September 21, 2007

Dollars to Pounds

I don't write about the US economic situation too much because, frankly, I don't know or don't follow the macroeconomic stuff very closely. But it's impossible for a person to miss some mention of the things going on today.

- The Fed dropped interest rates by a half percent.
- The dollar is being devalued all over the place (inflation).
- The Canadian dollar just reached a 1:1 exchange rate with our dollars. (It used to be less)
- The British pound is 2:1. (It's been stronger for a long time, but now it's REALLY strong.)
- Gold recently reached a 28-year high.
- Housing prices are falling dramatically.

None of these things are good for the American consumer.

The money guys on teevee the other night were yelling that if you have any savings, you should convert it to a good foreign currency like pounds or euros. They say it's really easy to do that.

Sadly, you can't say no one saw it coming. Even more sadly, there is a lot of varied theories on how to make this stop and reverse course.

Posted by Flibbertigibbet at September 21, 2007 07:35 PM | TrackBack

The pound was just about 2:1 when I was there in 2004. No wonder my Londoners love coming to the US. 1/2 price shopping spree. Bastards. When I went to Canada in 2004 it was like 1 Canadian dollar = 66 cents. Insane it's on par now.

Thankfully all my 401K investments have been in international markets for 2 or 3 years. I have lots of friends who have gotten killed lately.

Posted by: britton at September 21, 2007 10:17 PM

I had to move my investments overseas as well, and honestly, who didn't see this coming? We're fighting a war that costs 12 billion a month and our president--a man who claims not to know anything about econ, but is proud of the fact he has kept taxes down--is paying for the war by borrowing from China daily and printing more money; two sure-fire ways to hurt the currency.

Posted by: Matt Chancellor at September 22, 2007 01:07 PM

Look on the bright side... at least all of those Canadian coins in your piggy-bank are now worth something. (I have a ton of them!)

Posted by: Tiberius at September 24, 2007 10:09 AM
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