Tuesday, October 23, 2007

The Dollar

The U.S. Dollar was, as of several days ago, worth less than the Canadian dollar by more than a penny. This is news that just fills me with fear, and yet, when I talk to my American friends, no one seems to give a rats ass. As an Englishman living in America who has also lived all over the world, I have a natural understanding of what this can do to my money whenever I travel. By extension, I pretty much immediately noted the future problems this will have with the world trade market. Apparently, I'm the only one.

It took me several days to figure out what was going on with my friends. I tried explaining the situation to them, pointing out how America is basically losing its balance on the tightrope right now, but still, they didn't care. For those of you who are well traveled, or have understanding of the global market, you are probably thinking about the long-term effects just as I am. Why aren't my friends, or for that matter, 99.9% of the American population?

Because they are Americans! See, if this were to happen anywhere else in the world, the country would be throwing a shit-storm. They would be in serious trouble with the world trade market, their investments wouldn't be worth nearly as much as they were, and their own pockets would shrinking. Americans don't see it that way. To Americans, this dollar issue isn't even an issue. They don't care about the rest of the world one bit! To them, everything they'll ever need, ever, is right here within their own borders. They are so sure that they don't need anyone else in the world to survive that they see this little dollar issue as hardly a blip on the radar. Who cares if the dollar depreciates in value? It's not going to change anything! This is America! -- !

If only me ego were that large... the list of things that I would pretend didn't affect me would be endless.

2 comments:

Mike Schwirian said...

Shut up, this is America!

Anonymous said...

Well James, the reason Americans dont care is a matter of simple Economics. Your average American does not know shit about simple economics, therefore they are less concerned with world markets than they are with what happens locally, and their main concern is wages and inflation. Now most everyone knows that inflation is bad, but that higher wages are good..... supposedly. But all this douchebags that strike for higher wages and these labor unions striking for a better minimum wage are only contributing to their greatest fear... inflation. Inflation is caused by an increase in the money supply in America, so by demanding more money, it causes prices to increase, and inflation to increase. Thus, your average american's ignorance is leading to the downfall of our economy. Now the Fed is doing remarkable work to control the money supply and combat inflation, and i applaud them for the miraculous job they have done, but it is a losing battle. No one in America would take a cut in pay to lower the money supply, lower prices, and increase the value of the dollar because it is counter-intuitive to the capatalistic nature of the nation, which is to gain more money. So yes, what you say is true, the falling value of the dollar has significant repercussions for travel and trade (i spent two weeks in scotland, i got fucked out exchange rates), but your average american doesnt see those repercussions, and therefore keeps on demanding more money in ignorant bliss.