The Incredible Shrinking Dollar
Below is a MRR and PLR article in category Finance -> subcategory Wealth Building.
The Incredible Shrinking Dollar
Summary
The value of the dollar is plummeting, yet few seem concerned. Why aren't we more worried?---
I'm no expert on global economics; my expertise is my 1966 Mustang. However, there are fleeting moments when I feel an inexplicable sense of doom, a gut instinct that something isn't right. It reminds me of those animals who sensed the tsunami before it struck, years ago. While scientists searched through chaos, they noticed the animals had all vanished to safety. Somehow, they knew.
Now, it's the dollar that has me uneasy. It's unsettling to see the U.S. greenback?"a hard-earned symbol of labor?"deteriorating. Since the euro's introduction in 2000, the dollar has fallen significantly. Back then, one euro was equivalent to a dollar; today, a euro is worth $1.40. That's a 40% drop. Not exactly good news.
We've even lost ground against our Canadian neighbors. In early October, the U.S. dollar fell to 97 cents against the Canadian dollar. I cherish my Canadian friends, but if I can't nudge them about their chilly summers or our stronger dollar, what’s the fun? Just a few months ago, my trip to Montreal saw the dollar at 1.08 Canadian. Compare that to 1998, when a dollar fetched 1.30 Canadian?"those were the days. Today? Our dollar hits 97 cents?"a drop of 11 cents in mere months.
Economists brush off these concerns, suggesting the weaker dollar actually benefits us by making American goods cheaper abroad?"around 40% cheaper. This should boost export sales, increase corporate profits, and result in better wages. The supposed downside? More expensive European vacations. Sounds fine, right? Yet, that nagging feeling returns.
The dollar’s shrinking buying power means Americans lose unless foreign demand for our products compensates for our currency's devaluation. If my workplace sells only slightly more to Europe, it won't be enough to outweigh the dollar's decline. Who's looking out for middle-class families in this scenario? Not long ago, our leaders emphasized the importance of a strong dollar. So, why this freefall? Who's in charge?
Consider Zimbabwe, formerly Rhodesia. Its currency devaluation was so severe that wages became worthless by midday due to rampant inflation. As a currency loses value, workers demand to be paid in something stable. Would you prefer being paid in a currency that's eroding globally? My instincts suggest this is trouble.
And there it is?"the persistent tingling at the back of my neck, warning me once again.
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