Saturday, May 31, 2008

Globalization is helpful

The globalization of our economy is helping to buffer the impact of the current economic downturn. A portion of our problem is the weak dollar. I have heard that 30% of the cost of oil is due to the dollars weakness. (That sounds about right.) The weakness of the dollar is perhaps our biggest problem. Fortunately, the fact that our economy is tied to the global economy keeps our national economy from totally going in the tank. The world's economies are highly dependent upon one another and as long as there is strength somewhere, that helps to support the rest of the world.