WASHINGTON, July 6, 2008
Dollar Doldrums: Low Value Has High Impact
The Declining Value Of A Dollar Is Fanning Inflation And Driving Up The Cost Of Oil And Gas
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(AP)
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Interactive Eye On The Economy In-depth features on U.S. markets, taxes, employment and the Federal Reserve.
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Interactive Gas Prices State-by-state averages, tips to improve mileage and a look at what fuels prices at the pump.
Energy consultant Yergin, chairman of Cambridge Energy Research Associates, recently told the House-Senate Joint Economic Committee that oil had become "the new gold."
"Oil has become a storehouse of value - reflecting broad global economic trends and imbalances. At the same time, oil is increasingly seen as an asset by financial investors, an uncorrelated alternative to equities, bonds, and real estate," he said.
When the credit crisis broke last summer, the result was a sharp reduction in interest rates by the Fed. That, in turn, accelerated the fall of the dollar.
"Instead of the traditional `flight to the dollar' during a time of instability, there has been a `flight to commodities' in search of stability during a time of currency instability and a falling dollar," Yergin said. "There's a painful irony here: The crisis that started in the subprime market in the United States has traveled around the world and, through the medium of a weaker dollar, has come back home to Americans in terms of higher prices at the pump."
© MMVIII The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.
Best-selling author Mitch Albom on his first nonfiction work since "Tuesdays with Morrie."
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See all 64 CommentsPosted by copyat5 at 05:42 PM : Jul 07, 2008
Are you a religious person? Do you ever wonder why, in the last days the bible says those in the Churches will be persecuted, hunted down and killed--that they will be hated? Because of decisions like yours.
Those who voted for Bush and failed to see the writing on the wall even when the man attacked people who had done nothing to us and was caught in so many lies--is really fueling the rage of all of us who NEVER voted for him. In the end, as things really go to hell in a hand basket, the main thing our children and those of us who are left will remember is the idiocy and stupid short sightedness of those who voted for Bush twice and put us here. That is a lot to pay back. Obviously your judgment svcks a big one. Next time you want to vote--stay home or at least choose the candidate you like and believe in the least--that way, maybe you have a chance in picking the right one. Just saying "I told you so" to all the Bush clusterfvck voters--does NOT cut it anymore. You all are despicable.
Posted by Edward1975 at 01:11 AM : Jul 07, 2008
It still will take years for those jobs to return and when/if they do--we will have to work for less than they do in China, India, Mexico, etc--so you can cheer yourself on, when you are on the high road making 3.50/hour and can add another wing onto your cardboard box that replaced the house you used to own.
maybe some foreigner will buy your home and let you work in it. If you are male, you can do the gardening and your wife can take care of your old house and the kids of the new owners. Get a clue. LOL
And just what would our government buy our near worthless currency with? Oh yeah--MORE of our worthless currency. Since Nixon stopped tying the value of the dollar to gold and we got rid of that standard, the value has been tied to our gross national output--not anything tangible. Since that is sinking due to outsourcing, the war and insourcing--we are a victim of our own greed and our own web. The worse the economy is, the more our government desperately tries to bail us out.
The more they try to bail us out, the less the dollar is worth and the higher inflation gets--the higher it gets with a weak dollar--the less jobs--and round and round and round. Save yourself--it''s what our politicians have been doing.
Dude, give it up, will you? Hillary is NOT running for President. What part of this do you not understand and refuse to accept? If you really want to help the world, go out and buy a Toyota Prius and install solar energy panels on your roof.
"I want the American people to understand that I had every intention to not attend the Olympic opening ceremony. But then I got a call from the Chinese leaders, saying ''Yoo must go, yoo hear?'' What am I supposed to do?"
Posted by ToolMangler at 12:18 PM : Jul 07, 2008
Don''t forget there is Palladium in there too.
Hey Toolmanger!
Source: United States Comptroller General
August 15, 2007
Decline and Fall
U.S. comptroller general: America is Rome
Is America going the way of Rome? David Walker, the comptroller general of the U.S., has issued a report that basically answers in the affirmative: "The U.S. government is on a "burning platform" of unsustainable policies and practices", Walker avers, including "fiscal deficits" and "overseas military commitments" threatening a crisis if action is not taken soon. "If we continue on our present course, Walker warns, we are in for "dramatic" tax hikes, a radical reduction in government "services", and "the large-scale dumping by foreign governments of holdings of U.S. debt." The Chinese certainly concur with that last prediction.
On the Positive side: the Bush/Cheney Crime Cartel is Flush with $Trillions$ in War Profiteering Cash....
The Federal Reserve System has taken all of the copper and nickel out of your pennies and quarters and replaced them with Reynolds Wrap aluminum.
Why? Because copper and nickel cost too much to mint for worthless Federal Reserve Notes.
Wake up America!
The Federal Reserve System is a scam!
This is what happens when you double the deficit in 7 years. Thanks Bushies!
Now step aside while the rest of the country rallies to fix everything that you''ve broken.
''Hey, Meester, you want to buy my seester?''
It is amazing that we had a candidate who stood for the Constitution and getting rid of the Federal Reserve Bank, yet no one wanted him and those who did were called lunatics on the fringe.
Clinton and Daddy Bush killed this country with NAFTA and CAFTA is being invoked too...?
So what are we as a people to do? Let''s hear from those informed peoples as to a solution. Maybe we can overthrow those who have sold us out and take our country back. Remember... They are our servants, not us.
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See all 64 Comments