People have been freaking out lately by a weak US dollar. I’m here to tell you it doesn’t really matter. Did you know that 60% of Americans have never left the country and less than 25% of Americans own passports? Most of the 40% who leave come back, so it’s only a temporary amount of time when their purchasing power may be relatively hurt.
An even better statistic states that only 20% of Americans speak a foreign language. Hence, where the heck are the 80% of Americans going to go if they can’t communicate with the locals? Ok, so they may understand what “I want a double quarter pounder with cheese please” in English means, but we aren’t going very far if we can’t speak another language. Sure a vacation is fine, but it’s not like we Americans are suddenly going to relocate overseas and establish roots.
If you are an American who makes a US$ denominated salary, buys US$ denominated assets like property, consumes Levi’s jeans, and never plans to leave the country, what are you freaking out about? The US Dollar can depreciate by 90% against the Euro, and it still wouldn’t really matter. The government is crushing our currency on purpose and you know the government would never, ever, ever do anything to harm the people they serve.