You may not have noticed that the prices of groceries and other commodities are rising because it’s a little like watching yourself age, but in case you are wondering, that nestegg in the bank account is worth less than it was not too long ago…as evidence, I offer the following four items from today’s news:
#1 The Canadian dollar reached parity Thursday morning with the U.S. currency for the first time in nearly 31 years. LINK
#2 The dollar dropped to record lows through the $1.40 level against the euro on Thursday as the US currency continued its slide following the Federal Reserve’s decision to cut interest rates earlier in the week.
“The key $1.40 level has been breached and dollar weakness is evident across all currency pairs reflecting the prospect of a move in interest rate differentials against the currency,” said Derek Halpenny at Bank of Tokyo-Mitsubishi.
The euro’s rise through the psychologically important $1.40 barrier – seen as pain barrier for eurozone exporters – triggered a flurry stop-loss buying, sending the single European currency higher across the board. LINK
#3 Saudi Arabia has refused to cut interest rates in lockstep with the US Federal Reserve for the first time, signalling that the oil-rich Gulf kingdom is preparing to break the dollar currency peg in a move that risks setting off a stampede out of the dollar across the Middle East. LINK
My advice to you…spend them while they can still buy something.