The state of our economy is extremely important these days. It determines how we spend or save our money. This means how are we contributing to the economy or taking away from the economy. During a time of slow economic growth people tend to worry about the stability of their investments. If they are worried that a slow down is occurring or will occur they tend to save more, in-turn slowing the economy even more. As the economy does well, investments are doing better, growing faster therefore people want to invest more money or invest it in something of value. Right now we are in a state where things could go either way. One day people try to be bullish then the next day they are acting like a bear. The market is kind of on a fence. Our country is in an “adjustment” period. We are adjusting to changes in our overall structure. Hopefully we will adjust properly and efficiently or their will be long days ahead.

     Our GDP this first quarter was only .3 which is basically flat. Interest rates are almost at an all time low and because of the weakening dollar they can not go any further south. As inflation threatens, interest rates will actually have to start increasing to counter the inflation. Currently Europe has high interst rates to try to stifle their inflation problem.

     For the most part, Americans are doing OK. Unemployment is pretty low which means most people are working and most people are able to make ends meet. Where the frustration is for most people is in the lack luster performance of the US Dollar. Its position is currently worse than it usually is when compared to most international money. Basically it is costing us more U.S. Dollars to buy the same things as before because the value of the dollar keeps dropping. The US Dollar is the main currency of the world which is why so many other countries are feeling the pain in ways also. Our elected officials do need to take steps in order to bring our country into a situation where we are energy independent. Most economists agree on this point. This is one of the main reason why we are seeing such huge spikes in oil prices. The other two reason are speculation of oil prices in the futures markets and the weakening dollar. The days of cheap oil are over and will probably not return for more than ten years. It will take some time to get our energy independence on-line. Oil refineries, drilling in our own oil fields in the US, coal to synthetic oil production etc. are the things that need to be a focus for our next elected officials. Stay strong, pay attention and take all steps to save money just in case things go the wrong way!