The Dollar, Detroit, and Da State of our Economy!

Peachtree City…is it just me or does it seem like the ground is giving way beneath our feet.  But we are resilient right?  We stand our ground and for God’s sake don’t let them see ya sweat!  We’re all doing the right things?  Hmmm, Let’s see!  We go to work - but find we have no jobs.  Checked out your retirement account?  With just one eye open you say.  Guys, we all wisely invested in diversified portfolio…. only to find that it has lost half its value!   ….And to boot, our houses have lost 20% of their value.   

Doom For the Dollar???

I know what you are all thinking but afraid to say out loud.   With all that is happening in our financial markets, Is the colapse of the dollar next?  And what you really want to know is why the dollar may be declining and if so, how do you protect your own nest egg. 

Okay for the brave one, lets take a good look while many others still have their eyes wide shut.  The dollar declines when it loses value in relationship to other foreign currencies like the euro.  So when this occurs, our good old George Washingtons can buy fewer foreign goods thus increasing the price for imports and causing..you guessed it, Inflation!  Then look out as many investors with U.S. Treasury bonds begin to sell off their good ole American dollar-denominated holdings.