The Falling Dollar and the National Debt

The dollar is falling.  The dollar is falling.  So what you say?  The plummeting dollar has made America and Americans poorer.  Our government has done nothing to stop the free-fall.  Objectively, a lower valued dollar may not be good or bad, but it does mean some things for sure.

American exports become cheaper for people and companies in foreign countries.  That will certainly help large exporting corporations and their employees.  That sounds like a good thing…right?

That also means that imports are more expensive, which is good for domestic companies that don’t buy imported components. 

That’s about it for the good from my perspective, and you should know that I am not an economist.  We should consider for a moment foreigners who have invested in our country.  Not the people who have come here and bought property or companies, but those who have supported our debt with the purchase of T-bills. 

$100 dollars invested in T-bills in 2006 is now worth about $66 dollars when exchanged.  With interest that is maybe $72.  That is a 30% decrease.  How’s that for an investment? 

Of course that is where they are.  If they sell out they stand to loose.  Consider for a moment that $100 dollars is $100,000,000.  How is that for a loss?  Foreign countries have a decision to make.  Ride out the dollar and hope it rebounds, or sell it off and cut their losses.

In most cases it is not in their interest to further damage the dollar and add to the instability of the American economy and commodities around the globe.  Not everyone, however, is interested in what is best for America.

Consider for a minute a country who didn’t care much about the people in it’s country or anywhere else.  A country that didn’t mind if it’s farmers had to use oxen and a 1 bottom plow.  A country that didn’t mind a worldwide economic crash.  Think about a country that stood to dramatically improve it’s position in such a scenario.  Now imagine they were holding billions in United States Treasury Bills.

That scenario happens to be very similar to the one we find ourselves in today.  Add to that the fact that oil and other critical commodities are priced in dollars and the consequences could be catastrophic for America.

The dollar is near historic lows.  The Canadian dollar is worth more.  America has been beaten down by war, geopolitics, domestic agendas, the media, division, and corruption.  Hopefully enough people see the state we are in and take steps to turn this ship around.

A big part of the problem is we have no objective truth.  We are all left to figure out on our own what is true and what is a lie.  What is important and what is not important.  No trustworthy source exists for us to ask, who is right and who is selling their agenda?  Sometimes there is no right answer, but even then there is no shortage of those who will insist their answer is right.

We need a media we can trust so we can have a government we can trust so we can have a future we can trust.

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About votescottwise

I love Columbia City. I was born here, spent most of my life in and around Columbia City, and chose to make our community home after college. I want my children and grandchildren to be able to take advantage of what this country and our community have. I am running for Mayor of Columbia City in 2011.
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3 Responses to The Falling Dollar and the National Debt

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