Understanding the Economy

Things are always tied together. And the biggest mover of the economy is the value of the dollar. Warren Buffet warned us all back in 2003 that this would happen. The reason home prices, the stock market and gas prices have went up is the value of the dollar has plummeted because of our trade deficits.

People think home prices and the stock market going up are good things. But it's only a good thing if the value of the dollar is consistent. If your stock portfolio goes up 25% but the dollar loses 50% in value your stock is worth much less than it was.

Gas prices have went up due to a number of factors. Decreased supply, increased demand but the value of the dollar is one of the biggest reasons. Why should the Saudis sell at a discount to us when they the Euro is worth more than the dollar? Oil used to be priced to the dollar but not for long.

We need to get our country back on track and the best hope for that is a change in leadership. Barrack Obama is our best hope for the future.