November 21, 2007
One British pound can now be exchanged for two U.S. dollars. That's great for the British. They can visit the U.S. and live high on the hog, buying everything for cheap. That's not so good for us. I remember visiting the Czech Republic and Hungary, and thinking how wonderful it was that I could get a massage for five bucks or a complete meal at a restaurant for three. We thought it was fun to leave a 100% tip for the waiter. And the people? They were poor. Where does that leave Americans? Something isn't right here. Economic predictions, however, are generally positive. I don't understand how the dollar can be so devalued, yet we are not in a severe economic depression. Does it have something to do with other currencies (particularly Asian) being pegged to the dollar? I don't know. I have been studying the economy diligently for the past few months, but it is so hard to understand.
Posted by megabeth at November 21, 2007 08:54 AM
Are we funding our economic growth on credit? My guess is "Yes" and if so, we are heading for a major implosion. I think the sub-prime housing problem is just the first sign that we can no longer afford to live above our means as a country.
Posted by: shadowhelm at November 21, 2007 09:21 AM
Yep that scares me. I didn't participate in the debt free-for-all, but have a feeling I will be paying for it soon.
Posted by: megabeth at November 21, 2007 11:43 AM
I am REALLY troubled (perhaps I shouldn't be?) by the rumors that some OPEC countries might decide to shift away from pricing oil in dollars and instead to a basket of currencies that could include the euro. What effect would this have on the U.S. economy? I'm not sure about a short-term effect, but I do wonder about the long-term effect, coupled with the other economic hazards we already face.
Posted by: Stan at November 21, 2007 01:03 PM
It sucked when I was in Scotland. Everything I bought was twice as expensive so my gift "budget" was kicked right in the behind.
Posted by: Howard at November 21, 2007 01:47 PM
How 'bout that $60 t-shirt?
Europe pays $6-7/gallon and europeans have adjusted to the higher fuel costs. However, they have effective conservation efforts, whereas Americans will literally drive themselves into the ground.
Posted by: megabeth at November 21, 2007 02:47 PM
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