Saturday, May 23, 2009

dollar weakens...

As people are less worried about the world economy imploding from a banking system crisis-- and as our debt and probable future debt increases-- the dollar continues to weaken.

This should be no surprise.

And the fruit of this-- especially higher gas and food prices will be subtle but painful.

Another thing to watch for: Will the trade deficit in goods and services continue to drop? If so, the other side of that coin-- a declining investment surplus (those in other countries investing more in us vs. us in them)-- could be a very bad sign. The last time we ran a trade surplus was during the lousy economy of the 1970s.


At May 23, 2009 at 8:24 PM , Blogger Janet P said...

How low do you think it will sink?

What's the likelihood of a dollar "crash" or "currency crisis"?

Eric S/Anyone else have any thoughts/predictions? - Acknowledging the fact that noone knows for certain.

At May 23, 2009 at 8:29 PM , Blogger PianoMom said...

Well, I can start out by saying that I think it's time to stock up on cans of tuna.


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