back then and everything seemed “cheaper”.
What happened?
Aside from the devaluation of the U.S. Dollar against foreign currencies, the buying power has dropped inland as well. $1,000,000 in 1999 is only worth $734,000 today after adjusting to inflation. How should we invest? Even more discouraging, what will happen to the retirement funds of the aging baby boomers? Not only is Social Security in crisis but the value of the funds boomers have saved up lost significant value.
Time for Recess
This is not going to be pretty and a global recession is imminent. It’s a question of how we are going to cope with it.
In the U.S., I think the two major contributors of the destruction of its currency are unscrupulous financial practices led by the mortgage lending industry and the war in Iraq.
The United States is known for its generosity to help out other nations but lately it’s been having hidden agendas. The priority of the newly elected leaders should focus on the U.S. economy while significantly reducing foreign aid and war budgets.
After all, a broke America is a weak America. What was the current administration thinking?
Ed Welch on 27 Jan 2008 at 5:01 pm #
Hey Gio:
The dollar continues to fall as the FED cuts interest rates - pumping more money into the economy - attempting to delay an inevitable recession. They should listen to Ron Paul, bite the bullet and let it happen. They’re trying to put a bandaid on a wound requiring stitches.
The biggest worry for me is the price of fuel. It’s putting a major drag on the economy. I can only hope the next administration will focus on moving toward energy independence…..
Giovanna on 27 Jan 2008 at 5:08 pm #
Hey Ed:
Agree!!! The World Economic Forum predicted a global recession including China which had double digit growth in the last decade. However, the only the regions that are rich in “black gold” are safe, almost excused, from recession.