Why American Men Who Travel Should Be Worried About Inflation And The Dollar
It's no secret the United States has experienced the worst recession since the great depression
, but the real question is: Is the government perusing the right policies that will lead to an eventual recovery? Why is this important for all American men? Because one of the possible and likely outcomes of the current spend and bailout policy is that it will lead to very high inflation in the dollar, and possibly hyper inflation as a worse case scenario.Why should American men interested in international dating, travel, and meeting foreign women be worried about Inflation? Because inflation erodes the value of your dollars. The higher the amount of inflation the more expensive everything will get, including your current day to day expenses for food and energy as well as increased expenses to travel. Not only will airline tickets get more expensive, when you travel abroad, as other currencies appreciate against the dollar, traveling to places like Latin America won't feel like such a bargain.
Brazil is a perfect example. Just seven years ago you could get $4 Brazilian Reals for just $1 U.S. dollar. As recently as 2007 the dollars decline against the Real to hit $2 Reals for $1 U.S. dollar. More recently the real hit a new recent high of $1.7 Reals for $1 us dollar.
The same effect has been seen in Canada. Seven or so years ago, one dollar could get you almost two Canadian loonies. At the time, Americans were crossing the boarder to vacation in Canada in large numbers because of the great bargains due to the currency exchange rate. From an American's perspective, everything in Canada was practically half-off.
But all of these trends have been drastically reversed.
Many of the economists that correctly predicted this current recession like Marc Faber, Peter Schiff, Jim Rogers, and Gerald Celente, to name a few, all agree on one thing: Current government policy is leading us in the wrong direction.
The main problem with U.S. economy is that the low interest rates that have been offered by the FED practically this entire decade have made it unattractive to save. American's have spent too much, and the people as well as the government have both incurred too much debt. The spending and borrowing was fueled by the housing bubble, easy money, and easy credit through credit cards and home equity loans. Now that the party is over, the government is trying to spend even more money, bailing out everyone, and increasing the deficits to levels that are unheard of.
How will we ever pay this money back? 30 years ago the U.S. was the largest creditor nation, today the U.S. is largest debtor nation the world has ever seen. In the past foreigners would gladly lend us the money, but now they're having their doubts. China, our biggest creditor is no longer interested in funding our out of control government spending, and other countries are following suite. Nations have raised there concerns about this problem by proposing oil be traded in other currencies (oil is currently traded in dollars), and even suggesting the dollar be taken off as the world's reserve currency.
If we're unable to borrow money from the rest of the world, the only option left is to print the difference, and reek havoc on the dollar, yet government keeps getting larger, and current government policy is to spend more money and try to stimulate more spending from the American people.
If the dollar continues to devalue, and if government policy is not reversed, it may very well get very very expensive to travel. Not just abroad, but just imagine a $1,000 dollar flight from New York to Miami. Imagine hotels abroad coasting just as much, or more then hotels at any large U.S. city. A strong dollar benefits every American, not just those who travel, but American men who enjoy the benefits of a decently strong dollar today should be worried about the current inflationary policies of the U.S. government.
by: Daniel DeLa Cruz