Its been a hard struggle for US citizens since 2008. Statistically, we've had the worst economy since the Great Depression. There are some indications that the economy is turning. There is positive worldwide growth, seasonal markets are climbing with summer, and crude oil prices have declined.
Worldwide Economic Growth
Ewald Nowotny of the European Central Bank Governing Council is reported as saying that Europe's economic upturn has become self-sustaining. This was reported in Reuters, by Michael Shields, on May 23, 2011. Its important to understand that US trade is dependent on foreign markets and because the US has shareholders internationally, it's a good sign for the dollar if Europe becomes self-sustaining.
Value of US Dollar Started to Increase
The US dollar index increased last week. This is a positive direction, as opposed to the constant downturn that had been occurring. However, it's not quite stable. The US can use currency exchange to get US money, or to balance the Federal Reserve, but if the market is low in other countries as well, then it might not be beneficial to make such trades. Or, as in recent years, the Euro has had a higher value. Currently the dollar is trading at .76 which is substantially low compared to past markets. The Federal Reserve has printed an article explaining the relationship with the dollar and currency trades. Other indications of changes in maintaining a US economic upswing, are changing US markets and oil crude trade.
Crude Oil Prices Decreased
Since Osama Bin Laden was killed, the price for a barrel of crude oil has dropped $17.00. This should help the working class at the pump, so that money can be spent on other products, or investments. Decreases in crude prices will affect operating and material costs for businesses as well. Crude oil was at $99/ barrel in 2008 but has breached that for 2011. Obama is pushing for the US to drill in the Atlantic to offset oil costs for the US. Don't count on substantial decreases at the pump.
Other Indications that the US Economy is Changing
There is a .05% increase in dry van and flat bed availability for May and the refrigeration lanes are opening in up in parts of the US based on seasonal needs. Overall freight increased 7% last week according to "TheTrucker.com". The LA Times showed that unemployment hit the highest rate since 1983 during the 2008 and 2009 years. Many still lost their jobs in 2010 and 2011. However, it appears that the losses are not increasing any longer. Unemployment and other economic forecasts are posted at "www.forecasts.org".
The US economy may be starting to crawl. Supporting international economies are becoming self-sustaining, the dollar is improving, crude oil prices are decreasing, freight has picked up and unemployment has sustained. These are good indications for the moment that change is coming. However, with worldwide terrorism and unexpected natural disasters still an ever-present threat, it's difficult to see how quickly a recovery may be. Regardless, the people that have been unemployed long term, will still be struggling.
The Federal Reserve can provide information on how the dollar value relates to the economy and future welfare in American investments: "http://www.federalreserve.gov/pf/pdf/pf_4.pdf"
Other sources:
"Sir Isaac Newton's Third Law of Physics: Gas Prices and Spending", Mariann, Bichle, Apri 25, 2011; "http://blogs.forbes.com/prospernow/2011/04/25/sir-isaac-newtons-third-law-of-physics-gas-prices-and-spending/"
FiveCentNickel.com suggests the following for saving money on gas: "http://blogs.forbes.com/moneybuilder/2011/06/09/the-ten-best-ways-to-save-money-on-gas/"
"The Future of the US Economy: 2050", Mathew Bandyk, US News, Feb 2010:
"http://money.usnews.com/money/business-economy/articles/2010/02/02/the-future-of-the-us-economy-2050"
Tobey Strauch - I graduated from Iowa State University with a Masters in Industrial Systems Engineering. I have traveled around the world to England, ...
