Originally Posted by
tommyvee
Note that I said "more impoverished", obviously Bill Gates has a long way to go before he is truly impoverished, but the drop in dollar value reduces the purchasing power of all dollar-denominated assets, even for Bill Gates.
From a selfish point of view, my investments in international socially-responsible funds have been returning 20+% per year (in dollar terms) due to the continuing dollar drop.
Pretty much all conventional economists blame the dropping dollar on US trade deficits (and budget deficits). The single largest item in the US trade deficit is imported energy, so the link between excessive oil consumption and a plunging dollar is conventional wisdom. In simplistic terms, US consumers are trying to exchange green pieces of paper for the finite and irreplaceable products of millions of years of geology. About half of the petroleum produced in hundreds of millions of years has been consumed in less than a century. The binge cannot go on, and it will not, no matter how many babies cry.
Gas prices are just a very imperfect feedback mechanism communicating that an unsustainable way of life will not sustained.
And one more benefit of expensive gas, Less sleds, less slednecks, and less trailer hauling pickups. Sledneckripper better get it while he can.
One benefit of relying on cheap and healthy muscle-powered recreation is that I can afford to only work when I feel like it. Today is too pretty to spend working or arguing on TGR, so get out and enjoy it!