Pounding The Dollar

Wow. I'm supposed to be studying abroad in Europe next semester and this pod just made me realize I need to save A LOT more money. Thank you for opening my eyes, Adam.

I am watching this on television *right now*, and it is so depressing and hilarious. And depressing. I think in England ten years ago, the going rate was about US$1.60 for every pound. Now I simply double every amount in my head and, oh my god, it adds up. I can't believe how, uh, well, *worthless* the U.S. dollar is.

No doubt we may have to suffer for a while longer. With the economy slowing the Fed may have to cut interest rates once more before the end of the year to ward off possible recession. If that should happen the dollar will weaken even more. However there is a light at the end of the tunnel. These things are cyclical and with the weakening of the dollar, US made goods become cheaper as exports to Europe, Canada, and Asia. The Chinese will have to slowly let the yuan rise probably not at the rate we want it to but eventually it will start to rise. As we slowly chip away at the trade deficit eventually the dollar will trend upwards again barring a major long term recession or god forbid a depression. The housing market will also weigh the economy down in the near term. Unfortunately all this will probably have to play out over several years and something new along the line of the internet or manufacturing revolution may need to come along and jolt the economy. Maybe something along the lines of an alternative energy revolution but that's for another post.

For the record, I'm really not that cheap..I was trying to be a responsible current employee!
but of course, anyone who's traveled to the uk or europe knows all too well how difficult it can be at the currency exchange. the dollar just isn't buying much these days. whether you blame our flagging currency on the ginormous current account deficits or china and japan's currency holdings, one thing's clear: it sucks to be an american tourist abroad right now.