My Dollar is Worth What?

by Florida's #1 Mortgage Planner on March 6, 2008

Just when you thought that the little piece of paper couldn’t lose any more value, it drops to new lows.  While it’s value continues to go down the toilet, it’s saving grace is it is too rough to wipe your butt with it.

Yesterday saw the dollar devalued even more, setting new lows against the euro and against a trade-weighted basket of major currencies.  The euro rose to $1.5335, even setting a new record of $1.5345.  The pound rose to $1.9957 from $1.9908. The dollar fell to Â¥103.43 from Â¥103.97, and 1.0313 Swiss francs from 1.0361 francs.

What does that mean to you, since you don’t care to travel abroad?  Well, currency based inflation.  That is, since we get  a lot of our products imported, such as China, those costs are going to go up, and that means we will have to pay more for them.  Sucks, doesn’t it.

The other problem with a devaluing dollar is that of commodities such as oil.  Oil prices go up as the dollar goes down, and that hits us in the tank down the road.

And the Fed seems to think that inflation isn’t an issue.  I guess, if you don’t care about putting food on the table, putting gas in the car to get to work, or buying some of those other needs, like clothes, inflation isn’t really a big deal.  It sounds like a good time to diet and exercise doesn’t it?

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