The dollar touched a record low of $1.5651 against the euro and crude oil reached a record $111 a barrel. Grocery costs are expected to go up further with the rise in the cost of wheat.
And JPMorgan Chase, along with the Feds, are trying to bail out Bear Stearns, an 85 year old investment bank, whose stock lost more than 20% of it’s value in recent days.
CCNWON has a good writeup of stagflation. In it he shows how commodity prices have gone up in recent years yet the wages for the average American has gone down about 2%.
Food for thought. A provactive write-up of what’s going on with our economy and where we are headed. Basically, make way for the Amero.
Over time, a much lower US standard of living and a significantly devalued US dollar will make it much cheaper to manufacture in the US again, and 15-25 years from now our massive debt loads will have subsided and all those outsourced jobs will eventually come back home. Then we will be able to do more than sell each other cheaply manufactured goods…
Ultimately, the US dollar will plummet in value and its fate as the defacto World Reserve Currency could soon be brought to question — but that might be part of our monetary policy master’s “master-plan” anyway, as it will allow the Amero to slip right into its place without an American revolt.
Yet today, the market fell 315 pts on recession fears, oil pushed past $103 for the first time, the dollar hit another low against the euro, US Midwest manufacturing activity “plummeted” in February, consumer setiment slumped to a 16 year low.
Yep, Bush knows best.
Stagflation = Stagnation + Inflation. Which is where we are heading right now. It means, high prices for food and commodities, while at the same time, there’s no economic growth, no job growth. It also means, start saving. Hold off on big ticket items if they’re not necessary. Cut short the vacation, maybe start thinking about a backup if you lose your job. Reign in spending. Do you really need all those premium channels with your cable TV? Do you really need cable? Maybe you don’t need a land-line if you have a cell phone. Maybe it’s time to get a COSTCO or BJ’s membership and buy in bulk. Eat breakfast at home and bring your lunch to work. Don’t eat dinner our all the time.