Thursday, September 20, 2007

Hope you been saving!

Now, we kinda should have been prepared for this dangerous possibility for a while now, but something tells me that being the "scared and thus must consume more then we can afford" good Americans we are, we are in for a rough ride here.

Our lil buddies in the Middle East (no, not Israel, those are "Big" buddies), The Kingdom of Saudia Arabia has announced that it will not follow our lead in cutting interest rates against the almighty dollar. Blah blah, economics, etc and all that, but basically what this could signal is an exodus of many nations away from using the dollar as the stabilizing currency or "peg" in their own economic systems.

What this could mean for us is that we are seeing less and less foreign investors trusting the way our economy is growing, as well as the difference in our own "Economic Might" as compared to other nations shrinking drastically.

Basically, that all-powerful force we used to crush communism in Mother Russia? You know, our Economy/Free Market/Trade power/Wealth advantage that we had over all the other nations of the world?


Thats about to go away very very soon, with some very unhappy and confused citizens starting to wonder why it really is that European companies give almost a month off a year and yet are just as productive as us (and their currency is worth more and more by the day). Oh yea, and that whole "Health Insurance" thing too.

Think its probably time to take a step back and really think long and hard about the terrible decisions this Company, er, Country has made the last 20 years and make some pretty sweeping changes to how we do business. We still have some leverage today, but given the times, we won't have that for long.

*Edit 12:41pm: Just piling on at this point, but Canada's currency has almost reached parity with the dollar now. Something that has not happened since 1976.

This is especially disturbing to me, having grown up in Vermont... We used to use their funny money all the time to cross the border and go to... uh... Clubs! Like Tabby's in Bedford, cause they had good pizza.... I think that was our line anyway.

1 comment:

SayHey Kid said...

Thats what happens when you have a massive trade deficit, exporting of skilled workers, and a bipartisan government who's primary focus is being re-elected, not the economy.

Its only a matter of time before our economy crumbles. Solving the problem does not consist of allowing people to borrow MORE money. The overall national debt was managable for a time but not the individual debt