Saturday, May 3, 2008

A turn for the better for the anemic US dollar

Herr Bush's bathroom attendant and head of the US Fed has seemingly done something right. He put an end to lowering the prime rate the government lends US banks. He drew a line in the sand at 2 per cent. He's tried everything but this time what he did might improve the health of the US dollar. It is slowly strengthening, along with better corporate earnings even though for the 4 successive month the employment numbers are going up. So yes we're in recession though Herr Bush will deny it.
With the improving dollar motor car owners should see reflected in a the drop of a barrel of oil, but not necessarily a quick fix at the pump.
Yet a strong US dollar won't wipe away with a magic wand Herr Bush's 8 years of physical and moral squalor he is leaving this country in. His crowd, the 1 per cent who own more wealth than 50 per cent of Americans, won't feel the pinch; they will continue a life style better suited to the jaded, decadent algae on the American pond, whilst the ordinary Joe or Jane will scrimp and save to pay for high food prices, higher gasoline, higher rents, and for those saddled with mortgages a desperate struggle to square the circle before being thrown out on the streets if they don't meet monthly payments. Such is the reality to today's America, a sorry sight it is.

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