The deficits of the American government are soaking up investment capital from all over the world and depressing global economic development. The value of the dollar has been plunging against other currencies because of the rabid borrowing and this cannot continue forever. It cost $940 to buy 1,000 euros in 2001, today it would cost $1,300.
The savings rate is at rock bottom because the interest rate on savings doesn’t even cover inflation. The Dow-Jones Industrial Average has barely gotten back up to where it was four years ago. You save and invest money for increased wealth, not to watch it disappear. Real estate is the only investment that’s appreciating which a prime factor in rising house prices. If there was something worth investing in, Microsoft wouldn’t be sitting on tens of billions in cash, they would be investing it.
Insurance rates are climbing for all types of insurance because the companies aren’t making any money on their investments.
Even the demented Alan Greenspan has figured it out. We are in trouble and it is Bush’s fault. Every action this government has taken is leading the US and the world to an economic melt down.
bryan at dumka dot com
The presence of those seeking the truth is infinitely to be preferred to the presence of those who think they've found it.