Yesterday the Federal Reserve released doom and gloom comments to the markets. It seems that they believe the answer to the lack of cash in American’s pockets is to print more money, (rates have been cut by 3.25% since September 2007) so that there is more cash to go around. Fortunately they measure inflation in a way that makes us appear to have little or no inflation, so they are able to lower interest rates and pretend it does not affect consumer prices.
Unfortunately, America’s economy is highly dependent on oil, which is traded in dollars, making the Fed’s decisions to devalue the currency even harder on citizens as they attempt to buy the same goods today and tomorrow with an ever depreciating dollar. Perhaps Americans should start saving their money in Euros until the Federal Reserve gets out of inflation denial.