If you had pulled money from the stock market and put it into a European savings account on the day that George Bush was sworn in, you would have twice as much money as someone who left it in place.
As the Republicans talk up the economy, it might be worth looking at some hard data.
About 10 years ago, roughly 80% of Americans were in a pension plan. Stock market performance was of some interest. Today, nearly 80% of Americans are in 401(k) plans that directly depend on stock market performance.
Imagine two people who had $500,000 invested in the S&P 500 on January 20, 2000, when George took office.
Denny the Democrat, fearing George's policy and not knowing what else to do, sold all his stock at the opening bell and bought euros, putting all his money in a decent but conservative 3% a year savings account.
Reggie the Republican, delighted that his man was now at the helm, left his money in the S&P 500, trusting in the American economy and dollar.
Reggie lost 15% of his money, leaving him with just $424,765.
Denny made more than 69%, leaving him with $850,410, exactly twice as much as Reggie.
Reggie will have lost more than $75,000, while Denny will have made more than $350,000. Funny thing - no one has bothered to mention this at the convention. In fact, if you listen closely to McCain and his fellow speakers at the RNC, you would think that were NOT the incumbent party.
It's not just rising gas and grocery prices that have wearied folks. It is not just stagnant wages. It is no surprise that only 10% of Americans feel good about the economy. It is a surprise that the Republicans are able to gather a crowd in Minneapolis.
R World (Ron Davison muses aloud)
Showing posts with label dollar. Show all posts
Showing posts with label dollar. Show all posts
03 September 2008
02 December 2007
Oil Prices Aren't Up - The Dollar's Value is Down
As oil approaches $100 a barrel, a great number of explanations emerge that focus on oil. Demand for oil worldwide is increasing, led by growth in India and China. Oil supplies are reaching a limit and new supplies are becoming harder to reach. Instability in the Middle East has resulted in an additional risk premium. Explanations like these that focus on oil may miss the most important variable - the falling value of the dollar.
Since early '06, oil prices have gone up from the about $60 a barrel to nearly $100. By contrast, oil priced by euros has gone up from about 50 euro to over 60 euro. Oil prices have increased by about 66% in the US, but only about 20% in Europe.
The good news is that the country consuming the most oil per capita is going to be forced to become creative in its use of oil. The bad news is that just as our goods are becoming more competitive, courtesy of a devalued dollar, our input costs are going up. Unless we can find ways to produce as much with less oil, becoming more productive, or energy-efficient, this opportunity to lower our trade deficit by exporting more could be lost.
The reasons for launching a national energy policy initiative that would lessen our dependence on oil are stacking up. At some point, even people as unimaginative and cautious as politicians will have to wake up to this fact and act.
Since early '06, oil prices have gone up from the about $60 a barrel to nearly $100. By contrast, oil priced by euros has gone up from about 50 euro to over 60 euro. Oil prices have increased by about 66% in the US, but only about 20% in Europe.
The good news is that the country consuming the most oil per capita is going to be forced to become creative in its use of oil. The bad news is that just as our goods are becoming more competitive, courtesy of a devalued dollar, our input costs are going up. Unless we can find ways to produce as much with less oil, becoming more productive, or energy-efficient, this opportunity to lower our trade deficit by exporting more could be lost.
The reasons for launching a national energy policy initiative that would lessen our dependence on oil are stacking up. At some point, even people as unimaginative and cautious as politicians will have to wake up to this fact and act.
28 November 2007
Cub News Distorter (at your service)
A recent UN study ranked Iceland as the best place to live in the world. (The US slipped from 8th best to 12th.) In response, Iceland's president Olafur Grimsson announced a new campaign, handing out "We Love Global Warming" t-shirts and bumper stickers.
Trent Lott, of Mississippi, announced his retirement this week. The state's Green Party is excited about what they see as a great opportunity to gain a seat in the Senate, taking advantage of voter's dissatisfaction with Republicans. Of course, given this is Mississippi, the Green Party in question is actually the "The Collared Green Party."
