The dollar is falling, the dollar is falling, scream the headlines even as millions of Americans continue to park their cash. 1.3 trillion dollars were sitting in American savings accounts, CD and Money Markets according to an industry chart shown last week on Jon Taplin’s blog. Yesterday, the fed continued the fall when Chairman Ben Bernanke described the economy as a no growth, financially frozen, and inflation-risen wasteland. Wow! talk about your politics of hope. Gold prices, silver, and platinum have doubled, and no one knows for sure what’s under the mattress or in the coffee can in the cupboard.
Looking for the cause of this wonderful circumstance? Take a look, Pogo. We are the ones who applauded as the real estate market provided us with a seemingly endless supply of equity to use on new cars, vacations, and just about any exported items our heart desired. We are the ones who made millionaires out of the authors who tempted us to seminars where we all learned how to be the next millionaire. We are the ones who voted in the politicians who took us to war. We are the ones who suddenly are flocking to the polls to elect someone we hope can bring our country back under control.
Well, as any surfer can tell you, sometimes it takes a long time for a wave to form but this one looks like the ninth wave to me. Around our house we have had long discussion as to what is really happening. One thing that stands out to us is the cognitive dissonance caused by reading/watching the news and then looking out the window at a world that seems remarkably untouched. The streets are still clogged with traffic, the parking lots in front of Target, Office Depot, and Linen and Things are jammed, and the price of real estate, though dropping, is still way beyond the reach of us ordinary two salary per household folk.
The conservative folk in our midst will tell you that this is all nay-saying from the defeatist liberal left. We are just fine, the surge is working, the jobless rate is, well who worries about those folks, right? But if that is so true, why are they all taking their tax cut dollars and putting them into savings? Aren’t we supposed to see those dollars reappearing in the economy as retooled industry, and more and better paying jobs for Americans? We know the corporate heads are falling but they all seem to be landing softly on pillows of buy out cash and stock options. Do I have to be liberal and left to notice this? And then there’s the war, where Senator McCain claims we will be fighting Al Qaeda for the rest of this century. Again, some of those left leaning anti-American liberals (boy that is some oxymoron) are calling it the $3 Trillion Dollar war but what do they know, right? It’s money well spent if it will secure our country and lock in our oil. The thing is, as Senator Obama points out, there was no Al Qaeda in Iraq before we went to war there and quite rightly I think there won’t be any Al Qaeda there once we end this war and bring our troops home. But that hope – bringing our troops home, ending the war, forcing the Arab states to solve the problem of Al Qaeda – doesn’t really fit with the plans of corporate conservative Blackwater Haliburton does it? After all, where’s the money in that?