The consequences of the housing con game have grossly devalued the dollar. Analysts say a devalued dollar is the real culprit behind increased energy, food and fuel prices in the United States and he thinks we’re in deep financial trouble with the weakened dollar.
Dave Minucci listens to the chatter on Wall Street about the flagging dollar but doesn't have to look far to cast his own assessment. A recent home heating bill was $120 higher than at the same time last year. But Minucci doesn't blame lower temperatures; the chill he feels is from higher energy prices and a weaker dollar.
He sees what many Americans may not realize: With commodities from oil to natural gas to grain to meat priced in dollars and becoming more expensive as the greenback falls, consumers have to spend more to buy the same amount of goods. And a lower dollar can raise the cost of imported goods -- with the increase often passed along to consumers.
"I think we're in trouble with the weak dollar," said Minucci, who works in the Capital Markets Finance group at JPMorgan Chase. (AP)
The cost of the war, the risky derivative-based housing investments, and the weaker dollar are creating a perfect storm of financial catastrophe here and abroad. We have been playing Russian roulette with the economy and the bullet’s now in the chamber. The piper will have his due—who’s going to pay him, and in what currency?
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