Your Finances are the Nations Problem

Did someone say the economy is in the toilet?  It looks like the Fed moved today to prevent a recession.  They cut one of the benchmark interest rates by .75%.  That is three quarters of a percent to those of you who like to think of it in those terms.

What does this have to do with your freedom and liberty?  Everything.  It means that the government is really concerned about the economy slipping into a recession.  But doing this will cause energy prices to stay high.

Look at it this way.  When our money is plentiful and easy to get, or cheap to get, then it is not worth as much on the world market.  The world market determines what the price of goods and services are, not the USA.  

And since our money is no longer backed by gold but by the government itself, then when we print more or make it easier to get, the less valuable it becomes.  Right now, those low interest rates make our dollar less valuable and thus nobody wants to own our dollars.

It has gotten so bad that now the Canadian dollar is worth more than the US Dollar.  I cannot remember the last time this was the case.  

It will mean a few things.  Notice how the housing market is still in the toilet.  Why is that when interest rates are supposed to be coming down.  They are not coming down.  In fact people are losing their homes because the adjustable rates are still going up.

Why else do you think the Democrats are talking a freeze on interest rates on mortgages.  The value of the dollar is also making the cost of oil go through the roof.  Of course you have to pay for that as well.  You pay higher gas prices and higher home heating prices.

So lets see, you make our dollar worth less.  You cause the price of fuel to skyrocket and that in turn causes the price at the pump to go up.  This takes more cash out of your pocket.  All the while your investments do not do as well.  Lower interest rates also mean you don't earn as much on your investments.

You have less cash in your pocket and you have to pay more to keep the home you probably should not have bought in the first place.  Now can you begin to see how this is starting to look like the perfect storm of economic doom for many people?

Even if we avert a full recession the damage is already done and it will take the USA a long time to dig out from under this mess.  Part of the blame rest with the American people.  We have to much debt, which means most Americans work for the credit card companies and cannot save or invest in their own futures let alone invest in the future of the nation.

You have high debt, you get low returns on simple investments, you pay more for your home and energy and food, you have less money to do the things you want to do and you add the fact that the media is scaring the hell out of every body and you should now know how and why this affects your freedom and liberty.

If we go down as a nation, you can only blame the individual for our government is only reacting to our own greed and stupidity.