That's what the U.S. Economy is doing, not that anyone has noticed. We ignore the warning signs and focus on minutiae instead. Does anyone realize that just five short years ago, the American dollar was worth $1.64 Canadian. Now, it is worth 92.6 cents Canadian: http://www.cbc.ca/money/story/2007/11/06/cdn-dollar.html. Five years ago it was worth 1.09 Euros. Now, it is worth 0.69 Euros. An identical decline has taken place against the British Pound, which is now worth just about $2. Oil prices are just shy of $100 a barrel, for no reason that anyone can discern. The National Debt is completely out of control, and the budget deficit, while it has shrunk somewhat, is still very much a problem. This has left us in a position where we have had to borrow money overseas from such "friends" as the Chinese and yes, those reliable allies of ours, the Saudis.
I'm no prize-winning economist, but the way I see it, this economy is heading for a colossal collapse, the likes of which it has not seen since 1929, if ever, and when the crash happens, it will be ugly.
3 comments:
At least it'll be cheaper when we go to Florida this summer!
*** winter
Yes in the short term it makes American goods and US travel attractive to foreigners, but in the long run it can cause high inflation.
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