By Ken LaRive
My wife and I have been in the import business for almost ten years. In that time we have watched the US dollar shrink 77 percent against the Euro. Concerned? You Bet. Even with limited and biased facts, it seems evident that when the Euro is strong it is a seller’s market. That means exports from the US should be cost-effective. European imports are stymied!
I have talked with other importers far larger and savvy about this problem and they all push it aside with the same optimism: that the Euro is artificially bolstered by bogus numbers, and there will be a correction soon. It hasn’t happened, so I continue to delve into the question why.
With 27 years in the oil-patch, ten of it internationally, I see high oil prices the result of this dramatic drop in the dollar. Now that doesn’t mean Europeans are paying less at the pump. Their Communistic/Socialistic tax systems, the same kind Democrats are proposing this election makes their pump prices three to four times as much as ours.
One myth is almost an urban legend: that inflation is under control and being fought by the Federal Reserve. Fact is, when interests rates are low, inflation grows, and has been out of control now for about as long as the declining dollar. Is there a correlation?
Policy-makers want inflation because it shrinks the national debt, 1 trillion under Reagan to a staggering +8.2 trillion today!
Inflation is good for those in debt, but terrible for the creditor and retired folk on fixed incomes, and how do you think world investors view a shrinking dollar? Frightened and disillusioned might be an understatement.
Debt and inflation: razor-edged concepts of Washington’s economists.
Want to finish us off? Vote for Socialized medicine. Nuevo-Socialists, like you and me, will flip the bill with higher taxes, easily paid with our individual ‘Real ID’, and perfectly at home in our utopian New World Order.