Quote:
Originally Posted by woj
see, that's exactly what I'm talking about, "exchange rate" is getting brought up again... what does exchange rate have to do with anything? Price of tea in china may have gone up in the past 20 years too, but so what? It's easy to pick a few economic factors out of 100s put a tinfoil hat on, and start bitching that the sky is falling... I'm not an expert in economics, but last time I checked, the US economy in the past 20 years have been doing quite well... but yea, I agree there is some turbulence lately, situation in the world is a little uncertain, but US is no where close to being a sinking ship...
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I read The Economist every week. In the back of each issue they publish the price changes for commodities. Everything is up by double digits this year. Food alone is something like 25%.
We had a perfect storm, the United States spending a ton of money it doesn't have, while the rest of the world's wealth shoots upwards (partially driven by the United State's consumption, but not entirely, we only take in around 14% of the world's imports.)
In the 20th century the United States had a virtual monopoly on capital investment. Now that buying power has spread out across the rest of the world.
The middle and lower class in the United States are in for a very rough time. Not only does your buying power compete on a global market, so do your skills for your own personal income.
In one sentence: you are going to be paying more and receiving less, working harder and living smaller.
I'd suggest staying out of debt and holding well diversified income producing assets. And making as much fucking money as you can.