mrfrugal

If you have been reading my blogs you will know that I was correct concerning the slide of the Euro and Pound against the Dollar. I wrote one article in July and one in early August stating that the Dollar is coming back. What does this mean for the middle income consumer? INFLATION. Inflation may come down on us hard if the price of oil does not continue to decrease, the Federal Reserve raises interests rates from there current level or Russia disrupts economic markets in Asia, mainly China.

Let’s face it, if the price of a barrel of oil continues to drop as a still foresee then transportation costs of our goods will decrease. It is that simple. Plus, even if the would economic view is a little grim that will mean less oil we will have to use to run our cars, heat our homes and offices. A win win I say. Don’t worry; this outcome is most likely to happen.

If the Federal Reserve keeps rates at there current levels then we should be fine. But if the Fed jumps the gun and raises interest rates to curve inflation then we will be in a world of hurt because the housing market is still on a tender foot.

Russia, what can I say but I hate the country. Russian politics have hurt that country more than it has helped but that does not mean the Russian people will not go along with the crowd. But now that I think about it China may need to cash in there US reserve bills and lower the dollar again which will help our exports.

Man, the US is looking good baby.

Trackback URI | Comments RSS