Reply #8: i would think the price of everything will increase as the dollar sinks

[lakeguy]

at least everything we buy from other countries that is. even the food we grow here generally is dependent upon foreign oil (i.e. pesticides, fertilizer, transport, etc.).

a drop in the value of the dollar will shrink the amount of money people have to spend on everyday items that will, in turn, reduce consumption. that could lead to an increase in unemployment and even less spending. it looks to me, depending on severity and timing of the drop, that this could lead to a very bad, cyclic sort of turn down. it's not like we will instantly be able to start producing more of the goods we depend upon (or want) here in the US. it will take time.

i think the impact could be softened by the gov., but i also think it has been shown that the gov. (at least the one we have now) won't lift a finger for the average joe like me.