The Japanese Yen, the Euro, the Australian Dollar and the US Dollar are in big trouble with rising inflation. The reason is, of course, that the world is full of problems, but the US Federal Reserve’s decision to pump money into the economy has helped create another problem. I believe we have entered a time where the Japanese Yen, the Euro, the Australian Dollar and the US Dollar may gap on pandemic woes.
Is it wrong to say that the global economy is in turmoil, but also that the US Federal Reserve can help? Yes, I agree with that. But as things stand, no one wants to buy our goods or services, and now is the time when everyone wants to sell their goods and services, unless they are trying to buy dollars, or buy goods and services which are produced overseas and then sell them for more than they bought them for.
So, what does this mean for the US? It means the US will be losing out on its profit potential for goods and services produced overseas. How bad is that?
It means that our corporations and their labor force will be working fewer hours and the US dollar is going to be cheaper because the Japanese Yen, the Euro, the Australian Dollar and the US Dollar are all going to be very strong against the US currency. It is simple arithmetic. Our dollar is going to be stronger than the others and the US economy is going to suffer.
In addition, because of the strength of the strong dollar, the US has an unfair advantage over countries who export their goods. They can sell the products at a much higher price to the rest of the world. If the US economy suffers, this will hurt US corporations and workers just as badly as it hurts other nations.
Also, because of the strength of the strong dollar, US corporations and their labor force are not willing to work as hard. They want to have lots of leisure time and lots of leisure activities. The right to travel is also extremely important. And you must remember that the Japanese Yen, the Euro, the Australian Dollar and the US Dollar are all very strong against US currency.
To be frank, I think we are entering into pandemic troubles. We are in a global downturn and things are getting worse by the day. These issues are likely to get worse in the future and in fact, they already are.
Now is the right time to find ways to sell your goods and services. Because if you wait, you will be paying far too much for everything you buy. This will cause lots of discontent in the US and in other nations, and things will only get worse.
For instance, the US could try to fix problems in the Middle East by buying some oil for its citizens and its allies, right now. We could buy oil for oil and use it to pay our bills. Yes, of course we’d have to take care of the problems in Iraq, but we can use that oil to get things back on track.
We should take advantage of pandemic troubles in our market and take advantage of this moment and work out new ways to sell our goods and services. We have much experience and we can exploit it in a timely manner. The US should do everything it can to get its stock market share back up.
As the US economy continues to falter, it is not unreasonable to believe that other nations will start to cooperate more with the US and this will be a great thing for America and for Europe. For instance, China, which has been becoming increasingly concerned about the growing menace of terrorism, may be more willing to work with the US, which means the new alliances that may emerge as a result of our current pandemic troubles in the world.