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The problem is a simple one for those confused about why it should mean a hike. These days a HUGE percentage of goods are made outside of the USA, most in the Far East. The 'normal' currency for payment of these goods is the dollar. With the dollar worth a lot less for prolonged periods, manufacturers in the Far East must raise prices to compensate as their own bills are for the most part paid in local currency.
If you delve deeper into global economics there are even more knock-on effects but they are more difficult to explain and also better left to those studying economics these days that have a clue (amazing how many taking a course like that at college don't have much of a clue) rather than my own babbling.
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