How The Fall Of The U.S. Dollar Effects You

On Friday, (4/29) the U.S. dollar sunk yet again, hitting lows not seen since the summer of 2008. In fact, in 2011 alone, the dollar has lost 8% of its value against a basket of other major currencies. How will this effect you?

If You Are An American:

1) Whether it's what you pay for gas, clothing or practically anything else, the cost is rising. That is because most of what you buy comes from overseas and the dollar is falling against their currencies therefore buying less and less. Even China is quick to unload its U.S. dollars.

2) Food is getting more expensive even if its grown or produced in America, because farmers must buy gas to raise food and truckers must buy gas to deliver your food, prices are rising. According to the U.S. Bureau of Labor Statistics ground beef now costs $2.72 a pound, up from $2.27 two years ago and $1.74 in 2001. The cost of all the food staples: milk, bread and eggs are rising as well.

3) Health care is getting more expensive. Health care providers, hospitals and medical insurers have rising costs and they too are passing them on to you. The same is true at universities and colleges as the tuition you pay rises.

4) Overseas travel costs are rising. The dollar buys so little in many places outside of America, if you go overseas or even to Canada, brace yourself for sticker shock.

If You Are A Foreign National: from Europe, Asia and parts of the Middle East and South America, Americans will have no choice but to buy less, visit less and pay you in currency that won't go nearly as far as it used to.

As long as the U.S. Fed floods the world with cheap U.S. dollars and holds interests rates to nearly zero, while the U.S. government spends vast sums it doesn't have, this condition will continue and worsen. It is up to us Americans to grapple with our government, which doesn't listen to us, to bring fiscal responsibility. If we must bear the brunt of these continuous price rises, unless our paychecks spiral upward, we and our families are going to get squeezed.

Dick