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A stronger dollar in this context is because of a tightening fed and a collapse in commodities. It seems to me like the central banks are trying to reign in cheap money and unwind slowly...or in other words contract the money supply. deflation----job loss, unserviceable debts/bankruptcies, fall in asset values....and for people in debt....it becomes harder to service that debt.
The only thing more destructive than inflation is deflation.
Is the average American going to win? no.
Asset values get inflated with easy credit. The economy takes on more and more debt and the economic cycle is on the way up. Then the fed pulls the rug out and contracts the money supply. Since money is debt and debt is money in the Federal Reserve system, there isn't enough money in existence to pay all principle+interest. They got the people to work and service debt with labor....and then the banks will get to take back the real physical assets on top of it for pennies on the dollar. Then the serpent will eat its own tail and the cycle will begin anew.
The opposite. Usually you get raises when inflation is higher. Supposedly some prices go down with a stronger dollar. We've seen it with gasoline and air fares. Surprising it hasn't happened with consumer goods which are mostly imported. Perhaps stores are just padding their profits.
Um, if the dollar is kicking butt against most world currencies, then I fear a global currency collapse as the dollar is actually DROPPING in value (hence why I think Cost of Living is going up.)
PS, the serpent eating its own tail has been my analogy of the American middle class: we keep purchasing from the very companies screwing us and making them bigger and allowing the cheap labor trends to continue while said trends destroy us in the process. However, I've seen too many in the middle class ignoring the plight of the unemployed, thinking it'll never happen to them.
I get a annual raise regardless just hoping it's a bigger raise than last year but even if it's not I am still thankful that the salary is going in the right direction.
The world economy is shifting; the dollar is still the world's reserve currency. That helps support the price. In addition, money is flowing out of the emerging markets and other counties and into the dollar as a safe haven of sorts, further lifting its value. So for a number of reasons, the dollar is higher at this point. That may be good if you're buying gasoline or junk from Walmart. Whether it's good for the average worker, all things considered, is debate able. A strong dollar is supposedly bad for businesses that export goods. Perhaps some workers will be laid off? A strong dollar won't do you any good if you don't have a paycheck.
Um, if the dollar is kicking butt against most world currencies, then I fear a global currency collapse as the dollar is actually DROPPING in value (hence why I think Cost of Living is going up.)
PS, the serpent eating its own tail has been my analogy of the American middle class: we keep purchasing from the very companies screwing us and making them bigger and allowing the cheap labor trends to continue while said trends destroy us in the process. However, I've seen too many in the middle class ignoring the plight of the unemployed, thinking it'll never happen to them.
No, the dollar has been rising steadily in value for at least the last five years. cost of living has (largely) nothing to do with this- only inflation, which has been virtually nothing for years now.
this is combined with certain currencies (the yuan, the Canadian dollar, The Russian Ruble) dropping in value for various reasons. China's economy is hitting a wall and their stock market is melting down, and Canada and Russia's economies are SO tied to oil at this point that $30 a barrel oil is screwing their economies and their currency.
To the OP: No, you are not getting a raise. goods and services produced here are priced in US dollars so its a wash. Imported goods may be cheaper if china's economy continues to stay in the toilet. If anything, the biggest "raise" you're getting is the cost of oil falling off of a cliff, since fuel and petroleum costs impact just about everything.
No, the dollar has been rising steadily in value for at least the last five years. cost of living has (largely) nothing to do with this- only inflation, which has been virtually nothing for years now.
this is combined with certain currencies (the yuan, the Canadian dollar, The Russian Ruble) dropping in value for various reasons. China's economy is hitting a wall and their stock market is melting down, and Canada and Russia's economies are SO tied to oil at this point that $30 a barrel oil is screwing their economies and their currency.
To the OP: No, you are not getting a raise. goods and services produced here are priced in US dollars so its a wash. Imported goods may be cheaper if china's economy continues to stay in the toilet. If anything, the biggest "raise" you're getting is the cost of oil falling off of a cliff, since fuel and petroleum costs impact just about everything.
Of course, not all companies will pass along the savings they realize from a cheaper cost of goods produced overseas. For example, if Apple can manufacture it's IPhone even cheaper in China, given a devalued Chinese currency, I'm not so sure they'd drop the cost to the consumer in the US. They'd just pocjet the increased profit. `
One winner, for sure, is the person with US dollars who travels overseas.
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