Vice President Dick Cheney went back to his normal work schedule Tuesday, a day after doctors used an electrical current to correct an irregular heartbeat. Although this returned his heart to normal, doctors say that it would have taken a much larger shock to have actually softened his heart. (And on a related note, recent stock market gyrations have been traced back to Dick's EKG monitor. In his attempt at world domination from an undisclosed location, Dick has been working on a stock market manipulation scheme. In his haste to execute it, he got the wires crossed between his heart monitor and laptop. Until he gets this untangled, the world economy is only one stopped heart away from collapse. Wait a minute. Maybe he didn't get the wires crossed. Perhaps this is his plan for world domination. Oh well. Back to the news.)
Today, Bush launched the 43rd annual Middle East peace talks -throwing out the opening pitch in this fall classic by way of another in a series of ultimately ineffectual speeches given by American presidents.
Consumer confidence dropped more than expected in November. Apparently, shoppers are full of uncertainty, wondering if Uncle Fred would really like this cigarette lighter, wondering if WalMart is offering the same galoshes for $2 less, and wondering if this dress makes my hips look fat. Few feel very confident about their gift selections.
A British teacher working in Sudan's capital is being held for allowing her 7 year-old students to name a class Teddy Bear "Mohammed." British authorities are working for her release before she is punished with a whipping. These same officials have yet to find the time to intervene in the Darfur. There is nothing funny about this. It's just absurd.
The dollar has fallen to a record low against the euro, which cost nearly $1.50 last week. The Canadian dollar has passed the US dollar in value, rendering obsolete all those "US $ / Canadian $" prices printed on book flaps. Bush said that he didn't care if a dollar was worth less because he could just print more.
Paul McCartney is a pop genius, cultural icon, the "cute" Beatle, and a billionaire. For some reason, it's news that women will date him. It seems to me that it would only be news if they would not.
Mitt Romney announced that he couldn't appoint a Muslim to a cabinet position, given they make up only 1% of the US population. He did not clarify what sort of cabinet position he might grant to a Mormon, a faith that makes up merely 2% of the US population.
Trent Lott, of Mississippi, announced his retirement this week. The state's Green Party is excited about what they see as a great opportunity to gain a seat in the Senate, taking advantage of voter's dissatisfaction with Republicans. Of course, given this is Mississippi, the Green Party in question is actually the "The Collared Green Party."
Vice President Dick Cheney went back to his normal work schedule Tuesday, a day after doctors used an electrical current to correct an irregular heartbeat. Although this returned his heart to normal, doctors say that it would have taken a much larger shock to have actually softened his heart. (And on a related note, recent stock market gyrations have been traced back to Dick's EKG monitor. In his attempt at world domination from an undisclosed location, Dick has been working on a stock market manipulation scheme. In his haste to execute it, he got the wires crossed between his heart monitor and laptop. Until he gets this untangled, the world economy is only one stopped heart away from collapse. Wait a minute. Maybe he didn't get the wires crossed. Perhaps this is his plan for world domination. Oh well. Back to the news.)
Today, Bush launched the 43rd annual Middle East peace talks -throwing out the opening pitch in this fall classic by way of another in a series of ultimately ineffectual speeches given by American presidents.
Consumer confidence dropped more than expected in November. Apparently, shoppers are full of uncertainty, wondering if Uncle Fred would really like this cigarette lighter, wondering if WalMart is offering the same galoshes for $2 less, and wondering if this dress makes my hips look fat. Few feel very confident about their gift selections.
A British teacher working in Sudan's capital is being held for allowing her 7 year-old students to name a class Teddy Bear "Mohammed." British authorities are working for her release before she is punished with a whipping. These same officials have yet to find the time to intervene in the Darfur. There is nothing funny about this. It's just absurd.
The dollar has fallen to a record low against the euro, which cost nearly $1.50 last week. The Canadian dollar has passed the US dollar in value, rendering obsolete all those "US $ / Canadian $" prices printed on book flaps. Bush said that he didn't care if a dollar was worth less because he could just print more.
Paul McCartney is a pop genius, cultural icon, the "cute" Beatle, and a billionaire. For some reason, it's news that women will date him. It seems to me that it would only be news if they would not.
Mitt Romney announced that he couldn't appoint a Muslim to a cabinet position, given they make up only 1% of the US population. He did not clarify what sort of cabinet position he might grant to a Mormon, a faith that makes up merely 2% of the US population.
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