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Dollar Weakness Now Critical There really is something amiss with the US Dollar. That is to state the obvious! Ask any American tourist returning home. He will tell you. The dollar stinks and its getting worse. Prices in Europe are sky high for Americans and their ever decreasing dollar exchange rates. Americans are mad at somebody. It'll probably be the government, so somebody in charge better do something before next summer or there's going to be trouble. That's a fairly simplistic analysis but it is the tourist who really knows there's something wrong. One can hear them complain in the hotels, on the airplanes and in the restaurants------and other places too! Retirees who have looked forward to that trip feel cheated. Why are the Europeans so mean to us? After all we did for them in the War. Hmm! Then there's the housing slump. Prices in some areas have dipped by 30%. And, they say it's going to get worse. If that weren't enough property taxes have gone through what's left of the roof. Floridians are spitting feathers after seeing property taxes climb in the case of a friend of ours, from $1500 to $4500.That is certainly no joke and nobody seems to know why or where the increase has gone. The War hasn't even been mentioned yet. It's costing billions. In fact, enough to build a new hospital in every city and provide a decent health care system for every Senior in the country. That's what they say. Even if we were to 'win', it's hard to see any fruits of victory in the foreseeable future. Then there's jobs. Manufacturing is hard to spot in America. The last all American shirt manufacturer closed its doors a couple of years ago I've even forgotten its name. Places like East Liverpool, Ohio, and nearby Midland, Pennsylvania are virtual ghost towns. These once thriving small towns have seen their jobs exported to the Far East, leaving poorly paid service jobs to take their place. Perhaps we shouldn't feel too bad. This story is repeated all over Western Europe, Australia and the so called 'developed world.' The problem is that we in America seem to have got the worst of both worlds. This Administration is attempting to fight wars on many fronts, run up the biggest unsustainable debt in our history and try to grow the economy on a 'busted' currency. The Europeans have mostly steered clear of the wars, have legal limits on their annual debt in the EU and have social safety nets which so far the United States will not tolerate because it smacks of Socialism. Yes, we're in a bind. When a family is spending too much, what should it do? Why, stop spending of course. Tighten your belt, skip a meal--- or even two. wait until income matched expenditure. Then slowly start to enjoy the good life again, but slowly. Margaret Thatcher did it in Britain in the 1980s and it worked. Gordon Brown continued her policy even though he is from the Labour Party. There is no substitute for sensible money management. There is, however, a major fly in the ointment. It's called political will. Guts, Bottle, Belief, give it any name you like. Next year is Election Year, in case you didn't know. Americans are unused to sacrifice. Maybe we've had it too good too long. Eardleyfactor believes that unless and until someone with the leadership qualities and political genius(like Thatcher) arrives on the scene the future is grim.
Robert Jack Eardley, M.D.
Robert Francis Eardley, Cert. Ed., B.A.
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