Sunday, July 13, 2008

When Prices Rise Everyone Hurts

On our recent Independence Day vacation in Washington D.C. we did not notice a decrease in the number of people on holiday. With gas over $4 a gallon there were still over 300,000 people that showed up for the fireworks from all over. Many like us were from the west coast and even more were from other countries. I had a chance to talk to a few people that were visiting from as far away as Europe where the cost of fuel to double what it is here in the U.S. right now. But its not just the price of gas that has us Americans hurting in the wallet. Its the value of the dollar as well. Its that deflated dollar that makes the U.S. look like a good destination for foreign travelers. But as the dollar weakens even more and fuel prices continue to rise, what does it mean for everyone? Foreign travelers who's currency is strong against the dollar are not going to feel the pain, but for those of us here, its just going to get more painful. Watching the weekend news I saw a newsflash on an Airline newsconfrence when the heads are begging the government to do something to decrease the price of gas. many experts do not see all the airlines surviving the rest of the year, and the newest one I am hearing is of a collapse of the entire industry. I have a hard time seeing this happen but its not impossible. Only time will tell.

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