The US dollar sure doesn’t buy much today
I am sure all of you have noticed how much money it costs to buy a tank of gasoline these days. And perhaps you have also picked up on the rising price of commodities including the food we buy. Heck gold shot through the $1,000 barrier for awhile. Sure things cost more in the US but it’s not just that. I have been traveling abroad lately and it’s stunning to see how little the dollar is worth. The Euro is basically worth twice the value of the US dollar, which has also slid against Asian currencies as well. Being a baby boomer like many, I have spent a large part of my life saving money for retirement. Having enough money now is like the carrot at the end of the string. It’s hard to save enough when everything costs more and the dollar becomes worth less and less. These are some difficult times right now and they look like they are going to get even worse for quite a while.
Well, you describe the bad news about a low dollar. The good news is, imports just became more expensive, such as those from China. Sending jobs overseas just became expensive, such as those going to India. American manufacturing is now once again back in the forefront, since it it now economical to do so.
This is the very reason the USA has always complained to China about China artificially keeping its currency value low. It has been cheap to build plants and manufacture there due to the high dollar against the low Chinese currency.
So in the end, while it may cost more for a pair of shoes in the short term, in the long term, the lower dollar will help this country more than anyone can possibly imagine.