If You Think the Dollar Is Doomed, Read This

This article talks about the prediction that the dollar will weaken in the near future. This is very important, since the United States' dollar is considered the reserve currency of the world due to its stability, security, and protection from inflation relative to other currencies. In 2008, people who invested in other countries that earned different currency were hurt because the currencies were worth less then the US dollar.

The problem will be that the growing balance deficit and trade deficit will cause the dollar to grow weaker because other countries may choose other currency as their reserve currency.

This connects to what I learned in economics that a strong dollar buys more goods in the world market, and a weak dollar allows other countries to be more willing to trade with the US. Both have its strengths and weaknesses.

http://www.msnbc.msn.com/id/30667271/

Labor Department official analyzes April unemployment numbers

This article informs about unemployment numbers in the United States for April. Unemployment is very important, especially in times of recession, because the information tells people how many people searching for jobs are unemployed. Overall, the US incurred many job losses, especially in construction and manufacturing. However, health care and government employment increased in the month of April.

The US is having a problem with rising unemployment numbers, and it is not surprising to people that unemployment is going up, because it is cyclical unemployment (meaning that people are losing jobs because of economic conditions). However, the rate of unemployment is steadily decreasing and hopefully the job market will turn back within this year.

This connects what I learned in Economics that the market goes in booms and busts. The classical economist would say that unemployment will naturally go back down over time, and the Keynesian economist would say that some government intervention will set the market back on track.

http://www.bizjournals.com/denver/stories/2009/05/04/daily82.html